corporate communication practices & trends 2001

Corporate Communication Institute at FDU www.corporatecomm.org 1

CORPORATE COMMUNICATIONCORPORATE COMMUNICATIONPRACTICES & TRENDS 2001PRACTICES & TRENDS 20019 January 2002

Corporate Communication Institute

at FDU

Michael B. Goodman, Director

www.corporatecomm.org


CORPORATE COMMUNICATIONCORPORATE COMMUNICATIONPRACTICES & TRENDS 2001PRACTICES & TRENDS 2001

l Michael B. Goodman

l Jill Alexander

l Jim Hutton

l Gary Radford

l Jennifer Lehr

l Christina Genest

l Lisa Mobus

l Jeanette Cruz

l Jennifer Brown


GOALS OF THE STUDYGOALS OF THE STUDY

l Describe the current state of the art in Fortune 1000 companies

l Continue the CCI Benchmark Study

l Develop a snapshot of Corporate Communication practices

l Identify trends in Corporate Communication

l Build a database for further study


THE STUDY METHODSTHE STUDY METHODSl The Survey: 18 Questions

l Mailed survey to Fortune 1000 companies -- March 2001;

l Follow-up post-card reminder -- April 2001

l Second survey mailing -- May 2001

l Response rate – 18%

l Interviews -- May - June 2001

l Number of interviews: 30 +


OVERVIEW OF FINDINGSOVERVIEW OF FINDINGSl Competition & technology drive actions

l Evolving roles & responsibilitiesl Accelerating pace of workl Increasing strategic importancel Critically important for business unitsl Trends: globalization, technology, social responsibility, employee

focus, reputation managementl Core competencies expand to strategic abilitiesl Practitioners are younger, smarter, and better paidl Impact of terrorism and September 11 to be determined


KEY FUNCTIONS OF CORPORATEKEY FUNCTIONS OF CORPORATECOMMUNICATIONCOMMUNICATION

l Advertising & Image Building

l Change & Corporate Culture

l Media Relations

l Investor Relations

l International Communication

l Communication Policy

l Internal Communication &Technology

l Crisis Communication

l Corporate Citizenship & Ethics

l Executive Communication Issues– Building a CommunicationCulture

l Leadership and Communication

l Public Relations


CURRENT TRENDS in CORPORATECURRENT TRENDS in CORPORATECOMMUNICATIONCOMMUNICATION

l Relationships with thecommunity matter a great deal

l Culture is vital to organizationalhealth

l Communication is strategic –now more than ever

l The age gap between managersand employees must factor intoplanning

l People in the workforce caremore about themselves than thecompany

l Speed is faster then it ever was

l Company is expected to be agood citizen, AND make money

l Media relations is more complex– no more old boy system

l Internet is just a tool; Internet isa strategy – truth is on thecontinuum

l Company will have a crisis;prepare for the ones you can’tconceive of

l Writing is still the core skill forCorporate Communication


NUMBER OF EMPLOYEES --NUMBER OF EMPLOYEES --2000 & 20012000 & 2001

5.12.2

11.7

25.5

16.8

38.7

1.4

12.4 13.8

4.19

1.4

7.6

34.5

05

1015202530354045

lessthan500

up to1000

1k -4.9k

5k -9.9k

15k -19.9

20k + 20k -24.9k

25k -29.9k

30k -39.9k

40k +


GENDER OF CORPORATEGENDER OF CORPORATECOMMUNICATION EXECUTIVESCOMMUNICATION EXECUTIVES

44

5653.9

46.1

0

10

20

30

40

50

60

Male Female

20002001


AGE OF CORPORATEAGE OF CORPORATECOMMUNICATION EXECUTIVESCOMMUNICATION EXECUTIVES

0

5

10

15

20

25

30

20-34 35-39 40-44 45-49 50-54 55-59 60-64 65+


EDUCATION OF CORPORATEEDUCATION OF CORPORATECOMMUNICATION EXECUTIVESCOMMUNICATION EXECUTIVES

1.5 2.2 0.7

50.4

12.4

0.7

13.98.8 8.8

0.73.2 1.1 1.1

39.5

19.5

0.5

16.2

3.811.9

2.20

10

20

30

40

50

60

Ph.D JD CPA BA BS BBA MA MS MBA somecol

20002001


SALARY 2000 & 2001SALARY 2000 & 2001

3

28.5

32.8 32.8

1.1

23

32

18 16.9

9

0

5

10

15

20

25

30

35

< 50,000 50k -99.9k

100k -149k

150,000 + 150k -199k

200k -299k

300k +


REPORTING LINESREPORTING LINES47.547.5

9.89.85.55.5

00

7.17.1

3030

0055

101015152020252530303535404045455050

CEOCEO CFOCFO COOCOO CIOCIO CounselCounsel OtherOther

20012001


CORPORATE COMMUNICATIONCORPORATE COMMUNICATIONFUNCTIONS & BUDGET (1)FUNCTIONS & BUDGET (1)

AdvertisingAdvertising

56.256.243.843.8 42.342.3

57.757.7

42.242.2

57.857.8

3737

6363

00

2020

4040

6060

8080

100100

Yes - FunctionYes - Function No - FunctionNo - Function Yes - BudgetYes - Budget No - BudgetNo - Budget

2000200020012001



Annual ReportAnnual Report

79.679.6

20.420.4

69.369.3

30.730.7

80.580.5

19.519.5

73.273.2

6.86.8

00

2020

4040

6060

8080

100100


2000200020012001



Communication Policy & StrategyCommunication Policy & Strategy

86.986.9

13.113.1

95.695.6

4.44.4

90.390.3

9.79.7

95.795.7

4.34.300

2020

4040

6060

8080

100100

YesYes NoNo YesYes NoNo

2000200020012001



Community RelationsCommunity Relations

66.466.4

33.633.6

56.956.943.143.1

64.364.3

35.735.7

55.455.444.644.6

00

2020

4040

6060

8080

100100


2000200020012001



Corporate (Organizational) CultureCorporate (Organizational) Culture

48.948.9 51.151.139.439.4

67.667.6

3333

6767

26.126.1

73.973.9

00

2020

4040

6060

8080

100100


2000200020012001



Corporate IdentityCorporate Identity

75.275.2

24.824.8

67.967.9

32.132.1

69.769.7

30.330.3

59.859.8

40.240.2

00101020203030404050506060707080809090

100100


2000200020012001



Mission StatementMission Statement

3838

61.361.3

29.929.9

70.170.1

42.242.2

57.857.8

34.834.8

65.265.2

00101020203030404050506060707080809090

100100


2000200020012001



Philanthropy (Citizenship)Philanthropy (Citizenship)

46.746.753.353.3

41.641.6

58.458.452.452.4 4747 4444

5656

00101020203030404050506060707080809090

100100


2000200020012001



Crisis & EmergencyCrisis & Emergency

89.889.8

10.210.2

77.477.4

22.622.6

92.492.4

7.67.6

80.480.4

19.619.6

00101020203030404050506060707080809090

100100


2000200020012001



Employee RelationsEmployee Relations

43.843.856.256.2

82.582.5

17.517.5

39.539.5

60.560.5

81.581.5

18.918.9

00101020203030404050506060707080809090

100100


2000200020012001



Ethics CodeEthics Code

8.88.8

91.291.2

11.911.9

87.687.6

00101020203030404050506060707080809090

100100

Yes - FunctionYes - Function No - FunctionNo - Function

2000200020012001



Executive SpeechesExecutive Speeches

90.590.5

9.59.5

86.186.1

13.913.9

89.289.2

10.810.8

8181

1919

00101020203030404050506060707080809090

100100


2000200020012001



Government RelationsGovernment Relations

21.921.9

78.178.1

19.719.7

80.380.3

27.627.6

72.472.4

23.923.9

76.176.1

00101020203030404050506060707080809090

100100


2000200020012001



Internet SiteInternet Site

73.773.7

26.326.3

59.159.1

40.940.9

72.472.4

27.627.6

44445656

00101020203030404050506060707080809090

100100


2000200020012001



Intranet SiteIntranet Site

72.372.3

27.727.7

58.458.4

41.641.6

7373

2727

6262

3838

00101020203030404050506060707080809090

100100


2000200020012001



Investor RelationsInvestor Relations

2727

7373

19.719.7

80.380.3

3131

6969

28.828.8

71.271.2

00101020203030404050506060707080809090

100100


2000200020012001



Issues ManagementIssues Management

58.458.4

41.641.648.248.2 51.851.8

58.958.9

41.141.152.752.7 47.347.3

00101020203030404050506060707080809090

100100


2000200020012001



Labor RelationsLabor Relations

3.63.6

96.496.4

1.51.5

98.598.5

5.45.4

94.694.6

2.22.2

97.897.8

00101020203030404050506060707080809090

100100


2000200020012001



Marketing CommunicationsMarketing Communications

52.652.6 47.447.4

26.326.3

73.773.7

42.742.7

57.357.3

22.822.8

77.277.2

00101020203030404050506060707080809090

100100


2000200020012001



Media RelationsMedia Relations

93.493.4

6.66.6

88.388.3

11.711.7

96.896.8

3.23.2

95.195.1

4.94.900

101020203030404050506060707080809090

100100


2000200020012001



Public RelationsPublic Relations

93.493.4

6.66.6

80.380.3

1919

94.694.6

5.45.4

83.283.2

16.816.8

00101020203030404050506060707080809090

100100


2000200020012001



Reputation ManagementReputation Management

71.971.9

28.128.1

66.866.8

33.233.2

00101020203030404050506060707080809090

100100


2000200020012001



Technical CommunicationTechnical Communication

10.910.9

89.189.1

7.37.3

92.792.7

10.310.3

89.789.7

9.29.2

90.890.8

00101020203030404050506060707080809090

100100


2000200020012001



Training & DevelopmentTraining & Development

9.59.5

90.590.5

5.15.1

94.994.9

2.22.2

97.897.8

4.34.3

95.795.7

00101020203030404050506060707080809090

100100


2000200020012001


CORPORATE COMMUNICATIONCORPORATE COMMUNICATIONBUDGETS -- Dollar ValueBUDGETS -- Dollar Value

19.119.11414

27.227.2

14.714.7

4.44.4

20.620.6

8.38.35.65.6

4545

12.812.8

4.44.4

23.923.9

0055

101015152020252530303535404045455050

<500k<500k 500k -500k -999k999k

1m - 4.9m1m - 4.9m 5m -5m -7.49m7.49m

7.5m-7.5m-9.9m9.9m

10m +10m +

2000200020012001


BUDGET CHANGES -- 2001BUDGET CHANGES -- 2001

33.533.536.636.6

30.330.3

0055

1010151520202525303035354040

Increase

Increase

No Chg

No Chg

Decrease

Decrease

20012001

INCREASED Budget

l 20% -- 5% increase

l 5.4% -- 10% increase


l 7.0% -- 15% + increase

DECREASED Budget

l 13% -- 5% decrease

l 9.7% -- 10% decrease


l 3.8% -- 15% + decrease


BUDGET CUTS TO REDUCE COSTBUDGET CUTS TO REDUCE COST

9.39.3

80.380.3

10.410.4

00

1010

2020

3030

4040

5050

6060

7070

8080

9090

First CutFirst Cut No ChangeNo Change Last CutLast Cut

20012001


STAFF CHANGES -- 2001STAFF CHANGES -- 2001

2020

62.862.8

17.817.8

00

1010

2020

3030

4040

5050

6060

7070

Increase

Increase

No Chg

No Chg

Decrease

Decrease

20012001

INCREASED Staff



l .5% -- 15% increase

l 4.9% -- 15% + increase

DECREASED Staff




l 3.2% -- 15% + decrease


COMMUNICATION & RISKCOMMUNICATION & RISKIn simpler times corporate leaders communicated little in an effort to

reduce the risks to themselves and their organizations.

l Mean -- Benchmark 2000-- 3.35

l Mean -- 2001 -- 3.22

l Std. Deviation -- Benchmark 2000 -- .96

l Std Deviation 2001 -- 1.06


COMMUNICATION & SUCCESSCOMMUNICATION & SUCCESSIn a complex environment, honest, clear, and coherent

communication can drive the rewards of success toward theorganization and its leaders.

l Mean -- Benchmark 2000 -- 4.59

l Mean -- 2001 -- 4.58

l Std. Deviation -- Benchmark 2000 -- .54

l Std. Deviation -- 2001 -- .74


ROLE OF CORPORATEROLE OF CORPORATECOMMUNICATION IN COMPANIESCOMMUNICATION IN COMPANIES

Percent of Respondents who RANKED the following functions #1 :

20% -- Manager of company’s reputation

15.1% -- Source of public information about the company

14.1% -- Manager of relationships -- co. & key NON-CUSTOMER constituencies

13.8% -- Advocate or “engineer of public opinion”

12.4% -- Manager of the company’s image

11.9% -- Driver of company publicity

11.4 % -- Manager of relationships -- co. & ALL key constituencies

2.7% -- Support for marketing & sales

8.1% -- Other


USE OF AGENCIES or VENDORS (1)USE OF AGENCIES or VENDORS (1)

75.975.9 73.773.7

4.44.4

18.218.224.124.1 26.326.3

95.695.6

81.881.8

66.566.5 68.168.1

4.34.3

21.621.633.533.5 31.931.9

95.795.7

78.478.4

00101020203030404050506060707080809090

100100

AdvertisingAdvertising AnnualAnnualReportReport

PolicyPolicy StrategyStrategy

Yes 2000Yes 2000No 2000No 2000Yes 2001Yes 2001No 2001No 2001



10.310.3 6.96.9

43.143.1

2.92.9

89.789.7 93.193.1

56.956.9

97.197.1

9.29.2 4.34.3

35.735.7

5.45.4

90.390.395.795.7

64.364.3

94.694.6

00101020203030404050506060707080809090

100100

CommunityCommunityRelationsRelations

CorporateCorporateCultureCulture

CorporateCorporateIdentityIdentity

MissionMissionStatementStatement




2.22.2

28.528.5

77 2.22.2

97.897.8

71.571.5

9393 97.897.8

6.56.5

32.132.1

7.17.1 2.72.7

93.593.5

67.967.9

92.992.9 97.397.3

00101020203030404050506060707080809090

100100

CitizenshipCitizenship Crisis &Crisis &EmergencyEmergency

EmployeeEmployeeRelationsRelations

Ethics CodeEthics Code




18.218.2 1919

4646

22.622.6

81.881.8 80.380.3

5454

77.477.4

21.121.1 18.418.4

40.540.5

24.324.3

78.978.9 81.681.6

59.559.5

75.775.7

00101020203030404050506060707080809090

100100

ExecExecSpeechesSpeeches

Gov RelationsGov Relations InternetInternet IntranetIntranet




18188.88.8 6.66.6

38.738.7

828291.291.2 93.493.4

61.361.3

202011.411.4 77

32.632.6

808088.688.6 9393

67.467.4

00101020203030404050506060707080809090

100100

InvestorInvestorRelationsRelations

Issues MgtIssues Mgt LaborLaborRelationsRelations

MarketingMarketingCommComm




40.140.1 43.143.1

00

16.116.1

59.959.9 56.956.9

00

83.983.9

33.533.544.944.9

14.614.6 12.412.4

66.566.555.155.1

85.485.4 87.687.6

00101020203030404050506060707080809090

100100

MediaMediaRelationsRelations

PublicPublicRelationsRelations

ReputationReputationMgtMgt

Training &Training &Dev'mtDev'mt



COMMENTS (1)COMMENTS (1)l …the role of corporate communication [is to] manage a

company's brand reputation through broad involvement in anumber of different capacities such as providing counsel tothe CEO, ...overseeing communications to all constituenciesto achieve consistency, and managing the long-termreputational implications of a corporation's strategy to ensurethe brand retains its integrity - regardless of the financialenvironment.

l Increasingly … technology-driven.

l … We are the corporate conscience.


COMMENTS (more)COMMENTS (more)l Employee communications is being recognized (finally) as

very important. The key here is that our people are watchingbehavior. Actions speak louder….

l Communication professionals, even at the most senior levels,must be both strategic (thinkers) and execution (doers)focused.

l Corporate communications tends to be taken more seriouslyeach day at this and most other serious companies. As aprofession, we would be best if we let communications implywhat the average educated person means by communicationand avoid making unsupportable claims for its capability orutility.


COMMENTS (more)COMMENTS (more)l ...the profession is evolving along with business toward

meeting the new dynamics of globalization and e-commerce.This transformation is raising the profile of the profession andrequiring new skill sets. Continuing education will be criticalto success...

l To be flexible and to utilize new tactics. To anticipateproblems before they are problems. To have a respected andhonest relationship with senior management allowing thecommunicator to speak candidly...

l The office must serve as a clearinghouse of information andpolicy.


COMMENTS (more)COMMENTS (more)l The role of corporate communications in our company is

significant. It has earned its "place at the table" by deliveringvalue to our business units...

l ... Today's communication leader must be skilled in alldisciplines, including IR, and be in a strategic position on thesenior management team to be effective and valuable.

l ...Our execs are largely caught in a 1970's time warp whoseem to think communications is best functioning organizingoffice parties/picnics/etc. or taking reactive positions with themedia...


COMMENTS (more)COMMENTS (more)l ...corporate communications responsibility is to ensure

employees were well-informed about the company, and thatthe company's perspective is represented in the media.

l Corporate communication underpins virtually every aspect ofthe company… to realize a very viable exponential ROI,communications must be viewed as a strategic functionreporting to either the CEO, CFO or head of marketing.

l Corporate communications is viewed by management as anessential and vital skill set. Viewed as major contributor topublic standing and business success.

l Our constant challenge is to be included as a strategicpartner to our executives...


INTERVIEW QUESTIONS AND SOMEINTERVIEW QUESTIONS AND SOMERESPONSES ...RESPONSES ...

Eight questions sent by e-mail -- option to have a telephone interviewor send return e-mail:

l The three or four critical issues

l Importance of Corporate Communication to - YOU; CEO

l Top three trends in corporate communication in companies

l Trends unique to the industry

l Downsizing; growing; restructuring; streamlining

l Core Competencies: individual practitioners; the corporation as awhole

l Internet Responsibility -- CC, IS


FINDINGSFINDINGSl Competition & technology drive actions

l Evolving roles & responsibilities

l Accelerating pace of work

l Increasing strategic importance

l Critically important for business units

l Trends: globalization, technology, social responsibility, employeefocus, reputation management

l Core competencies expand to strategic abilities

l Practitioners are younger, smarter, and better paid


WHEN ALL IS SAID AND DONEWHEN ALL IS SAID AND DONEWith all the changes in the nature of work, the tools, the people, thecompanies, maybe some simple guidelines might be helpful

How about Nordstrom’s? They have two:#1 Use your best judgement#2 See Rule #1

Judgement, wisdom, understanding, integrity – develop and relyon them


CORPORATE COMMUNICATIONCORPORATE COMMUNICATIONPRACTICES & TRENDS 2001PRACTICES & TRENDS 2001

9 January 2002

Corporate Communication Institute

at FDU

Michael B. Goodman, Director

www.corporatecomm.org

corporate communication practices & trends 2001

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