CEO Strategic Communications as a Driver of Company Performance

CEO Strategic Communications as a Driver of Company Performance Crocker Coulson, President CCG Dec 2011New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Largest 100 Global Companies Fortune Global 100 30 13 11 9 5 6 US Germany Japan France UK China 2New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Most Valuable 100 Global Companies Top 100 Public Companies by Market Cap 39 11 9 6 4 1 US Germany Japan France UK China 3New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Leading 100 Global Brands Top 100 Global Brands 49 10 7 6 5 0 US Germany Japan France UK China Source: Interbrand Global Branding Consultancy, a division of Omnicom 4New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Hidden Dragons, Timid Dragons In October 2003 the Harvard Business Review predicted the rise of a new breed of China global brands – “China’s national champions are using their advantages as domestic leaders to build global brands. The country’s dedicated exporters are attempting to enter foreign markets on the strength of their economies of scale. “ -- “The Hidden Dragons,” Ming Zeng and Peter J. Williamson What happened? 5New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

China As Global M&A Player? Mixed track record of success in acquiring brands… Hits Misses 1.5 …and a modest pace of outbound FDI 1.3 1 0.9 0.462 0.5 0.23 0.19 0.19 0 2005 2006 2007 2008 2009 2010 China FDI into US (Billions USD) 6New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

China’s Corporate Brand Contradiction • China now #2 global economic power, on the way to #1 • Chinese government’s Go Out Policy encourages strategic acquisitions to deploy massive ($3 trillion) forex “In addition to driving market reserves and build global demand, brands also create competitiveness value by enhancing the brand owner’s ability to charge • China’s corporate giants remain “hidden premium prices for their dragons” products and services.” -- Interbrand Best China • Track record of high profile outbound Brands acquisitions is miniscule despite rich landscape of distressed assets 7New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Brand as a Manifestation of Values A global brand is the result of a consistent set of principles and actions that infuse the company from the very top • Brand Value Corporate Value Innovation Fosters creativity Quality Uncompromising excellence Trustworthy Transparency and integrity Global Diversity and global perspective Inside-out-brand Outside-in-brand Who I think I am What I offer customers What I want to be What customers think about me 8New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

CEO as the Brand Ambassador Steve Jobs exemplified the power of obsessive, integrated communications • • PT Barnum of the product launch • Weekly strategy meeting with marketing and PR team • Obsessed over every ad campaign and corporate message (“Think Different”) • Cultivated key reporters • Major magazine covers with every “Innovation distinguishes key product introduction between a leader and a follower.” 9New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

CEO as Change Agent When Lou Gerstner brought back IBM from the brink of bankruptcy he unified all communications around one single message: e-business • • Agenda for deep strategic and organizational change • Personal and thoughtful employee communications • Unified vocabulary to talk about IBM across thousands of global customers • Set the R&D agenda “Every senior executive made e-business a part of his or her presentations and speeches. We communicated frequently on the subject to our people so they could understand and then evangelize.” 10New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

What is Public Relations? Edward Bernays “Father of Public Relations” Classic public relations seeks to shape the news and use third-party expert opinions to “pull the wires which control the public mind” “This is the age of mass production. In this age, too, there must be a technique for the mass distribution of ideas.” • Invented the press release and product tie-in “The best defense against • Nephew of Sigmund Freud propaganda: more propaganda.” • Taught women to smoke and made bacon healthy 11New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Modern Discipline of Strategic Communications The democratization of information driven by technology, mobility and global linkages has rendered many classic PR • techniques obsolete New Communications Landscape New Communications Imperatives • Decentralization of media outlets • Authenticity • Widespread skepticism regarding • Radical transparency political, corporate and media authorities • Motivate and align talent • Bureaucracy impairs innovation • Market credibility • Globally networked, engaged customers and public opinion • Customer fanaticism 12New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

CEO Strategic Communications Toolkit The best strategic communications synchronizes messages across industry, employee, public, government and investor constituencies • Corporate story • User conferences • Employee letters • Brand messages • Product launches • Townhall meetings • Core values • Press conferences • Executive speeches • Business strategy • Analyst days • Biographies • Customer briefings • Placed profiles • Corporate website • Corporate video • Case studies • Social media Strategy Execution Reputation 13New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Defining Your Corporate Story and Voice Every company must find the style, profile and communications mix that is effective, authentic and distinctive. • What are my company’s core values and aspirations? • What is distinct about our corporate history, management philosophy, and people? • What is our position within our industry? (Established giant, challenger, iconoclast) • Do we have a unique view of the future? • What level of personal exposure am I comfortable with? At the core, effective communication is always about storytelling 14New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Common Challenges for Chinese CEOs Chinese management is often hamstrung by ingrained habits from effectively getting their message across on a global stage • Hierarchical management culture leads to discomfort with debate • Strengths in low cost, large scale manufacturing and distribution “For a vast majority of • Minimal investment or focus on Chinese companies, marketing and brand marketing is not even on • Many industry giants are SOEs their organizational chart." with strong policy mandates and – Scott Markman, Monogram opaque decision making Group 15New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

PR Perceptions and Realities Western media and consumers are likely to respond poorly to a “propaganda approach” to corporate messaging Perception RealityRole of Media Media should transmit truth Global media prizes as company sees it independence and skepticismNews Value Our company is important Media needs an angle and so media should cover us broader contextPublic Relations It’s all about spin It’s all about credibilityAccuracy Bend the facts to suit the Verify the facts since the reporter story certainly will 16 New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

China’s Social Media Problem A “Social Media Revolution” is changing the face of business with breathtaking speed • If trends continue the population of Facebook (approx. 900M) will soon exceed that of the PRC • China is cut off from major platforms shaping global social and consumer discourse • New Trends in the social media world: • Domestic SM platforms (Sina Weibo, TenCent Weibo) provide viral sources of truth and opinion that can decimate corporate reputations “Learn from the masses and then teach them.” • China is increasingly “talking to itself” – Mao Tse-Tung 17New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Case Study: Steady Progress by Global Brands Haier Lenovo CEO Lectures at top business schools Harvard Gartner Inc. and IDC announced Lenovo replaces Business school and Wharton generating Dell to as worlds 2nd-largest PC maker on Oct, 13, international media coverage 2011. Greenfield Investment: Setting up Lenovo acquired IBM’s PC division in 2005 and sells manufacturing facilities in South Carolina Thinkpad under Lenovo Brand Office Buildup: Operates its United States offices in the Haier Building at Lenovo Chief Executive Yang Yuanqing says will keep 1356 Broadway, New York City pursuing acquisitions to boost growth 18New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Case Study: Alipay Dispute Damages Reputation On May 10, 2011, Yahoo! said that ownership of “Alipay” transferred to 100% ownership by a separate company owned by Alibaba’s CEO, Jack Ma In two press conferences, Alibaba’s Recently, Jack Ma asserted that Jack Ma board, including says he is Yahoo! and Softbank, making a had been informed of potential bid and approved of the for Yahoo transfer Previously a highly regarded business figure, Jack Ma now viewed as example of problematic Chinese business ethics and compromised rule of law How will this impact any future bid for Yahoo!? 19New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Case Study: Huawei Fumbles on Acquisitions Despite leading technology and distribution profile Huawei has abandoned two U.S. acquisitions after meeting political resistance • Huawei seeks to acquire bankrupt U.S. tech company 3Leaf • No other viable bidders • Political firestorm due to alleged ties to PLA and U.S. sensitivity to pervasive Chinese cyber attacks Huawei Profile PR 101 Checklist • #2 global telecom equipment provider Regular management interviews • 110,000 employees, 55,000 overseas Comprehensive U.S. website • 185 billion rmb revenues in 2010 Community involvement • Claims 100% employee owned Proactive government relations 20New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

China at the Crossroads The Revolution is now: How will you transform as a leader and as a company? 1) The era of propaganda and classic public relations is over 2) Strategic communications directly impacts brand, public perception and business success 3) China Inc. faces unique challenges in building global brands 4) CEO must be the principal change agent and brand ambassador 5) These issues will be pivotal to China’s efforts to build global champions and achieve balanced economic development 21New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

Passion - Accountability - Performance Thank You Dec 2011New York Los Angeles Beijing Shanghai Hong Kong Frankfurt Tel Aviv London

http://www.ccgasiair.com	42
http://ccgasiair.com	2
http://www.investorrelationschina.com	1

CEO Strategic Communications as a Driver of Company Performance

by CCG Investor Relations on Dec 15, 2011

Accessibility

Categories

Tags

Upload Details

Usage Rights

3 Embeds 45

Statistics

CEO Strategic Communications as a Driver of Company Performance — Presentation Transcript