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Managing Corporate Communications in a Global Environment Martin Hirsch - The Roche Group CCI Leaders Forum - January 2014
© 2014 F. Hoffmann-La Roche Ltd
CCI Leaders Forum Key topics & themes
Managing corporate communications in a global environment
• Current context for corporate communications practice
• Navigating a corporate communications career
• Evolving role of the corporate communicator
• Leadership in corporate communications management
• Corporate communications & corporate reputation
© 2014 F. Hoffmann-La Roche Ltd
Where the Story Begins
Challenges in a Global Organization
3 Things You Need to Get Right
Building a Legacy That Lasts
© 2014 F. Hoffmann-La Roche Ltd
Fritz and Adèle Hoffmann-La Roche
• Service to Patients and Customers
• Respect for the Individual
• Commitment to - Responsibility - Performance - Society - Environment - Innovation
Where the Story Begins… Roche: shaped by “family values” since 1896
© 2014 F. Hoffmann-La Roche Ltd
• Make ends meet
• Value honesty, integrity & discipline
• Commitment to
- Spending within means
- Education
- Security
- Simple, honest life
Where the Story Begins… Hirsch: shaped by “family values” since 1951
Martin Hirsch and his parents
© 2014 F. Hoffmann-La Roche Ltd
• Work hard, pursue professional excellence – Support a comfortable life style
• Enjoy life – Travel and see the world
• Be loyal to family and friends – Treasure and nurture the precious relationships in your life
Martin and Lisa Hirsch-Lu Shaped by his wife’s values since 1991
Martin Hirsch and his wife Lisa
© 2014 F. Hoffmann-La Roche Ltd
History, Synchronicity, Destiny
Hoffmann-La Roche Inc.: Nutley, New Jersey, USA
July 1982-June 2001
F. Hoffmann-La Roche Ltd: Basel, Switzerland
June 2001-Present © 2014 F. Hoffmann-La Roche Ltd
Evolution of an Industry “Over 100 years with one name above our door”
1982-2013
American Home Products Roche Warner-Lambert
Beecham Sanofi Wyeth
Burroughs-Wellcome Astra Pfizer
Ciba-Geigy Sandoz Glaxo
Hoechst SmithKline Pharmacia
Schering-Plough Squibb Johnson & Johnson
Merck Upjohn Novartis
© 2014 F. Hoffmann-La Roche Ltd
Basic Facts at a Glance
• Founded 1896 in Basel, Switzerland
• Founding families still hold majority stake
• About 82,000 employees worldwide
• Active in 150 countries on all continents
• Sales: About 45 billion Swiss francs
• Clear focus on healthcare
• Leader in biotechnology, oncology, diagnostics
• No. 5 in pharma worldwide, a market leader in virology
• Pioneer and leader in personalized healthcare
• Unique innovation model © 2014 F. Hoffmann-La Roche Ltd
Where the Story Begins
Challenges in a Global Organization
3 Things You Need to Get Right
Building a Legacy That Lasts
© 2014 F. Hoffmann-La Roche Ltd
Challenges in a Global Organization Cultural diversity, competing priorities
• Diversity of culture and language
• Multiple priorities
• Message/info overload
• Initiative fatigue
• Complexity of coordinating info flow
• Inconsistent regard for communications as a: professional discipline on a par with HR, Finance, IT and Law value driver leadership competency
• Unique Roche challenge: congenital decentralization
© 2014 F. Hoffmann-La Roche Ltd
Challenges in a Global Organization Strict labor laws, strong works councils
Novartis Reverses Plant Closure In Switzerland
January 17th, 2012 // 10:56 am Nearly three months of sustained pressure has prompted Novartis to change its corporate mind and abandon plans to close a plant in Vaud, Switzerland, a step that will save about 320 jobs. At the same time, the drugmaker will eliminate fewer than the 760 jobs that were originally to have been cut at a chemical plant in Basel.
The move comes in response to demonstrations by Novartis workers, protests from local politicians and, in one case, a publicized boycott of Novartis medicines by a doctor in Switzer-land, where the drugmaker is headquartered and residents were unnerved by the extent of the planned job cuts. Until recently, Novartis employees in other countries have borne the brunt of widespread layoffs…
© 2014 F. Hoffmann-La Roche Ltd
Alignment Challenges in a Global Organization Clouded minds decrease performance
HQ Goals
Divisional Goals
Affiliate Goals
Functional Goals
Corp Comms Goals
Product Comms Goals
Global Strategic Initiatives
Local Strategic Initiatives
Internal Pharma Communications Children’s Walk
Global/Local Corporate
Programming “Phelophepa”
Roche Commissions “I’m unfit for duty. All I’m fit for
is early retirement!” “I’m fit to be tied!”
ARIVA
Fit to Win
CEO’s priorities GM’s priorities Boss’s priorities
© 2014 F. Hoffmann-La Roche Ltd
The Triple S (Stretch, Shape, Strengthen)
Winning for the Future
Project Forward
Where the Story Begins
Challenges in a Global Organization
3 Things You Need to Get Right
Building a Legacy That Lasts
© 2014 F. Hoffmann-La Roche Ltd
3 Things You Need to Get Right It’s all about relationships
The relationship between the company and its employees
The relationship between the company and its external stakeholders
The relationship between headquarters and sites/affiliates © 2014 F. Hoffmann-La Roche Ltd
“Logic can convince but only emotion can motivate.”
Jonathan Alter, Former Senior Editor, Newsweek, and columnist for Bloomberg View
The Relationship With Employees How to engage, motivate & energize
© 2014 F. Hoffmann-La Roche Ltd
The Relationship With Employees Clarity, clutter-busting, engagement & alignment
• Organizations whose employees understand goals deliver 24% higher shareholder returns (Watson Wyatt)
• Highly committed employees perform 20% better than disengaged employees; Emotional engagement is four times more valuable than rational factors in driving employees’ effort (Corporate Leadership Council)
• Leaders need to engage, motivate and energize employees by helping them to:
– Have a clear line of sight between their daily work and company goals
– Understand the company’s strategic vision and how they contribute to it
– Understand the necessity for change, and to be able to thrive in it
– Understand the rationale for and importance of specific change initiatives
© 2014 F. Hoffmann-La Roche Ltd
The Importance of Global Alignment Corporate strategy
The Roche 2-Pillar Strategy:
• Combined strengths of Pharma & Dia
• Synergies in research, development & marketing
• Unique global network of alliances
• Pioneer & leader in personalized medicine
Early detection
© 2014 F. Hoffmann-La Roche Ltd
Leader in Diagnostics
Leader in Pharma
Prevention Diagnosis Therapy Therapy monitoring
Driving personalized healthcare
The New Roche Purpose Statement We want to be recognized as THIS COMPANY
Doing now what patients need next We believe it’s urgent to deliver medical solutions right now – even as we develop innovations for the future. We are passionate about transforming patients’ lives. We are courageous in both decision and action. And we believe that good business means a better world.
That is why we come to work each day. We commit ourselves to scientific rigour, unassailable ethics, and access to medical innovations for all. We do this today to build a better tomorrow.
We are proud of who we are, what we do, and how we do it. We are many, working as one across functions, across companies, and across the world.
We are Roche.
© 2014 F. Hoffmann-La Roche Ltd
Global Employee Engagement Survey GEOS 2011
What is working well? Our employees:
• Consider Roche one of the best places to work.
• Get a sense of accomplishment from their work.
• Feel they have a work environment that is open and accepts individual differences.
Where do we have room for improvement?
• Senior leaders not seen as valuing people enough.
• Senior management not demonstrating effective leadership.
• Career & development opportunities not meeting expectations.
© 2014 F. Hoffmann-La Roche Ltd
GEOS Response Leadership Commitments
I firmly believe that each person at Roche deserves a great leader. Every day I strive to lead by example, consistently demonstrating our values of Integrity, Courage and Passion. This means:
• I take a genuine interest in people.
• I listen carefully, tell the truth, and explain "the why."
• I empower and trust people to make decisions.
• I discover and develop the potential in people.
• I strive for excellence and extraordinary results.
• I set priorities and simplify work.
• I congratulate people for a job well done.
© 2014 F. Hoffmann-La Roche Ltd
Global Employee Engagement Survey GEOS 2013
Where was the greatest improvement?
• Participation rate up from 80% to 88%
• Most significant increase in “keeping promises”
• Overall engagement score up from 62% to 67% – “Remarkable” improvement, according to Aon Hewitt – Puts Roche ahead of global Pharma benchmark – and into “optimal range”
What are remaining “action areas”? • Work processes • Career opportunities • Senior leadership • People focus
© 2014 F. Hoffmann-La Roche Ltd
Reputation Management Avoiding risks, exploiting opportunities
Doing now what patients need next
Embedding a culture dedicated to reflecting our purpose
Collaborate with Governance, Compliance, Risk Management
Strengthen Our Safety Shield
Benchmark, measure and monitor Roche reputation vs. peers, and assess stakeholder opinions on key business issues
Gather Actionable Insights (ExSOS)
Grow a “Best-Roche” grassroots movement: help make Roche first, best and most reputable
Embed a Reputation-Conscious Mindset
© 2014 F. Hoffmann-La Roche Ltd
The Relationship Between HQ & Affiliates Business case for building bridges
“We are building too many walls
and not enough bridges”
Global alignment requires strong bridges that connect
• communications teams at hq
• hq and the affiliates
• Pharma and Dia to improve coordination, efficiency, alignment, implementation and business support.
Sir Isaac Newton
© 2014 F. Hoffmann-La Roche Ltd
Roche-CCI Affiliate Relations Pilot Study How are multinationals bridging the gap?
Summary of Findings:
• No company in sample of 11 had AR function
• 2/3 had some, but not a dedicated, approach to communicating with affiliates
• 2/3 used extensive feedback loop
• 2/3 consider hq-affiliate comms & alignment a priority
• 1/3 said not enough being done to ensure effective hq-affiliate comms & alignment
• 2/3 said need for effective hq-affiliate comms & alignment remaining steady or increasing
© 2014 F. Hoffmann-La Roche Ltd
Key Findings Among GMs Their priorities and HQ comms support needs
GM views on how HQ communicators can best help affiliate communicators: • Guide Global Strategy Alignment
Help them understand/connect/align global strategy with regional and local/country communications • Clarify “Line of Sight”
Enable them to tailor HQ content to connect and engage local staff • Ensure One Voice
Help ensure alignment with corporate messaging/policy • Clarify and Simplify the Corporate Value Proposition
Make it sell in the executive suite
© 2014 F. Hoffmann-La Roche Ltd
Key Findings Among HQ Communicators Obstacles to meeting mutual expectations There is generally poor understanding of what PR and comms do to drive sales, so it doesn’t get the budget and headcount it needs. Comms people need to demonstrate how PR and comms help sales:
• Need proper recruitment to get the right people with the right skills
• We should visit them more to build relationships and involve them earlier
• They may not be aware of the context and need for change – we don’t do a good enough stakeholder analysis
• Lack of resources
• Global and local priorities not aligned
© 2014 F. Hoffmann-La Roche Ltd
A Window on the Roche World Building a bridge to global alignment
HQ Communications
Employee Comms
Product Comms
Issue Management
Sustainability
CSR
Internet/Digital Comms
Change Comms
etc., …
Affiliate Relations Latin America
Western Europe Central &
Eastern Europe
Asia-Pacific
Key Regions, Plus
Emerging & Underserved Markets
Middle East India Africa
North America
© 2014 F. Hoffmann-La Roche Ltd
Where the Story Begins
Challenges in a Global Organization
3 Things You Need to Get Right
Building a Legacy That Lasts
© 2014 F. Hoffmann-La Roche Ltd
Group Communications at Roche A work in progress
Group Communications Stephan Feldhaus
Diagnostics Communicatons Patty Lee
Branding & Publishing Emanuel Kuhn
Employee & HR Communicatons Jane Weinmann
Strategy Communications & Business Reporting
Jürg Huber
Finance & IT Communicatons Nicolas Dunant
Media Relations Alexander Klauser
Communication Excellence & Reputation Management*
Martin Hirsch
Communication Services Serge Baumgartner
HR Business Partner Navid Nazemian
pRED Communicatons Ron Fuchs
Roche Partnering Communicatons Emilie Gambert
Basel Site Communicatons Susanne Albiez
Genentech Corporate Relations
Geoff Teeter
Pharma Communicatons Annette Luther
© 2014 F. Hoffmann-La Roche Ltd
Building a Legacy That Lasts HQ-affiliate relations
HQ Communications
Employee Comms
Product Comms
Issue Management
Sustainability
CSR
Internet/Digital Comms
Change Comms
etc., …
Affiliate Relations Latin America
Western Europe Central &
Eastern Europe
Asia-Pacific
Key Regions, Plus
Emerging & Underserved Markets
Middle East India Africa
North America
© 2014 F. Hoffmann-La Roche Ltd
Building a Legacy That Lasts
Roche Group Communications
Our Communications Manifesto & Principles
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Communications Role: Strategic, NOT just a support tool
Our Communications Manifesto
• We are NOT order takers. • We ARE strategic advisers and counselors, as well as service providers.
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Communications Principles:
Criteria for CREDIBILITY
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Communications Principles: Criteria for CREDIBILITY
Our Communications Manifesto
1. Credible 2. Consistent 3. Informative 4. Proactive 5. Audience-appropriate 6. Self-confident
© 2014 F. Hoffmann-La Roche Ltd
Communications Principles: Criteria for CREDIBILITY
Our Communications Manifesto
1. Credible: factual, balanced, not driven by “spin” or accentuating the positive while overlooking the negative; communicating good and bad news alike.
2. Consistent: aligned messages delivered with one voice world-wide. 3. Informative: providing perspective as well as conveying facts, giving audiences insight, orientation and understanding
of the broader context, the reasons behind decisions. 4. Proactive: taking the initiative to communicate significant developments, and not waiting until we have to respond. 5. Audience-appropriate: using the right language for each audience – scientific and technical for medical/scientific and
investor audiences; simple, plainspoken language for the broad public, patients and consumers. 6. Self-confident: asserting our rights to deal in facts rather than rumors or speculation, to refrain from disclosing
proprietary or share-price-sensitive information; defending our position vigorously when unjustly attacked or criticized.
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Global Communications Governance
Communications Principles:
Criteria for CREDIBILITY
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Global Communications Governance Strengthening the role of headquarters in providing global guidance, coordination, alignment and consistency in:
• Corporate positioning
• Messaging
• Branding
• Business Policy
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Global Communications Governance
Strengthened Internal Communications
Communications Principles:
Criteria for CREDIBILITY
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Strengthened Internal Communications
Increased focus on employee communications & leadership communications as drivers of pride, engagement and organizational performance.
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Global Communications Governance
Strengthened Internal Communications
Strategic & Proactive Media Relations
Communications Principles:
Criteria for CREDIBILITY
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Strategic & Proactive Media Relations
Greater emphasis on pitching stories and themes, promoting key executives as thought leaders, and earning visibility for Roche corporate responsibility.
Our Communications Manifesto
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Global Communications Governance
Strengthened Internal Communications
Strategic & Proactive Media Relations
Integrated Communications
Communications Principles:
Criteria for CREDIBILITY
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Integrated Communications
Ensuring coordination and maximization of news across teams and audiences (Employee Communications, Media Relations, Intranet, Internet, Investor Relations, Product Communications, etc.)
Our Communications Manifesto
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Global Communications Governance
Strengthened Internal Communications
Strategic & Proactive Media Relations
Integrated Communications
Customized Communication Services
Communications Principles:
Criteria for CREDIBILITY
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Customized Communication Services
Increased innovation, creativity, tailorization and value of content; increased emphasis on finding, publicizing and using best practices from the affiliates.
Our Communications Manifesto
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Global Communications Governance
Strengthened Internal Communications
Strategic & Proactive Media Relations
Integrated Communications
Customized Communication Services
Connected Corporate Branding & Reputation Management
Communications Principles:
Criteria for CREDIBILITY
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Connected Corporate Branding & Reputation Management
Greater emphasis on the link between branding/visual identity and policies, programs and activities that strengthen audience perceptions about Roche and influence what people think of when they see the company logo.
Our Communications Manifesto
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Global Communications Governance
Strengthened Internal Communications
Strategic & Proactive Media Relations
Integrated Communications
Customized Communication Services
Connected Corporate Branding & Reputation Management
Communications Excellence
Communications Principles:
Criteria for CREDIBILITY
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Communications Excellence
Upgraded standards of communications competency and professionalism throughout the world, accompanied by a rigorous, global professional development and succession-planning process.
Our Communications Manifesto
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Global Communications Governance
Strengthened Internal Communications
Strategic & Proactive Media Relations
Integrated Communications
Customized Communication Services
Connected Corporate Branding & Reputation Management
Communications Excellence
Optimal Operating Model for Communications
Communications Principles:
Criteria for CREDIBILITY
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Optimal Operating Model for Communications
Top communicator at headquarters reports to the CEO, and top communicators at affiliates report to the General Manager. Although others models may work, this one is best suited to the communications culture we envision. It puts communicators in the best position to advance the principles of our Manifesto, which aim to strengthen:
- credibility
- trust
- reputation
Our Communications Manifesto
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Global Communications Governance
Strengthened Internal Communications
Strategic & Proactive Media Relations
Integrated Communications
Customized Communication Services
Connected Corporate Branding & Reputation Management
Communications Excellence
Optimal Operating Model for Communications
Real-World Communications
Communications Principles:
Criteria for CREDIBILITY
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Real-World Communications Real-World Communications
Improved balance between serving corporate/business interests and providing employees with more balanced, interesting and sometimes provocative information that comes closer to what they experience in newspapers, magazines, television and the Internet.
Our Communications Manifesto
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto
Global Communications Governance
Strengthened Internal Communications
Strategic & Proactive Media Relations
Integrated Communications
Customized Communication Services
Connected Corporate Branding & Reputation Management
Communications Excellence
Optimal Operating Model for Communications
Real-World Communications
Communications Principles:
Criteria for CREDIBILITY
Communications Role:
Strategic, NOT just a support tool
© 2014 F. Hoffmann-La Roche Ltd
Our Communications Manifesto & Principles Is this vision achievable?
“At first dreams seem impossible, then improbable,
and eventually inevitable.” Christopher Reeve
© 2014 F. Hoffmann-La Roche Ltd
Building a Legacy That Lasts Roche Academy of Business Communications
Three core elements: 1. Comprehensive curriculum for all communicators
2. Advanced curriculum for senior communicators
3. Master classes for communicators and those who must communicate effectively as part of
their job © 2014 F. Hoffmann-La Roche Ltd
Putting La Revolución into Perspective
• It is for real
• It’s not extraordinary…
• But it is dramatic
• It has to start with us, and we need to keep up the fight every day by:
– Feeling part of a global communications community, a unified team – Being clear and credible in our own communications – Counseling and demanding clarity, credibility and authenticity in our leaders’ communications – Adhering to our 6 Communications Principles – Striving for excellence and professional development – Speaking up when we see disconnects – with each other, and management
66 © 2014 F. Hoffmann-La Roche Ltd
Last words
• There are many paths to the place(s) that suit you, and more “seats at the table” than the ones within those four walls.
• You can find your place of influence, contribution and achievement if you: – Lead from where you are – Influence from where you are – Innovate and implement solutions from where you are – Evolve from where you are – Bloom where you’re planted (or transplanted)
• You’ll be more content in the long run if you learn to turn down the voices influencing you from the outside so you can listen to the voices guiding you from inside
© 2014 F. Hoffmann-La Roche Ltd
… One More Thing Find a mentor (or let one find you)
Professor Hillier Krieghbaum
Dr. Leo H. Sternbach © 2014 F. Hoffmann-La Roche Ltd
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