Did BP CEO Spend Too Long Talking to Rocks?
Is it enough that a chief executive is good? Or does he or she have to look like a good chief executive too?
BP's Tony Hayward may be a good geologist and have impressed the company's nominations committee with his management skills, but when tested by the Deepwater Horizon explosion, he has failed in presentational terms.
And if he is forced out of the company, it will be because he did not meet the public's expectations of a chief executive, not because of the disaster or his management of it.
Few CEOs are likely to be mauled for seven hours by a committee of baying congressmen playing to their voters watching on television, but directors regularly face a variety of inquisitions, from shareholders' meetings, courtrooms, UK parliamentary committees, institutional investors, journalists and discontented customers. The BP chief executive's list adds the US president and the "small people" on Louisiana beaches.
But while headhunters and appointments committees should not select candidates for top jobs for their physical appearance or accent, presentational abilities are an essential part of a director's skill-set. Those able to communicate authoritatively, quick thinkers with command of their brief, should be more likely to be offered senior positions: those with other talents must be prepared to master the skills of presentation.
For a company that was, until recently, Britain's largest corporation it is surprising BP's chief executive seemed so inept in addressing his different audiences. More worrying, he failed to read the signals and react to criticism as the Gulf of Mexico disaster escalated -- an escalation caused at least in part by his communications failure.
Investors, politicians, environmentalists and communities all found fault in his message. An executive in that position must realise critics will search his words and actions for gaffs, arrogance, condescension and ignorance. And he must have answers even for baying congressmen.
Tony Hayward was the face of BP seen by the world -- including by consumers of his products -- and he failed to present an image of a company ahead of the curve in solving a serious problem. His actual abilities and those of the vast team beneath him count for nothing if the world sees only a struggling executive showing neither seriousness nor leadership.
His own advisers must take some blame for poorly briefing him on dealing with press and politicians but a good chief executive has a natural ability to handle crises without having to be told how to perform. Good communication is genuine, not something supplied by public relations staff.
Other executives, especially finance directors and chairman, need to be able to communicate with stakeholders too, but presentation is not something a chief executive can delegate to fellow directors, never mind to corporate mouthpieces.
It is a prerequisite for the job and a good CEO not only has it in sufficient quantities for normal business, he has reserves of it so that he can cope even in the sort of exceptional circumstances Hayward has faced.