1. Survey Internal Communication trends in the Italian banking sector Mario Spatafora Simone DellOrto Milan, September 2002

2. 2 2 2 Context of reference Main features of the I.C. function Aims, contents and areas of impact Media and tools Evaluation of the results Outcomes Table of contents 1. 2. 3. 4. 5. 6. Internal Communication

3. 3 3 3 Composition of the sample 35% 40% 25% Less than 1.000 employees Between 1.000 and 10.000 employees More than 10.000 employees

4. 4 4 4 Changes of banks organisational structure 2001 70% 20% 10% No answer Substantial changes Marginal changes No change 2002 5% 55% 30% 10%

5. 5 5 5 Is there a specific function dedicated to I.C.? On average, the I. C. function has been recently established (1999). However, I.C. functions have been established starting from 1991 and are still being established. If yes, since when? Does a specific I.C. function exist? 45% 55% Exists Doesnt exist

6. 6 6 6 Preferred position of the I.C. function 56% 22% 11% 0% 10% 20% 30% 40% 50% 60% In the Human Resources department Integrated to external communication /marketing In the General Management In the organisational development department Autonomous department

7. 7 7 7 Preferred position of the I.C. function 56% 11% In the General Management Autonomous department Integrated to external communication /marketing/ other function 0% in the organisational development department in the Human Resources department Today, in the banking industry….…today, in the multi-national industry* 30% 45% 10% 0% Autonomous Department Integrated to external communication /marketing/ other function 5% in the organisational development department in the Human Resources department Top management Organisation Internal communication External communication /marketing Human Resources Communication Ext./int./mktg Organisation Human Resources Top management Internal communication *estimates based on benchmarking studies In staff of the management board

8. 8 8 8 Number of persons employed on average in the I.C. function On average one person every 730 employees is dedicated to internal communication.

9. 9 9 9 Presence of an I.C. Committee 15% 85% Present Absent

10. 10 Functions involved Top management Communication (internal, external, institutional) Marketing and sales office Partially involved: Presidency Legal area Organisational area Human Resources The management of the Committee is often coordinated by the communication area or a specific manager. The I.C. Committee

11. 11 Presence of a budget allocated to I.C. 55% 40% 5% Present Absent No answer

12. 12 Main functions related to I.C. Most important functions 36% 32% 12% 8% 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% HR External communication TrainingSales No answer MarketingOther

13. 13 Main goals of I.C. 1.Develop coherency between culture and strategy 8,56 2,22 2.Promote change8,06 2,36 3.Motivate and involve the professional resources 7,25 5,80 4.Develop the feeling of membership 6,94 8,27 5.Optimise the operative information flow 6,06 7,59 6.Spread the sense of responsibility5,26 2,38 7.Accelerate decision making processes 4,70 6,59 8.Improve time management3,25 3,25 (most important = 10; less important = 1) MEANVARIANCE

14. 14 Main contents of I.C. 1.Strategic fundamentals 8,94 3,11 2.Membership and compensation 8,13 6,61 3.Projects of change 7,60 7,44 4.Services and products 6,44 8,12 5.Organisational notices/memorandum5,41 10,71 6.Socialisation and initiatives 5,24 11,71 7.Operational/organisational processes 5,24 7,47 8.Internal environment and services 4,94 9,81 9.Market 4,94 8,68 (most important = 10; less important = 1) MEANVARIANCE

15. 15 Tools for I.C. purposes 34% 12% 20% Paper media Electronic media Events Relational media

16. 16 Paper media 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of use 90% 75% 70% 55% 40% 35% 20% Press reviewProcedures manuals House-organNotice-boardNewsletterReports on project results Monographic booklets Services brochure Other

17. 17 Electronic media 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Company business TV Videoconference Cd-Rom E-mailIntranetInfo-point Other Percentage of use 95% 90% 60% 30% 25% 10%

18. 18 Events 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ConventionFamily DayTour of the company Prize-giving and celebrations Launching of products and advertising campaigns Internal climate surveys Other Percentage of use 100% 95% 65% 40% 15% 5%

19. 19 Relational media 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Head-employee relationship Team briefingcascade meeting system Group meetingsFocus group Percentage of use 65% 60% 55% 30%

20. 20 Outcomes of the survey

21. 21 Main aspects highlighted by the research Contest The banks analysed are characterised by strong changes in their organisational structure As of today, the I.C. function: is not yet widespread has been recently established (on average since 1999); is ideally placed in the HR department The banking sector is evolving and tending to fill up the gap with multinational companies in order to achieve greater competitiveness also through communication

22. 22 Main I.C. tools are: paper media, electronic media, relational tools and events They focus on involving, addressing and motivating HR in order to guarantee a strong and effective communication The company business TV has the most interesting characteristics for the largest companies Due to the recent introduction of I.C., it emerges that the evaluating system of I.C. activities and initiatives is not yet widespread Main aspects highlighted by the research I.C. tools