Introducing…

impacta meaningful, positive, measurable

on your performance

Introducing…

International, networked

• 85% of our clients work with more than one Fleishman-Hillard office

• Our top 100 clients work with an average of eight Fleishman-Hillard offices

• Our most networked client works with 30 of our >80 offices

Today’s realitiesin the

business arena

Today’s* 31 realities in the business arena

Self-confident people

Individualists Spoilt

Active

Self-propelling

Critical

Rational

Emotion

Decisive

Powerful

Power shifts

Call for transparency

Issues

Role shiftsFunctionality?

Senses!

Virtual Perceptions

Weblogging

Internet

Global

Communities

Broadcasters

EgoShareholders

Stakeholders

Activists

Scandals

Mergers

Lay-offs

Interference

Experiences

* Subject to constant change!

How people consider organisations, nowadays

Critical

Rational

Emotional

What organisations need to do

This critical attitude requires a balanced communication and

behavior approach

• Taking into account both rational and emotional aspects,

• Taking into account the outside-in perspective:– Stakeholders points of view,

• Taking into account the inside-out perspective: – Organisation’s points of view,

• And have all this managed in balance, simultaneously, and

ongoing

Products& Services

FinancialPerformance

SocialResponsibility

Vision & Leadership

WorkplaceEnvironment

EmotionalAppeal

REPUTATION

Outside-in perspective: reputation drivers

Source: Reputation Institute

Inside-out Perspective: 5 steps to corporate fame

1. Authenticity the essence: vision – mission - values – positioning

2. Distinction recognizably different – distinctive promise – stand out

3. Consistency in actual behavior + in all communication programs

4. Transparency open yourself up - disclose information timely

5. Visibility participate actively – make your initiatives visible

WorkplaceEnvironment

WorkplaceEnvironment

FinancialPerformance

FinancialPerformance

EmotionalAppeal

EmotionalAppeal

Vision &Leadership

Vision &Leadership

SocialResponsibility

SocialResponsibility

Products &Services

Products &Services

• Feel Good About• Admire and Respect• Trust

• High Quality • Innovative • Value for Money• Stands behind

• Market Opportunities• Excellent Leadership• Clear Vision Future

• Good Place to Work • Good Employees• Rewards Fairly

• Record of Profitability• Low Risk Investment• Growth Prospects• Outperforms Competition

• Supports good causes• Responsibility for Community, Environment

• Feel Good About• Admire and Respect• Trust

• High Quality • Innovative • Value for Money• Stands behind

• Market Opportunities• Excellent Leadership• Clear Vision Future

• Good Place to Work • Good Employees• Rewards Fairly

• Record of Profitability• Low Risk Investment• Growth Prospects• Outperforms Competition

• Supports good causes• Responsibility for Community, Environment

Corporate Communication & Management Communication

Marketing Communication &Experiential Marketing

Employee Communication &Employer Branding

Investor Relations &Financial Communication

Corporate Citizenship &Community Communication

Reputation Perspective: Build balanced programmes

• Authentic• Distinctive• Consistent• Transparent• Visible

US Consumer Opinion Survey on CSR (Preview)

• FH and National Consumers League

• Purpose: capture average consumer’s attitude towards CSR

• US adult consumers, all 50 states

• 800 telephone interviews, 30 minutes

• Q1 2006

“Employees Matter Most”

• Nearly 50% say: treating + paying employees well is most important

– Not environmental stewardship or philanthropy

“Values Are Critical”

• Strong feeling for companies with values that are aligned with their personal values

• “Extremely” or “very” important to

work for (79%),

buy products/services from (65%),

and socialise with (72%) those companies who have similar values and principles

Overall Finding

• American consumers, empowered by technology, are setting their own agendas on Corporate Social Responsibility,

… rather than taking cues from the business world or traditional social activists

How To Value Our Efforts?

• How align communications activities with corporate goals and strategy?

• How allocate budget and effort across activities/programs to maximise the business impact?

• How measure and manage the value that communication really creates?

Wouldn’t It Be Great To…

• Define the specific business value generated by communications in terms of– Profitability,– Market share,– Revenue,– Employee turnover,

or any other measure that matters to corporate management?

Wouldn’t It Be Great To…

• Distinguish the value created by corporate communication and evaluate the contribution of marketing PR compared to other campaign elements, in terms of– Unit sales,– Revenue, – Or other measures?

Wouldn’t It Be Great To…

• Be able to predict the potential creation of additional value from specific messages of communications activity?

Where we are

Measurement is Evolving

COMMUNICATIONSOUTPUT

ORGANIZATIONALOUTCOMES

EFFECT

DATA EFFECT

Where we began

Where we were

Counting Establishing CausationAnalyzing

COMMUNICATIONSOUTPUT

Communications CoPilotsm

>Demonstrate the total value created by a communications campaign

> Identify communications activities creating most value>Drive strategic and tactical decision-making in the

communications function, including functional structure/integration and program development

>Compare performance in a particular area to your industry’s or peers’ performance

A statistically based measurement framework, Communications CoPilotsm has the power to:

Scenario Planning

• Develop and conduct customized scenario planning simulation exercises to help management teams prepare for special situations, including product launches and crisis situations

• The customized scenario planning models are responsive to inputs and reactions developed by exercise participants, helping managers formulate future strategy

Bundled Expertise: CCW

• Communications Consulting Worldwide (CCW) is the measurement-based communications consulting unit affiliated with Fleishman-Hillard

• It helps organizations measure, manage and grow the value of communications

• It was developed through a two-year investment by Fleishman-Hillard

Case Study: Transportation Company

• A major transportation company wanted to determine the contribution of media relations activities to its target business outcome: revenue

• They provided CCW with media relations data, customer satisfaction survey data and financial data to create a robust model for measurement

Analyze Results &

Effects on

Outcomes

RunComm

sCoPilo

t

Prepare

Data

Collect Comms

Data

Determine

Outcomes

& Data

Shape Strategy

Case Study: Transportation Company

• Findings: – The message themes that have the most

significant contribution to revenue, include corporate culture & CEO, management strength and employee relations

– Media relations contributes approximately $300 million in annual revenue

• The client is now using CCW analysis to shape upcoming media relations program development

Wrap up

• Effectiveness of communication can be measured – through statistical analysis

• Reputation can be managed

• Do not underestimate the intangibles

• Carefully balance inside-out and outside-in

• Be yourself, and show yourself

Fleishman-Hillard Europe, Reputation Managementwww.fleishmaneurope.com

Lucas MichelsChair, European Practice Group Corporate Reputation ManagementTelephone: +31 20 406 [email protected]

Thank You