Post on 06-May-2015
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THE EVOLUTION OF CORPORATE COMMUNICATIONSCase Studies, Concepts and Debatable Ideas
Kenny OngCNI Holdings Berhad
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Intro: CNI
1. 20 years old2. Core Business: MLM3. Others: Contract Manufacturing, F&B Retail,
Export/Trading, eCommerce, Shared Services4. Malaysia, Singapore, Brunei, Indonesia, India,
China, Hong Kong, Philippines, Italy, Taiwan, Oman, United States, Vietnam
5. Staff force: ± 5006. Distributors: 200,0007. Products: Consumer Goods and Services
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Way back in 2004…
• Thomas Cup, Indonesia
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Now in 2007…
CNI ‘Beemax’ Factory Visit, China
1. Top Leaders
2. Product Development
3. Media
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PR back then…
18th century: press relations, lobbying and, celebrity campaigning
World War I: U.S. publicity
1920’s: Tobacco Industry
Source: Wikipedia.com
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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
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Role Of Corp Comm in the OLD DAYS?
1. helping find or create great stories,
2. translating stories into the language that the right audience can understand,
3. using the best tools to reach those audiences,
4. listening the to feedback and echoes the stories create,
5. engaging in the appropriate way, and
6. Gatekeeper (unfortunately)
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Changed?
• CSR
• IR
• Web 2.0
• Crisis Comm
• Branding
• Corporate Reputation
• Marketing
• Media Relations
• Stories
• Translation
• Reach
• Listening
• Engaging
• Gatekeeper
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NOT changed?
• CSR
• IR
• Web 2.0
• Crisis Comm
• Branding
• Corporate Reputation
• Marketing
• Media Relations
• Stories
• Translation
• Reach
• Listening
• Engaging
• Gatekeeper
The ROLE
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Changed?
People
Tools
Story
Audience
Change
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What is the Objective?
Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.”
Sergio Zyman
“Retention and Loyalty useless if No Conversion is happening.”
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What is the Objective?
Loyalty is Useless…
• Virtual Consumption vs. Real Consumption
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What is the Objective?
Loyalty is misleading…
• Heavy Consumption ≠ Loyalty
• Loyalty ≠ Heavy Consumption
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What is the Objective?
1.Comm = Relationship (something like Dating)
2.Comm ≠ Media glitz 3.Comm ≠ ATL/BTL/BwTL/ArTL/FTL4.Comm ≠ CSR5.Comm = Get more people, to buy
more, more frequently, at higher prices
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COMM
Market Research
Internal External
Leaders Distributors
Suppliers
Media
Government
Public
Authorities
Associations
Universities
NGOs
Investors
Proactive Reactive Proactive Reactive
COMM Tools COMM Tools
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Integrated affair
Conversion
Comm
S&M MBSCCD
[Internal] [External] [Creative]
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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
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New Stories, New Audiences, New Mediums
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New Stories – External impact
Acquisition target
Layoffs
CostCutting
New Mgmt
Treatment of ProfitsConsistency
Ecology
Economics
Politics
Strategy Alignment
CSR-related
Crisis
Topics?
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New Stories – External impact
Acquisition target
Layoffs
CostCutting
New Mgmt
Treatment of ProfitsConsistency
Ecology
Economics
Politics
Strategy Alignment
CSR-related
Crisis
Topics?
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New Stories – Internal impact
Politics
Financial Announcements
Shareholdingchanges
Structure
AccidentsEconomic
Crisis
CompetitorMoves
M&A
New Plans
Share-drop
Events?
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New Stories – Internal impact
Politics
Financial Announcements
Shareholdingchanges
Structure
AccidentsEconomic
Crisis
CompetitorMoves
M&A
New Plans
Share-drop
Events?
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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
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New Audiences
“Good news for stockholders can be bad news for other
stakeholders.” Gregory Miller, Assoc. Prof.,
Harvard Business School.
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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
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New Audiences
Institutional
Fund Managers
Corporations
Sovereign Funds
VCs
NGOs
Non-Profit Org
Financial (Loans)
JV Partners
M&A
Social VCs
Holding Co.
HQ (MNC)
Gov VCs
Supply Chain
Government
PFI
Competitors
Franchisees
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New Audiences
Individuals
Investors
Employees
Shareholders
Customers
Distributors*
Management
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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
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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”
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New Mediums
Institutional
Gov./PoliticsCustomer
s
Suppliers
EconomicsAGM
Market Research
Internet*
Annual Report
Media
Analysts
Fund Managers
Due Diligence
NGOs
NewsletterSpokespersons
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New Mediums
Institutional
Gov./PoliticsCustomer
s
Suppliers
EconomicsAGM
Market Research
Internet
Annual Report
Media
Analysts
Fund Managers
Due Diligence
NGOs
NewsletterSpokespersons
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New Mediums
Individuals
Gov./ Politics
Customers Public
Events
EconomicsAGMAds
Internet*
Annual Report
Media
Analysts
Fund Managers
Relatives
Friends
Pasar Malam
Employees
Employee Bloggers
Mgmt Action
s
Newsletter
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New Mediums
Individuals
Gov./ Politics
Customers Public
Events
EconomicsAGMAds
Internet
Annual Report
Media
Analysts
Fund Managers
Relatives
Friends
Pasar Malam
Employees
Employee Bloggers
Mgmt Actions
Newsletter
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The Right Tools for the Job
Reach of Communication
Qua
lity/
Inte
nsity
of
Com
mun
icat
ion
Personal (exp)
Personal (info)
Impersonal (info)
Individual Mass
Mass Traditional, In-home, Out-Of-Home
Mass Unconventional
Mass Online
Refer Attachment 2
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The Right Tools for the Job
Reach of Communication
Qua
lity/
Inte
nsity
of
Com
mun
icat
ion
Personal (exp)
Personal (info)
Impersonal (info)
Individual Mass
Mass Targeted Conventional
Mass Targeted Online
E.g. Annual Reports, Analyst Briefings, IR Roadshows, IR Website
Refer Attachment 2
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The Right Tools for the Job
Reach of Communication
Qua
lity/
Inte
nsity
of
Com
mun
icat
ion
Personal (exp)
Personal (info)
Impersonal (info)
Individual Mass
Individual Targeted Conventional
Individual Targeted Online
Contests
One-on-One
Refer Attachment 2
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New Mediums – additional info
Refer:• Attachment 3 - How to use Twitter to mitigate a
crisis• Attachment 4 - Template For Social Media Press
Release
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What has been the Biggest change expectation?
• The role of Corporate Communications as
“Value Creator”
But how do we do it?
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The new Role: Value Creation
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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
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Why is Corp Comm important to Value?
1. Funds
2. Brand
3. Intelligence
4. Business
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Why is Corp Comm important to Value?
1. Funds
2. Brand
3. Intelligence
4. Business
Communication to bring in the Funds
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Why is Corp Comm important to Value?
1. Funds
2. Brand
3. Intelligence
4. Business
Communication to bring in the Sales
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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
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Importance: Intelligence
Two types:
Corp Comm
Customer Sharehol
ders
CRM Intelligence
Deal with…
Corp Comm
Management
Public Intelligence
Deal with…
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CRM Intelligence and Customer Shareholders
Self Reliant Need Help
Seek Change
Seek Stability
Searchers Collaborators
Streamliners Delegators
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Public Intelligence: What?
Examples…
1. Record feedback and questions
2. Competitors’ PR communications
3. Top 10 Analysts’ views on Company
4. Top 10 Analysts’ views on Industry
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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)
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Revenue Growth
Base Retention
Share Gain Positioning Adjacent Market
New Business
Operational Excellence
Product Leadership
Customer Intimacy
Competencies Information Systems
Motivation, empowerment,
alignment
Financial
Learning & Growth
Internal Process
Customers
Investment Strategy
Productivity Market Value
Public Intelligence: Why?
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Dangers of Intelligence…
Also known as ‘Beware of Benchmarking’:
1. Big vs. Small company
2. Selective success stories
3. Correlation vs. Causal
4. Survey problems
5. Actionable vs. For-fun
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Importance: Brand
Corporate Communications is a key component of corporate Branding due to its direct influence on:
1. Multiple parties (Investors)
• These parties are either our Branding targets or has influence on our branding targets
1. Brand Story
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Components of Branding
Positioning
Execution
Communication
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Branding Comm: Integration and Consistency
Communications
Internal External
Mgmt Distributors
Suppliers
Media
Government
Public
Authorities
Associations
Universities
NGOs
Investors
Proactive Reactive Proactive Reactive
COMM Tools COMM Tools
Employees
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Branding: Feed You, Feed Me
Internal External
Feed
Feed
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Branding: Feed You, Feed Me
Internal• Halal Committee• Social Education
(e.g. SCK)• Umrah trip• China Trip• RBOS• CFA/HFA• Coffee Van
External• Sponsorship• Donations• News clippings• Newspaper Ads• MHI• Awards• Corporate Profile• AGM• Gov. Celebrity• Analyst research
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Branding: Feed You, Feed Me
Internal• Entrepreneur Dev.• Health products• Health education• “Made in Malaysia”• Events• Media Celebrity
External• Website• DSAM• Yayasan• Publish Book• Social Education• Crisis Comm• Children Education• National interest• Analyst BD
connections
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What is the Business Model?
USP
Market Discipline
Profit Model
•Air Asia
•Tata Nano
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What are they really buying?
"They are the most innovative"
"Constantly renewing and creative"
"Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and hassle
Lowest overall cost of ownership
"A no-hassles firm"
Convenience and speed
Reliable product and service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and flexibility
Recommends what I need
"I'm very loyal to them"
Helps us to be a success
Product Leadership
OperationalExcellence
CustomerIntimacy
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Market Disciplines
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Market Disciplines
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Market Disciplines
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Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
Customer Intimacy
• Management by Fact
• Easy to do business with
• Have it your way (customization)
• Market segments of one
• Proactive, flexible
• Relationship and consultative selling
• Cross selling
Customer Intimacy
• Management by Fact
• Easy to do business with
• Have it your way (customization)
• Market segments of one
• Proactive, flexible
• Relationship and consultative selling
• Cross selling
Product Leadership
• New, state of the art products or services
• Risk takers
• Meet volatile customer needs
• Fast concept-to- counter
• Never satisfied - obsolete own and competitors' products
• Learning organization
Product Leadership
• New, state of the art products or services
• Risk takers
• Meet volatile customer needs
• Fast concept-to- counter
• Never satisfied - obsolete own and competitors' products
• Learning organization
Market Disciplines
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The McPlaybook*
Make it easy to eat• 50% drive-thru• Meals held in one
hand
Make it easy to prepare• High Turnover• Tasks simple to learn
& repeat
Make it quick• “Fast Food”• Tests new products
for Cooking Times
Make what customers want• Prowls market for new
products• Monitored field tests
*Adapted from: Businessweek , Februrary 5th 2007
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Market Disciplines
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Market Disciplines
HP well-balanced portfolio, mass customization
Acer super lean cost structure, aggressive pricing
Apple powerful products, premium
pricing, limited range
Still Doing well in 2009
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What is the Business Model?
USP
Market Discipline
Profit Model
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The Old-New Role
• CSR
• IR
• Web 2.0
• Crisis Comm
• Branding
• Corporate Reputation
• Marketing
• Media Relations
• Stories
• Translation
• Reach
• Listening
• Engaging
• Gatekeeper
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Evolution
People
Tools
Story
Audience
Change
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“…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
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Don’t forget…
“The business of business is Business,
not Corporate Communications”
(and definitely not about Twitter, Blogs or Facebook)
Thank You.
soft copy of slides: http://totallyunrelatedrandomanddebatable.
blogspot.com/