Captures 25 years of experience in the area of corporate communications

1. 1
Primer on Communications
Communications by Management
Management by Communications

2. 2
Elements of Communications
Sender
provides information
transfers convictions
Medium
relates the contents
is part of the message
Receiver
deals with the information
evaluates the convictions

3. 3
Goals of Communications
Increasing the knowledge base
providing new information
restructuring old information
Reinforcing/changing an existing value system
Accepting transferred convictions
Changing ones own conviction base
Impacting on behaviour
Adjusting attitudes and perceptions
Acting/reacting in line with new information

4. 4
New Characteristics of Communications
Abundance
Information overflow
Information anxiety
Speed
Info Highway
Speed of dissemination
Global village
Boundaryless society
Internet

5. 5
Emerging Company Responses
From informing to providing access
Information no longer given
Information now made accessible
Example of Lotus Notes/Intranets
From cascading to networking
Information no longer a privilege
Information no longer linked to hierarchy
Networking as key
From sending to interacting
Forum discussion
Fax feedback
CD ROMs

6. 6
The Strategic Value of Good
Communications
Empowerment through communications
Goal setting
Contextual knowledge
Communications to substitute control
Informed people perform better
Feedback is essential
Shaping outside perceptions
by important company stakeholders
by critical groups of society

7. 7
Gaining Competitive Advantage through
Communications
Companies need success in the market of products
increasing the relevant market share
by product oriented marketing activities
and in the market of opinions
increasing the relevant share of minds
by stakeholder oriented communication activities
Longterm success
needs good competitive stance
In both markets

8. 8
The Importance of Share of Market and
Share of Mind
Share of market
is an expression of product preference
brings economies of scale
by lowering unit costs of prodduction
Share of mind
is an expression of company preference
provides economies of time
by getting faster access to stakeholders

9. 9
Nature of the “Opinion Market”
Two different structures
published opinion, and
public opinion
Different approaches
media interaction
opinion moulder interaction
Two main influencers
company behaviour
opinions are formed by activities
company perceptions
opinions are formed by communications

10. 10
The Importance of Perceptions
Perceptions drive action
by politicians
the concerns of the public are the votes of the politicians
by regulatory people
bureaucracy wants to be in line with public concerns
Perceptions drive reality
majority beliefs become reality
51% become the truth
facts are altered by opinions
“Science looses to Joe six pack”

11. 11
Corporate Reputation is Based on Perceptions
Perceptions create “company reputation”
in the regulatory environment
for registration, pricing, permits
within other stakeholder segments
for financial valuation of company
Reputation becomes a competitive factor
good reputation helps the business activities
images of quality, reliability, fairness
goodwill can even be acounted for
bad reputation can be a hindrance
images of untrustworthiness, bad citizenship
example of Shell case

12. 12
Corporate reputation needs to be managed
by consistency of behaviour
“walk the talk”
in good and bad times
by good communication practices
to improve “stakeholder relationships”
to shape perceptions in line with reality
By competence in dealing with critical situations
Issues management
Crisis preparednes planning

13. 13
Main success factors in the “opinion markets”
Effective perception management
show Company’s realities
via proactive communication practices
via use of modern media
be aware of your own perceptions
check in-house morale
be aware of employees concerns
inside/outside perceptions will ultimately converge

14. 14
Main success factors in the “opinion markets”
Sound “communication culture”
follow the “Core Values of Communication”
put them down and discuss
train regularly
learn to deal with communications dilemmata
make people aware of their existence
learn to manage ambiguities

15. 15
Main success factors in the “opinion markets”
High reliability
minimize “walk/talk divergencies”
establish early warning system
correct mistakes early
be ready to apologize
maximize consistency of information
make informations readily available
use shared databanks
Lotus Notes as example

16. 16
The Construct of Personality
Think
The way a person thinks
Personal beliefs
Walk
The way a person acts
Personal character traits
Talk
The way a person speaks
Personal communication elements
Look
The way a person looks
Personal looks
Feel
Emotions
Sympathy

17. 17
The Construct of Corporate Identity
Think
The philosophy/vision of a company
Corporate value system
Walk
The behaviour/acivities of a company
Corporate behaviour system
Talk
The communication culture of a company
Corporate communication system
Look
The design patterns of a company
Corporate design system
Feel
Emotionality

18. 18
Perceptions count
Stakeholders perceptions
Awareness of Company
Degree of visibility of the company
Beliefs about Company
Degree of openennes of the company
Attitudes towards Company
Degree of accessibility of the company
Convictions about Company
Degree of trustworthiness of the company

19. 19
Perceptions create reality
Perceptions by the media
they create awareness
they generate public concerns
Perceptions by politicians
they create the legislative agenda
they shape regulatory action
Perceptions by opinion moulders
they fuel special interest groups
they guide the opinion market
Perceptions by financial institutions
they impact on shareholder value
they shape financial reputation

20. 20
Perceptions and Reality interact
Reality drives perceptions
actions speak louder than words
the importance of consistency
Perceptions drive reality
majority beliefs create reality
the importance of transparency
The need for “matching” the two
realities will always prevail
the importance of truthfulness

21. 21
The Management of CI
Managing the Corporate Personality
Principles for Leadership
Managing the Perception of Company
Creating stakeholder awareness of Company
Managing the Communications of Company
Creating knowledge about Company
Managing the Reputation of Company
Creating the economic reputation
financial performance
Creating the ecological reputation
environmental performance
Creating the social reputation
correctness in critical situations

22. 22
Management of Perception
Create awareness
put Company into the mind of important publics
put faces to the company
Differentiate the company
Leader instead of follower
Tools
Event creation
Sponsoring

23. 23
Management of Communications
Create understanding/trust
be accessible
be open
be reliable
Assure consistency of communications
uniform signals
coordinated answers
avoid contradictions
Tools
Core Values of Communications
Lotus Notes/Intranet

24. 24
Management of Reputation
Financial reputation
Generate track record of reliability
deliver on promises
walk the talk
Political reputation
Honest behaviour in good and bad times
truthfulness in dialogue
admit/correct mistakes
Tools
Investor Relations
Issues Support and Advocacy Network

25. 25
The communications dilemma
To communicate
poses advantages
poses disadvantages
To not communicate
has advantages
has disadvantages
Communications alwas poses dilemmata
they have to be recognized
they have to be dealt with

26. 26
The ten dilemmata of communications
the visibility dilemma
the openness dilemma
the media interaction dilemma
the reduction of complexity dilemma
the outside/inside dilemma
the investor relations dilemma
the uniform signals/messages dilemma
the not enough facts/not enough time dilemma
the global/local dilemma
the truthfulness dilemma

27. 27
The visibility dilemma
High visibility
supports competitive position
makes employees feel good
helps in the market place
but
increases overall exposure
can make company a target
may attract undue criticism

28. 28
The openness dilemma
Openness in communications
establishes reliability
fosters trust
creates good reputation
but
may expose trade secrets
could hurt competitiveness
could create legal problems

29. 29
The media interaction dilemma
Frequent media interaction
provides public understanding
makes the company credible
creates social acceptance
but
takes a lot of management time
exposes you to wrong quotes
carries the risk of misunderstanding

30. 30
The reduction of complexity dilemma
Reducing complexity
creates better understanding
generates widespread acceptance
may prevent undue societal control
but
is difficult for competence based management culture
does not allow for differentiation
may look non-professional

31. 31
The outside/inside dilemma
Positive messages to the outside
may be required for financial reasons
may be necessary to attract shareholders
may be strategically important
but
can be misunderstood in times of downsizing
can confuse hard pressed employees
can appear contradictory to cost containment

32. 32
The Investor Relations dilemma
Communicating with investors
assures a fair valuation of the company
provides detailed financial insights
helps to expand the shareholder base
but
creates an external performance control
provokes untimely and uncomfortable questions
may generate emphasis on short term actions

33. 33
The uniform signals dilemma
Uniform signals/messages
are expected by outside stakeholders
are a sign of ‘having the act together’
align thinking/acting
but
are difficult for multitude of businesses
do not reflect the pluralism of the real world
tend to falsify existing complexity

34. 34
The not enough facts/not enough time
dilemma
Communication with insufficient facts and at too early a
time
may be needed to meet deadlines
may be required to avoid leaks
may be useful to be on top of the agenda
but
carries the risk of later correction
may jeopardize the credibility
can backfire on reputation

35. 35
The global/local dilemma
Global communications
are necessary in a ‘global village’ context
are essential for maintaining consistency
reflect the worldwide nature of our business
but
news are still delivered locally
information is of local importance
local needs may differ from global perspectives

36. 36
The truthfulness dilemma
Truthfulness in communications
assures credibility
creates respect
fosters trust
but
can be painful
can have legal implications
can harm in the short run

37. 37
Coping with communications dilemmata
Recognize the ambiguities
no easy solutions to complex problems
no either/or decisions
Face the critical issues
try to reduce complexity
favor open/truthful behaviour
Manage the ambiguities
go for sensible compromises
favor proactive solutions

38. 38
Dilemma communications
Explain the dilemmata you have
show the pros of doing something
show the cons of doing something
Provide people with a choice
give information about alternatives
show reasons for your preference
let them make their own choices

39. 39
Conclusions: Maintain a sound company
reputation
Companies need success in the market of products
increasing the relevant market share
by product oriented marketing activities
and in the market of stakeholder opinion
increasing the relevant share of minds
by stakeholder oriented communication activities
Share of market vs. share of mind
large market share brings economies of scale
large share of mind brings economies of time

40. 40
Conclusions: Companies benefit from a
good reputation
as economically responsible institutions
long term view
no short term profit maximization
good corporate governance practices
as socially responsible institutions
only products with an acceptable benefit/risk ratio
no undue risk to customer/consumer
aware of societal concerns
as ecologically responsible institutions
high investments in ecology
good preventive measures
committed to sustainable development

41. 41
Conclusions: Perceptions are very
important
Perceptions create “company reputation”
within “published opinion”
within “public opinion”
wthin “political opinion”
Perceptions drive action
by the media
by special interest groups
by regulatory people
Perceptions drive reality
majority beliefs become reality
facts are altered by opinions
imagery prevails over facts

42. 42
Conclusions: Corporate reputations can
be effectively managed
Effective perception management
be aware of important stakeholder perceptions
identify potential criticisms early on
define main messages for your own viewpoints
Sound “communication culture”
follow the “Core Values of Communication”
address proactively the important stakeholders
organize communication networking
High reliability
minimize “walk/talk divergencies”
maximize consistency of information via databanks
avoid contradictory messages by spokespeople