Why the coveted top spot is losing its allure.

Once perceived as a plum position and the pinnacle of one's career, new realities have conspired to make the top spot in the corporate world less desirable and more unstable. Just ask Sally Frame Kasaks, the recently deposed CEO of Ann Taylor Stores Corp. or Robert J. Frankenberg of Novell Inc., a casualty of the rapidly evolving computer industry. Kasaks drew praise for motivating the company's rank and file, but was criticized for her inability to build a team around her. Frankenberg, according to current and former Novell executives, "performed ably at the operational level, but failed to communicate a vision and a strategy for the company during a period of sweeping change in the computer industry." It's interesting to note that neither Kasaks nor Frankenberg had the luxury of time to prove themselves. Kasaks ran Ann Taylor Stores Corp. for less than four years; Frankenberg served as Novell's chairman, president and chief executive for two-and-a-half years.

Pity the chief executive officer. From discontented shareholders to anxious employees to demanding customers, today's chief executives find themselves accountable to - and under constant pressure from - a range of internal and external publics on a variety of financial, social and corporate issues. While most chief executives are generously compensated, the stakes are often higher and the humiliation more public in the case of failure.

In addition to meeting aggressive growth and profit forecasts, today's CEO is responsible for addressing issues never before imagined, including, for example:

* Does the company market its products or services in a socially responsible way?

* Is the company's work force balanced in terms of race and gender?

* Is the company considered a "good corporate citizen"?

* How does the company rate in terms of its integrity?

Navigating these turbulent waters while managing an organization's key publics, including shareholders, employees, customers, government agencies, legislative bodies, community leaders, the media, special interest groups, and the general public, is critical to a CEO's long-term success. Also critical to his or her success is the ability to survive, and even thrive, under the intense scrutiny of the media. Interest in the business of business has never been greater, which means that CEOs are being thrust into the media spotlight as never before. Witness larger-than-life personalities such as Bill Gates, Ted Turner and Jack Welch, to name a few. In the current climate, every CEO, not just the superstars, needs to be prepared to deal with the consequences of overnight fame - to be exalted if their companies thrive and vilified if they fail.

So, how can today's leaders, amidst all this attention and pressure, still come out on top? To begin with, a stronger link needs to be made between the communication function and the company leadership for the chief executive to manage change and maintain the support of key constituencies. Because of the intensity of the business climate and the limited time a CEO is afforded to demonstrate success, today's CEO needs to rely on the communication function as never before to help him or her articulate his or her vision, promote accomplishments and access, and mobilize key publics. Unlike any other member of the management team, the senior communication officer can be objective about issues that affect the business and can offer insight into the thoughts and feelings of key publics.

As evidenced by a recent Vanity Fair article on leaders to watch such as Rupert Murdoch, Michael Eisner and David Geffen, no CEO can afford to overlook the important role of communication in the highly public race to achieve aggressive growth.

In assessing the performance of today's successful CEOs, five truths are realized:

* The chief executive is aware of, and understands the new realities of, business and deals with them accordingly.

* The chief executive is able to confront the company's and his own personal strengths and weaknesses and invite ongoing evaluation of his and the company's performance from a financial and reputation standpoint.

* The CEO is thoughtful and selective about who he or she chooses as members of the "inner circle," ensuring that at least one person - the chief communication officer - has a total understanding of the business, can put tough issues into perspective, provide ongoing counsel and implement key strategic initiatives.

* The chief executive understands the importance of fine-tuning messages so that they are uniform against all stakeholders and always consistent.

* The CEO is able to focus efforts, establish priorities, communicate progress and manage expectations.

Cope with the New Realities

It's no secret. The contract with workers has been broken, and the result is less loyalty, less trust and a loss of productivity on the part of employees. Today's employees are more questioning and less accepting. They want to know where the organization is headed and if they will be a part of it. This gradual shift away from the traditional "command and control" environment, where everyone knew their roles and routinely executed the bosses' program, has caught many CEOs by surprise and left them wondering how to cope with these disenchanted employees.

As a result, on top of all his other responsibilities, today's CEO finds himself in the position of having to re-energize a discontented work force and mobilize it.

Beyond employees, other key publics need to be managed with a firm hand. The company's shareholders and members of the board of directors are powerful constituencies who have the power to wreak havoc on a CEO's reign - based on their evaluation of the company's stock performance. A poor showing on the stock market is often all shareholders and the board need to fuel talk of cutting jobs and expenses. A strong leader will withstand this pressure to shed assets and employees for the sake of a short-term increase in the price of the stock. An effective CEO will also take steps to insure that the board of directors and key shareholders understand her long-term strategy. Throughout her term, the CEO needs to take a proactive approach in dealing with board members and communicating with analysts. The CEO must communicate regularly and honestly with board members, always remaining accessible and encouraging open discussions of all matters relating to the company. For board members and key shareholders to feel content that things are running smoothly and according to plan, they need to have access and exposure to the CEO on a regular basis. After all, as one senior corporate communication officer noted, "[They] still bet on the jockey, not the horse - stakeholders want to have a feel for the person running the company."

The chief executive's woes in managing key publics often are compounded by the fact that the information flow to and from companies is no longer controlled or controllable. Thanks to new media such as the Internet, it's impossible for traditional gate-keepers to control leaks about layoffs, plant closings or pending joint ventures. As a result of the media's access to companies, key publics, including employees, shareholders, board members, customers and consumers, are more aware of what companies and their chief executives are doing than ever before. In some cases, reports in the media are responsible for fueling rumor and speculation, ultimately helping to contribute to a skittish work force and restive stakeholders.

Include Chief Communicators in Inner Circle

For chief executives to come to terms with the new realities of business, they need to rely on a few key executives to help them gain and maintain perspective. One of these insiders should be the chief communication officer. Qualifications for this position may focus more heavily on the candidate's character than typical job positions. For example, the ideal candidate will be honest, trustworthy, discreet, with solid analytical skills, and a total comprehension and understanding of the core business and the key publics. He or she will have the ability to listen, the ability to counsel and the ability to help the CEO manage competing priorities. The most important qualities, however, are chemistry, trust and respect. Without them, it's impossible for the CEO and chief communication officer to establish a productive long-term relationship.

Beyond offering counsel on a wide range of business issues, the chief communication officer has to have the ability to put tough issues into perspective. Unlike virtually any other member of the senior management team, the chief communicator has the objectivity and the flexibility to provide the chief executive with information and advice about what key publics know, feel and believe about the organization or how they may behave given a new organizational initiative. On a daily basis, the chief communicator will be in the position of walking a fine line between understanding the organization's mission and strategic direction and acting as spokesperson for it and serving as an advocate for publics that may have important input for, or contributions to, the organization.

Assess the State of Affairs

Another area where the chief communication officer will play a significant role is in helping the CEO and the senior management team to make a critical assessment of the business, its strengths and weaknesses, and areas of opportunity. This in-depth examination of the business is designed to help the leadership team determine what makes the company unique. As part of this exercise, it's also important for the CEO to take stock of his personal strengths and weaknesses so he can surround himself with a mix of people who will complement his style and balance his skills. To supplement these efforts, the effective chief executive also will champion systems for evaluating her performance - and that of the company - on an ongoing basis. Not only does this tactic enable the CEO to defuse problems as they arise, it also provides the CEO with an ongoing vehicle for communicating her results and the results of the company against agreed-upon objectives. After all, no modern chief executive can take the risk of assuming that good deeds speak for themselves - she needs to promote his achievements to key publics on an ongoing basis.

Another "new reality" that's redefining how the CEO of the nineties operates is the prevalence of information. Thanks to the Internet, all-business channels like CNBC, and other up-to-the-minute news media, a chief executive cannot say one thing to employees and another to shareholders. Consistency of messages and image is paramount to long-term credibility. Messages also need to be clear and concise because today's consumers, employees, shareholders and customers are much less tolerant of "corporate-speak" and much more adept at reading between the lines. This is especially true when it comes to investor relations. When dealing with analysts, it's important that communication be candid and that the message be conservative. According to an article by Donald W. Mitchell in Chief Executive magazine, "analysts tend to favor companies that communicate honestly and effectively and to discount the value of those that fail to provide a realistic view of their risks and problems."

The author goes on to say that a key measure of CEO performance is the amount of time spent talking with analysts and portfolio managers - there should be a dialogue and a feeling of trust in those relationships.

Make the Most of the Spotlight

Lou Gerstner. Jack Smith. Gil Amelio (Apple). These chief executives live in the media spotlight. These days, however, it's not only the big-name CEOs who are under constant scrutiny - it's also every CEO. This level of visibility demands that CEOs be themselves at all times, whether at the office or at home. Employees and shareholders alike will judge leadership on the basis of credentials, experience and value systems. They want to know: Does he or she have a coherent game plan? Is it legitimate? Is he or she legitimate? Does he or she seem in charge? Should we have confidence in him or her? For the CEO to be able to demonstrate credibility, he or she must be focused on priorities, consistent in message and values, and always project the image of being in charge.

To be truly focused, the CEO cannot be spread too thin or nothing will get done. Nor can the CEO be too hands-on. During Ann Taylor Corp.'s explosive growth in 1994, no garment reached the stores without Sally Kasaks' personal approval - she even agonized over selecting buttons, a former employee said. To keep the CEO on track, the chief communication officer needs to work closely with him or her to help assess key priorities and stay focused on them.

To build a good track record and maintain the confidence of key publics, the CEO must be consistent in actions, values and messages. For example, a company cannot portray itself one way to stockholders and another to employees. This disconnect will quickly erupt, causing massive image problems and resulting in a loss of credibility in the CEO's game plan.

While focus and consistency are critical to building long-term credibility and achieving success, the chief executive must also always project the image of being in control and in charge. In these turbulent times, employees, the board and key shareholders need to know that a leader is in control and has a sound plan for achieving growth and profit. It is up to the CEO, along with support from the chief communication officer, to reassure key publics by communicating the CEO's strategic plan in terms that are clear, concise and highly measurable.

Keep Perspective

What it all boils down to for today's leaders is keeping perspective. Chief executive officers have the opportunity to restore luster to this once-coveted position, by redefining their responsibilities and reasserting control. CEOs need to manage short-term expectations with long-term strategy, by articulating and defending their business plans, vision and achievements. They need to stay the course and weather the pressures of powerful publics like the media, shareholders, employees and the board. They need to craft messages that are simple, meaningful and uniform. And finally, CEOs need to rely heavily on the chief communication officer to provide a perspective on a variety of issues that have the potential to shape the direction of the company and affect its ability to achieve growth. Tomorrow's leaders have a tremendous opportunity to redefine the role of CEO, but only if they seize it today.

Gary F. Grates is CEO, Boxenbaum Grates, Inc., New York.