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Corporate Communication: key to
success
The 7-Ps model
We operate in a
world without trust
Fundamental crisis of confidence in the world’s
most regarded organisations
After a year high of distrust, shift back to
neutral
2012

2011

2013

55

GLOBAL

51

GLOBAL

57

Brazil

80

UAE

78

Indonesia

74

China

73

Netherlands

73

Mexico

69

Singapore

67

Argentina

62

India

56

Italy

56

Canada

55

South Korea

53

Sweden

52

Japan

51

Australia

51

Spain

51

France

50

Poland

49

Germany

44

U.S.

42

U.K.
Russia
Ireland

40
40
39

China
UAE
Singapore
India
Indonesia
Mexico
Netherlands
Hong Kong
Canada
Malaysia
Italy
Argentina
Australia
Brazil
Sweden
U.S.
South Korea
Poland
U.K.
Ireland
France
Germany
Spain
Japan
Russia

76
68
67
65
63
63
61
61
58
57
56
54
53
51
49
49
44
44
41
41
40
39
37
34
32

China
Singapore
India
Mexico
Hong Kong
UAE
Malaysia
Canada
Indonesia
U.S.
Netherlands
Brazil
Germany
France
Sweden
UK
Italy
Australia
Poland
S. Korea
Ireland
Argentina
Spain
Turkey
Japan
Russia

80
76
71
68
67
66
64
62
62
59
59
55
55
54
54
53
51
50
48
47
46
45
42
42
41
36

DISTRUSTERS

NEUTRAL

TRUSTERS

GLOBAL

Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20-country global total

Big Changes
from 2008
Germany
China
Canada
India

+19
+18
+14
+11

Big Changes
from 2012
Germany +16
France
+14
UK
+12
US
+10

3
The world has
changed
Nothing works in isolation anymore.
A new reality has emerged…
• changing contexts & hierarchies
• a media landscape in constant flux
• social media is mainstream media
• authority has been dispersed
• society’s tectonic plates have shifted
• conversations start anywhere & involve
influencers of all stripes

The sum of these changes is the
move from
a shareholder to a stakeholder society...
• a shift from free market to shared market;
• from passive to active;
• from shareholder to stakeholder;
• from consumer to citizen.
Communications & the evolution of influence
yesterday

today
Social Advocists
Employees
PLATFORMS / AGGREGATION SITES

Citizen
Consumers

COMMUNITIES

Elite

Elites

Mass
Mass

analogue

social digital

humanity

authority
my clover

my influence
network
Edelman point of view on trust and reputation

REPUTATION

...is an aggregate “analysis“
of past behavior

TRUST

...is an expectation of future
behavior based on past
performance

REPUTATION

TRUST

is an aggregate perception of
what stakeholders believe a
company has done, based on
perceptions of that company’s
conduct and behaviour over time

6

© Edelman Employee Engagement Practice, 2013. All rights
reserved.
For more information, contact employee.engagement@edelman.com.

is a measure of what
stakeholders expect a company
will do, based on the company’s
performance in relation to those
stakeholders’ expectations
New realities for corporate communicators

COMPLEXITY

Companies accountable
for more than making
money (social
responsibility,
employee treatment)

MULTIPLE
STAKEHOLDERS

NEW
TECHNOLOGIES

Forming opinions via
multiple inputs;

Democratization
of media

Rise of new influencers
Conversations start
anywhere

Social media IS
mainstream media

BUSINESS &
ECONOMIC
REALITIES

Increasing sense of
urgency to transform
business during time of
economic uncertainty
The 7-Ps model
1. Promotion:
Corporate reputation & strategy
2. Participation:
Employee and social
engagement
Employees continue to be a steady, reliable
source of information, especially compared to
the CEO
Employees with technical expertise are far more trusted than top executives

2012

11

© Edelman Employee Engagement Practice, 2013. All rights
reserved.
For more information, contact employee.engagement@edelman.com.

2013
Three key actions to build trust

Employees with
company

Employees with
employees

Employees with
world

12

Use storytelling to demonstrate integrity
in action

Encourage a culture of inclusive
management

Leverage employees ambassadors
strategically where they have credibility

© Edelman Employee Engagement Practice, 2013. All rights
reserved.
For more information, contact employee.engagement@edelman.com.
3. Peers:
Business to business
4. Executive
Positioning
Why Executive Positioning Matters
Creates solid reputational
footing that delivers
tangible business results

Improves relationships
with key stakeholders –
customers, elected
officials & influencers

Creates a human touch
point for a nonhuman
entity

Enhances
internal morale

Removes barriers to entry
in new markets

Executive Positioning

Supports employee
recruiting and retention
efforts

Aligns internal and
external communications

15
Elements of an effective Executive Platform
SOCIAL PURPOSE

INDUSTRY
LEADERSHIP

CORPORATE
STRATEGY

PERSON

Executive Positioning

16
5. Purpose
Business & social
purpose
6. Public Affairs
7. Protection
Crisis & risk management
Edelman approach
MITIGATE & PROMOTE
RISK CONVERSION &
TRANSFORMATION

ENGAGE

DECISION MAKING &
RAPID RESPONSE

ASSESS & PREPARE

Look ahead and create
opportunities to mitigate
through proactive strategies

CRISIS AND RISK PREPAREDNESS

IDENTIFY

EMERGING RISK MANAGEMENT

Preempt or neutralize
any emerging threats
to reputation, financial
performance or regulatory
and commercial successes
Vulnerability Assessment
Decisional Structure
Trust Diagnostics
Perception Audits
Issues Landscaping
Risk Mapping Strategy
Risk Tolerance Index
Digital Diagnostics

Develop a robust system
to understand and
address potential risks
within an enterprise

Activate crisis plans and
dispatch crisis assets to
manage all elements of risk

Readiness Audit
Plan Development
Plan Training
Social Business Intelligence
Dark-site Creation
Social Engagement Triggers
Capability Mapping
Decisional Analytics

TRUST & REPUTATION

Team Mobilization
War Room Creation
Decisional Protocols
Spokesperson Training
Third Party Engagement
Real-Time Monitoring
Reputational Surveying
Global Activation

Values Intersections
Digital Advocacy
Purposeful Engagement
Content Continuity
Expanded Messaging
Monitoring
Testing
ROI Metrics
CCMS@ = R+D+i
Research

R
Identify and classify
potential risks
Become familiar with the
organizational structure
Share and review already
existing materials and
tools
Identify and determine
relevant spokespeople,
getting them involved in
the process

+

Development

D

+

Innovation

=

I

Prepare a new crisis
communication model
that includes:

Application of new technologies
to the crisis communications
model

Command center

Digital version of procedures
and protocols

Crisis communication
applications
New application
distribution plan →
informative sessions
Spokesperson training

Digital application for mobile
devices(Blackberry & iPhone, to
name a few)
SMS alert system; direct access
to social networks
Crisis monitoring and assessment
tools

CCMS@
Crisis
Communication
Management
Solution
Crisis Communications Management
Solution CCMS©

CCMS© CLIENTS:
Thank You
Copyright ©2013 Daniel J. Edelman, Inc. All rights reserved.
All information contained herein is confidential and proprietary to Daniel J. Edelman, Inc. (“Edelman”).

23

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CORPORATE COMMUNICATION - KEY TO SUCCESS • Miguel Angel Aguirre, General Manager EDELMAN SPAIN

  • 1. Corporate Communication: key to success The 7-Ps model
  • 2. We operate in a world without trust Fundamental crisis of confidence in the world’s most regarded organisations
  • 3. After a year high of distrust, shift back to neutral 2012 2011 2013 55 GLOBAL 51 GLOBAL 57 Brazil 80 UAE 78 Indonesia 74 China 73 Netherlands 73 Mexico 69 Singapore 67 Argentina 62 India 56 Italy 56 Canada 55 South Korea 53 Sweden 52 Japan 51 Australia 51 Spain 51 France 50 Poland 49 Germany 44 U.S. 42 U.K. Russia Ireland 40 40 39 China UAE Singapore India Indonesia Mexico Netherlands Hong Kong Canada Malaysia Italy Argentina Australia Brazil Sweden U.S. South Korea Poland U.K. Ireland France Germany Spain Japan Russia 76 68 67 65 63 63 61 61 58 57 56 54 53 51 49 49 44 44 41 41 40 39 37 34 32 China Singapore India Mexico Hong Kong UAE Malaysia Canada Indonesia U.S. Netherlands Brazil Germany France Sweden UK Italy Australia Poland S. Korea Ireland Argentina Spain Turkey Japan Russia 80 76 71 68 67 66 64 62 62 59 59 55 55 54 54 53 51 50 48 47 46 45 42 42 41 36 DISTRUSTERS NEUTRAL TRUSTERS GLOBAL Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20-country global total Big Changes from 2008 Germany China Canada India +19 +18 +14 +11 Big Changes from 2012 Germany +16 France +14 UK +12 US +10 3
  • 4. The world has changed Nothing works in isolation anymore. A new reality has emerged… • changing contexts & hierarchies • a media landscape in constant flux • social media is mainstream media • authority has been dispersed • society’s tectonic plates have shifted • conversations start anywhere & involve influencers of all stripes The sum of these changes is the move from a shareholder to a stakeholder society... • a shift from free market to shared market; • from passive to active; • from shareholder to stakeholder; • from consumer to citizen.
  • 5. Communications & the evolution of influence yesterday today Social Advocists Employees PLATFORMS / AGGREGATION SITES Citizen Consumers COMMUNITIES Elite Elites Mass Mass analogue social digital humanity authority my clover my influence network
  • 6. Edelman point of view on trust and reputation REPUTATION ...is an aggregate “analysis“ of past behavior TRUST ...is an expectation of future behavior based on past performance REPUTATION TRUST is an aggregate perception of what stakeholders believe a company has done, based on perceptions of that company’s conduct and behaviour over time 6 © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com. is a measure of what stakeholders expect a company will do, based on the company’s performance in relation to those stakeholders’ expectations
  • 7. New realities for corporate communicators COMPLEXITY Companies accountable for more than making money (social responsibility, employee treatment) MULTIPLE STAKEHOLDERS NEW TECHNOLOGIES Forming opinions via multiple inputs; Democratization of media Rise of new influencers Conversations start anywhere Social media IS mainstream media BUSINESS & ECONOMIC REALITIES Increasing sense of urgency to transform business during time of economic uncertainty
  • 10. 2. Participation: Employee and social engagement
  • 11. Employees continue to be a steady, reliable source of information, especially compared to the CEO Employees with technical expertise are far more trusted than top executives 2012 11 © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com. 2013
  • 12. Three key actions to build trust Employees with company Employees with employees Employees with world 12 Use storytelling to demonstrate integrity in action Encourage a culture of inclusive management Leverage employees ambassadors strategically where they have credibility © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.
  • 15. Why Executive Positioning Matters Creates solid reputational footing that delivers tangible business results Improves relationships with key stakeholders – customers, elected officials & influencers Creates a human touch point for a nonhuman entity Enhances internal morale Removes barriers to entry in new markets Executive Positioning Supports employee recruiting and retention efforts Aligns internal and external communications 15
  • 16. Elements of an effective Executive Platform SOCIAL PURPOSE INDUSTRY LEADERSHIP CORPORATE STRATEGY PERSON Executive Positioning 16
  • 17. 5. Purpose Business & social purpose
  • 19. 7. Protection Crisis & risk management
  • 20. Edelman approach MITIGATE & PROMOTE RISK CONVERSION & TRANSFORMATION ENGAGE DECISION MAKING & RAPID RESPONSE ASSESS & PREPARE Look ahead and create opportunities to mitigate through proactive strategies CRISIS AND RISK PREPAREDNESS IDENTIFY EMERGING RISK MANAGEMENT Preempt or neutralize any emerging threats to reputation, financial performance or regulatory and commercial successes Vulnerability Assessment Decisional Structure Trust Diagnostics Perception Audits Issues Landscaping Risk Mapping Strategy Risk Tolerance Index Digital Diagnostics Develop a robust system to understand and address potential risks within an enterprise Activate crisis plans and dispatch crisis assets to manage all elements of risk Readiness Audit Plan Development Plan Training Social Business Intelligence Dark-site Creation Social Engagement Triggers Capability Mapping Decisional Analytics TRUST & REPUTATION Team Mobilization War Room Creation Decisional Protocols Spokesperson Training Third Party Engagement Real-Time Monitoring Reputational Surveying Global Activation Values Intersections Digital Advocacy Purposeful Engagement Content Continuity Expanded Messaging Monitoring Testing ROI Metrics
  • 21. CCMS@ = R+D+i Research R Identify and classify potential risks Become familiar with the organizational structure Share and review already existing materials and tools Identify and determine relevant spokespeople, getting them involved in the process + Development D + Innovation = I Prepare a new crisis communication model that includes: Application of new technologies to the crisis communications model Command center Digital version of procedures and protocols Crisis communication applications New application distribution plan → informative sessions Spokesperson training Digital application for mobile devices(Blackberry & iPhone, to name a few) SMS alert system; direct access to social networks Crisis monitoring and assessment tools CCMS@ Crisis Communication Management Solution
  • 23. Thank You Copyright ©2013 Daniel J. Edelman, Inc. All rights reserved. All information contained herein is confidential and proprietary to Daniel J. Edelman, Inc. (“Edelman”). 23

Editor's Notes

  1. Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) and across 25 countries
  2. All these elements must be aligned with other Edelman initiatives around platform development and thought leadership