Internal Communications UK Communications and Public Affairs January 2009

The Purpose of Internal Communications A two-way conversation Requires listening and communication To build productive relations to ensure: –Growth –Understanding of company strategy –Clear visible leadership

‘Less than a third of employees say management provides a clear goals and direction’ - Harris study. 50% of employees don’t know the strategy. While 9 per cent of customers are lured away by competition, 68 per cent are turned off by an employees’ attitude. The average professional worker receives 178 messages per day and information load increases by 2 per cent per month. 70 per cent of change initiatives fail to deliver their planned benefits. Poor Internal Communications – The consequences

Good Internal Communications – the benefits Employees become brand and employer advocates Understanding motivates - 91 per cent who understand overall role in the business, will work for success, only 23 per cent if they don’t. Companies’ ability to engage and retain employees is the single best predictor of excellence. - Fortune survey of the ‘World’s Most Admired Companies’ Personal communication helps workers’ job satisfaction and commitment, and results in improved earnings - Chief Executives of 164 large companies Good Communications can help turn strategy into action and accelerate growth Drive customer satisfaction and company profits 50% more likely to have lower turnover and absenteeism* 27% more likely to create high profits* 46% fewer accidents* $27,000 more in sales/employee** $18,600 more market value/employee** $3,800 more profits/employee** Gross return on capital 3 times higher** 90% more motivated to help company succeed*** * Source: The Gallup Organization ** Source: Rutgers University *** Source: Towers Perrin

In the UK different channels do different jobs Degree of action and change

InformUK employees - online and notice boards Event driven What happened and what is going to happen GB Communications and Public Affairs UK News via Plaza, hard copy and fax WeeklyHit rates / yearly survey InformUK Employees - with IT access Latest news Background information Various/ InternalCX News PlazaDailyHit rates / Yearly survey InformUK Employees - Face to face via Line Managers Company performance GB Communications and Public Affairs Team Briefing pack for Face to face presentation via managers QuarterlyYearly Survey / comments via line managers Inform & EngageAll UK employeesFor our people, about our people, by our people GB Communications and Public Affairs Our Voice3 a yearYearly survey Inform & EngageUK Employees - with access to IT Strategy, Company performance, Health and Safety/campaigns GB Communications and Public Affairs DVD / online videoongoingHit rates Inform & EngageAll UK EmployeesLast years’ results and next year plans & strategy Country PresidentUK Road showsBeginning of each year. Form in paper and by Inform & EngageUK employees - with accounts Positive relevant story about CEMEX or urgent information GB Communications and Public Affairs When needed EngageAll UK employees - via , telephone or fax We want to know what you think All levels of comms.TalkbackOngoingAnswer from VP within 48 hours Recognize & Engage UK EmployeesThank and encourage people DirectorsEnd of the year eventDecember.Online survey ObjectiveAudienceMessage / Content SenderChannelFrequency/ Timing measurement Audience segmentation and channel objectives

How Internal Communications added value in In 2008 Launched quarterly traffic light results presentation channel Launched video messages from Country President to increase employee reach (av. 600 hits per video) 9 road shows (600 people) and 4 Tea & Talk events (260 people) to provide direction and facilitate dialogue between employees and senior management Developed best practice writing guides to improve UK News and Our Voice content Increased readers of UK News by 23% (1000 – 1300 readers) Provided Face to Face communications training for 47 managers, and best practice guides. Increased Christmas events from 11 to 50 and attendance by more than 200% (450 to 1500).