The New Model Corporate Affairs Director by Portland

THE NEW MODEL CORPORATE AFFAIRS DIRECTOR

THIS PUBLICATION WAS DESIGNED IN-HOUSE BY PORTLAND’S CONTENT & BRAND TEAM CREATIVE DIRECTION:

Natalia Zuluaga López DESIGN:

Vasilki Kontaxi, Natalia Gasto EDITING:

Toby Orr

CONTENTS

INTRODUCTION

WHAT’S GOING ON OUT THERE?

THE RISE OF THE CORPORATE AFFAIRS DIRECTOR

Toby Orr

Jonathan McClory

Nick Helsby

AN INDISPENSABLE ROLE AT THE TOP TABLE

HARD-WIRING REPUTATION MANAGEMENT INTO THE BUSINESS

IT IS ALL ABOUT STRATEGY

Nick Butler

Alastair Campbell

Ben Morton

THE POWER OF NARRATIVE

CORPORATE AFFAIRS IS NOW EVERYONE’S BUSINESS

THE MODERNISATION OF FINANCIAL COMMUNICATIONS

Jimmy Leach

Louise Mason

INVESTING IN NEW MARKETS IN THE DEVELOPING WORLD

BIG FOOTPRINTS AND BEST PRACTICE

SIX RULES FOR CRISIS READINESS

Robert Watkinson

Idil Oyman

THE NEW FRAMEWORK FOR GLOBAL DEVELOPMENT

FIVE TOP TIPS FOR THE INCOMING CORPORATE AFFAIRS DIRECTOR

SUPPORTING YOU

Allan Kamau

Michael Prescott

Mark Flanagan

Rosalind Kainyah

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“

THIS PUBLICATION BRINGS TOGETHER POLLING, ANALYSIS, OPINIONS AND PRACTICAL TIPS FOR CORPORATE AFFAIRS DIRECTORS WITH GLOBAL MANDATES

“

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TOBY ORR SENIOR PARTNER

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INTRODUCTION What we mean by the New Model Corporate Affairs Director On average more than 25 percent of a company’s market value is directly attributable to its reputation, according to a study by the World Economic Forum. Corporate leaders certainly seem to recognise the imperatives of protecting this intangible asset. In a recent Deloitte/Forbes Insight survey of 300 company executives across the world, 87% of respondents rated reputation risk as “more important” or “much more important” than other strategic risks their companies are facing. So what does this mean for the custodian of company reputation, the Corporate Affairs Director? That’s the question we seek to answer in this publication. Over the next few pages, we look at how the role of the Corporate Affairs Director in global companies has changed, and changed out of all recognition. We examine the upgrading of the role internally, within companies – the place it now holds at Board tables, and the requirement for Corporate Affairs Directors to be involved in corporate strategy and all aspects of decision-making. We look too at the alchemy of soft skills required to succeed – those of counsellor, networker, diplomat and fixer. We also examine the radically different external environment in which Corporate Affairs Directors now operate. Just five years ago, companies could largely manage their reputations by controlling their messages and communicating them, through the media, to their key audiences. In this relatively controlled environment, there was a premium on delivery – trading, trailing, spinning and selling-in news. Today’s Corporate Affairs Directors are denied that control. As we discuss here, Corporate Affairs Directors need to shift their focus from delivery to strategy and content – restructuring their teams, embedding a global narrative, empowering employees, and generating compelling and shareable content to engage a much broader range of audiences. All this requires a new kind of practitioner. This is what we mean by the New Model Corporate Affairs Director. At Portland, we work with companies all over the world to build and manage their reputations. We hope this publication gives you a good insight into the way we think. If we can help you in any way, please do not hesitate to get in touch. toby.orr@portland-communications.com

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WHATâ&#x20AC;&#x2122;S GOING ON OUT THERE? JONATHAN MCCLORY

The world is in flux, but three inter-related frameworks can help make sense of it all

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01 / 14 JONATHAN MCCLORY Jonathan McClory is a Partner at Portland. He is also an Associate at the Institute for Government, where he developed the

The New Model Corporate Affairs Director

WHAT’S GOING ON OUT THERE? The world is in flux, but three inter-related frameworks can help make sense of it all

world’s first composite index for measuring the soft power of countries, used as a benchmark by foreign ministries across the globe.

While it now borders on cliché to say so,

of state power, networks are now the

the world is in the midst of a rapid and

crucial driving forces for affecting change

fundamental transformation. And it affects

in the world. The fourth factor is the rise

just about every company on the planet.

of transparency, and with it the need for

Corporate Affairs Directors need to be

organisations to be methodically consistent

at the forefront of understanding this

in aligning values, actions and messaging.

transformation – one that is continually changing the opportunities and risks facing their companies, expanding their audiences and revolutionising the way they need to communicate to them.

WHAT’S THE BEST WAY OF UNDERSTANDING IT ALL? Three inter-related frameworks – soft power, new power, and shared value – go

SO, WHAT IS GOING ON? One place to begin is to look at the factors driving this transformation. Four discernible global shifts are at play. First, the world’s centre of power is shifting from West to East as the global economy changes shape. Second, the digital revolution is transforming nearly every aspect of individual and collective life. Information now speeds across borders and the democratisation of access to information has made the individual more powerful now than at any point in history. The third factor is the proliferation of trans-national networks. With the erosion

a long way in helping to untangle the complexity of the global shifts currently underway.

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— SOFT POWER · VS · HARD POWER —

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— NEW POWER · VS · OLD POWER —

The oldest of the three frameworks, soft

Jeremy Heimans and Henry Timms expand

There is much to take away

power, was coined in 1990 by Harvard

on Nye’s concept of soft power in their

from Heimans and Timms

professor Joe Nye. He used soft power

2014 Harvard Business Review article,

concept of new power, but

to describe the ability of nations to

in which they create a new (but related)

the key messages can be

achieve foreign policy objectives through

spectrum of power: new vs old. Following

distilled as follows:

attraction and persuasion. Soft power

a soft vs hard logic, Heimans and Timms

sits in contrast to the carrot and stick

describe the tension between old power,

approaches of hard power, which relies on

which is like currency, hoarded by a tiny

sanctions, payment or force to get one’s

hierarchically-minded minority, and new

way. Soft power is derived from the assets

power, which is like a current in the way

and actions that make a country attractive

that it can be channelled, but never stored.

to the world – namely culture, values, and contribution to the global community.

Old power models are transactional, built

Nye rightly argues that a successful 21st

on consumption, profit-motive and control.

century foreign policy must balance hard

New power taps into people’s increasing

and soft power.

desire to share, participate, co-produce and even co-own products and services.

The over-riding lesson from Nye’s soft

Soft power and new power are effectively

power is that attraction will become more

the same concept interpreted on different

important to getting things done. The major

scales. The former relates more to nation

challenges we face today are multi-lateral

states and multilateral organisations, while

in nature – they can only be addressed

the latter is more relevant to organisations

through collaboration. Building and

and individuals

mobilising networks is the key to driving international action on today’s global issues. The ability to marshal networks is built on a foundation of soft power, which is ultimately derived from reputation.

Trust in large traditional institutions – whether business or government – is falling; Values matter more and people want to see them communicated through action; Transparency is becoming more pervasive as people demand more of it and challenge old power models; Networks and collaboration – even when light-touch – are the keys to harnessing new power, but people are fickle – networks will congeal and dissolve quickly; In addition to being ‘good’, the best way for organisations to harness new power is to adopt a ‘movement mindset’.

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— PROFITS · VS · SHARED VALUE —

“A number of major global corporations are working to incorporate shared value into their very DNA”

If soft power and new power are now the means for states, organisations and individuals to achieve their objectives in an evolving global context, then shared value represents the ideal end product of their use. Developed by Michael Porter and Mark Kramer, shared value essentially advocates for a total transformation of business thinking. As with new power, shared value looks beyond the bottom line of company profits, taking a holistic view of how companies, society and the environment interact and impact one another. Recognising that the capitalist system itself is under attack and public trust in business in general is withering, Porter and Kramer argue that the concept of shared value resets the boundaries of capitalism. Porter and Kramer define shared value as “the policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates”. Said differently, shared value is about strengthening the link between economic growth and societal well being. The move towards shared value is not purely theoretical. A number of major global corporations are working to incorporate shared value into their very DNA. Nestlé, Unilever, Wal-Mart and Reuters have joined a growing number of firms working to align profits and societal and environmental benefits through new approaches to business practices. This is not about corporate social responsibility or good public relations — it represents a shift in mission, values, priorities and ultimately, of course, behaviour.

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THE RISE OF THE CORPORATE AFFAIRS DIRECTOR NICK HELSBY

Presenting research from the Watson Helsby poll of FTSE100 Directors of Corporate Affairs

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02 / 14 NICK HELSBY Nick Helsby is the managing director of Watson Helsby, the specialist headhunters in communications and corporate affairs.

The New Model Corporate Affairs Director

THE RISE OF THE CORPORATE AFFAIRS DIRECTOR Watson Helsby, the specialist headhunters, annually surveys FTSE 100 Corporate Affairs Directors. It is the most comprenhensive survey out there. Here Nick Helsby outlines his latest research.

Our latest survey shows that about three

Corporate Affairs Directors reporting

quarters of FTSE 100 companies have a

directly to the CEO. It now stands at 75%,

Corporate Affairs Director – a figure that

and will only continue to grow.

has been stubbornly consistent since we began the survey three years ago.

In those companies that employ a

Companies that don’t employ one tend

Corporate Affairs Director, the job title

to be low profile business-to business

varies considerably as does seniority, and

companies or specialist financial

status and remit. While the title “Director”

services firms.

predominates, there are a few SVPs (7%), a number of Heads (9%) and one Officer.

Of those FTSE 100 companies that do have a Corporate Affairs Director, 43%

The remit of the role also varies, with the main

include the position within the company’s

variables being investor relations, internal

Executive Committee. While this might not

communications (sometimes into HR) and

be as high as many in the industry would

public affairs or government relations.

like, it represents a big change – just 10 years ago, membership of the Executive

Leadership of the function, like remit, is still

Committee would have been exceptional. It

far from standardised. In most cases it is led

won’t be too long, in my opinion, before it

by a director with either a communications

breaks through the 50% mark.

background or predominantly public affairs experience. In heavily regulated sectors,

If anyone is in any doubt about the

such as tobacco, the function can be led by

direction of travel for Corporate Affairs

a lawyer or general counsel.

Directors, then there is one interesting statistic in our latest survey: of those companies that have the role, there has been a 5% jump in the number of group

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KEY FINDINGS (A) % OF THE FTSE 100 S EMPLOYING A CORPORATE AFFAIRS DIRECTOR

1% 22%

2012

2013

2014

73%

77%

27%

20%

22%

77%

Do Donâ&#x20AC;&#x2122;t Unknown

(B) MEMBERSHIP OF THE EXECUTIVE COMMITTEE

Of those companies with a Corporate Affairs Director, 43% regard it as an Executive Committee level post and 57% do not. In the 2013 study it was also 43%, so there has been no change.

43%

57%

Not on the ExCo On the ExCo

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The New Model Corporate Affairs Director

The CEO reporting line predominates with 75% (up from 70% in 2013) reporting to their CEO (obviously the case if they are a member of the ExCo). We noted seven other Executive Committee reporting lines, the most widespread of which (7%) was into an executive director with responsibility for HR and other corporate services (e.g. Property). Third came Marketing (5%) and fourth Finance (4%).

75%

CEO

HR & CORPORATE SERVICES

MARKETING

FINANCE

4% 9%

OTHER

PERCENT

(D) GENDER ANALYSIS

There is no marked bias here with 56% of Corporate Affairs Directors male and 44% female.

44% FEMALE

56% MALE

Watson Helsby used a combination of proprietary data, desk research and phone interviews to collect data on 99 of the FTSE 100. It is the most comprehensive survey currently available.

75% OF FTSE 100 CORPORATE AFFAIRS DIRECTORS REPORT DIRECTLY TO THEIR CEO

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AN INDISPENSABLE ROLE AT THE TOP TABLE NICK BUTLER

The former “Cinderella job” now decides the company’s fortunes

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03 / 14 NICK BUTLER Nick Butler is the former Group Vice President for Policy and Strategy Development at BP. He is Visiting Professor and Chair of the Kings Policy Institute at Kings College London and writes a regular blog for The Financial Times.

The New Model Corporate Affairs Director

AN INDISPENSABLE ROLE AT THE TOP TABLE The former “Cinderella job” now decides the company’s fortunes

The job of the Corporate Affairs Director

wider range of issues in great depth. A

used to be fairly simple. Their role was

thorough understanding of the operational

limited to communicating the decisions

side of the business is essential.

taken by a business in the most positive light. They had little or no input in the

So is the political context in which the

decisions themselves and very few

business operates. The role is highly

channels to disseminate the information.

political. I don’t mean old-fashioned

Personal briefings or news releases were

lobbying – which may or may not be part

the main avenues. Getting coverage in the

of the job – but understanding the nuances

FT was the goal. Perhaps unfairly, the job

and consequences of landing specific

was seen as well suited to those who had

messages in specific markets. You need

failed in other, more challenging areas of

to know how messages will be received,

the business.

interpreted and understood.

“The job was seen as well suited to those who had failed in other, more challenging areas of the business”

In today’s world as well, the days of handing down messages from on high or varying messages for different audiences are over. Whether businesses like it or not, their

No one would make that mistake today.

messages are just part of a much wider

Quality media coverage may still be

conversation going on about them. They

necessary, but it is totally insufficient.

must also be prepared for the fact that

Anyone with the title finds themselves

everything said, wherever it is said, will be

responsible for a much more complicated

heard and shared.

and expanded role covering internal communications and public outreach as

Look, for example, at the level of scrutiny

well as media relations, while also being

on Western companies operating in Russia.

expected to advise the senior team on a

Everything they say and do is closely

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watched – by the host government, by

been transformed. So have those of the

global competitors, by local competitors, by

CEO themselves. Those leading businesses

suppliers and by their own governments.

used to be able to get to the top based on their technical skills alone. Top engineers

Nor is such intense scrutiny found only in

with business acumen would become the

supposedly complex markets. Scotland used

CEOs of energy multinationals based on

to be a relatively predictable play but now

talents, skills and intuitions which were

is politically multi-dimensional. Companies

highly rational.

that want to build a sustainable business there need to tread with great political

But this is no longer enough. The world they

sensitivity and great forethought and care.

inhabit today is highly emotional, driven by

Communications is a strategic tool.

competing passions and interests, examined by a competitive media desperate to find

It is also why communications can no

failure. If you run an energy company, you

longer be kept at a distance from executive

can’t avoid climate change, you can’t hide

decision-making. Decisions at the top

your history, and you can’t ignore the issues

level need to be made within the context

that come with investing abroad.

of knowing exactly how they will be articulated, who to tell in advance, whose

The modern CEO needs continually to

approval and consent you need, and

explain what they are doing and why

what impact they will have. This means a

they are doing it. That means not only

continual dialogue between the CEO and

knowing when to communicate, through

the Corporate Affairs Director on strategy

which channel and format, but also

and tactics.

how to communicate convincingly and empathetically. They rely on their senior

Indeed, the modern-day CEO is not just

communications team to guide them

a manager but the chief communicator.

through this minefield.

He or she is the ambassador, spokesman, narrator and negotiator in every country in

It can also be a highly hostile environment.

which the company operates.

CEOs need to be extraordinarily resilient. When the unexpected happens – as it

All this has led to a radical upgrading of

inevitably will – and the scrutiny on the

communications, greatly enhancing the role

pay and performance becomes intense

of the Corporate Affairs Director. In order

and personal, it is the job of Corporate

to fulfil their roles successfully, they need

Affairs Directors to keep their CEOs

not only to be close to the CEO’s thinking

focused on what matters. Here robust

but also in close physical proximity.

crisis communication plans – which have

They must have access at all times –

been regularly reviewed – are critical. Crisis

giving counsel, sharing ideas, weighing up

communications, in my view, is the key test

decisions and instilling confidence.

of performance.

It is not just the role and demands on Corporate Affairs Directors which have

“Communications is now a rite of passage for ambitious senior managers”

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This explains why communications is now a rite of passage for ambitious senior managers. Where even just 20 years ago the post of communications chief might be seen as one step away from an early retirement, now itâ&#x20AC;&#x2122;s regarded as the next step to the top job. In fact, all CEOs should go through communications, learning the technicalities and mastering the nuances. Why do I say that? Because all the big corporate failures over the last decade have been failures of communications. As a result, the Corporate Affairs Director has gone from the Cinderella job to possibly the most important at the board table.

â&#x20AC;?All the big corporate failures over the last decade have been failures of communicationsâ&#x20AC;?

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HARD-WIRING REPUTATION PERFORMANCE INTO THE BUSINESS BEN MORTON

The commercial value applied to reputation is leading companies to adapt their core business models

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04 / 14 BEN MORTON Ben Morton is a co-founder of Sifa Strategy. He is a former Director of Communications at Heathrow Airport and a former Vice President of Communications at the Carlsberg Group.

The New Model Corporate Affairs Director

HARD-WIRING REPUTATION MANAGEMENT INTO THE BUSINESS The commercial value applied to reputation is leading companies to adapt their core business models

When it comes to reputation management,

to a multi-stakeholder approach. It follows

good practice has traditionally involved

then that reputation management must

understanding and assessing reputational

be a corporate discipline, sitting at the

risks, monitoring the media and preparing

heart of the business, and not on the

for potential issues and crises which may

periphery as the sole responsibility of

emerge. This tends to involve messaging,

one of the functional departments, be it

scenario planning and media training.

risk, compliance, CSR or communications. Reputation management has to be a shared

All very important, but the emerging

responsibility and goal across a company,

consensus is that reputation management

requiring buy-in and leadership at the

should go a decisive step further, demanding

most senior level, if it is to be successfully

a more proactive, less defensive approach.

embedded in a business. Sophisticated

Indeed, the term reputation management

advertising and marketing will only go so far.

should perhaps be discarded and replaced by reputation improvement.

To manage your reputation effectively, you first have to understand it. If reputation

“The term reputation management should be discarded and replaced by reputation improvement”

management is to become a core discipline, then companies have to conduct regular research, quantitative and qualitative, with all the stakeholders who help to shape its reputation and have an impact on its

It is generally agreed that a company’s

so-called licence to operate. These aspects

reputation is judged primarily through its

should cover a range of topics and could

actions and behaviours, and not through

include consideration of an organisation’s

words alone. There is also a discernible shift

products; its ability to innovate; its strategic

with companies moving from a shareholder

intent; the quality of its management team;

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the level of customer service; its culture and

can be factored in. In this way, reputation

ability to develop its people; and its focus on

management becomes an active

sustainability.

management tool. Too often, companies spend time and money on commissioning

Such research should complement and

research reports around reputation, and

not duplicate any research already being

then do nothing with them.

undertaken — be it investor feedback, shopper questionnaires or employee surveys — and

A signal that reputation is becoming fully

should be supported by competitor and

embedded is when reputation is built into the

industry benchmarking and regular tracking

company’s business model and reputational

within both traditional and social media.

performance is directly linked to remuneration. When people know that reputational scores

The delivery of robust metrics around a

can affect their pay, reputational issues quickly

company’s reputation is critical. Actions and

receive more attention.

decision-making to do with its reputation need to be supported by data, not hunches.

There is no silver bullet to all this, but if a

It makes for more informed debate and

company’s leadership team accepts that

discussion around the boardroom table,

reputation holds real intrinsic value, is

while difficult conversations are best

committed to improving its reputation, and

handled when backed up by statistics.

adopts a sensible measurement dashboard, real progress can be made – with big

Once metrics are available and deemed to be sufficiently robust, it is important that these become integrated into the business planning cycle so that reputation actions and key performance indicators

commercial benefits.

“When people know that reputational scores can affect their pay, reputational issues quickly receive more attention”

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THE REPUTATION JOURNEY PHASE 1 Reputation is recognised (often as a risk) and is a relatively new management discipline across the company. AWARENESS PHASE 2 Reputation is becoming a company priority, with buy-in from the leadership team, and is monitored. PHASE 3 Reputation is proactively measured across all stakeholders and is linked to business outcomes. MEASUREMENT PHASE 4 Reputation is a key business driver, integrated across all stakeholders. PHASE 5 Reputation is built into the companyâ&#x20AC;&#x2122;s decision-making, strategy, operations and remuneration. FULL INTEGRATION

Companies across the world are progressing through the phases, with a handful of leading companies receiving the benefits of full integration.

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TO MANAGE YOUR REPUTATION EFFECTIVELY, YOU FIRST HAVE TO UNDERSTAND IT

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IT IS ALL ABOUT STRATEGY ALASTAIR CAMPBELL

There may be more noise out there, but the job is actually simpler â&#x20AC;&#x201C; as long as you have a strategy

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05 / 14 ALASTAIR CAMPBELL Alastair Campbell is a member of Portland’s Advisory Board. He is the former Director of Communications and Strategy at Downing Street.

The New Model Corporate Affairs Director

IT IS ALL ABOUT STRATEGY There may be more noise out there, but the job is actually simpler – as long as you have a strategy

Politics can be a very bruising business.

broadcasters but are shared in countless

Hour after hour, day after day, you are

conversations across the web, it is frankly

under intense scrutiny. Attacks, many of

pointless to think you can control what

which you will think are unfair, come from

others say about you. The priority is to

every quarter.

think about what you want to say about yourself and ensure you do it as effectively

“I hear repeatedly how corporate clients only want tactics and not strategy from their PR advisers. They have got it the wrong way around”

as possible. It is why, in an era of breath-taking change which you will read about in these pages, it is essential first, as John Major might say,

I still wear the scars of those days.

to get back to basics. Your focus must not

But the world today is very different.

be on how to get your message over - the

My political campaigning with Tony

channels or the tactics you should use – but

Blair came largely before the arrival

what you want to say and why. It is only

of social media, Twitter and rise of the

when you have this nailed down should you

blogosphere. I can understand why there

start thinking about everything else.

are many who believe the noise and instant rush to judgement makes the job

Political parties understand this imperative

of communicating much harder. But while

even if they might not always get it right. I

it can seem counter-intuitive, I believe

am still not sure after five years what the

instead that this revolution has actually

Coalition Government stood for. But too

made communicating – whether you are a

many businesses still seem to think it is not

political party, a campaigning organisation

even necessary to try.

or a business – more straightforward. In a world in which opinions are no longer

I hear repeatedly how corporate clients

the preserve of a few newspapers or

only want tactics and not strategy from

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their PR advisers, whether in-house or

Avoid the temptation as well to make so

consultants. They have got it the wrong

many concessions to get agreement that

way around.

you lose clarity. The best strategy can be written down as a phrase or short simple

The importance of knowing your objective

sentence. And that’s also what you have

- and having thought of the strategy

to do. It’s not a strategy at all unless it is

to achieve it - is greater in this new

written down.

communications environment. The more noise there is, the greater the need to focus

So despite all the changes in the

on what’s important; the more essential it

communications environment, it is the

is to have clarity over what you are saying.

basics which will decide success and failure. And this also includes the relationship

This must start with objective - what

between the political leader or CEO and

you want to achieve. From this flows the

communications chief.

strategy – the approach to achieving it. This allows you to shape a compelling narrative.

Trust and confidence are absolutely

Only then do you start thinking about

essential. Without it, the CEO won’t listen

tactics, which are the actions and tools

to the advice of their Corporate Affairs

needed to deliver the strategy.

Director and he or she, in turn, will find it difficult to take the action needed. The

Without an agreed and clear strategy,

influence I had in Downing Street came from

you will not develop effective, coherent

the fact that everyone understood I was

tactics or successfully promote or defend

acting with the Prime Minister’s authority.

reputations. Nor will you find the courage

But this confidence also comes from having

to stay on course, no matter how choppy

an agreed, clear strategy in place. It’s at the

the waters, or get buy in from across

root of all effective communication.

your organisation. And in a time when it is likely that far more of your employees will be sharing opinions far more widely than ever before, you need everyone, from the boardroom to the shop floor, rowing in the right direction. This is why it is no good handing this strategy down from on high, like tablets of stone. This is often done not out of egotism but to get round vested interests within an organisation. But developing a strategy is about having arguments, not avoiding them. It is not going to survive the battering from an external crisis if you don’t have the confidence to open it up to internal debate.

“Despite all the changes in the communications environment, it is the basics which will decide success and failure”

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THE POWER OF NARRATIVE MARK FLANAGAN

Every company needs to tell a story that embodies the essence of its business in action

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06 / 14 MARK FLANAGAN Mark Flanagan is Portland’s Senior Partner for Content and Digital Strategy. He was formerly Managing Director of LBC, Europe’s biggest commercial newstalk radio

The New Model Corporate Affairs Director

THE POWER OF NARRATIVE Every company needs to tell a story that embodies the essence of its business in action

station.

After the Great Fire of London in 1666,

– customers, staff, investors, partners, the

Sir Christopher Wren was asked to lead

media and even competitors – are telling

the rebuilding of St Paul’s Cathedral. The

some aspect of the story of a brand. The

story goes that Sir Christopher was touring

problem is they won’t all be saying the

the building one morning and asked three

same thing. So how do you begin to align

labourers, all engaged in the same task, what

your corporate ethos with day-to-day

they were doing.

marketing and communications?

The first said:

We live in a world of unprecedented

“I am cutting this stone”.

transparency. The spread of messages can no longer be contained within specific

The second answered:

audience groups. The lines between

“I am earning three shillings,

internal and external communications are

six pence a day”.

breaking down so that the expectation should be that anything you say to your

The third man straightened up, squared

employees will end up in the public domain.

his shoulders and, still holding his mallet and chisel replied:

It is impossible to say one thing to some

“I am helping Sir Christopher Wren

people and another to others. Investors may

build this great Cathedral.”

applaud the latest cost-cutting measures but have employees been sufficiently engaged

They each had completely different ways of

so that they understand the context and

looking at the same task. And while having

longer term strategy? Changing supplier

mixed messages made little difference 350

relationships in remote parts of the world

years ago, that isn’t the case today.

may seem benign but it could provoke an NGO campaign if not well handled.

Businesses now must be able to

Consumers and corporate audiences are

communicate one shared vision, across

intertwined. If companies are perceived

multiple platforms, to diverse audiences.

to behave unethically, then people have

All the various stakeholders of a company

the ability to connect and create mass

The New Model Corporate Affairs Director

“A strong corporate narrative is essential to frame everything you say”

movements against them. If a customer has a bad experience, their stories are often shared and amplified online and become damaging to your corporate reputation. In short, global companies are operating in an environment of reputational instability and need to be prepared for issues rising to the surface; at any time from anywhere. So how should they respond? Although the pressures are tactical, the only response is to be strategic. It means developing peripheral vision across a range of audiences and learning to tell a sustained story over time to people who basically don’t want to hear it. A strong corporate narrative is essential to frame everything you say. When there is so much noise, there is a greater need for total clarity and consistency of narrative. And it only works over the long-term if it is authentic and rooted in values. The power of narrative has been behind every significant political or social movement in history. Veteran activist Marshall Ganz used story-telling to great effect when mobilising volunteers for Barack Obama’s historic 2008 presidential campaign. As he puts it, a compelling narrative has three core components:

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· 1st · The story of self Most organisations are able to talk about

Not every business is like Apple and not

the personal journey that helped shaped its

every leader can be Martin Luther King.

core values and beliefs. Take Apple, whose

However, I believe that within every company

story is built around the founders, Steve

there can be found a story that embodies the

Jobs and Steve Wozniak, who epitomised

essence of your business in action.

the company’s ‘Think Different’ slogan. Ganz says we don’t really have a choice

Of course, simply having a corporate

about whether to tell a story of self — if the

narrative is not enough in itself. It needs to

business doesn’t, then its competitors will

be brought to life through messages and

tell it in ways we may not like.

the delivery of content through multiple platforms. And in today’s environment, a

· 2nd ·

narrative needs to be powerful enough to

The story of us

survive contact with the real world and to

A corporate narrative shouldn’t just be

withstand the buffeting of attacks.

about an individual story but needs to

Navigating the new landscape is not easy

convey a bigger picture about what’s in it

but the prize is great. Sir Christopher Wren

for the broader community or society as

died in 1723 and was buried in St. Paul’s.

a whole. Business needs to affect change,

There you’ll find an inscription to the

disrupt industries or leave a legacy.

architect which says, “Reader, if you seek his memorial, look around you”.

· 3rd · The story of now A narrative should communicate a sense of urgency and, potentially, a sense of hope. It should challenge the audience and spell out the choices that face us and the reason why inaction is not an option.

A CORPORATE NARRATIVE ONLY WORKS OVER THE LONG-TERM IF IT IS AUTHENTIC AND ROOTED IN VALUES

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CORPORATE AFFAIRS IS NOW EVERYONE’S BUSINESS JIMMY LEACH

Where once the aim was to control information, now it’s about trying to co-ordinate it

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â&#x20AC;&#x153;The hurdle to overcome is not really one of technology but of habit and cultureâ&#x20AC;?

The New Model Corporate Affairs Director

07 / 14 JIMMY LEACH Jimmy Leach is a consultant to Portland. He is the former Head of Digital Engagement at the Foreign and Commonwealth Office and is a former Editorial Director for Digital at The Independent.

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CORPORATE AFFAIRS IS NOW EVERYONE’S BUSINESS Where once the aim was to control information, now it’s about trying to co-ordinate it

We all know, in the digital era, the key

Communications in a social world is diffuse,

battleground for corporate reputation is

with many voices and just as many opinions,

now social media. Two-way conversations

with no hint of deference or hierarchy and

have become the norm. Static media

no single figure of authority. You need

like press releases and carefully worded

to make this work to your advantage. It’s

reports are no longer enough. Consumers,

less about the organisation itself than the

influencers, shareholders and suppliers

people within it. It’s not about control but

all expect direct access, instant response,

coordination.

and transparency - and all delivered with a human face.

The chances are everyone in your organisation will have a social media presence.

But while businesses know what has to be

From the CEO trying to sound normal on

done, not many are doing it well. Too often

Twitter to the guy running the carpark and

a stilted pdf-led approach has simply been

instagramming everything, they’ll all have an

replaced with a stilted Twitter-led approach;

outlet. You can’t control every utterance but

a single Twitter handle, every utterance

you can offer guidance, give them content to

carefully crafted (rarely re-tweeted) and

share and give understanding about what is,

engagement avoided at all costs. This is

and isn’t, appropriate.

backed with a Facebook page crammed with links to corporate web pages, which go

These are your first wave of advocates.

resolutely ‘unliked’.

The foot-soldiers, if you like, of a coherent, authentic and effective digital reputation

It’s an attempt to transplant the

strategy which does not just rest on the voice

authoritative corporate voice from the

and authority of senior figures, the power of

world of the email attachment to the world

the brand, the expertise of key figures and

of social media. And it doesn’t work.

the reach of social behemoths.

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Maintaining any form of editorial control

But using Twitter as your press room and

over such a diffuse array of participants

your website as the source of information

is tricky. Systems of governance and even

for the press reduces your workload and

monitoring will be needed, strategy will

enables you to speak to a much wider

have to be shared, a common purpose

audience, including bloggers and social

established.

media influencers. In not limiting yourself to your address book, you extend your

And that’s all before considering the

reach. And don’t worry about whether

external recruits to your cause - the

journalists will follow you. If they are

influencers, the media, the customers, the

interested, in the slightest, they will.

stakeholders. Riding that team of horses takes no small degree of skill, above all, it

You have to think, of course, beyond the

requires a strategic overview that shares

press release. The case studies, the first

the bigger picture and encourages all the

person reports, the blogs, the pictures, the

participants to face the same direction.

video, the infographic and the data which all makes interesting content also needs

The prizes for the management of such

sourcing, checking and publishing. Who on

fluidity and complexity are worthwhile.

earth is going to do that? You are. Or at

Reputation is everything in the social age

least your team is.

as consumers increasingly make decisions based on perceptions as well as economics.

You’re in a different world now. You’re a

Why else did Starbucks suddenly decide to

publisher and the content you create and

make a voluntary tax contribution?

that you, your team, your colleagues and

“Don’t worry about whether journalists will follow you. If they are interested, in the slightest, they will”

your advocates distribute is what will drive the conversation around you. And surely that must be your ambition. You’ll need content strategies and editorial processes, and know who signs off what. It’s a

It can deliver industry leadership, and the

complex world, but one that allows you

chance to influence policy. Legislation

direct contact with your audiences. These

being debated that you disagree with?

are the new tools of your trade.

How do you expect to be heard without the apparatus of social media and an audience

In the end, the hurdle to overcome is not

who will listen because you’re already

really one of technology but of habit and

engaging? If you want to mobilise opinion

culture. Big change, yes, but also big rewards.

around you, there are few other viable alternatives. It’s usually at this point that obstacles are raised over who is going to do all this work and the risks if it goes wrong.

The New Model Corporate Affairs Director

YOU’RE IN A DIFFERENT WORLD NOW. YOU’RE A PUBLISHER

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THE MODERNISATION OF FINANCIAL COMMUNICATIONS LOUISE MASON

An old clubbable profession has been forced to rethink fundamentally how it operates

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08 / 14 LOUISE MASON Louise Mason is Portland’s Partner for Financial Communications. She is also Secretary of the Association of Mining Analysts.

The New Model Corporate Affairs Director

THE MODERNISATION OF FINANCIAL COMMUNICATIONS An old clubbable profession has been forced to rethink fundamentally how it operates

Traditionally, Financial Communications has

fatally undermined, the global financial

been the most narrow and old fashioned

crisis, the recession and a much tougher

of the public relations disciplines. We had

regulatory framework have altered the wider

one job to do – to cultivate positive investor

environment in which businesses operate.

relations through the proper disclosure of financial results and information. It

Companies now have to deal with far greater

was the task of a consumer or corporate

media and public scepticism. Before 2008,

communications agency to worry about what

business and finance were largely restricted

a company actually did on a day-to-day basis.

to the City pages of newspapers. Now it is

“The London market is no longer an arena where international companies can pick up capital easily and return only when more is needed”

commonplace for them to be on the front page or leading TV news broadcasts. No longer can it be said that a company is “only as successful as its last transaction”. Judgements are now made every day on

In this simpler world, financial transactions

successes and failures across all areas of

were seen as the priority, with long term

its business.

strategy and transparency playing second fiddle. How we managed the bad financial

This new heightened focus from traditional

results of the moment was viewed as much

media, together with the rise of social

more important than building or managing

media and easier access to information, has

expectations for the future.

broken down barriers between shareholders, customers, employees, partners and other

Given the colossal transformation of the

stakeholders. The days of being able to get

City over the last seven years, it is an

away with different messages for different

approach that no longer works. Just as the

audiences have gone. It is not just that

“old boy” networks of the past have been

people talk, but that there are more channels

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than ever to communicate what they want

Just look at the problems suffered by the

to say. So they all need to hear the same

Indonesian coal producer, formerly known

consistent message.

as Bumi PLC, as well as the Board of the ill-fated ENRC, which suffered from alleged

In these high octane informational times,

irregularities in the Democratic Republic

this requires a strong over-arching and

of Congo. The London market is no longer

tested integrated communications strategy.

an arena where international companies

It must be understood by the entire

can pick up capital easily and return only

business and shape everything a company

when more is needed. Their UK audiences

says. A good financial communications

want transparency, honesty and integrity,

strategy must not only ensure the correct

nothing else.

distribution of company information when required by the regulators, but

Financial communications has never been

also communicate transparently all the

more challenging or exciting. The days

company’s actions to all its audiences.

when you only sprang into action around a few set-pieces every year and could ignore

As the barriers between audiences

everything else have gone the way of the

disappear, it also means having the courage

“old boy” networks. Knowledge of financial

to use a broader range of communication

rules and regulations remains essential

avenues. Many listed companies still

but, in today’s climate, it won’t substitute

cower from Twitter or Facebook, which

for a good corporate strategy or strong

they see as a company-endorsed forum

consistent messaging.

for shareholders, customers and other businesses to say exactly what they want. The truth is this conversation is going to happen, with or without a company’s participation. Companies need to have the confidence to be part of the discussion and to give their point of view. This shift in emphasis has put reputation and corporate governance increasingly at the forefront of financial communications. It is particularly a concern for international companies attempting to list on any of the UK markets. While historically listed companies only had to negotiate the opinions of the regulators, the audiences are now far wider. The repercussions of failing to understand this change, as well as the full implications of the 2010 Bribery Act, can lead to reputational disasters.

“The days when you only sprang into action around a few set-pieces every year and could ignore everything else have gone the way of the ‘old boy’ networks”

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INVESTING IN NEW MARKETS IN DEVELOPING ECONOMIES ROSALIND KAINYAH

Success overseas requires a real understanding of a countryâ&#x20AC;&#x2122;s socio-economic environment, combined with savvy communications

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09 / 14 ROSALIND KAINYAH Rosalind Kainyah is the founder and Managing Director of Kina Advisory, which advises on and implements social investment strategies for companies investing in Africa. She sits on the boards of Invest in Africa and the Africa Centre, and is a member of the African Leadership Network’s Global Advisory Board.

The New Model Corporate Affairs Director

INVESTING IN NEW MARKETS IN DEVELOPING ECONOMIES Success overseas requires a real understanding of a country’s socio-economic environment, combined with savvy communications

For any company, investing in new markets

Management to help them make the right

in developing economies is as exciting as

decisions. Their input is essential to help

it gets. Companies that get it right are

identify the external factors which could

able to grow the long-term value of their

impact on or contribute to achieving their

business and generate significant returns,

business objective.

while helping to drive social and economic development in parts of the world where it

This requires them to know the business

is needed most.

and all its operations incredibly well. They have to spare no effort in sourcing the best

The role of the Corporate Affairs Director

information from specialist consultancies

is pivotally important during the entire

as well as the company’s own business

investment process – from the moment a

functions. And this must include strong

new opportunity is first contemplated to

intelligence from the informal networks they

the point operations begin. They are key

have built. There is no substitute for time on

to informing investment decisions, shaping

the ground, building contacts and canvassing

a successful approach and delivering the

opinion. I always say that you can’t be

winning campaign to secure the business.

expected to know everything, but you are expected to know out there who does.

First and foremost, the Corporate Affairs Director’s responsibility is to provide

Secondly, I believe that today’s Corporate

the highest quality information to their

Affairs Directors need to be shaping a

Chief Executives, Boards and Senior

new approach to investing in developing

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economies. This means looking beyond

Finally, Corporate Affairs Directors need to

the employment their companies will

devise winning campaigns on the ground.

generate and the community projects

Traditionally, companies have focused their

they will undertake, to how they can

efforts on decision-makers, centred on a small

most effectively support the country’s

number of politicians and regulators. However,

national and regional development

there are wider audiences that are highly

strategies. Inevitably this will involve

influential. Local businesses, for example,

developing the country’s human capital

are an absolutely key constituency for

so that local people have the relevant

governments and investors. They not only play

skills and knowledge for current and

a valuable role explaining the local territory

future job markets. It requires having

to international investors, but can also be

effective plans to strengthen local supply

persuasive advocates for their investments.

chains, encourage the creation of new businesses, stimulate local markets and raise standards. In supporting a country’s national strategic

“Today’s Corporate Affairs Directors need to be shaping a new approach to investing in developing economies”

goals, companies need to consider how they

Similarly, companies rarely seem to

can use their global voice to attract further

spend enough time getting to know future

investment from other businesses around

generations of leaders – whether in-

the world. If a target country has identified

country or within increasingly influential

infrastructure development as a strategic

diaspora groups. In African countries,

priority, then Corporate Affairs Directors

these groups can be incredibly well

should be working out how their company

networked on social media. The African

can make useful connections, facilitate

Leadership Network, Africa 2.0 and the

business relationships and act as a corporate

Harambe Entrepreneur Alliance are

ambassador – even if infrastructure

hosting and shaping some of the most

development falls well outside the core

innovative and perceptive thinking about

competency of their company.

the continent’s future.

At the heart of this approach is the

Reaching all these audiences requires

replacement of traditional but limited notions

sophisticated communications and

of CSR with a much broader commitment

engagement plans. Companies need to

to social investment, reflecting the fact that

think carefully about where the people

the commercial interests of the company

they want to reach are found and work

are inextricably inter-linked with the

with specialist agencies and operators to

country’s development goals. Importantly,

engage them. This is where you can quickly

those companies which can demonstrate

run up against the limitation of global

commitment to delivering such an approach

PR agencies, which are well recognised

will not only have a much better chance of

where multinational companies are

winning contracts in the first place, but also

headquartered, but do not always know

put their business on a more sustainable

how diverse in-country audiences receive,

future when its operations are underway.

interpret and use information. On the

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other hand, big corporations themselves - protective of their brand – can too often fall back on corporate-speak and technical information, which does not translate well and fails to hit the mark. Finally, it is also important at the outset, that all communication speaks to the longterm. Expectations, nationally and locally, need to be managed with honesty about what companies can and can’t do, and the how and the when. The message of a genuine, long-term partnership, aligning business and development goals, has to be continually conveyed – to all audiences. Corporate Affairs Directors have never had a more important role in shaping successful investments. They are a key source of information and insight to guide decision-making and, by developing a successful model of shared value, they can ensure the initiatives pay off long-term for their company and the countries and communities where they operate.

“You can’t be expected to know everything, but you are expected to know out there who does”

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BIG FOOTPRINTS AND BEST PRACTICE ROBERT WATKINSON

Robert Watkinson speaks to three senior practitioners who manage teams all over the world

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10 / 14 ROBERT WATKINSON Robert Watkinson is a Partner at Portland. He specialises in emerging markets and developing world communications.

The New Model Corporate Affairs Director

BIG FOOTPRINTS AND BEST PRACTICE Robert Watkinson speaks to three senior practitioners who manage teams all over the world Between them, Standard Chartered Bank, Anglo American and Rendeavour operate in 70 countries across five continents, with networks that incorporate advanced economies and frontier markets. Dan Mobley, Regional Head of Corporate Affairs, India & South Asia at Standard Chartered Bank, Richard Morgan, International Government Relations Advisor at Anglo American and Tim Beighton, Group Head Marketing & Communications at Rendeavour, gave Portland their insights.

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HERE ARE 10 LESSONS DRAWN FROM THOSE CONVERSATIONS: 01

FIND THE RIGHT BALANCE BETWEEN HEAD OFFICE AND IN- COUNTRY

BUILD YOUR STRATEGY FROM THE BOTTOM UP

RECRUIT LOCALLY

An effective global corporate

A corporate affairs strategy that

affairs strategy requires a carefully

It is critical to have locally-recruited

is developed exclusively at group

coordinated mix of responsibilities

staff to deliver your corporate affairs

level and then rolled out to local

between head office and local

strategy. There is no substitute for

offices won’t work. To have the

operations. It’s about understanding,

local knowledge, particularly when it

best chance of success, your

and agreeing, what needs to be

comes to dealings with policymakers

strategy has to be developed by

undertaken locally and what is

and regulatory bodies. In countries

people with a detailed knowledge

best undertaken at a global level.

where the talent pool is small, you will

of the specific challenges on the

In-market teams don’t want to be

have to build and nurture your own

ground. It has to be owned by the

preached to, and head office should

in-house corporate affairs expertise,

team that will deliver it.

training staff up to do the job.

embrace the chance to devolve autonomy and decision-making.

DEMAND HIGH STANDARDS RIGHT ACROSS THE BOARD

ENGAGE AND INTERACT

MOVE TALENT AROUND THE BUSINESS

External audiences have visibility

Just about every country in the

Moving your best corporate

across the full spectrum of your

world has both a growing media

affairs personnel around the

operations. You must ensure that

and increasingly active civil society.

business should be a priority.

the standards and policies being

It’s not only the government which

Placing in-market corporate

applied at the global level are also

decides if you can operate locally

affairs personnel in regional

being implemented by your local

– you also need the “permission of

offices or at group level helps

corporate affairs teams, and that

the people”. This means engaging

with both development and

actions are reported and shared.

and interacting with critical

retention. Technology can

It has to be a truly integrated

voices, and taking practical steps -

support interaction and learning,

approach.

including changes in behaviour and

but don’t underestimate the

operations - to deal with issues.

value of face-to-face experience.

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“Ensure that the heads of your in-country teams view you as their chief problem solver”

SHARE INFORMATION AND DATA

EMBRACE DIGITAL

Creating systems to collect and

You have to be across all the

share news and insights between

conversations taking place

your corporate affairs teams

about your company – not least

significantly strengthens your

those playing out on local social

capabilities. Data and studies

media networks. To fully interact,

that underscore the economic

you need to build the skills and

impact of your business in

capabilities of your in-country

existing markets – including taxes

team. The next generation of

paid and jobs created – can be

regulators and policymakers will

especially effective in engaging

consume information via these

regulators and policymakers in

channels and networks, so you are

new territories.

building capacity for the future.

STAY CLOSE TO YOUR TEAMS

BE THE PROBLEM SOLVER

You should constantly be striving

Finally, ensure that the heads of

to get feedback from your in-

your in-country teams view you as

country teams and learn from

their chief problem solver within

their experiences executing the

the company – able to cut through

tactical elements of the corporate

bureaucracy, chase decisions

affairs strategy. You can then

and get things done. When you

recalibrate your activities, re-work

become indispensable to them,

your toolkits and report to your

they will become indispensable

senior management properly.

to you, and then the relationship becomes the vital partnership it has to be.

The New Model Corporate Affairs Director

“It’s not a question of someone in head office dreaming up the best strategy to be implemented locally. That rarely works. It’s about migrating best practice, tyre-kicking and ensuring strong governance.” Dan Mobley, Regional Head of Corporate Affairs, India & South Asia at Standard Chartered Bank

“Good stakeholder engagement is being happy to say, ‘This is tricky, we’ve got a problem here, but if we work together – and if necessary change our behaviour - then we can take things forward’.” Richard Morgan, International Government Relations, Anglo American

“Success relies on harvesting as much information from as many points of contact as possible.” Tim Beighton, Group Head Marketing & Communication, Rendeavour

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SIX RULES FOR CRISIS READINESS IDIL OYMAN

Idil Oyman outlines her six rules for ensuring that companies are fully prepared for a crisis and outlines Portlandâ&#x20AC;&#x2122;s exclusive polling

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11 / 14 IDIL OYMAN Idil Oyman is a Partner at Portland, leading the Disputes team. She has led communications campaigns around some of the highestprofile litigations in the English High Court in the

The New Model Corporate Affairs Director

SIX RULES FOR CRISIS READINESS Idil Oyman outlines her six rules for ensuring that companies are fully prepared for a crisis and outlines Portland’s exclusive polling

last few years.

One thing is certain – at some point on some scale, you will be faced with a crisis. And that crisis will most probably, at least in part, play out across social media. Portland’s poll, highlighted over the page, finds that nearly half (45%) of senior executives within British companies believe that their companies are unprepared for this. Your job is to make sure your company is not one of them.

HERE ARE OUR SIX RULES FOR CRISIS READINESS. 01

TEST THE ROBUSTNESS OF THE COMPANY RISK REGISTER

BE WELL-VERSED IN PAST COMPANY CRISIS HANDLING

Many people feed into a company risk

Spencer Stuart, an executive placement

firm, found that the average tenure for a

often vary quite widely. It is important to

Corporate Affairs Director is just 4.2 years.

ensure that it is regularly updated, and

Understanding how the company managed

that all risks are comprehensively assessed

past issues and the resulting reputational

and analysed. The risk register is also the

impact will inform planning, as will

perfect place to draw examples for your

examining how other corporate crises have

practice scenarios.

played out. It is a good idea to develop your own set of case studies, drawing out your own conclusions and recommendations, as training collaterals.

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GET TIGHT AND GET ALIGNED

PRACTICE, AND PRACTICE REGULARLY

Among the key players in a crisis situation

Portland’s poll finds that only 22% of

is the General Counsel who is responsible

company executives have dealt with a crisis

for managing legal liability issues caused

involving social media and fewer than 30%

by the crisis and preventing any new

have done any kind of crisis simulation

exposure. While they therefore need to

involving social media. It’s therefore all the

be heavily involved, you (and you alone)

more important that you facilitate periodic

need to be the lead author of all external

crisis simulation exercises. Portland’s crisis

communications. That means having a very

simulation workshops involve plausible

close working relationship with the other

scenarios with mock digital, media, stakeholder

members of the decision-making team, with

and market activity. The workshop tests

everyone understanding their specific roles

structures, decision making, speed and overall

and remits.

preparedness. Lessons should be drawn from each session and inform updates of the Crisis Management Manual (see Rule 5).

HAVE THE CRISIS MANAGEMENT MANUAL READY

MAINTAIN A READY WAR ROOM

Sometimes in a crisis, the most obvious

Whether virtual or physical, this dedicated

pieces of the puzzle are overlooked,

space needs to be in place to house the

including how to reach your colleagues and

teams and tools required to manage the

key media contacts.

communications around a crisis.

Ensure your team is ready with updated

The key components include:

information including: Decision making, sign-off and contact protocols Contact lists for key executives and employees, noting time zones Core company messages and pre-agreed lines to take on various issues Contact details of key international and incountry media Pre-arranged working structure with communications consultants in your markets Contact details for preferred media lawyers across the world Stakeholder lists for each market

Real-time media and social media monitoring and alerts Rapid response process Dark micro-site with facts and Q&As to activate when required 24 hour enquiry management system (online/telephone hotline) Measurement system to assess on-going cumulative impact

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CRISIS AND SOCIAL MEDIA Portland commissioned YouGov to poll senior executives in British companies to assess their experience and preparedness for a crisis that plays out in part across social media. The results highlight how unprepared many companies are: Nearly half (45%) of senior executives say that their companies are unprepared to handle a crisis that plays out on social media Only 24% of organisations have tested their ability to respond to a crisis On social media through a crisis simulation exercise Over a third of senior executives believe that their business has a poor understanding of social media

KEY FINDINGS (A) HAS YOUR ORGANISATION HAD TO DEAL WITH A CRISIS WHICH PLAYED OUT, AT LEAST IN PART ON SOCIAL MEDIA?

3% Yes, it originated in social media

19% Yes, it originated offline but then went into social media 77% No 1% Donâ&#x20AC;&#x2122;t know

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(B) HOW PREPARED IS YOUR ORGANISATION TO HANDLE A CRISIS WHICH PLAYS OUT, AT LEAST IN PART, ON SOCIAL MEDIA?

45% Unprepared

4% Don’t know

85% of large companies are prepared for A CRISIS, compared with just 30% of smaller companies

51% Prepared

39% Poorly

78% of large companies claim to understand social media, while just

48% of smaller companies say the same

Very well

Reasonably well

Reasonably poorly

Very poorly

Don’t know

(D) HAS YOUR ORGANISATION CONDUCTED CRISIS SIMULATIONS INVOLVING SOCIAL MEDIA IN THE LAST YEAR OR TWO?

69% No 24% Yes 7% Don’t know

In April 2015, YouGov spoke to top contacts in 74 listed UK businesses from FTSE 100 down to AIM Figures are rounded and may not add to 100

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THE NEW FRAMEWORK FOR GLOBAL DEVELOPMENT ALLAN KAMAU Allan Kamau is the head of Portland’s Nairobi office. He is the former Africa editor of CCTV Africa.

2015 is a big year for thrashing out a new set of global development targets. Here’s the road ahead. This year, a new set of global development targets – the Sustainable Development Goals – are being finalised. They constitute a new, universal set of goals, targets and indicators that UN member states will use to frame their agendas and political policies over the next 15 years. They are important for Corporate Affairs Directors for two reasons: firstly, business will be expected to play a big role in helping to deliver them and, secondly, the goals will frame the external affairs environment in which all global companies operate. The process to determine the goals is complicated. We have outlined below the key events from April 2015 to the conclusion at the UN Summit in September. The intergovernmental negotiations, involving all member states, began in January. They form the core of the process that will agree both the goals and the means by which they will be implemented, monitored and reviewed. Their starting point is the 17 goals and 169 targets proposed by the UN Open Working Group in July 2014. The Financing for Development discussions are a separate track but will have significant implications for discussions around the goals as they will cover crucial issues that will affect their implementation.

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POST-2015 DEVELOPMENT AGENDA: CORE PROCESS

APR

MAY

13th-17th APRIL

20th-24th APRIL

FINANCING FOR DEVELOPMENT (FfD) DRAFTING SESSION II

development will culminate

INTERGOVERNMENTAL NEGOTIATIONS ON THE MEANS OF IMPLEMENTATION & GLOBAL PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT

in Addis Ababa in July.

The FfD and SDG discussions

Negotiations on how to resource future global

Following the first drafting session in January, this meeting will continue the task of drafting the agreement, which will cover international and domestic public and private finance, trade, capacity building, technology, sovereign debt and international governance.

are taking place in parallel but are inextricably linked. This event in the SDG process will pick on issues being discussed by FfD colleagues: the role of public and private finance but also the partnerships and reforms needed to deliver the future SDGs. The two processes will come together again later in the year.

2015

18 th -22 nd MAY INTERGOVERNMENTAL NEGOTIATIONS ON FOLLOWUP AND REVIEW OF THE SDGS & TARGETS This meeting will look at the final part of the SDG jigsaw after the declaration (which was discussed at the intergovernmental negotiations in January), goals and means of

TRIO POLICY Produced in association with Trio Policy www.triopolicy.com

implementation: the question of how progress will be monitored and reviewed.

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JUN

JUL

22nd-25th JUNE

13th-16th JULY

INTERGOVERNMENTAL NEGOTIATIONS ON THE OUTCOME DOCUMENT

THIRD INTERNATIONAL CONFERENCE ON FfD (ADDIS ABABA)

We are now entering the

countries will not want

final stages of the process.

to sign up to global goals

Having discussed individual

without commitments from

elements, the discussion

the developed world to play

will turn now to the final

their part in delivering them.

text on the SDGs that will be

If there is a disappointing

agreed at the UN Summit in

outcome from Addis Ababa,

September. The negotiations

it will have an impact on the

will ‘pause’ to await the

rest of the process.

SEP

Crunch time? Developing

outcome of the Addis Ababa Conference on Financing for Development.

15th-19 th JUNE

26th JUNE-8th JULY

20th-24th & 27th-31st JULY

25th-27th SEPTEMBER

FfD DRAFTING SESSION III

INTERGOVERNMENTAL NEGOTIATIONS ON THE OUTCOME DOCUMENT

POST-2015 - UN SUMMIT (NEW YORK)

outcome document before

HIGH LEVEL POLITICAL FORUM ON STRENGTHENING, INTEGRATION & IMPLEMENTATION: THE HLPF AFTER 2015

decision-time at the Addis

The High Level Political

Ababa conference in July.

Forum brings together

out by member states

Key dividing lines will be

political leaders to

developed countries’ aid

review implementation of

commitments, the transfer

commitments on sustainable

of technology and the

development. This meeting

principle of Common But

will discuss what role the

Differentiated Responsibility.

HLPF will play in monitoring

This will be the final session where member states will discuss the

commitments made in 2015.

This is when the final text on the SDGs will be hammered ahead of the UN Summit in September. The outcome of the Addis Ababa conference will set the tone for the concluding negotiations and will inform the final discussions on the means of implementation.

Assuming the intergovernmental negotiations reach an agreement, this summit will be the culmination of a historic process that has brought all 193 UN member states together to discuss how to tackle poverty over the next 15 years, and if all goes well, will confirm and launch the SDGs.

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The New Model Corporate Affairs Director

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FIVE TOP TIPS FOR THE INCOMING CORPORATE AFFAIRS DIRECTOR MICHAEL PRESCOTT

Michael Prescott gives his advice to anyone coming into the role

76 | Portland

13 / 14 MICHAEL PRESCOTT Michael Prescott is the Group Director of Corporate Affairs at BT, which operates in more than 170 countries worldwide. He manages a team of 140 staff.

The New Model Corporate Affairs Director

5 TOP TIPS FOR THE INCOMING GLOBAL COMMUNICATIONS DIRECTOR Michael Prescott gives his advice to anyone coming into the role

“You need to be able to ask delicate questions, sound warnings and give frank advice”

THINK TWICE ABOUT TAKING THE JOB UNLESS YOU REPORT TO THE CEO

ENSURE YOU HAVE A SUPERB HEAD OF MEDIA RELATIONS

It’s hard to think of circumstances

Remember: you are not the

under which you should settle for

company’s Chief Press Officer. You

anything other than a direct reporting

can easily get drawn into spending

line to the CEO. Your relationship

most of your time speaking with

with that man or woman is going to

journalists or micro-managing tactical

be crucial. You need to be able to ask

decisions such as whether to hand out

delicate questions, sound warnings

a story exclusively or generally. Don’t.

and give frank advice. That means you

Ideally, this stuff should take up only

can’t have time-delays or filters when it

a small portion of your time. You need

comes to dealing with the top person.

the head-space to survey the horizon,

The reporting line is also important

anticipate threats and think creatively

because it sends out a signal about the

about how best to help your company.

seriousness with which the company takes you, your team and its brief. You need that status to find out what’s going on and ensure you’re not cut out of important loops.

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“Remember: you are not the company’s Chief Press Officer”

BE A FACILITATOR, NOT A MANAGER

NETWORK INTERNALLY

CONSULT AS OFTEN AS YOU CAN

Obviously you want everyone who

Most people think that networking is

Don’t be too quick to make a final

reports to you to be brilliant. That

all external – getting out and about,

judgment. There will be times when

way, you don’t need to worry about

meeting influential people. That’s

you need to make snap decisions,

them doing the basics of their

important, but so are all your fellow

but when you don’t, ensure you are

jobs. You can instead ration your

employees. Half the battle is getting

getting input from your team. Most of

involvement to the times where

really good internal information

the time, what you want the company

you think you can add value. That

about the operations of the business.

to say will benefit from some honing.

means providing occasional counsel,

So spend time getting to know your

Just about any plan can be refined.

dealing with the occasional internal

colleagues across the business. Make

Your role isn’t a macho one. It’s more

blockage, resolving the occasional

sure that you are always accessible

often a deliberative one, and you need

disagreement. You know you are in a

and helpful – and seen to be so. That

soft skills to do it well. So my advice

good place when you’re a facilitator

way you are more likely to get the

is to ignore the “Director” bit of your

for great people, and not a manager

information and insights you need to

job title. If you’re going to be all you

of average ones.

know what’s really going on.

can be in this role, you’ll do more stewarding than directing.

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The New Model Corporate Affairs Director

SUPPORTING YOU Strategy, content and delivery At Portland, we work with companies all over the world to manage and defend their reputations. Our multilingual team is based in London, with offices and operations in the US, the Middle East, Africa and Central Asia. Our team is made up of communications specialists drawn from the highest levels of corporate communications, politics and the media. We work with some of the biggest companies and brands in the world, and we work in some of the remotest parts of the world.

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Hereâ&#x20AC;&#x2122;s just some of our experience:

External Affairs strategy development for a frontier-market energy company

International media relations around one of the worldâ&#x20AC;&#x2122;s biggest fraud cases

Global reputation management for a telco operating in Latin America and Africa

Messaging and narrative development for a global engineering firm

Financial communications counsel for a Central Asian financial institution

International media relations for an investment treaty arbitration claim

Stakeholder engagement support for a global gas extractor Thought leadership programme for a global brewer Crisis and litigation support for a Russian conglomerate Corporate reputation management for an African telecoms tower company

Crisis communications for a sovereign wealth fund Reputation audit for an emerging markets risk advisory practice Profile-raising programme for a global agri-business in Africa Global multi-media announcement for a major pharma Digital influencer mapping for a global foundation

Capability review for a global drinks company We provide our clients with a wide range of reputation management services, focusing on the three key areas of:

Developing STRATEGY

Creating compelling and shareable CONTENT

DELIVERY across multiple channels and platforms

info@portland-communications.com

80 | Portland

The New Model Corporate Affairs Director

Across strategy, content and delivery our services include:

STRATEGY 01

REPUTATION AUDIT

CAPABILITY REVIEW

We audit the global reputation of companies,

We carry out reviews of companies’

combining perceptions surveys of audiences

communications capabilities, assessing

with analysis of digital, social, broadcast and

structures, skills and systems. Our

print media. Our diagnostic reports highlight

recommendations focus on the optimal design

issues and trends as the basis for detailed

of multi-media communications teams, skills

recommendations for action.

gaps and the best processes for managing information within large organisations.

STAKEHOLDER ANALYSIS

STRATEGIC POSITIONING WORKSHOP

We analyse the changing stakeholder

We conduct structured workshops with senior

landscape of companies, assessing the

executives to define their company’s place in

influence and potential impact of their

the market and develop compelling corporate

stakeholders around the world. We assess the

messaging. We combine the workshop

best means of managing relationships, helping

conclusions with market research and focus

companies build a programme of continuous

group results to produce a finalised messaging

engagement.

model, proof points and a refreshed company narrative to underpin all corporate communications.

CONTENT 05

DIGITAL CONTENT CREATION

Our in-house writing team works with

Portland’s Content & Brand team of designers,

companies to define their key messages as

WRITING

developers and video producers create

the basis for developing persuasive written

compelling content – helping companies to tell

content. We draft speeches and Op-Eds for

their stories and capture attention. We develop

CEOs, as well as news releases and written

broadcast, infographics, websites, apps and all

materials for every possible application of

kinds of shareable social media content.

corporate communications.

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DELIVERY 07

CRISIS SIMULATION

TRAINING

Through our specialist Simulo workshop, we

We provide individual and team training across

put in-house communications teams through

all aspects of communications, from social

a half-day, simulated real-time crisis, played

media monitoring to handling the Western

out in social and traditional media, assessing

media. We assess your capabilities and provide

decision-making structures and response

a tailored skills development programme,

times, content and messaging, and platform

helping to build long-term capability. Through

and channel options.

our Accelerate programme, we have trained communications teams in the Middle East, Central Asia and East Africa.

GLOBAL LAUNCHES AND ANNOUNCEMENTS

THOUGHT LEADERSHIP CAMPAIGNS

We help companies to devise and deliver high-

We work with companies to develop a

impact launches and announcements, supporting

distinctive leadership position on strategically

in-house teams on strategy, creative content and

important issues, enabling them to generate

innovative tactical ideas. Through our offices and

and lead global debates in a way that

network of partners around the world, we can

showcases their vision, thinking, expertise and

augment existing capabilities or fully manage

values. We work on all parts of strategy and

campaigns.

tactical implementation.

FIRST 100 DAYS

MARKET ENTRY

We help Chief Executives to make an immediate

Through our offices and network of partners

impact in their first 100 days in the job â&#x20AC;&#x201C; that

around the world, we deliver co-ordinated

crucial moment when strategy, content and

programmes in target markets, ensuring that

delivery come together. We work with in-

companies reach all their audiences â&#x20AC;&#x201C; from

house teams to define a new vision, develop a

decision-makers in government to the local

fresh narrative and recalibrate the company

communities in which they will be investing.

communications strategy. We can carry out the

We help companies tell their story, explaining

delivery high-profile tactical activities during

the positive impact of their investments

this critical opinion-forming window.

through the most effective channels.

LONDON 1 Red Lion Court London EC4A 3EB t: +44 (0) 20 7842 0123 f: +44 (0) 20 7842 0145

NEW YORK 437 Madison Avenue 4th Floor New York, NY 10022 t: +1 212 415 3036

WASHINGTON, DC 1717 K Street NW Suite 900 Washington, DC 20006 t: +1 202 787 5758

NAIROBI 4th Floor, Cavendish Building 14 Riverside Drive Nairobi, Kenya t: +254 (0)20 4231 528

DOHA Office 3505, Palm Tower B Majlis Al Taawom Street PO Box 23710 Doha, Qatar t: +44 (0)20 7842 0123 info@portland-communications.com @PortlandComms