Testing EVP-messages

1. Testing EVP-messages Kristina Svensson, Lena Miller & Jeanette Johansson July 2008

2. Content of this presentation • Results from testing EVP message hooks in different SET-areas in Sweden. • Main source for results are focus groups conducted in June. • Other sources include exit interviews undertaken by Constellation Strategy, external & internal surveys.

3. Overview of focus group results 1(2) • General • The EVP-message hooks are overall attractive and positive although comments like corporate bullshit wasn’t unusual in the focus groups. • Some of the messages AZ don’t live up to everywhere and this can potentially be a retention issue. • Language • English an issue, especially for Operations but also for R&D. For ISMO understanding and attractive wasn’t a problem but was concerned about setting the wrong expectations since in ISMO it is only senior people that get the opportunity to work globally. • EVP hooks unclear; taglines with clever wordings. This leads to different people interpreted them differently. • Discrepancy between tagline and explanations sometimes creates uncertainty of the intended content of the EVP hook.

4. Overview of focus group results 2(2) • Missing • Differentiate from competitors: What is AZ compared to others? • “Customer”,“challenge”, “staff policy”, “global company” • Another view was that the focus was too internal and would benefit from being more external. • Suggestions from focus groups • AZ needs to adapt to new ways of recruiting and attracting students. • Focus on what AZ is best at – research and development. • Suggest 1 key message for all AZ, • The messages need to talk to the heart not to the brain. • Recruitment is different in different countries – why a common approach? • Pictures from US cannot be used in Sweden! • Question marks can be used. • There is also a strong belief that storytelling or quotes might work better.

5. Better together …where our success hinges on collaborative relationships across teams, functions and cultures • Employees really value their close colleagues and believe they are really important. Perhaps more for retention than attraction. • The employees experience is that there are still solid walls between SET-areas. Message true? Quotes or information from focus group Walls exist between SET-areas. Different plants work different despite manufacturing same drug. Lots of politics in AZ so not true. (Operation) Only true within the SET-areas, walls. (Enabling) Can be better. IDP is about MY goals and targets, not about working together, not measured on this. (R&D) Collaboration works well in ISMO Why is this mentioned at all? This should go without saying, if it is mentioned, is it because it isn’t true. (ISMO) Message attractive? Analysis or comments from multiple sources “The work colleagues the reason I stayed on so long” (CS exit interview Operation) This answer sets AZ apart compared to other companies according to Constellation Strategy. “Great people” is the most common answer by graduate theses students in an open question on what is the best thing with AZ as an employer (graduate theses survey spring 2008)

6. Spirit of Exploration …where people are empowered to use insight and innovation to bring benefit to all our customers • Attractive message since it is in the heart of an discovery-based organisation. Word of caution, retention issue, especially in R&D since way of working is changing. Message true? Quotes or information from focus group Innovation might exist but isn’t used, nothing happens if you have ideas (Operation) Organisation slow and “Empower” isn’t popular (Operation) “Empower” is over-used (R&D) The possibility to influence work and employer has decreased drastically lately (R&D) Empty wording but attractive message (Enabling) Very attractive message but employees need to be trusted more (ISMO) Message attractive? Analysis or comments from multiple sources AZ moving from innovative research towards development using existing methods is a fundamental change to many researches (personal communication) AZ need to utilise in-house competence better (exit interview Operations)

7. Leading in the right way …where how we do it is as important as what we do • This message was interpreted in many ways. • Ethics important, attractive and something AZ is good at. • Rephrase message to make it clearer? Message true? Quotes or information from focus group Important message, especially for senior position (Operation) Difficult to understand the message (R&D) Isn’t true, used too much, not true, give examples (Enabling) If the message is about ethics it’s both attractive and true. If it is about leadership then some way left to go (Enabling) Message can relate to any company (ISMO) How to lead is important (ISMO) Message attractive? Analysis or comments from multiple sources Quality of leadership at AZ varies (CS exit interviews). Ethics successfully used in attracting in China (personal communication) Ethics is high on the AZ agenda, especially in sales and animal welfare so something to be proud of and use. In reference to employer branding line management-leadership is important and there AZ is more uneven, as seen in the table and comments.

8. Flexible Thinking …where adapting to the needs of a diverse workforce and a lean & agile business requires flexibility • Important message that AZ need people with flexible skills and mind. It doesn’t appeal that much to present employees. Message true? Quotes or information from focus group Difficult being flexible with all the processes. We work a lot with lean and agile. Different if it is true or not depending on where you work in operations. (Operations) Too many processes, flexibility doesn’t exist at all (R&D) A target, but we are not there. We don’t have a diverse workforce. Strange phrasing, trendy word (Enabling). Probably true globally but not in ISMO. Few female leaders (ISMO) Not the most important. Should go without saying. Tagline ok but the subtext/explanation makes it difficult to understand (ISMO). Message attractive? Analysis or comments from multiple sources xxxxxxxxxxxxxxxxx

9. Discovering Potential …where people have the space to achieve and grow • One of the most important things when attracting new employees. • Word of caution; important that it mirror reality. Present development opportunities in a hones way. Message true? Quotes or information from focus group Depends on area/line managers. If you want to grow you have to do it after hours. No space during normal working hours (Operations). Doesn’t exist if you work in a blue collar job (Operations) It’s on your own responsibility. It exists for SET but not for ordinary people. (Enabling) Tagline, could work as general brand instead of “life inspiring ideas” since we discover potential drugs. (Enabling). The will to grow exist but bureaucracy hinders (ISMO) Message attractive? Analysis or comments from multiple sources The word “space” upset people in Operation. Opportunity to grow and develop the most important thing to present employees. This is supported by external surveys and will increase with Generation Y (Företagsbarometern, Novabarometern).

10. Rewarding Performance …where results are valued and recognised • To differentiate company from competitors, give examples of how we reward performance. Message true? Quotes or information from focus group Performance management process is too slow. (Operations) Bonus % of salary -> if you have the wrong salary, you don’t get the right bonus (R&D) Good message, how true, depends on SET-area. Our salaries are not competitive. Attractive message (Enabling). Not enough flexibility for line managers to reward performance, targets too high and no budget (ISMO) Message attractive? Analysis or comments from multiple sources One explanation to low scores in Oper, the monetary rewards that existed previously for good ideas and innovations has been taken away. AZ has good salaries and rewards for people between 35 and 50 but not everyone is married (CS exit) Rewards not what interest young talents most (Nova). Only 10% of graduate thesis students choose AZ because of the reward, the content of project and building a good CV much more important (graduate thesis survey)

11. Change in a changing world …where in a dynamic and challenging industry significant opportunities are on offer for people with the skills to lead & embrace change • Good to bring up the importance of change since it contradict common external perception of the company. Message true? Quotes or information from focus group Good change management skills have recently been included when recruiting leaders – positive. Bad phrasing, too long and complicated but a very important message because we are changing a lot (Operations) Difficult to understand the message. Empty wording. Don’t have “significant opportunities” (R&D) We live in a changing world and we try to change but it’s important also to improve not only change (Enabling). Yes, we are changing but don’t understand the message, we want to lead change, not follow . “Leading in a changing world” is better (ISMO) Message attractive? Analysis or comments from multiple sources Externally AZ is associated with a safe long-term haven (Företagsbarometern). People who have left the company saying that they understand the rational for change and want to be part of it but they are not invited to be involved (CS exit interview).

12. Impacting life …where meaningful work makes a real difference to patient’s lives • The only message present employees are unanimous positive towards. • Appeals to generation Y. Message true? Quotes or information from focus group Important and meaningful message. Easy to grasp and popular message. (Operations) Best message, this is what we do (R&D) We do, if the patient is from the western parts and has luxury sickness. (R&D) AZ has done a good job convincing the employees this (brainwash) (Enabling) Don’t forget that we are a shareholder owned company (ISMO) Many good examples exist to bring this message to life (ISMO) Message attractive? Analysis or comments from multiple sources Exiting to make drugs that can cure people, feeling that you are doing good things (Ungdomsbarometern – 18 years old) Retention increase when message appears to be true.