1. impact a meaningful, positive, measurable on your performance Introducing…

2. International, networked 85% of our clients work with more than one Fleishman-Hillard office Our top 100 clients work with an average of eight Fleishman-Hillard offices Our most networked client works with 30 of our >80 offices

3. Today’s realities in the business arena

4. Today’s* 31 realities in the business arena Self-confident people IndividualistsSpoilt Active Self-propelling Critical Rational Emotion Decisive Powerful Power shifts Call for transparency Issues Role shifts Functionality? Senses! Virtual Perceptions Weblogging Internet Global Communities Broadcasters Ego Shareholders Stakeholders Activists Scandals Mergers Lay-offs Interference Experiences * Subject to constant change!

5. How people consider organisations, nowadays Critical Rational Emotional

6. What organisations need to do This critical attitude requires a balanced communication and behavior approach Taking into account both rational and emotional aspects, Taking into account the outside-in perspective: –Stakeholders points of view, Taking into account the inside-out perspective: –Organisation’s points of view, And have all this managed in balance, simultaneously, and ongoing

7. Products & Services Financial Performance Social Responsibility Vision & Leadership Workplace Environment Emotional Appeal REPUTATION Outside-in perspective: reputation drivers Source: Reputation Institute

8. Inside-out Perspective: 5 steps to corporate fame 1. Authenticity the essence: vision – mission - values – positioning 2. Distinction recognizably different – distinctive promise – stand out 3. Consistency in actual behavior + in all communication programs 4. Transparency open yourself up - disclose information timely 5. Visibility participate actively – make your initiatives visible

9. Workplace Environment Workplace Environment Financial Performance Financial Performance Emotional Appeal Emotional Appeal Vision & Leadership Vision & Leadership Social Responsibility Social Responsibility Products & Services Products & Services Feel Good About Admire and Respect Trust High Quality Innovative Value for Money Stands behind Market Opportunities Excellent Leadership Clear Vision Future Good Place to Work Good Employees Rewards Fairly Record of Profitability Low Risk Investment Growth Prospects Outperforms Competition Supports good causes Responsibility for Community, Environment Feel Good About Admire and Respect Trust High Quality Innovative Value for Money Stands behind Market Opportunities Excellent Leadership Clear Vision Future Good Place to Work Good Employees Rewards Fairly Record of Profitability Low Risk Investment Growth Prospects Outperforms Competition Supports good causes Responsibility for Community, Environment Corporate Communication & Management Communication Marketing Communication & Experiential Marketing Employee Communication & Employer Branding Investor Relations & Financial Communication Corporate Citizenship & Community Communication Reputation Perspective: Build balanced programmes Authentic Distinctive Consistent Transparent Visible

10. US Consumer Opinion Survey on CSR (Preview) FH and National Consumers League Purpose: capture average consumer’s attitude towards CSR US adult consumers, all 50 states 800 telephone interviews, 30 minutes Q1 2006

11. “Employees Matter Most” Nearly 50% say: treating + paying employees well is most important –Not environmental stewardship or philanthropy

12. “Values Are Critical” Strong feeling for companies with values that are aligned with their personal values “Extremely” or “very” important to work for (79%), buy products/services from (65%), and socialise with (72%) those companies who have similar values and principles

13. Overall Finding American consumers, empowered by technology, are setting their own agendas on Corporate Social Responsibility, … rather than taking cues from the business world or traditional social activists

14. How To Value Our Efforts? How align communications activities with corporate goals and strategy? How allocate budget and effort across activities/programs to maximise the business impact? How measure and manage the value that communication really creates?

15. Wouldn’t It Be Great To… Define the specific business value generated by communications in terms of –Profitability, –Market share, –Revenue, –Employee turnover, or any other measure that matters to corporate management?

16. Wouldn’t It Be Great To… Distinguish the value created by corporate communication and evaluate the contribution of marketing PR compared to other campaign elements, in terms of –Unit sales, –Revenue, –Or other measures?

17. Wouldn’t It Be Great To… Be able to predict the potential creation of additional value from specific messages of communications activity?

18. Where we are Measurement is Evolving COMMUNICATIONS OUTPUT ORGANIZATIONAL OUTCOMES EFFECT DATA EFFECT Where we began Where we were CountingEstablishing Causation Analyzing COMMUNICATIONS OUTPUT

19. Communications CoPilot sm > Demonstrate the total value created by a communications campaign > Identify communications activities creating most value > Drive strategic and tactical decision-making in the communications function, including functional structure/integration and program development > Compare performance in a particular area to your industry’s or peers’ performance A statistically based measurement framework, Communications CoPilot sm has the power to:

20. Scenario Planning Develop and conduct customized scenario planning simulation exercises to help management teams prepare for special situations, including product launches and crisis situations The customized scenario planning models are responsive to inputs and reactions developed by exercise participants, helping managers formulate future strategy

21. Bundled Expertise: CCW Communications Consulting Worldwide (CCW) is the measurement-based communications consulting unit affiliated with Fleishman-Hillard It helps organizations measure, manage and grow the value of communications It was developed through a two-year investment by Fleishman-Hillard

22. Case Study: Transportation Company A major transportation company wanted to determine the contribution of media relations activities to its target business outcome: revenue They provided CCW with media relations data, customer satisfaction survey data and financial data to create a robust model for measurement Analyze Results & Effects on Outcomes Run Comms CoPilot Prepare Data Collect Comms Data Determine Outcomes & Data Shape Strategy

23. Case Study: Transportation Company Findings: –The message themes that have the most significant contribution to revenue, include corporate culture & CEO, management strength and employee relations –Media relations contributes approximately $300 million in annual revenue The client is now using CCW analysis to shape upcoming media relations program development

24. Wrap up Effectiveness of communication can be measured – through statistical analysis Reputation can be managed Do not underestimate the intangibles Carefully balance inside-out and outside-in Be yourself, and show yourself

25. Fleishman-Hillard Europe, Reputation Management www.fleishmaneurope.com Lucas Michels Chair, European Practice Group Corporate Reputation Management Telephone: +31 20 406 5930 lucasmichels@fleishmaneurope.com Thank You