CEOs More Likely to Rely on Intuition Than Metrics When Making Business Decisions

The results of the sixth annual 2006 PRWeek/Burson-Marsteller CEO Survey reveal that CEOs are more likely to rely on their intuition than on data-driven analyses and quantitative information when making business decisions. Six in 10 (62 percent) of CEOs indicate that gut feelings are highly influential in guiding their business strategies, while only four in 10 cite internal metrics and financial information (44 percent) or competitor analyses (41 percent). When considering outcomes of their actions, customer reactions (79 percent), long-term financial performance (74 percent) and corporate reputation (73 percent) are CEOs’ top priorities. "Business decision-making is a multi-dimensional process that incorporates instinct, information and foresight,” said Mark J. Penn, Worldwide President & CEO, Burson-Marsteller. "The intuition cited by these CEOs is likely fueled by research, sharpened by years of experience and industry know-how as well as a deep awareness of stakeholder attitudes and behaviors.” Emerging Issues Force CEOs to Revise Long-Term Strategies While focused on long-term financial goals, CEOs often find themselves revising their strategies in light of emerging issues. Sixty-four percent indicate they re-evaluate their long-term business goals on a quarterly basis or more frequently. New technologies (58 percent) appear to be the primary reason why CEOs have to shift gears so often, followed by changes in energy prices (41 percent) and healthcare costs and concerns (39 percent). Over one-half (53 percent) of CEOs stress the need to better understand the impact of emerging issues on their business, when revisiting their strategies and realigning their resources. When dealing with the ever-changing economic and social landscape and striving to meet financial goals, over one-half of CEOs of large companies--with revenue above $10 million--indicate they rely on their executive and strategy teams for guidance (55 percent). Meanwhile, CEOs of smaller companies are less likely to give the primary responsibility of dealing with emerging issues to their extended teams (19 percent). Internal Communications Highlighted as Key Component of CEO Role CEOs recognize the relationship between sound business judgment and employee satisfaction. "CEOs are under greater pressure to recruit and retain top talent in an environment where people move around to different companies more frequently, and often feel less of a connection to bigger organizations," said Julia Hood, PRWeek's editor-in-chief. "Creating a culture of innovation and making employees part of the decision-making process are key components for fostering loyalty and commitment to the company's mission.” Sixty-two percent of CEOs indicate they strongly prioritize morale as an outcome of their business decisions and 61 percent say they regard motivating employees and building morale among their key responsibilities. In fact, despite the emergence and popularity of new communication technologies, face-to-face communications appears to be the primary method of CEO-employee interactions. On average, CEOs spend 42 percent of their time interfacing with employees. About the Survey The PRWeek survey on non-PR CEO's importance of public relations was conducted by PRWeek and research firm Millward Brown. A total of 252 U.S. CEOs completed the survey in September 2006. Based on the sample size, the results are statistically tested at a confidence level of 90 percent. Complete survey results can be found in the November 6, 2006 issue of PRWeek. About PRWeek Launched in November 1998, PRWeek was Haymarket's first weekly title in the US. Over the years, PRWeek has established itself as a vital part of the PR and communications industries in the US, providing timely news, reviews, profiles, techniques, and ground-breaking research for practitioners. This research includes annual salary, CEO, and corporate surveys, as well as key industry sector rankings and regional forums. The magazine also launched the PRWeek Awards to showcase and recognize the best practices in the PR industry. PRWeek is responsible for creating the largest advertising market place for products and services, as well as for jobs, in the public relations industry. About Burson-Marsteller Burson-Marsteller (www.burson-marsteller.com), established in 1953, is a leading global public relations and public affairs firm. It provides clients with strategic thinking and program execution across a full range of public relations, public affairs, advertising, and web-related services. The firm’s seamless worldwide network consists of 57 wholly-owned offices and 44 affiliate offices, together operating in 58 countries across six continents. Burson-Marsteller is a part of Young & Rubicam Brands, a subsidiary of WPP (NASDAQ: WPPGY), one of the world’s leading communications services networks.