They blog, therefore they are ... better CEOs

Jonathan Schwartz, the chief executive officer of Sun Microsystems Inc., does it. So does Robert Lutz, vice-chairman of General Motors Corp. J.W. "Bill" Marriott Jr., CEO of Marriott International Inc., and Michael Critelli, executive chairman of Pitney Bowes Inc., also do it.

"It" is blogging - that modern-day way of writing a journal, only on the Internet.

Since blogging began a decade ago, all across the Web, millions of blogs -a contraction of web and log - have spread like wildfire. Website Technorati tracks more than 100 million blogs.

But at the highest corporate echelons, only a small band of executives have taken it up.

One list maintained by socialtext.net shows just 54 of Fortune 500 companies have corporate blogs. It doesn't specify, however, which ones are actually the prose of CEOs. In Canada, you could probably count on just two hands the number of blogs penned by top executives.

Why have CEOs been slow to jump on the blogging bandwagon? Are those who are blogging ahead of the curve - or is this one idea that just won't catch on?

Why blog?

The idea is simple: Use the instant communication and marketing power of the Internet to have a two-way conversation directly with employees, investors, customers, clients, suppliers and other interested readers.

"Direct communication with your marketplace is the biggest upside. It tends to have a lot of authority coming from the CEO," says Maggie Fox, CEO of consulting firm Social Media Group Inc., of Dundas, Ont., and a blogger herself.

When the company critics come knocking, blogs also offer a forum for leaders to fire back or offer up their own version. It's a way "to tell your corporate story the way you want to, an unfiltered way to communicate your message," Ms. Fox says.

Bloggers in the CEO's seat

When Jim Estill's company was bought out by technology products distributor Synnex Canada Ltd. of Toronto nearly three years ago, he became the strange face at the top to Synnex's employees. So, he turned to blogging to acquaint himself with his new staff.

"I thought I should show a little about who I am. I think that helps you to lead a company," Mr. Estill recalls.

What began as a way to reach out to employees "has morphed into readership by customers and vendors and just general readership, people interested in CEO life," he says.

Indeed, Mr. Estill may be one of Canada's most regular CEO bloggers. He devotes about two hours a week to an average of three postings at his blog, called Time Leadership and located at http://www.jimestill.com. He estimates his blog receives 3,000 to 4,000 unique visitors a week.

His postings focus on work-related topics, such as time management and efficiency, and more personal topics. "My formula is about 20 per cent personal and 80 per cent business," Mr. Estill says.

He says his blog has been an effective way to tell his and his company's stories. And "the more people know me, the more apt they are to do business with me. It gives me a lot of influence with my customers and my suppliers in ways that I didn't think it would."

But it's not just business that readers take notice of. One of his most memorable postings was entirely personal - writing about his niece who had been in a serious car accident. Most entries might elicit 10 responses; this one brought close to 1,000, he says.

It's all business for Sass Peress, CEO of ICP Solar Technologies Inc. of Montreal, who says he stopped writing completely about personal matters after taking his company public. "It's not the place. Keep your family out of it," he says of his blog at sassperess.com, which he started in June, 2005, because he wanted to "provide our stakeholders with a view on my vision as it evolves for our company, our industry and the environmental movement as a whole."

Mr. Peress writes just twice a month, spending about half an hour on each entry. That's not enough, he says, although he still manages to attract about 1,500 unique visitors a month.

And he's seen the payoff: At least one customer was persuaded to do business after reading his blog. "They liked the CEO of the company through his writing."

Mr. Peress believes his blog "elevates the brand" and "gives the company credibility as a leader."

Mark McQueen, president and CEO of Wellington Financial LP in Toronto, started

wellingtonfund.com/blog in 2006, and posts every work day, a task that takes him 20 minutes to three hours.

He launched it as a way to communicate with partners and clients on topics of mutual interest. Mr. McQueen writes about current events in the technology, finance and venture capital worlds.

The low startup costs also made it an appealing alternative to more expensive marketing options, as did the idea that it could be quietly shut down if nobody dropped by. But drop by they did, and the site now gets about 1,000 visitors a day.

It has paid off in marketing spades. Within the first six months, the blog generated excerpts or interview requests from media, including Barron's, The Wall Street Journal, Canadian Business magazine and The Globe and Mail - attention and profile Mr. McQueen doesn't believe would have been received were it not for his on-line presence.

So why don't more blog?

For one thing, there are concerns that CEOs may spill sensitive or confidential information. "Lawyers don't like it," Mr. Estill says bluntly. "There is an issue: We're a public company and so I can't write about my financial results or what competitively we'll be doing. There are things you have to be more careful about when you are a CEO blogger."

Beyond that, it's a huge commitment.

First, there's the time: "If you want traction and to have it read, you have to post regularly, which takes a lot of time, something CEOs don't have a lot of," Ms. Fox says.

Then there's the writing itself. "You have to be a good writer and write in an interesting and engaging way," she says. "That's a very particular skill and talent."

It also requires thick skin. Blogging isn't a one-way street so CEOs have to be prepared for negative feedback.

Mr. Estill recalls writing about his decision to close and relocate one of his company's warehouses. "I had people anonymously flaming me. It's depressing to come in in the morning and have people telling me what a reprehensible individual I am."

Mr. Peress doesn't mind the negative feedback. "I think we only grow from challenges and constructive criticism."

Aside from all this is the question of whether the CEO is even the right person to be blogging, Ms. Fox says.

"The intelligence you get from the middle ... the people who are actually doing the building, the engaging, the selling, that's where you get the really interesting content. Generally speaking, the really interesting stuff doesn't come from the CEO, it comes from the other people in the organization."

More CEOs to come?

Mr. Estill considers himself an early adopter but believes more will follow. "I am probably a better CEO because I blog."

Mr. Peress is also an advocate. Predicting it will be "big, in time," he says that "every CEO should do it. If you want your company to be seen as a leader, its leader must be seen that way, too."

But Ms. Fox says blogging isn't for every CEO. "If you have someone with a lot of character and personality, and a gift for writing and communicating, it's a great idea."

THE UPSIDE

"It's all about business intelligence. You can find out what the marketplace thinks of your products, unvarnished and in real time, and it's through comments from people who use your products and care enough to let you know."

Maggie Fox, CEO, Social Media Group Inc., Dundas, Ont.

THE DOWNSIDE

"It's a bear, a huge burden, and, if you do a couple of interesting posts, it raises the bar and there's a burden to perform."

Mark McQueen, president and CEO, Wellington Financial LP, Toronto