My Country is Different June 2, 2007

The Global SceneGlobal de-regulation changes governance structuresEmerging markets growth deepens cultural pressures/vulnerabilitiesTechnology convergence increases transparency AND riskIncreasing importance of public/private partnershipSpeed

The Challenge for MultinationalsChanging definitions of corporate citizenshipPolitical correctness in 192 flavoursThe role of the corporate brandReputation as intangible valueNew markets, new conflicts

Key Role for Public RelationsCommunicating corporate brand and products brands to new stakeholdersFunctioning as external relations leaders with public bodies worldwideDeveloping consensus global messagingPlanning for and responding to critical situations

Performance Benchmarks for PR NetworksCommunicationTransparencyIssues managementProduct launch coordinationCorporate brand stewardshipGlobal alignmentInternal coordinationUse of technology

Research ObjectivesAssess the importance of the capabilities of global PR networksMeasure performance in the effective use of these capabilitiesIdentify areas of strength and concern

METHODOLOGYCurrent customers and targeted potential customers from a list of Fortune 500 Company contacts.Who?When?April-May 2007How?Individuals were sent e-mails and invited to participate in the online survey.Sponsorship by Porter Novelli and Harris Interactive was revealed.A topline of findings and $150 cash were offered as incentive.A total of 40 targeted current and potential clients participated.

Global PresenceNumber of Countries Where Companies OperateQ500How many offices and/or facilities does your organization have located in each of the following locations? Base: All RespondentsAverage: 6 Countries

Regional DistributionQ500Approximately, how many offices and/or facilities does your organization have located in each of the following locations? Base: All RespondentsQ815Approximately how many employees across the entire organization have public relations or external relations responsibility? Base: All RespondentsAverage Number of Offices At Each LocationAverage Number of Employees At Each LocationUnited States136Continental Europe24Canada14Asia..42Latin America/Mexico..6South America18United Kingdom3Middle-East...2Africa..2Australia/New Zealand2

Network DensityNumber Of Employees Across Entire Organization That Have Public Relations Or External Relations ResponsibilityQ815Approximately how many employees across the entire organization have public relations or external relations responsibility? Base: All RespondentsQ821How many employees work in public relations or external communications across multiple countries? Base: All RespondentsNumber Of Employees Across Multiple Countries In Public Relations Or External Communications0 to less than 55 to less than 1010 to less than 2525 to less than 5050 to less than 7575 to less than 100100 to less than 150150 to less than 200200 or moreAverage8236

Meet Dr. PanglossOverall Satisfaction Company Has a Clear Plan For Coordinating PR Across Multiple CountriesQ505Overall, how satisfied are you that your company has a clear plan for coordinating public relations communications across multiple countries? Base: All Respondents61%36%

Network AgilityFrequency That Companies Re-Assesses Their Corporate PositioningQ625On average, how often does your organization re-assess its corporate positioning? Base: All RespondentsAverage: 2.8 Years

Crisis? What Crisis?-3%+5%+5%-5%-25%% DifferenceIMPORTANCEPERFORMANCEThe Pace SettersQ500-600How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsSeriesHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsProtocol in place for dealing with crisis management situations in local marketProtocol in place for dealing with crisis management situations in multiple countriesCEO and leadership are champions of corporate position across countriesBusiness management, PR, legal, regulatory, and communications departments interface effectively at the local levelRegion/local employees understand benefits to be communicated about the new product/service

Operational/Cultural Integration-8%-5%-15%-10%+3%% DifferenceIMPORTANCEPERFORMANCEThe Pace SettersQ500-600How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsSeriesHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsPrior to product launch in multiple countries, communication takes into consideration local customs and cultureNew product/service launches are always consistent with companys imagePotentially negative multi-country issues are communicated to upper management in a timely mannerBusiness management, PR, legal, regulatory, and communications departments interface effectively across multiple countriesLocal PR departments are tightly aligned with local business operations

Bayer or Bayer?-5%-7%+7%-13%0%% DifferenceIMPORTANCEPERFORMANCEThe Pace SettersQ500-600How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsSeriesHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsCorp. positioning communicates a consistent image across countriesProtocol in place for management to share information across countriesCounsel/Active participation of the global PR departments is actively sought by local managementCorporate positioning across countries is easy to rememberPotentially negative multi-country issues are identified early, before becoming problematic

What are our Values again?+7%+5%-5%0%-2%% DifferenceIMPORTANCEPERFORMANCEThe Pace SettersQ500-600How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsSeriesHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsCorp. positioning is an inspirational guide to employees across countriesUtilize communication technologies that allow for global real-time transfer of informationCorporate positioning across countries is easy to understandCounsel/Active participation by PR departments across multiple countries is actively sought by global managementBrands/Services offered across countries easily associated with positioning

Sharing Ideas-2%-5%+2%+15%+2%+5% DifferenceIMPORTANCEPERFORMANCEThe Pace SettersQ500-600How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsSeriesHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsEmployees can easily share information across countriesBest in class ideas from departments shared in timely mannerMultiple countries are regularly monitored to identify potential negative emerging issuesPR departments across multiple countries are tightly aligned with local business operationsBest in class ideas from departments shared across countriesCounsel/Active participation by local PR departments is actively sought by local management

Performance Clusters0%10%20%30%40%50%60%70%0%10%20%30%40%50%60%70%IMPORTANCEPERFORMANCEPace Setters

The Report CardFocus on low probability/high impact events reaction not preventionSkewed toward value destruction threat, not value creationThe corporate brand: a neglected asset?The question of culture

Clouds on the HorizonNew markets, new customersThe impact of private equityGlobal/regional regulationCulture and ethics

Additional Material

CEO and leadership are champions of corporate position across countriesBusiness management, PR, legal, regulatory, and communications departments interface effectively at the local levelPrior to product launch in multiple countries, communication takes into consideration local customs and cultureNew product/service launches are always consistent with companys imagePotentially negative multi-country issues are communicated to upper management in a timely mannerPotentially negative multi-country issues are identified early, before becoming problematicProtocol in place for dealing with crisis management situations in local marketBusiness management, PR, legal, regulatory, and communications departments interface effectively across multiple countriesProtocol in place for dealing with crisis management situations in multiple countriesLocal PR departments are tightly aligned with local business operationsCorp. positioning communicates a consistent image across countriesBrands/services offered across countries easily associated with positioningProtocol in place for management to share information across countriesCounsel/Active participation by local PR departments is actively sought by local managementCounsel/Active participation of the global PR departments is actively sought by local managementCorp. positioning is an inspirational guide to employees across countriesUtilize communication technologies that allow for global real-time transfer of informationRegion/local employees understand benefits to be communicated about the new product/serviceCorporate positioning across countries is easy to understandCounsel/active participation by PR departments across multiple countries is actively sought by global managementBest in class ideas from departments shared in a timely mannerCorporate positioning across countries is easy to rememberPR departments across multiple countries are tightly aligned with local business operationsMultiple countries are regularly monitored to identify potential negative emerging issuesEmployees can easily share information across countriesBest in class ideas from departments shared across countriesGraphics Key

TextParticipants Responsibility for Public Relations Communications Across Multiple CountriesQ820Within your organization, is there any person/persons who has public relations or external communications responsibility across multiple countries? Base: All Respondents

TextQ830How much budget are you directly responsible for managing? Base: All RespondentsQ835How many employees fall under your responsibility? Base: All RespondentsQ840Into which of the following categories does your position best fit? Base: All RespondentsParticipant Level of Responsibility

TextQ810In what industry are you employed? Base: All RespondentsIndustry Employed

Text-2%+7%-7%+8%-10%% DifferenceIMPORTANCEPERFORMANCETop 2 Box ComparisonQ500-600How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsSeriesHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsCEO and leadership are champions of corporate position across countriesBusiness management, PR, legal, regulatory, and communications departments interface effectively at the local levelPrior to product launch in multiple countries, communication takes into consideration local customs and cultureNew product/service launches are always consistent with companys imagePotentially negative multi-country issues are communicated to upper management in a timely manner

Text-10%+18%0%+10%+10%% DifferenceIMPORTANCEPERFORMANCETop 2 Box ComparisonQ500-600How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsSeriesHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsProtocol in place for dealing with crisis management situations in local marketBusiness management, PR, legal, regulatory, and communications departments interface effectively across multiple countriesProtocol in place for dealing with crisis management situations in multiple countriesLocal PR departments are tightly aligned with local business operationsPotentially negative multi-country issues are identified early, before becoming problematic

Text+10%+7%+13%+13%+23%% DifferenceIMPORTANCEPERFORMANCETop 2 Box ComparisonQ500-600How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsSeriesHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsCorp. positioning communicates a consistent image across countriesBrands/Services offered across countries easily associated with positioningProtocol in place for management to share information across countriesCounsel/Active participation by local PR departments is actively sought by local managementCounsel/Active participation of the global PR departments is actively sought by local management

Text+17%+15%+17%+2%+13%% DifferenceIMPORTANCEPERFORMANCETop 2 Box ComparisonQ500-600How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsSeriesHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsCorp. positioning is an inspirational guide to employees across countriesUtilize communication technologies that allow for global real-time transfer of informationRegion/local employees understand benefits to be communicated about the new product/serviceCorporate positioning across countries is easy to understandCounsel/Active participation by PR departments across multiple countries is actively sought by global management

Text+10%+13%+15%+5%+32%+10% DifferenceIMPORTANCEPERFORMANCETop 2 Box ComparisonQ500-600How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsSeriesHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsCorporate positioning across countries is easy to rememberEmployees can easily share information across countriesBest in class ideas from departments shared in timely mannerMultiple countries are regularly monitored to identify potential negative emerging issuesPR departments across multiple countries are tightly aligned with local business operationsBest in class ideas from departments shared across countries

TextCorporate positioning across countries is easy to understandCorporate positioning across countries is easy to rememberBrands/Services offered across countries easily associated with positioningCorporate positioning communicates a consistent image across countriesCEO and leadership are champions of corporate position across countriesCorporate positioning is an inspirational guide to employees across countries Q520/Q620How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsCorporate PositioningNote: Values of 3% or lower are not labeled.

TextCorporate positioning across countries is easy to understandCorporate positioning across countries is easy to rememberBrands/Services offered across countries easily associated with positioningCorporate positioning communicates a consistent image across countriesCEO and leadership are champions of corporate position across countriesCorporate positioning is an inspirational guide to employees across countries Q520/Q620How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsCorporate PositioningNote: Values of 3% or lower are not labeled.

Text Protocol in place for management to share information across countriesEmployees can easily share information across countriesUtilize communication technologies that allow for global real-time transfer of informationBest in class ideas from departments shared in timely mannerProtocol in place for dealing with crisis management situations in local marketBest in class ideas from departments shared across countries Protocol in place for dealing with crisis management situations in multiple countriesCommunicationQ530/Q630How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsNote: Values of 3% or lower are not labeled.

TextPrior to product launch in multiple countries, communications takes into consideration local customs & cultureNew product/service launches are always consistent with companys imageRegion/Local employees understand benefits to be communicated about the new product/serviceNew Product/Service LaunchesQ540/Q640How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsNote: Values of 3% or lower are not labeled.

A Blind Spot?Multiple countries are regularly monitored to identify potential negative emerging issuesPotentially negative multi-country issues are communicated to upper management in a timely mannerPotentially negative multi-country issues are identified early, before becoming problematicEmerging IssuesQ550/Q650How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsNote: Values of 3% or lower are not labeled.

Text Business management, public affairs, legal, regulatory, and communications departments interface effectively at the local levelBusiness management, public affairs, legal, regulatory, and communications departments interface effectively across multiple countriesInteraction Within and Between DepartmentsQ560/Q660How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsNote: Values of 3% or lower are not labeled.

TextLocal public relations departments are tightly aligned with local business operationsCounsel/Active participation by local public relations departments is actively sought by local mgmtCounsel/Active participation of the global public relation departments is actively sought by local mgmtPublic relations departments across multiple countries are tightly aligned with local business operationsCounsel/Active participation by public relations departments across multiple countries actively sought by global mgmtPublic Relations DepartmentQ570/Q670How important are each of the following in determining the success of your company? (Importance) Base: All RespondentsHow much do you agree or disagree with the following statements? (Performance) Base: All RespondentsNote: Values of 3% or lower are not labeled.

TextIMPORTANCEPERFORMANCETop 2 Box Comparison