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How Communication Professionals Improve Performance

Towers Perrin/IABC “Future Trends” Study. How Communication Professionals Improve Performance . Sarah Smith and Katherine Woodall Principals, Towers Perrin. Overview. Purpose of the Study Methodology The Future of Communications What Works

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How Communication Professionals Improve Performance

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  1. Towers Perrin/IABC “Future Trends” Study How Communication Professionals Improve Performance Sarah Smith and Katherine Woodall Principals, Towers Perrin

  2. Overview • Purpose of the Study • Methodology • The Future of Communications • What Works • What Communication Professionals Need to Do Differently • What Individuals Can Do to Improve Their Effectiveness

  3. Purpose of the Study • To take the pulse of communication professionals around the world • To determine current and future trends in the communication industry • To identify opportunities for communication professionals to offer new services and be better business partners in their organizations • To identify areas for improvement in the industry

  4. Methodology • Towers Perrin and IABC conducted the “Future Trends” study in 2002 using: • A quantitative online survey that surfaced operational and strategic issues among over 1,000 communication professionals • Thirty-minute interviews with 30 global communication leaders that provided qualitative perspectives on organizational and communication challenges and priorities

  5. Who participated in the study • Experienced communication professionals with • An average of sixteen years’ experience • Positions as head of the communication, PR or marketing group in their organization • Professionals from • Sixteen different industries • Countries around the globe

  6. Other 4% Self-employed 5% Government 9% Corporate 53% Consulting firm 13% Association/non-profit 16% Half of the respondents were from corporations Which term best describes your organization? Percent of Respondents 100% = 1,035 Source: Towers Perrin/IABC “Future Trends” Study.

  7. Respondents’ communication groupsincluded both internal and external functions What areas are included in your communication group? Areas identified by over 50% of respondents PERCENTRESPONDING 80% 75 74 72 70% 66 58 60% 52 51 50% 40% 30% 20% 10% 0% Strategic Web Communication Employee Communication (Corporate) Media Relations Crisis Communication (write-in) Customer Communication Marketing Communication (write-in) AREAS IN COMMUNICATION GROUP Source: Towers Perrin/IABC “Future Trends” Study.

  8. Over 25% of communication groups report to the CEO To whom does the head of your communication group report? 100% = 1,035 General Counsel 1% No Answer 6% Public Affairs 6% CEO 27% Human Resources 10% Marketing/ Advertising 11% Self 13% Source: Towers Perrin/IABC “Future Trends” Study.

  9. What works in today’s communication • Communication professionals are gaining credibility in their organizations • Communication priorities usually align with the organizational ones • Communication functions help managers and leadership communicate more effectively. For example: • 62% train managers and first-level supervisors to communicate better • 50% organize events where leadership interacts with employees • Technology improves productivity and saves costs, particularly with regard to Human Resources topics • 23% of participants use videoconferencing and Webcasts in place of face-to-face meetings that require travel • Participants often use Web to provide HR-related information Source: Towers Perrin/IABC “Future Trends” Study.

  10. Always/Often Sometimes Seldom/Never Communication groups provide strategic and tactical assistance How frequently does your communication group provide expertise in each of these roles? PERCENT 100% 6 9 10 13 90% 18 9 26 12 80% 16 23 70% 26 60% 34 50% 79 40% 74 65 63 30% 51 20% 34 10% 0% Developing Communication Strategies Designing and Creating Media (including Web) Managing Production and External Vendors Advising and Coaching Leadership Strategic Planning for the Organization/ Client Conducting Research Source: Towers Perrin/IABC “Future Trends” Study.

  11. Always/Often Sometimes Seldom/Never External resources usually used for production or graphics How often does your communication group use or collaborate with external contractors for the following activities? PERCENT 100% 90% 22 32 33 80% 40 41 70% 53 20 60% 50% 23 25 21 21 40% 30% 19 45 20% 31 30 28 27 10% 14 0% Internal Communication: Production and Fulfillment Internal Communication: Writing, Graphic Design External Communication: Production Web External Communication: Creation Specific Country/Region Communication Source: Towers Perrin/IABC “Future Trends” Study.

  12. What communication professionals need to do differently • Set priorities that address immediate business issues • 40% of respondents said that “fixing current business problems” was paramount • 16% listed “recreating their image internally” as an immediate goal • Demonstrate the value communication adds to the organization • Almost one-third of interviewees had gone through downsizing and experienced reduced budgets for their communication function • 47% listed demonstrating the impact of the communication function as a top priority for the next 18 months, but • Few measure results formally — and, when they do, measures rarely focus on behavioral change • 57% always or often use informal feedback • 54% said changes in behavior were a key indicator of the communication function’s performance, yet only 17% use pre- and post-behavior assessments always or often Source: Towers Perrin/IABC “Future Trends” Study. Continued . . .

  13. What communication professionals need to do differently (Cont’d) • Use new media more broadly as an additional means of reaching people — not just as a cost-cutting measure • Only 33% have increased their company’s use of electronic media • Only 8% post information immediately on their Web sites • Continue using existing media to support organization’s goals and, in some situations, consider increasing the use of face-to-face meetings or virtual meetings • Deal with global issues proactively Source: Towers Perrin/IABC “Future Trends” Study.

  14. Set priorities that address immediate business issues:Top priorities for organizations What are your organization’s top business priorities for the next eighteen months? 49 Improve operating performance 36 Cost reduction/management Adapting to industry changes 32 29 Changes in strategic direction Aligning the internal and external brand 25 Attracting and retaining top talent 22 0 20% 40% 60% 80% 100% PERCENT OF RESPONDENTS RANKING THESE ANSWERS IN TOP 3 Source: Towers Perrin/IABC “Future Trends” Study.

  15. Set priorities that address immediate business issues:Top priorities for communication professionals What will your communication group need to do to deal effectively with your company’s future priorities? CATEGORY Maintain/build internal relationships 48 Manage costs tightly 41 Develop external relationships 38 Learn to use new systems/media 33 31 Realign expectations 24 Focus on new audiences Maintain/build reputation 22 Recreate its image/brand 16 Reorganize 9 0 20 40 60 80 100 PERCENT OF RESPONDENTS RANKING THESE ANSWERS IN TOP 3 Source: Towers Perrin/IABC “Future Trends” Study.

  16. Set priorities that address immediate business issues:Aligning goals with the organization “We are in lockstep with the senior leaders of the organization. I prepare my personal goals only after I know what my boss’s goals are and what her boss’s goals are. The organization’s priorities completely drive what we do.” Amy White, Vice President of Employee Communications, Cardinal Health Source: Towers Perrin/IABC “Future Trends” Study.

  17. 67 Performance against objectives Changes in behavior 54 Audience perception of 48 communication’s effectiveness Understanding of the 45 topic/program Exposure to topic/program 44 communicated Value of communication 40 (cost/benefit) Image in the marketplace 39 Brand awareness 39 Employee, customer and/or 29 investor commitment Increased trust in leadership 29 0 10% 20% 30% 40% 50% 60% 70% 80% Demonstrate the value communication adds to the organization:Measures of communication effectiveness What measures do you most frequently use to assess the performance of your communication activities? MEASURES PERCENT OF RESPONDENTS RANKING THESE ANSWERS IN TOP 3 Source: Towers Perrin/IABC “Future Trends” Study.

  18. Always/Often Sometimes Seldom/Never Demonstrate the value communication adds to the organization:Frequency and type of internal measurement How often do you use the following methods to gather information on your communication activities’ performance internally? PERCENT OF RESPONDENTS 100% 8 12 90% 29 80% 20 38 40 42 70% 60% 32 26 50% 40% 29 32 26 57 30% 20% 25 29 17 10% 17 15 0% Focus Groups Paper Surveys Pre- and Post- Assessments of Behaviors Interviews Electronic Surveys Informal Discussions CATEGORY Source: Towers Perrin/IABC “Future Trends” Study.

  19. Always/Often Sometimes Seldom/Never Demonstrate the value communication adds to the organization:Frequency and type of external measurement How often do you use the following methods to gather information on your communication activities’ performance externally? 100% 90% 20 80% 33 35 37 38 70% 60% 26 50% 40% 21 23 18 23 30% 20% 26 17 10% 14 13 12 0% Paper Surveys Focus Groups Electronic Surveys Pre- and Post- Interviews With Assessments of Appropriate Specific Behaviors Audiences Source: Towers Perrin/IABC “Future Trends” Study.

  20. Use new media more broadly:Effect of new media on communication How have new technology and media affected the way your organization and/or your clients communicate internally and externally? CATEGORY Reduction in the use of print/ employee meetings 54 Internet/intranet Webcasts 36 Electronic news scans/ breaking news 33 Micro-tailoring for specific audiences 29 More frequent use of videoconferencing 27 0 20% 40% 60% 80% 100% PERCENT OF RESPONDENTS RANKING THESE ANSWERS IN TOP 3 Source: Towers Perrin/IABC “Future Trends” Study.

  21. Use new media more broadly:What some organizations have achieved with new media “Until two years ago, most regular customer communication was done via fax or hardcopy. Now 99 percent of our communication is done via e-mail or our Web site.” Jack Ciak, Vice President of Marketing, Citigroup Source: Towers Perrin/IABC “Future Trends” Study.

  22. Continue using existing media to support organization’s goals:Methods for internal communication — current and future How frequently do (or will) you use the following methods to communicate with employees about business initiatives? METHOD 67 Electronic media (e.g., e-mail) 47 50 Web 43 49 Written publications (local and corporate) 27 48 Face to face (e.g., meetings) 36 39 Senior leadership interactions 33 29 External media (e.g., press releases) 20 20 Videoconferencing/conference calls 20 4 Closed circuit TV 5 0 10% 20% 30% 40% 50% 60% 70% 80% PERCENT OF RESPONDENTS INDICATING “ALWAYS/OFTEN” Current Future Source: Towers Perrin/IABC “Future Trends” Study.

  23. Deal with global issues proactively What are the issues you face in communicating globally? PERCENT OF RESPONDENTS RANKING THESE ISSUES IN TOP 3 100 90 80 70 60 51 50 40 34 32 28 30 23 20 10 0 The Need to Tailor Communication Differences in Communication Styles Leadership Perceptions of Communication Language Cost CATEGORY Source: Towers Perrin/IABC “Future Trends” Study.

  24. If you had one piece of advice... • Network, network, network (through alliances, associations and videoconferencing) • Get as much mileage as you can out of one story — and repeat, repeat, repeat — through a variety of media • Use research to persuade leadership that they need to keep reinforcing the message • Listen well — and be concise in your messages Source: Towers Perrin/IABC “Future Trends” Study.

  25. In conclusion... “Just keep doing what makes sense. Each crisis brings new opportunities. Look to others to help develop and brainstorm solutions.” Steve Mulligan, Director of Corporate Communication, Sears Source: Towers Perrin/IABC “Future Trends” Study.

  26. Please contact your closest Towers Perrin office or For more information . . . Sarah Smith —– (312) 609-9408 Katherine Woodall —– (415) 836-1289

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