Corporate online communications during the global financial crisis WFE Workshop on Leadership & Communication Zurich, February 19, 2009 Joakim Lundquist

Communication and the crisis Defining features of communications during the crisis Scarcity of information Widened interested audience Short window of opportunity to communicate A unique opportunity to look at how companies communicate Allowed us to see what kind of crisis response companies had developed Allowed us to see what priority they placed on online communication Allowed us to see how present the management was During a crisis the demand for information on companies goes beyond investors and journalists who are interested in the company on a day to day basis, but also extends to depositors and the general public, who are worried about the possible failure of financial institutions, and the consequences for the general economy In this situation companies have a responsibility to be proactive in communicating with stakeholders and the public and inform them about the crisis and how the company is being affected

Defining features of communications during the crisis

Scarcity of information

Widened interested audience

Short window of opportunity to communicate

A unique opportunity to look at how companies communicate

Allowed us to see what kind of crisis response companies had developed

Allowed us to see what priority they placed on online communication

Allowed us to see how present the management was

During a crisis the demand for information on companies goes beyond investors and journalists who are interested in the company on a day to day basis, but also extends to depositors and the general public, who are worried about the possible failure of financial institutions, and the consequences for the general economy

In this situation companies have a responsibility to be proactive in communicating with stakeholders and the public and inform them about the crisis and how the company is being affected

Why the web? Allows you to get your message across Can provide context for the information presented Hub for communicating Reach a wider audience, 24 hours a day Cost and time effective Ability to supply greater amounts of company information Interactivity Useful also for your internal audiences Intranet – most useful for reaching a large number of employees

Allows you to get your message across

Can provide context for the information presented

Hub for communicating

Reach a wider audience, 24 hours a day

Cost and time effective

Ability to supply greater amounts of company information

Interactivity

Useful also for your internal audiences

Intranet – most useful for reaching a large number of employees

Information demand What people want to know what happened, what they can do, and how the crisis will affect them Response is huge in terms of searches regarding the crisis in general and companies specifically Reaction is immediate but short-lived Short window of opportunity to respond Financial news and research sites have also seen enormous increases in traffic over this period Proliferating sources of information

What people want to know what happened, what they can do, and how the crisis will affect them

Response is huge in terms of searches regarding the crisis in general and companies specifically

Reaction is immediate but short-lived

Short window of opportunity to respond

Financial news and research sites have also seen enormous increases in traffic over this period

Proliferating sources of information

The Research Survey of 51 of the world’s largest financial institutions Looked at forms and types of ways they used the web Press releases Web pages Webcast Management Statement External links Newsletter Q&A Home page Direct reference to the crisis Background to the crisis Statements on financial stability Economic analysis Information about government action

Survey of 51 of the world’s largest financial institutions

Looked at forms and types of ways they used the web

Companies surveyed UK RBS UK Lloyds Tsb UK HBOS UK Bradford and Bingley UK Barclays USA Wells Fargo USA WAMU USA Wachovia USA NewYork Life USA Merrill Lynch USA Lehman Brothers USA JP Morgan USA Goldman Sachs USA Freddie Mac USA Fannie Mae USA Citigroup USA Bank of America Country Company France BNP Paribas France Banque Populaire Iceland Landsbanki Iceland Kaupthing Iceland Glitnir Italy Unicredit Italy UBI Banca Italy Mediolanum Italy Mediobanca Italy Intesa Sanpaolo Italy Banca Monte dei Paschi di Siena Japan Mizuho Financial Group Japan Mitsubishi UFG Netherlands ING Netherlands Aegon Nordic Danske Bank SE Swedbank Country Company Belgium KBC Belgium Fortis Belgium Dexia Canada Royal Bank of Canada Canada CIBC Switzerland UBS Switzerland Credit Suisse Germany Hypo Real Estate Germany Deutsche Bank Germany Commerzbank Spain Santander Spain BBVA France Société Générale France Crédit Mutuel France Crédit Agricole France Caisse d'Epargne Country Company

Results Results can be analysed in 2 ways: By overall types of responses used to the crisis Geographical perspective Revealed: No large changes in communication from country to country Companies ignored the crisis online (only 17 made a direct reference to it on their site) Management absent Companies were slow to react Failure to contextualise the crisis Little use of the homepage 24% Information about government action 25% Economic analysis 47% Statements on financial stability 14% Background to the economic crisis 35% Direct reference to financial crisis? 73% Home page 25% Q&A 24% Newsletter 16% External links 31% Management statement 29% Webcast 27% Dedicated webpage 76% Press releases Percentage of companies providing information Type of Information

Results can be analysed in 2 ways:

By overall types of responses used to the crisis

Geographical perspective

Revealed:

No large changes in communication from country to country

Companies ignored the crisis online (only 17 made a direct reference to it on their site)

Management absent

Companies were slow to react

Failure to contextualise the crisis

Little use of the homepage

Online leadership

Contextualised and accessible

Ways forward Speed Tell it all Be transparent Tell your story quickly or else other sources will rush to fill the vacuum If you do not talk to the press, there is always someone else who will Explain and contextualise Management should be up-front and present Use the web effectively – make the information easy-to-find, accessible and interactive

Requirements Management commitment Built up web capabilities Internal culture Organisation – standard operating procedures, dedicated resources Use of all communication channels available Make sure your message is consistent and coordinated Live up to your brand promise and advertising campaigns

Management commitment

Built up web capabilities

Internal culture

Organisation – standard operating procedures, dedicated resources

Use of all communication channels available

Make sure your message is consistent and coordinated

Live up to your brand promise and advertising campaigns

Thank you Lundquist Srl Joakim Lundquist [email_address] Piazza XXV Aprile, 1 20121 Milan Tel. +39 (0) 2 4547 7681

Lundquist Srl

Joakim Lundquist

[email_address]

Piazza XXV Aprile, 1

20121 Milan

Tel. +39 (0) 2 4547 7681