Transform Conference 2010 - Matthew Young, Santander

1. Together. We are Santander

2. Together. We are Santander
 Engaging managers across the company
 Aligning internal and external messages about the
brand and strategy
 Making sure every employee believes in and acts on
the new brand
 Measuring the effectiveness of the communication
strategy

3. 3
Re-brands: tricky things to get right

4. 4Re-brands: tricky things to get right

5. 5 5
A brief history of Santander in the UK (Nov 2004)
Spanish Armada
HALIFAX parent HBOS has warned
ABBEY's new Spanish owner: We're
gunning for you.
Abbey, the number two mortgage
lender after Halifax, agreed to an
Pounds 8.5billion takeover on
Monday by BANCO SANTANDER.
But HBOS chief executive James
Crosby told Sun City: "The one thing
we won't do is to sit back and make
it easy for them”.
Hola Abbey!
IT WAS the news Santander executives
had been hoping for. On Tuesday night, the
chief executive of HBOS, James Crosby,
got into a cab at Heathrow airport and made
the call that ended weeks of speculation
that he was not going to counter bid
Santander's approach for Abbey National.
Hasta la vista
Abbey
Takeover by Spanish gets si senor
ABBEY NATIONAL will soon be in
Spanish hands after an £ 8.9billion bid
from BANCO SANTANDER was
approved yesterday.
Angry investors
protest British
developer Abbey's sale
to Spanish bank
It was never going to be a quiet
event. But yesterday's meeting for
shareholders in Abbey to vote on its
9 billion pounds takeover by
Spain's Banco Santander set a new
standard for investor rebellion.
Two years to
turn around
Abbey
Abbey National will take two
years to turn around, its Spanish
owners warned yesterday as
they insisted they were making
progress…
El of a blow for
Abbey Brits
ABBEY National will have a Spanish
chief executive once the £9 billion
takeover by Banco Santander Central
Hispano is completed, it was announced
yesterday.
The Spanish bidder's chairman Emilio
Botin squashed expectations that a Brit
would be appointed to the post.
Investor tries to block Abbey deal
Abbey National faces a high court challenge to its £9bn takeover
by Banco Santander Central Hispano because of concerns
about criminal charges faced by executives of the Spanish bank.
The Sun
The SunDaily Telegraph
The Daily Mail
The Daily Star
Express on Sunday
Independent on Sunday
Abbey bids adios as listing
goes to Madrid
SHARES in Abbey National, Britain's second-biggest
mortgage lender, traded for the last time yesterday ahead
of the completion of its Pounds 9.6 billion acquisition by
Banco Santander Central Hispano, Spain's biggest bank.
The Times

6. Benchmark Employee Opinion
 We launched our first Employee Opinion Survey (EOS)
 It wasn‟t great – we were c.20 points below the sector
average in most areas
 Staff said we were particularly bad in the following areas:
– Making Abbey a rewarding place to work
– Delivering for customers
– Senior leadership visibility
 Undeterred, we carried on…

7. 7 7
Communication channels open…

8. 8 8
Business begins to turn around…
Daily Telegraph
The Independent
City AM
Reuters
The Times
The Sunday Times
Yorkshire Post
The Independent

9. 9 9
Corporate profile improves…
Financial Times
The Times
As Abbey chief executive Antonio Horta-Osorio told Gordon Brown at
last month's meeting at 10 Downing Street, there is a real threat that
high funding costs will result in smaller building societies being priced
out of the market.
Mr Darling met representatives from the six biggest clearing banks
yesterday, Lloyds, Barclays, RBS, HBOS, Abbey and HSBC, to agree
measures to help home owners before they get into debt.
“Antonio Horta-Osorio, the chief executive of Abbey, then left Brown
with some stark choices. If you want the big banks to end up with
100% of the UK mortgage market, the straight-talking Spaniard said,
then do nothing. If you want choice in the market – and for building
societies to survive – then the government would have to do
something.”
FINANCIAL TIMES
“The chief executive knew that he faced a serious challenge and
decided, as he had when creating Santander's Brazilian business and
running its Portuguese operations, to move quickly. “
“Among those attending Downing Street with Gordon Brown on
Tuesday were Sir Fred Goodwin of Royal Bank of Scotland, John
Varley of Barclays, Andy Hornby of HBOS, Michael Geoghegan of

10. 10 10
Consumer media onside…
Savings
Credit Cards
Mortgages

11. 11 11
Employees told us “you need to do more”
 We repeated the survey a saw a slight improvement, but not
significant.
 Building on the three themes we added two more:
 Making Abbey a rewarding place to work
– Delivering for customers
– Senior leadership visibility
– Communications
– Improving how we work together
 We engaged our senior leadership population to manage
this

12. 12 12
New communications channels…
QuickTime™ and a
decompressor
are needed to see this picture.

13. 13 15Nothing like a crisis…

14. 14
Corporate Press Score
45 05 -40 -95
-235
-695
-700
-600
-500
-400
-300
-200
-100
00
100
18

15. Further UK acquisitions

16. Awareness building...

17.  Awareness of Santander has increased considerably
– Over 90% of consumers recognise the brand
 Customers value and appreciate the strength and
financial security that being part of a global bank
offers
 Customers will have the advantage of greater
access to Santander through more than 1,300
branches
 For employees, greater career opportunities, more
development
A strong commercial rationale for the change…

18. 18 19
“Three into one” - introducing Santander‟s values and brand
 A new brand promise…. “ We want your business. So we’re always
looking to make banking work better for you and we’ll never take you for
granted”
 Introducing the Group values – leadership, dynamism, commercial
drive, innovation, strength and professional ethics
 Introducing the worldwide employee brand “Santander is you”
– a global initiative that aims to build engagement with our employees
and reinforces the advantages of working for a successful global
company.
– The key focus of the 2009 campaign is that Santander is a close, strong
and solid company, which is why it is the best place to work.

19. 19
Rebrand as part of a new strategy

20. 20The rebrand - reception 20

21. 21 18
“We are Santander”
 “You speak, we act”
A more rewarding place to work – up 22%
Delivering for customers – up 22%
Senior Leadership visibility – up 9%
Communications – up 17%
Working Together – up 10%
 Moving us from below the average of the sector to being above
average in most areas
 Understanding of our vision – stands at 84%
 96% of staff understood why we were rebranding
 Pride in the Santander brand stands at 91%

22. 22 21
What have we learnt?
 A rebranding has to be led by the employees
 Rebrands should not be attempted with:
– High-levels of internal disengagement / disengagement
– Limited or no understanding of the rationale
 Business success is only one driver of engagement – it is also a
relative measure
 Rebrands have to be perceived as a „step change‟ – with benefits
for employees and customers
 Timing is everything
 Don‟t use an electric blind to reveal your new brand