The Evolution of Corporate Communications

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ABF Annual Corporate Communications and Public Relations Conference

The Evolution Of Corporate Communications
• The evolving role of corporate communications and PR
• Business strategy and corporate communications
• Technology and corporate communications
• Corporate communications as value creator

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The Evolution of Corporate Communications

  1. 1. THE EVOLUTION OF CORPORATE COMMUNICATIONS Case Studies, Concepts and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com
  2. 2. Intro: CNI 1. 20 years old 2. Core Business: MLM 3. Others: Contract Manufacturing, F&B Retail, Export/Trading, eCommerce, Shared Services 4. Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan, Oman, United States, Vietnam 5. Staff force: ± 500 6. Distributors: 200,000 7. Products: Consumer Goods and Services www.myCNI.com.my www.OOBEY.com
  3. 3. Way back in 2004… • Thomas Cup, Indonesia www.myCNI.com.my www.OOBEY.com
  4. 4. Now in 2007… CNI ‘Beemax’ Factory Visit, China 2. Top Leaders 3. Product Development 4. Media www.myCNI.com.my www.OOBEY.com
  5. 5. PR back then… 18th century: press relations, lobbying and, celebrity campaigning World War I: U.S. publicity 1920’s: Tobacco Industry Source: Wikipedia.com www.myCNI.com.my www.OOBEY.com
  6. 6. And now… 13th April 2009 •Two Domino’s employees •YouTube •Apology from Domino’s after 48 hours •1 million hits •Twitter: questions on silence •LinkedIn: suggestions by users in forum BusinessWeek, May 4, 2009 www.myCNI.com.my www.OOBEY.com
  7. 7. Role Of Corp Comm in the OLD DAYS? • helping find or create great stories, • translating stories into the language that the right audience can understand, • using the best tools to reach those audiences, • listening the to feedback and echoes the stories create, • engaging in the appropriate way, and • Gatekeeper (unfortunately) www.myCNI.com.my www.OOBEY.com
  8. 8. Changed? • CSR • Stories • IR • Translation • Web 2.0 • Reach • Crisis Comm • Listening • Branding • Engaging • Corporate • Gatekeeper Reputation • Marketing • Media Relations www.myCNI.com.my www.OOBEY.com
  9. 9. NOT changed? • CSR • Stories • IR • Translation • Web 2.0 • Reach The ROLE • Crisis Comm • Listening • Branding • Engaging • Corporate • Gatekeeper Reputation • Marketing • Media Relations www.myCNI.com.my www.OOBEY.com
  10. 10. Changed? Audience People Change Story Tools www.myCNI.com.my www.OOBEY.com
  11. 11. What is the Objective? Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.” “Retention and Loyalty useless if No Conversion is happening.” Sergio Zyman www.myCNI.com.my www.OOBEY.com
  12. 12. What is the Objective? Loyalty is Useless… • Virtual Consumption vs. Real Consumption www.myCNI.com.my www.OOBEY.com
  13. 13. What is the Objective? Loyalty is misleading… • Heavy Consumption ≠ Loyalty • Loyalty ≠ Heavy Consumption www.myCNI.com.my www.OOBEY.com
  14. 14. What is the Objective? • Comm = Relationship (something like Dating) • Comm ≠ Media glitz • Comm ≠ ATL/BTL/BwTL/ArTL/FTL • Comm ≠ CSR • Comm = Get more people, to buy more, more frequently, at higher prices www.myCNI.com.my www.OOBEY.com
  15. 15. COMM Market Research Internal External Media Associations Leaders Distributors Government Universities Suppliers Public NGOs Authorities Investors Proactive Reactive Proactive Reactive COMM Tools COMM Tools www.myCNI.com.my www.OOBEY.com
  16. 16. Integrated affair [Internal] [External] [Creative] S&M CCD MBS Comm Conversion www.myCNI.com.my www.OOBEY.com
  17. 17. Unchanging Principles of Corporate Communications 1. Long-term relationship 2. Consistent and Proactive 3. Performance vs. Controllability 4. Aligned with operating/strategy position 5. One message, Different Emphasis 6. Outside-in Intelligence www.myCNI.com.my www.OOBEY.com
  18. 18. New Stories, New Audiences, New Mediums www.myCNI.com.my www.OOBEY.com
  19. 19. New Stories – External impact Acquisition Crisis CSR- target related Strategy Layoffs Alignment Cost Topics? Politics Cutting New Economics Mgmt Treatment Ecology of Profits Consistency www.myCNI.com.my www.OOBEY.com
  20. 20. New Stories – External impact Acquisition Crisis CSR- target related Strategy Layoffs Alignment Cost Topics? Politics Cutting New Economics Mgmt Treatment Ecology of Profits Consistency www.myCNI.com.my www.OOBEY.com
  21. 21. New Stories – Internal impact Share- drop New Politics Plans Financial M&A Announcements Shareholding Events? Competitor changes Moves Structure Crisis Accidents Economic www.myCNI.com.my www.OOBEY.com
  22. 22. New Stories – Internal impact Share- drop New Politics Plans Financial M&A Announcements Shareholding Events? Competitor changes Moves Structure Crisis Accidents Economic www.myCNI.com.my www.OOBEY.com
  23. 23. New Stories - The 6 Sins of Greenwashing 1. Sin of the Hidden Trade-Off 2. Sin of No Proof 3. Sin of Vagueness 4. Sin of Irrelevance 5. Sin of Fibbing 6. Sin of Lesser of Two Evils Study by: TerraChoice, December 2007 www.myCNI.com.my www.OOBEY.com
  24. 24. New Audiences “Good news for stockholders can be bad news for other stakeholders.” Gregory Miller, Assoc. Prof., Harvard Business School. www.myCNI.com.my www.OOBEY.com
  25. 25. New Audiences – Good News? Bad News? • money saved by tough bargaining with a union • announcing a dividend to employees • announcing a dividend to environmentalists • setting up Diversified business Refer Attachment 1 - Building Trust with One Group Can Destroy Trust with Another www.myCNI.com.my www.OOBEY.com
  26. 26. New Audiences Institutional Fund Managers Financial (Loans) Gov VCs Corporations JV Partners Supply Chain Sovereign Funds M&A Government VCs Social VCs PFI NGOs Holding Co. Competitors Non-Profit Org HQ (MNC) Franchisees www.myCNI.com.my www.OOBEY.com
  27. 27. New Audiences Individuals Investors Customers Employees Distributors* Shareholders Management www.myCNI.com.my www.OOBEY.com
  28. 28. How not to talk to Individuals “The holder [of a CAB certificate] may continue to serve regularly any point named herein through the airport last regularly used by the holder to serve such point prior to the effective date of the certificate. Upon compliance with such procedures relating thereto as may be prescribed by the Board, the holder may, in addition to the services hereinabove expressly prescribed, regularly serve a point named herein through any airport convenient thereto.” Civil Aeronautics Board, 1977 Alfred Kahn www.myCNI.com.my www.OOBEY.com
  29. 29. How not to talk to Individuals “It has been determined not to be in the public interest that United Airlines continue to provide air transportation services between San Diego and San Antonio” “I forbid United Airlines to fly between San Diego and San Antonio” www.myCNI.com.my www.OOBEY.com
  30. 30. New Mediums Gov./Politics Suppliers Customer s Newsletter Spokesperson s Analysts Annual Due Institutional Report Diligence Media Internet* Economic s AGM Fund Market Managers Research NGOs www.myCNI.com.my www.OOBEY.com
  31. 31. New Mediums Gov./Politics Suppliers Customer s Newsletter Spokesperson s Analysts Annual Due Institutional Report Diligence Media Internet Economic s AGM Fund Market Managers Research NGOs www.myCNI.com.my www.OOBEY.com
  32. 32. New Mediums Employee Newsletter Customer Bloggers Gov./ s Public Politics Analysts Events Annua Mgmt Action Individuals Relatives l Report s Pasar Media Malam Internet* Economic s Ads AGM Fund Managers Employees Friends www.myCNI.com.my www.OOBEY.com
  33. 33. New Mediums Employee Newsletter Customer Bloggers Gov./ s Public Politics Analysts Events Annual Mgmt Action Individuals Relatives Report s Pasar Media Malam Internet Economic s Ads AGM Fund Managers Employees Friends www.myCNI.com.my www.OOBEY.com
  34. 34. The Right Tools for the Job Personal (exp) Quality/Intensity of Communication Personal (info) Mass Traditional, In- home, Out-Of-Home Impersonal Mass Unconventional (info) Mass Online Refer Individual Mass Attachment 2 Reach of Communication www.myCNI.com.my www.OOBEY.com
  35. 35. The Right Tools for the Job Personal (exp) Quality/Intensity of Communication Mass Targeted Conventional Personal Mass Targeted Online (info) E.g. Annual Reports, Analyst Briefings, IR Roadshows, IR Website Impersonal (info) Refer Individual Mass Attachment 2 Reach of Communication www.myCNI.com.my www.OOBEY.com
  36. 36. The Right Tools for the Job Personal Contests (exp) One-on-One Quality/Intensity of Communication Personal Individual Targeted Conventional (info) Individual Targeted Online Impersonal (info) Refer Individual Mass Attachment 2 Reach of Communication www.myCNI.com.my www.OOBEY.com
  37. 37. New Mediums – additional info Refer: • Attachment 3 - How to use Twitter to mitigate a crisis • Attachment 4 - Template For Social Media Press Release www.myCNI.com.my www.OOBEY.com
  38. 38. What has been the Biggest change expectation? • The role of Corporate Communications as “Value Creator” But how do we do it? www.myCNI.com.my www.OOBEY.com
  39. 39. The new Role: Value Creation www.myCNI.com.my www.OOBEY.com
  40. 40. Problems from the start 1. No money 2. Split Objectives: Sales? Share Price? Image? 3. Independent entity 4. Charity center 5. Industry image nightmares 6. Multi-cultural & Multi-lingual 7. Close Regulatory scrutiny (food act, health act, Jakim, KPDN) 8. Public Listed www.myCNI.com.my www.OOBEY.com
  41. 41. Why is Corp Comm important to Value? 1. Funds 2. Brand 3. Intelligence 4. Business www.myCNI.com.my www.OOBEY.com
  42. 42. Why is Corp Comm important to Value? • Funds • Brand Communication to bring in the • Intelligence Funds • Business www.myCNI.com.my www.OOBEY.com
  43. 43. Why is Corp Comm important to Value? • Funds • Brand Communication to bring in the • Intelligence Sales • Business www.myCNI.com.my www.OOBEY.com
  44. 44. Importance: Funds This is the most obvious. The objective is to keep the paymasters happy so that they will either maintain or increase their funding. Crisis Management is one small area that falls into this objective www.myCNI.com.my www.OOBEY.com
  45. 45. Importance: Intelligence Two types: Deal with… CRM Corp Customer Intelligence Comm Sharehol ders Deal with… Public Corp Manage Intelligence Comm ment www.myCNI.com.my www.OOBEY.com
  46. 46. CRM Intelligence and Customer Shareholders Self Reliant Need Help Seek Searchers Collaborators Change Seek Streamliners Delegators Stability www.myCNI.com.my www.OOBEY.com
  47. 47. Public Intelligence: What? Examples… 2. Record feedback and questions 3. Competitors’ PR communications 4. Top 10 Analysts’ views on Company 5. Top 10 Analysts’ views on Industry www.myCNI.com.my www.OOBEY.com
  48. 48. Public Intelligence: Why? 1. Broad view of market 2. Less optimistic/review own assumptions 3. Upgrade IR function to be strategic 4. Feed Management discussions 5. Better and more relevant IR communications 6. Support (buy-in) www.myCNI.com.my www.OOBEY.com
  49. 49. Public Intelligence: Why? Financial Revenue Growth Productivity Market Value Customers Base Share Gain Positioning Adjacent New Retention Market Business Internal Process Operational Product Customer Investment Excellence Leadership Intimacy Strategy Learning & Growth Competencies Information Motivation, Systems empowerment, alignment www.myCNI.com.my www.OOBEY.com
  50. 50. Dangers of Intelligence… Also known as ‘Beware of Benchmarking’: 2. Big vs. Small company 3. Selective success stories 4. Correlation vs. Causal 5. Survey problems 6. Actionable vs. For-fun www.myCNI.com.my www.OOBEY.com
  51. 51. Importance: Brand Corporate Communications is a key component of corporate Branding due to its direct influence on: 2. Multiple parties (Investors) • These parties are either our Branding targets or has influence on our branding targets 4. Brand Story www.myCNI.com.my www.OOBEY.com
  52. 52. Components of Branding Positioning Execution Communication www.myCNI.com.my www.OOBEY.com
  53. 53. Branding Comm: Integration and Consistency Communications Internal External Media Associations Mgmt Distributors Government Universities Public NGOs Suppliers Employees Authorities Investors Proactive Reactive Proactive Reactive COMM Tools COMM Tools www.myCNI.com.my www.OOBEY.com
  54. 54. Branding: Feed You, Feed Me Feed Internal External Feed www.myCNI.com.my www.OOBEY.com
  55. 55. Branding: Feed You, Feed Me Internal External • Halal Committee • Sponsorship • Social Education • Donations (e.g. SCK) • News clippings • Umrah trip • Newspaper Ads • China Trip • RBOS • MHI • CFA/HFA • Awards • Coffee Van • Corporate Profile • AGM • Gov. Celebrity • Analyst research www.myCNI.com.my www.OOBEY.com
  56. 56. Branding: Feed You, Feed Me Internal External • Entrepreneur Dev. • Website • Health products • DSAM • Health education • Yayasan • “Made in Malaysia” • Publish Book • Events • Social Education • Media Celebrity • Crisis Comm • Children Education • National interest • Analyst BD connections www.myCNI.com.my www.OOBEY.com
  57. 57. What is the Business Model? •Google •Air Asia USP •Tata Nano Market Profit Model Discipline www.myCNI.com.my www.OOBEY.com
  58. 58. What are they really buying? Product "They are the most innovative" Leadership "Constantly renewing and creative" "Always on the leading edge" Customer Operational Intimacy Excellence "Exactly what I need" "A great deal!" Customized products Excellent/attractive price Personalized communications Minimal acquisition cost and "They're very responsive" hassle Preferential service and flexibility Lowest overall cost of Recommends what I need ownership "I'm very loyal to them" "A no-hassles firm" Helps us to be a success Convenience and speed Reliable product and service www.myCNI.com.my www.OOBEY.com
  59. 59. Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Market www.OOBEY.com
  60. 60. Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Market www.OOBEY.com
  61. 61. Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Market www.OOBEY.com
  62. 62. Market Disciplines Operational Product Leadership Customer Intimacy Excellence • New, state of the • Management by • Competitive price art products or Fact services • Error free, • Easy to do reliable • Risk takers business with • Fast (on • Meet volatile • Have it your way customer needs demand) (customization) • • Fast concept-to- Simple • Market segments counter • of one Responsive • Never satisfied - obsolete own and • Proactive, • Consistent competitors' flexible information for all products • Relationship and • Transactional • Learning consultative organization selling • 'Once and Done' • Cross selling www.myCNI.com.my www.OOBEY.com
  63. 63. The McPlaybook* Make it easy to eat Make it easy to prepare • 50% drive-thru • High Turnover • Meals held in one • Tasks simple to learn hand & repeat Make it quick Make what customers want • “Fast Food” • Prowls market for new • Tests new products products for Cooking Times • Monitored field tests *Adapted from: Businessweek , Februrary 5th 2007 www.myCNI.com.my www.OOBEY.com
  64. 64. Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Market www.OOBEY.com
  65. 65. Market Disciplines Apple powerful Product Leadership products, premium (best product) pricing, limited range Still Doing well in HP well-balanced Acer super lean 2009 portfolio, mass cost structure, aggressive pricing customization Operational Excellence Customer Intimacy (low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Market www.OOBEY.com
  66. 66. What is the Business Model? USP Market Profit Model Discipline www.myCNI.com.my www.OOBEY.com
  67. 67. Summary www.myCNI.com.my www.OOBEY.com
  68. 68. The Old-New Role • CSR • Stories • IR • Translation • Web 2.0 • Reach • Crisis Comm • Listening • Branding • Engaging • Corporate • Gatekeeper Reputation • Marketing • Media Relations www.myCNI.com.my www.OOBEY.com
  69. 69. Evolution Audience People Change Story Tools www.myCNI.com.my www.OOBEY.com
  70. 70. “…in the past 18 months, we have heard that profit is more important than revenue, quality is more important that profit, people are more important than profit, customers are more important than our people, big customers are more important than small customers, and that growth is the key to our success. No wonder our performance is inconsistent" CEO, Anonymous www.myCNI.com.my www.OOBEY.com
  71. 71. Don’t forget… “The business of business is Business, not Corporate Communications” (and definitely not about Twitter, Blogs or Facebook) www.myCNI.com.my www.OOBEY.com
  72. 72. Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable. blogspot.com/
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