Overview of the CEO Involvement in choosing products, vendors and services

More Than Ever, Brand Selection Is Controlled At The Top For

VENDORS & SERVICES

Corporate Investments: THE EXPANDED ROLE OF CHIEF EXECUTIVES

A. Trends In The Involvement Of Chief Executives In Major Investment Decisions Source: “Corporate Investments In Systems & Services: The Expanded Role Of Chief Executives”; Martin Akel & Associates; 2012

2

Recent Changes In The Business Environment Have Significantly Affected The Way Organizations Now Conduct Business Ongoing unstable economic conditions (domestic and worldwide)

74.0%

The increasing need to be customer focused

64.0%

New technology impacting many/most organizational areas

63.0%

Increasing government regulations

60.0%

Increasing globalization of markets (China, etc.)

48.0%

Competitors - new types/more aggressive competitors

47.0%

Competitive positions erode more quickly

36.0%

Difficulty in obtaining financing

Increasing security issues

30.0%

24.0%

Number Now Conducting Business Differently: 99%

Changes over the last 4 - 5 years.

3

In Response To Changing Business Conditions, Chief Executives Have Become More Engaged In Major Investment Decisions Throughout Their Companies Why Chief Executives Are Now More Involved In Investment Decisions Investments often affect multiple areas of operation; CEOs have a broader perspective

71.0%

There’s greater pressure to increase productivity/profitability from investments

69.0%

Organizations are now “flatter”; CEOs must shoulder additional investment responsibilities

59.0%

Investments now carry greater risk (financial, customer relationships, reputation, etc.)

51.0%

There’s greater pressure to achieve investment objectives/ROI more quickly Funding for investments is less abundant; closer analysis is required prior to approval There’s more scrutiny about investments from board members and other stakeholders

49.0%

44.0%

40.0%

4

In Response To Changing Business Conditions, Chief Executives Have Become More Engaged In Major Investment Decisions Throughout Their Companies Change In The Engagement And Influence Of Chief Executives In Major Investment Decisions (for marketing, finance, HR, IT, distribution, etc.)*

Far More Engaged / Influential Far More Engaged / Influential 41%

More Engaged / Influential 35%

More Engaged / Influential

No Change

No Change 24%

Changes over the last 4 - 5 years.

5

Chief Executives Remarked On Why They’ve Taken Greater Responsibility For Major Investments The Need For Integration Of Multiple Operational Areas: “Everything is interwoven; there are no more silos. It is all strategic. The CEO needs to be involved.”

-

CEO, Retail/Distribution Company

“A functional or soloed perspective is not adequate. CEO has a more holistic view of the organization.”

-

CEO, Construction/Engineering Company

“The demand for operational integration has pushed the decisions to a more senior level.”

-

CEO, Financial Services Company

Greater Pressure For Performance: “Necessity to respond more quickly to changes in the business environment.”

-

- CEO, Manufacturer

“Because the market is more dynamic pace-wise, leadership needs to be closer to the pulse of the organization.”

-

Managing Director, Accounting Services Service Company

“Competitive environment requires being more adaptive on a real time basis.”

-

Managing Director, Consulting Firm

“Less margin for error. More stakeholders have oversight and interest in investments.”

-

CEO, Contract Furniture Company

The CEO has to interact more frequently with the organization to enable faster decision-making.”

-

CEO, Real Estate Firm

6

Chief Executives Remarked On Why They’ve Taken Greater Responsibility For Major Investments Flatter Organizations Are Driving Decisions Higher: “With the flatter organization, some of the roles that used to be delegated are now part of the day to day role.”

-

CEO, Retail/Distribution Company

“Leaner organization and CEO holds most responsibility for investing.”

-

CEO, Protective Equipment Company

“Flattening of organization makes it clear to the board he (CEO) owns the result.”

-

CEO, Healthcare Manufacturer

“Flatter organization, increased investor pressures.”

-

President, Consulting Firm

The Need To Adapt To A More Rapid Pace Of Change: “Higher expectations for returns make the CEO more involved to ensure ROI.” -

CEO, Engineering Firm

“Mistakes are costly in terms of dollars, lost time and competitive advantage.”

-

President, Marketing/Media Company

“Due to the increased scrutiny of every aspect of the business process.”

-

CEO, Financial Service Company

“Less margin for error. More stakeholders have oversight and interest in investments.”

-

CEO, Contract Furniture Company

“CEO bears total responsibility for results, and there is increasing pressure to maximize returns on expenditures.”

- CEO, Transportation Service Company

7

The Mission For Vendors: Establish And Build Their Brands With The Executive Who Shoulders Ultimate Responsibility For Investment Outcomes 97% of CEOs Have Responsibility for Investment Outcomes

Total Responsibility / Accountability 51%

Very High Level Responsibility / Accountability 33%

Total Responsibility / Accountability

Very High Level Responsibility / Accountability High Level

Modest / Low / No Responsibility High Level 13%

Modest / Low / No Responsibility 3%

8

Corporate Investments: THE EXPANDED ROLE OF CHIEF EXECUTIVES

B. The Involvement Of Chief Executives In The Vendor Selection Process

9

Chief Executives Are Watchful For Investment Needs & Opportunities, Then Stay Involved Throughout The Vendor Decision Process

Role Played By Chief Executives In Being Watchful For Investment Needs/Opportunities

Chief Executives: Involvement Throughout The Selection Of Vendors

EARLY Stage 47.0%

91.0%

49.0% Identify needs; explore solutions; recommend vendors to investigate

MIDDLE Stage

58.0%

Evaluate; compare; recommend final vendor

FINAL Stage

90.0%

4.0% Modest / No Role

Very Important/ Important Role

Primary Role

Involved in final selection; approve selection of vendors

10

Chief Executives Have Management Roles On Investment Decision Teams, And, As Opinion Leaders, Influence The Decisions Of Others Chief Executives: Involvement With Investment Decision Teams

Management

Team Member

Special Project Responsibility

(advising others in their organization on corporate investments, approaches, vendors, etc.)

89.0%

28.0%

95% Involved

Team Responsibilities

Status As Opinion Leaders

Very Frequently / Frequently sought out by others, 88.0%

33.0%

Occasionally, 10.0% Not Involved

5.0% Seldom / Never, 1.0%

11

Most Chief Executives Are Early Adopters Of New Systems & Services And Are Open To Considering Higher Priced Vendors How Soon Chief Executives Initiate The Evaluation Of Potentially Beneficial New Technologies, Systems & Services

Willingness To Consider Higher Priced Vendors Who Can Demonstrate A Superior ROI 90%

Early Adopter

71.0%

56.0%

Soon after learning about it or discussing it with one or two colleagues

Early Majority

34% 34.0%

23.0%

After a few other organizations use it successfully

Later Adopter

9.0%

6.0% 1.0% After fairly common usage

Unwilling

Somewhat Unwilling

Willing

Very Willing

12

Chief Executives Are The Primary Deciders Of Whether Vendors Are Awarded Business Or Rejected Personal Level Of Authority To Award Business Or Reject Vendors

Total Authority

54.0%

54%

93% Very High Degree of Authority

High Degree of Authority

Modest or Low / No Degree

29.0%

Total Or High Degree Of Authority

10.0%

7.0%

Average Number Facilities Affected By Chief Executive’s Decisions:

7.9

13

When Chief Executives Champion An Investment, It Moves Forward More Quickly And Successfully The Impact Of Having The Chief Executive Champion An Investment

Titles Of Senior Managers Reporting To The Chief Executive A. C-Suite Executives • CFO • CMO/VP marketing • Unit president(s) • CIO/CTO • EVP

87% 76% 41% 32% 27% 23%

B. Vice Presidents • VP sales • VP human resources • VP R&D/business devel.

• VP manufacturing • VP IT • VP supply chain/distribution

71% 51% 47% 36% 23% 19% 14%

Investment becomes a priority other executives give serious consideration and remove roadblocks to evaluate it

44%

48%

48%

Investment moves forward more quickly in the evaluation and adoption process 44%

36%

Investment ultimately becomes a reality in the organization 53%

More Likely

Far More Likely

14

Chief Executives Insert Themselves In The Investment Decision Process In All Functional Areas Of Operation The Impact Of Having The Chief Executive Champion An Investment

IT

92%

Marketing

88%

Finance

85%

Sales

84%

R&D

83%

HR (recruitment, Compensation, etc)

77%

Legal/Governance/Compliance

75%

Facilities/Site Location

73%

Manufacturing

67%

Supply Chain / Distribution

65%

Investor Relations

61%

8% 12%

15% 16% 17% 23% 25% 27% 33% 35% 39%

Involved

Not Involved Note: Based on companies that have the areas of operation shown.

15

Corporate Investments In Systems & Services: THE EXPANDED ROLE OF CHIEF EXECUTIVES

D. How Relationships Between Buyers And Sellers Have Changed ‌ How You Can Bring Your Brand To Market More Effectively

16

Relationships Between CEOs And Vendors Have Changed Significantly ‌Especially With Executives Holding Vendors More Accountable For Performance

How Relationships With Vendors Have Changed* Now require vendors to be more accountable for their performance/promises

65.0%

The evaluation of vendors is now more rigorous and analytical

63.0%

Now have a more businesslike relationship with vendors

53.0%

Now ask for more validation of vendors’ promises/claims

47.0%

Now make more objective decisions (performance, ROI, etc.)

46.0%

Now require vendors to stay involved after the sale

43.0%

Now require vendors to develop custom solutions Now measure ROI more closely

*Changes over the last 4 - 5 years.

41.0% 26.0%

93% Relationships With Vendors Have Changed

17

How Vendors Can Establish Their Brands With Chief Executives More Effectively Focus On The Customer’s Needs: “Know my issues before proposing a solution to my team. Those who try and get my VPs to approve an investment without getting my input are spinning their wheels - they won’t get a green light until I’m comfortable.”

- CEO, Marketing/Media Company

“Vendors must answer the question - ‘How does your product help my problems?’”

- Managing Director, Educational Service

“Define mutual success goals.”

- CEO, Consulting Firm

“Be a partner, not a supplier.”

- President, Beverage Manufacturer

Recognize The Importance Of The Vendor Decision To The Customer: “Bottom line: our name depends on your brand’s value. Make it work.”

-

CEO, Packaging Manufacturer

“Absolutely keep the CEO informed. Our brand’s value is at risk in partnerships.”

-

President, Consulting Firm

“I need to be assured that the company is reputable and stable.”

- President, Marketing/Media Company

18

How Vendors Can Establish Their Brands With Chief Executives More Effectively Establish Credibility - Proof Of Performance & ROI: “They must convince the CEO of the likely ROI on the purchase.”

- CEO, Healthcare Service Company

“Demonstrate impact and accountability.”

- Managing Director, Consulting Firm

“Focus more on performance than sale.”

- CEO, Protective Equipment Company

“Past success is far more a partnering criteria now.”

- CEO, Engineering Firm

“Prove the investment has a relatively quick return/payoff and actually works.”

- CEO, Pet Caging & Accessories Company

Customize The Brand For Customers: “Work with us on innovative designs and concepts.”

- President, Beverage Manufacturer

“It is not just about price, but reliability and ensuring a specific fit - not just generic solution.”

- CEO, Consulting Firm

“Adapt to our unique needs.”

- Partner, Consulting Firm

19

Effectively Branding The Chief Executive Separates A Vendor From The Crowd ... Making It Far More Likely The CEO Will Consider Working With The Supplier When Alternative Vendors Are Available To The CEO: The Likelihood Of Working With Vendors Who Have Previously Established Their Brand

Very Likely

Likely

Sub-Total

Somewha t Likely

Not Very Likely

Sub-Total

Vendors you’ve done business with before

67%

28%

95%

4%

1%

5%

Vendors with whom you haven’t had contact, but you’re familiar with them via ads, promotions, sponsored events, white papers, newsletters, etc.

9%

46%

55%

41%

4%

45%

Vendors you’ve heard of before, but you're not really familiar with them

3%

17%

20%

54%

16%

80%

Vendors who offer the systems/services you’re seeking, but you’ve never heard of them

3%

12%

15%

50%

35%

85%

Types of Vendors

20

However, Attempting To Establish A Brand With Chief Executives Via Sales Reps Alone Can Be Extremely Challenging Frequency of Chief Executives Being In Contact With Vendor Reps - By Medium

Face-to-Face Meetings

Telephone Conversations

E-MAIL Conversations

Average Per Month: 2.1

Average Per Month: 4.6

Average Per Month: 7.9

Average Per Week:

Average Per Week:

Average Per Week:

0.5

1.2

2.0

21

Corporate Investments: THE EXPANDED ROLE OF CHIEF EXECUTIVES

E. Executives’ Opinions Of / Engagement With Chief Executive’s Suite Of Media

22

The Mission Of Chief Executive’s Suite Of Media:

Dramatic, ongoing changes in business conditions are challenging CEOs to understand today’s issues and react more rapidly and accurately than ever before. In response, Chief Executive provides CEOs with contemporary strategies and tactics for maintaining and growing effective organizations. Its contents reflect successful decisions made by chief executives in every area of operation, enabling chief executives to share the best practices of those with similar responsibilities.

23

CEOs Are Engaged With An Average Of FOUR Different Types Of Media Produced By Chief Executive

Subscribe to Chief Executive magazine

86.0%

Visit the Website, ChiefExecutive.net

62.0%

Read the “CEO Confidence Index”

49.0%

Download white papers

49.0%

Subscribe to one or more e-newsletters

37.0%

Attend/view Webinars

33.0%

Read/utilize research

25.0%

Read annual guides

21.0%

Watch videos Attend in-person events

18.0% 13.0%

Number Engaged With Digital Media From Chief Executive:

84% Read online “Solution Centers”

10.0%

24

Top Decision Makers Find Chief Executive’s Broad Suite Of Media To Be A Productive Way To Learn About Key Issues Of The Day

The Productivity Of Having A Full Spectrum Of Content And Alternative Ways To Learn From Chief Executive

74% - Productive + Very Productive

Very Productive 30%

Productive 44%

Somewhat Productive 23%

Not Very Productive 3%

25

Compared To Other Media, CEOs Rate Chief Executive As Superior On Factors That Generate A Productive Marketing Environment For Vendors Relevancy (applies to your needs/challenges as a CEO)

Credibility (reliable, trustworthy content)

75%

Influence (content that influences decision-making by CEOs)

75% 60%

39%

25%

24%

1%

Inferior

2%

1%

Average

Superior

Inferior

Average

Superior

Inferior

Average

Superior

26

How Chief Executive Enables CEOs To Manage More Effectively Content That’s Customized For The Chief Executive’s Unique Needs: “There are many general business publications and websites, but only Chief Executive’s magazine, website, newsletters and events speak to my specific issues as a CEO.” - CEO, Marketing/Media Company

“Provides me with viewpoints from other executives that walk in my shoes.”

- CEO, Accounting Services Manufacturer

“Gives me the perspective of the CEO level that most general business magazines do not provide. Only CEOs can provide the best insight for CEOs.” - CEO, Construction/Engineering Firm

“It is important to understand the critical thinking processes of other CEOs. Sometimes it is the shortest route to a timely solution.”

- Managing Director, Financial Services Company

Provides Access To The Community Of Chief Executives: “Provides a global perspective, with access to elite corporate management.”

- President, Automotive Manufacturer

“I consider it a peer-to-peer source of topics for discussion or further thought.”

- CEO, Industrial Support Services

“I take inspiration and pointers by reading about successful CEOs in other industries.”

- CEO, Transportation Service

27

How Chief Executive Enables CEOs To Manage More Effectively Presents Actionable Information: “Very useful in business planning. Helps me formulate and develop our own corporate culture” - CEO, Accounting Services Manufacturer

“Have used it for benchmarking, education of my board and management team, best practices, direction and suggestions.”

- CEO, Heavy Duty Vehicle Component Manufacturer

“Helps me identify major tradeoffs, expertly explore consequences.”

- Title & type of business to come

“Learning from (CEOs’) experience enables us to adjust course early when it’s much less expensive.”

- President, Consulting Firm

Provides Credible, Reliable Insights: “Connects with me ... objective advice is hard to find when your time is eaten up on a daily basis with running a company.”

- CEO, Retail/Distribution Com

“A reliable source of contemporary developments worldwide.”

- President, Educational Service

“Trustworthy and credible.”

- Managing Director, Educational Service

28

Chief Executive Offers Vendors A Proactive Marketing Environment: It's Where Leaders Form Opinions And Make Decisions About Their Organization’s Future Direction Ways In Which CEOs Utilize The Contents In Chief Executive

To form opinions/make decisions

81.0%

As reference for projects

In reports/recommendations

46.0%

17.0%

Discuss contents with others

54.0%

Save/download articles & issues

45.0%

Forward content to others

49.0%

Download reports/white papers

None of the above

36.0%

2.0%

29

Your Sales Message In Chief Executive Magazine Builds Relationships With CEOs ‌Today And Into The Future Nine Of Ten Subscribers Read All Or Most Issues

Three-Quarters Are Exposed To All Or Most Pages Each Issue

Virtually All Will Spend The Same Or More Time With The Magazine In The Future

81%

78%

86%

97% More + Same Amount

16% 5%

Less than Half

10%

Half the Issues

All or Most Issues

9%

1%

Less than Half

Half the Issues

3%

Front to Back + Most Pages

Less Time

Same Amount

More Time

30

Your Sales Message In Chief Executive Magazine Reaches A Total Of 111,000 Senior Executives Who Decide Upon Systems & Services

Total Audience -- Chief Executive Magazine: Primary Subscribers + Pass-Along Recipients 1. Primary Subscribers* 2. Average Pass-Along Recipients/Copy** 3. Total Pass-Along Recipients/Issue TOTAL REACH, Senior Executive Decision Makers1

42,671 1.6 68,274

110,945

*6/12 BPA. **Takes into account copies that are not passed along; based on all titles reached.

1Includes

CEOs, unit presidents, CFOs, CIOs, VPs of sales, CMOs, VPs of HR, VPs of manufacturing, etc.

31

Chief Executive Delivers The Accountability & ROI You Require From Your Marketing Investments Two Of Three CEOs Have Responded To Ads Throughout Chief Executive’s Suite Of Media (last 12 months only)

Top Methods Of Response To Ads Throughout Chief Executive’s Suite Of Media (in rank order)

When CEOs Respond, Two-Thirds Of The Time They Have Serious Intentions About The System Or Service

#1: Visit vendor’s Website #2: Save ads for reference 67%

#3: Pass ads on to staff members 60% #4: Ask staff members to follow up #5: Discuss systems/services with staff members

40%

33% #6: Send e-mails to vendors #7: Phone vendors #8: Stop at a vendor’s trade show exhibit No Action Taken

Took Action, Last 12 Mos.

No Need (Just Curious)

Have Definite or Potential Need

32

Vendors Who Communicate With CEOs Through Chief Executive Enjoy Positive Impressions As Suppliers Who Offer Special Advantages How CEOs Perceive Vendors Who Communicate Through Chief Executive Likely to be a more well-established company (stronger financing, staffing, etc.)

45.0%

Likely to understand the CEO’s requirements more exactly

45.0%

Likely to be a leader in their category

35.0%

Likely to be more experienced in their system/service category

Likely to have systems/services above average in performance

Likely to customize systems/services for customers

33.0%

25.0%

22.0%

79% Likely to offer a larger range of systems/services

21.0%

None of the above

21.0%

Of CEOs Have Positive Impressions About Vendors Who Communicate Through Chief Executive

33

Corporate Investments In Systems & Services: THE EXPANDED ROLE OF CHIEF EXECUTIVES

F. The Medium That’s Most Effective For Moving CEOs Through The Adoption Process For Systems And Services

34

Despite The Availability Of Other Business Media, CEOs Engage With Chief Executive Because “It Speaks CEO Language”

“ The only media outlet that looks at the world from the perspective of CEOs to help companies prosper.”

- CEO, Accounting Services Manufacturer

“The focus is on senior management. Other magazines and websites cover a wider range of interests.”

- President, Consulting Firm

“Addresses the issue of leadership and being CEO. That makes it unique and special.”

- CEO, Heavy Duty Vehicle Components Manufacturer

“Gives a different flavor on issues of management/financial solutions/communications.”

- President/CEO, Accounting Services Service Company

“Speaks to my issues as a CEO - the leadership, the management and the strategic issues.”

- CEO, Advertising/Media Company

“Targeted at chief executives; eliminates the noise around other business facets.”

- CEO, Real Estate Firm

“Far superior and relevant to the CEO and issues faced by CEOs.” - CEO, Accounting Services Manufacturer

“It speaks CEO language.”

- CEO, Publishing/Media Company

35

The Majority Of Chief Executive’s Audience Cannot Be Contacted Via Any Other Business Magazine Or Website Magazines Read Regularly* (Among The Audience Of Chief Executive)

Websites Visited Regularly** (Among The Audience Of Chief Executive)

Magazine

Number Reading

Number NOT Reading

Website

Number Reading

Number NOT Reading

Fortune

43%

57%

Online.wsj.com

41%

59%

Forbes

43%

58%

Businessweek.com

26%

74%

hbr.org

27%

73%

Harvard Business Review

42%

58% Forbes.com

22%

78%

Bloomberg Businessweek

39%

61% Economist.com

21%

79%

money.cnn.com/magazines/f ortune

21%

79%

Fastcompany.com

14%

86%

Cfo.com

9%

91%

The Economist

35%

65%

Fast Company

23%

77%

CFO

23%

77%

*Most or all issues

**Once a month or more often

36

Chief Executive: The Media Brand That Best Enables Vendors To Move CEOs Through Each Phase Of The Adoption Process Phases In The Adoption Of Systems & Services (Based On An Index Of 100; The Leading Brand Is Valued At 100 Points)

Bloomberg Businessweek

Chief Executive

Forbes

Fortune

Harvard Business Review

Phase 1 - Awareness: Where I’m more likely to first become aware of vendors/systems/services

54

100

40

42

15

Phase 2 - Perceptions: Where I’m more likely to form perceptions about vendors/systems/services

31

100

31

32

14

Phase 3 - Positioning: Where I’m more likely to position competitive vendors in my mind regarding their differences

36

100

39

32

14

Phase 4 - Preference: Where I’m more likely to determine specific brands to evaluate when entering the buying process

37

100

28

33

18

Phase

37

Past Sponsors

38

Chief Executive Enables Maximum Efficiency When Marketing To The C-Suite Based On Its Extraordinary Concentration On Senior Executives, Chief Executive Offers The Lowest Cost Per Thousand For C-Suite Readers $7,000.00

$6,000.00

$5,000.00

$4,000.00

$3,000.00

$2,000.00

$1,000.00

$Chief Executive

Bloomberg Business Week

CFO

Forbes

Fortune

Source: Based on magazine advertising rates and c-suite reach as indicated on publication media kits.

39

Corporate Investments In Systems & Services: THE EXPANDED ROLE OF CHIEF EXECUTIVES

APPENDIX

40

Corporate Investments In Systems & Services: THE EXPANDED ROLE OF CHIEF EXECUTIVES SPECIFIC RESEARCH OBJECTIVES DETERMINE…

SLIDES

A. Trends in the involvement of chief executives in major investment decisions.

2–8

B. The involvement of chief executives in the vendor selection process.

9 – 14

C. The engagement of chief executives in investments for Insurance Services.

15 – 23

• Sample case histories of influence on purchases.

20 – 23

D. How relationships between buyers and vendors have changed.

24 – 29

E. Executives’ opinions of/engagement with the suite of media from Chief Executive.

30 – 41

F. The medium that’s most effective for moving chief executives through the adoption process for systems and services.

42 – 46

Appendix (objectives, the research organization, methodology, demographics)

48 – 54

41

Corporate Investments In Systems & Services: THE EXPANDED ROLE OF CHIEF EXECUTIVES THE RESEARCH ORGANIZATION Martin Akel & Associates; Nipomo, California (Sample Client List) • 101 Communications

• Dun & Bradstreet

• The New England Journal of Medicine

• Advanstar Communications

• Edgell Communications

• Nielsen Business Media

• Ascend Media

• Elsevier Engineering & Chemistry

• OAG Official Airline Guide

• The American Academy of

• Epson

• PCS Health Systems

• Farm Journal Media

• PennWell Media

• The American Institute of Physics

• Folio: Magazine Publishing Corp.

• Penton Media

• ABM -- Agri Council

• Fujitsu ICL

• The Philadelphia Inquirer/PhillyTech

• The American Express Publishing Co.

• Genetic Engineering & BioAccounting Services

• Primedia/Intertec Corporation

Family Physicians

• The American Pharmaceutical Assn.

• The American Psychological Assn.

• The Axon Group/LRP Publications

News (GEN) • Global Marketing Solutions (CeBIT; Hannover Fairs)

• Professional Media LLC • Reed Construction Data • Reed Business Information/Cahners/

• Aventis Pharmaceuticals

• Goldhirsch Publishing

• Biocompare

• Hammock Publishing

• Reed Elsevier Medical Publishers

• Boucher Communications

• Haymarket Media

• The Society Of Manufacturing Engineers

• Capital Publishing Company

• IDG (InfoWorld Media Group)

• Springhouse Corporation

Gordon Publications

• Jobson Publishing

• Symbol Technologies

• CFO Publishing

• John Wiley & Sons

• Time Ventures

• Chief Executive Group

• Lippincott Williams & Wilkens

• UBM/Canon

• Chilton Publishing

• Medical Economics Publishing Co.

• Vance Publishing

• Ciba-Geigy Pharmaceuticals (Novartis)

• Medical World Communications

• Veterinary Learning Systems

(Fidelity Investments - Worth Magazine)

42

Corporate Investments In Systems & Services: THE EXPANDED ROLE OF CHIEF EXECUTIVES METHODOLOGY Date Conducted: November, 2012 Medium Used: Three e-mail invitations + online questionnaire.

Universe Studied: The Chief Executive audience, where e-mail addresses were available - 46,383 names.

The list was drawn from the brand’s full suite of media -- magazine, online, e-newsletter, events, etc.

Titles Selected: All professionals who are part of the brand’s audience -- including both chief executives (CEOs, presidents, managing directors, owners, etc.) and senior executives (chairmen, board members, COOs, divisional presidents, GMs, CFOs, CIOs, etc.).

Note: Since the survey’s objective is to measure the chief executive’s role, results shown here reflect results from chief executives only.

Two Questionnaires: Two versions were fielded; most respondents received most questions.

Identification: The survey was sent out over the Chief Executive title.

Incentives: Contests - gift card and gourmet dinner; donations were made to the Make A Wish foundation.

Response: 498 chief executives; margin of error = +/-4.4% (95% confidence level).

43

Corporate Investments In Systems & Services: THE EXPANDED ROLE OF CHIEF EXECUTIVES

Demographics Of Chief Executives

44

Most “Chief Executives” Have CEO Titles & Work In Service Markets Titles Of Chief Executives

Primary Businesses

Company Size

(financial, retail, consulting, construction, healthcare, Accounting Services, media, etc.)

CEO

60.0%

President

20.0%

Owner/Partner

78%

11.0%

• Average Annual Worldwide Sales Revenue:

$329,418,000 Managing Director

8.0%

• Average Number Of Employees Worldwide:

21% Other Chief Executive

1,063

1.0%

1% Other

Manufacturing

Service Companies

45

Examples Of Respondents’ Organizations

• Achieve Financial, LLC

• Del-Nat Tire Corporation

• Pratt & Whitney

• ADCO Products

• Dow Chemical

• Pipeline Technologies, Inc.

• Allan Cox & Associates, Inc.

• EMC Insurance Companies

• Provident Bank NY

• Allegiance Capital Corp.

• Empire Airlines

• Quick-Med Technologies

• American LubeFast

• Ernst & Young LLP

• Ranger Aerospace, LLC

• American Packaging Corp.

• Ethan Allen

• Raymond James Financial

• Amsco Windows

• First Bank of Berne

• Republic Services, Inc.

• Amvest Financial Group, Inc.

• First Command Financial

• Romero’s Food Products

• Artisan Industries

• Honeywell

• Sagicor Life Insurance Co.

• Ball

• Hughes Development Corp.

• Thor Industries, Inc.

• Big Boy Restaurants Int’l.

• Huntington National Bank

• Toy Industry Association

• Bilby Air Transportation

• IFF

• True Textiles, Inc.

• Boston Magazine

• Indiana Economic Development

• Trustmark National Bank

• Bridgestone Industrial

• Jamison Door Company

• Vance Publishing Corp.

• Capitol Lighting

• Lockheed Martin

• Walt Disney

• Champlain Cable Corp.

• Mars Steel

• Whataburger

• Colonial Electronic Mfg.

• Mitsubishi

• Zamil Air Conditioners

46