corporate excellence, 6th november, madrid
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COMMUNICATIONS IN THE
AGE OF ENGAGEMENT: from Public Relations
to Public Engagement
Robert Phillips
President & CEO, EMEA
Edelman
Madrid, November 6, 2012
THE AGE OF ENGAGEMENT Tension Fragility Polarity Dis-trust
… and Technology
Three Macro Trends:
1. The deterioration of trust in traditional institutions
2. The dispersion of authority and the emergence of a new
pyramid of influence
3. The de-centralisation of power from traditional media to social
and hybrid sources
THE AGE OF ENGAGEMENT
DEEP
SCIENCE
DEEP
HUMANITY
COMMUNICATIONS IN
THE AGE OF ENGAGEMENT
PART ONE: Supporting Evidence
PART TWO: Codifying the New Reality
PART THREE: Engagement in Practice
PART FOUR: Discussion
PART ONE:
Supporting Evidence
2012 EDELMAN
TRUST BAROMETER METHODOLOGY OVERVIEW
Twelfth annual study
Online survey in 25 countries
30,000+ respondents
1,000 general population respondents per country
Ages 18+
Oversample of informed publics*
500 respondents in U.S. and China & 200 in
all other countries
Ages 25-64
(Trending data among Ages 35-64)
College-educated
In top 25% of household income per age group in
each country
Report significant media consumption and
engagement in business news and public policy
* This year Informed Publics were surveyed via online methodology instead of telephone
GENERAL PUBLIC
INFORMED PUBLIC 25-64
INFORMED PUBLIC 35-64
When a company
is distrusted
When a company
is trusted
15% 25%
57% believe
negative information
after hearing it
1-2 times
believe positive information after hearing it 1-2 times
believe negative information after hearing it 1-2 times
51% believe
positive information after hearing it 1-2 times
THE VITALITY OF TRUST Trust protects reputation
good news or bad: trust filters what is believed
TRUSTERS
NEUTRAL
DISTRUSTERS
GLOBAL 51
China 76
UAE 68
Singapore 67
India 65
Indonesia 63
Mexico 63
Netherlands 61
Canada 58
Italy 56
Argentina 54
Australia 53
Brazil 51
Sweden 49
U.S. 49
South Korea 44
Poland 44
U.K. 41
Ireland 41
France 40
Germany 39
Spain 37
Japan 34
Russia 32
GLOBAL 55
Brazil 80
UAE 78
Indonesia 74
China 73
Netherlands 73
Mexico 69
Singapore 67
Argentina 62
India 56
Italy 56
Canada 55
South Korea 53
Sweden 52
Japan 51
Australia 51
Spain 51
France 50
Poland 49
Germany 44
U.S. 42
U.K. 40
Russia 40
Ireland 39
2012 2011
>
>
>
<
<
<
Distrust is growing; nearly twice as many countries are now skeptics yet, emerging economies remain the top trusters
Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 23 countries
THE DETERIORATION OF TRUST
50% 52%
20%
44%
52%
40%
33%
64%
77%
43%
52%
42%
88%
39%
88%
42% 45%
75%
50% 49%
54%
62%
43%
51%
85%
43%
35%
53% 56%
43%
33%
62%
73%
38%
47%
35%
78%
26%
75%
28% 31%
61%
33% 31%
36%
40%
20%
25%
32%
62%
49%
TRUST IN GOVERNMENT
2011 Informed Public
2012 Informed Public
Trust Trust Steady
N/A N/A
Trust
Majority of countries now distrust government
THE DETERIORATION OF TRUST
CURRENT TRUST BUILDING FUTURE TRUST
1) Listens to customer needs and feedback
1) High quality products or services
3) Treats employees well
4) Places customers ahead of profits
4) Takes actions to address issue or crisis
6) Has ethical business practices
7) Has transparent and open business
8) Communicates frequently and honestly
9) Works to protect/improve environment
10) Addresses society's needs
11) Positively impacts the local community
12) Innovator of new products
13) Highly regarded, top leadership
14) Delivers consistent financial returns
15) Ranks on a global list
16) Partners with third parties
1) Delivers consistent financial returns
2) Innovator of new products
3) Ranks on a global list
47% TRUST
BUSINESS
3) Highly regarded top leadership
5) Partners with third parties
General Public
Societal
Operational
THE DETERIORATION OF TRUST Business: from license to operate to license to lead
Attributes that correlate with current trust Most important attributes that build trust
SOCIETAL ATTRIBUTES MORE IMPORTANT TO BUILDING FUTURE TRUST
CURRENT TRUST DRIVEN BY OPERATIONAL ATTRIBUTES
2012 2011 Academic or expert
Technical expert in the company
A person like yourself
Regular employee
NGO representative
Financial or industry analyst
CEO
Gov’t official or regulator 29%
38%
46%
50%
50%
65%
66%
68%
34%
43%
43%
47%
50%
53%
64%
70% Academic or expert
Technical expert in the company
A person like yourself
Regular employee
NGO representative
Financial or industry analyst
CEO
Gov’t official or regulator -12
-14
+22
+16
Credibility of CEOs and government officials plummet Peers and regular employees see dramatic rise
THE DISPERSION OF AUTHORITY
Greatest increase
since 2004
Biggest decline in Barometer
history
THE REALITY OF
THE NEW MEDIA LANDSCAPE
OWNED PROPERTIES
WEBSITES INTRANETS
PORTALS CORPORATE
BLOGS APPS & MOBILE
SOCIAL
HYBRID MEDIA NICHE
PUBLICATIONSSITES & PROFESSIONAL BLOGS
OUTPOSTS MESSAGE BOARDS
FORUMS BLOGOSPHERE
TRADITIONAL MEDIA
MAINSTREAM OUTLETS TRADES
PART TWO:
The Age of Engagement Codifying the New Reality
2010 2011 2009 2012
CHANGE WILL NEVER BE THIS SLOW AGAIN
MEDIA:
INDIVIDUALS:
BRANDS:
ORGANISATIONS:
MARKETS:
LEADERSHIP:
from AUDIENCE to COMMUNITY
from CONSUMER to CO-CREATOR
from PUSH to PULL
from HEIRARCHIES to NETWORKS
from PRODUCTS to PLATFORMS
from CONTROL to EMPOWER
BONCHEK’S SIX SHIFTS
social digital
COMMUNICATIONS AND THE EVOLUTION OF INFLUENCE
Social Advocists
Employees
Citizen Consumers
authority empathy
analogue
Elite
Mass
yesterday today
my clover
my influence network
Elites
Mass
PLA
TFO
RM
S / A
GG
RE
GA
TION
SITE
S
CO
MM
UN
ITIE
S
PUBLIC ENGAGEMENT:
THE EVOLUTION OF PUBLIC RELATIONS
WHY PE?
PE is how Edelman sees the world of communications. It’s the operating framework within which we work. It provides strategic guidance and defines measurable outcomes. It is our belief that communications now has to expand to fit the mantra of Public Engagement – we have to be able to understand and advise on business strategy as well as business communications.
WHY NOW?
The world is increasingly complex. Authority and consumer power continue to disperse. Business needs to behave and communicate differently. And change will never be this slow again. PE helps Edelman play in an evolving and competitive landscape of digital networks, media agencies, ad agencies, CRM, research firms and management consultancies.
HOW DO WE TALK ABOUT PE? Communications today is as much about what we do as what we say. It advances the shared interests of business and society in a finite, fast-fail world. It needs to be open, honest and frequent.
at heart, PE is: bottom-up; social; transparent; values-led; rooted in action
PE ultimately gives businesses the License to Lead
ENGAGEMENT MUST BE MEASURED IN OUTCOMES:
Increased Trust
Deeper Communities
Behaviour Change
Commercial Success
to regular people
in the always-on conversation
and co-create likeable, shareable content
narratives to navigate the media clover
genuine transparency
that good business needs profit + purpose + engagement
that everyone can be an activist now
SEVEN BEHAVIORS UNDERSTAND
LISTEN
PARTICIPATE
CREATE
BUILD
PRACTICE
RECOGNIZE
The dispersion of authority away from traditional power structures will only increase in speed - and a new era of accountability to regular people is the inevitable result
citizens rising
SEVEN TRENDS
Mathematics (and the algorithms that drive search and social) are shaping the networked world in which we live - but it is real people who provide the content and shape the stories. Empathy and humanity are key
human connectivity
Smart companies and brands of the future recognise that pushing out messages will get them nowhere; creating ‘gravitational orbits’ that allow clusters of shared interests to form and ‘pull’ audiences represents the engagement of the future
brand orbits & the death of push
We still have no idea what technological possibilities lie ahead and change is never going to be this slow again
unseen possibilities
The future is mobile and the next generation will be empowered like never before
the mobile tipping point
Demography not democracy may now be society’s greatest challenge – and while human resources are infinite, planetary (and financial) resources are not. Shared interest models will help business play a leading role in developing solutions
shared interests; finite capital
Businesses will move from compliance culture to leadership based on values. A new social contract emerges that recalibrates the relationship between government, business and civic society
from license to operate to the licence to lead
PART THREE:
Engagement in Practice
CAN ENGAGEMENT HELP BUSINESS
BECOME A FORCE FOR SOCIETAL GOOD?
The example of WalMart says yes
CAN ENGAGEMENT HELP SHIFT BUSINESS
FROM ITS TRADITIONAL LICENSE TO
OPERATE TO A NEW LICENCE TO LEAD?
The example of Mars in China says yes
CAN ENGAGEMENT – LISTENING TO REGULAR
PEOPLE & CO-CREATING WITH THEM – HELP
DESIGN AND DEVELOP BETTER PRODUCTS?
The example of Adobe says yes
CAN ENGAGEMENT LEAD TO GREATER ‘WISDOM
FROM WITHIN’ – BOOSTING MORALE,
IMPROVING PRODUCTIVITY & STRENGTHENING
WORKFORCE LOYALTY?
The example of Starbucks says yes
CAN ENGAGEMENT HELP BUSINESSES IDENTIFY
CHALLENGES ON WHICH THEY CAN LEAD…
ULTIMATELY RE-EARNING THE TRUST OF CITIZENS &
STRENGTHENING ITS RELATIONSHIP WITH SOCIETY?
The example of GE says yes
CAN ENGAGEMENT HARNESS THE POWER OF
EMPLOYEE ACTIVISM TO DRIVE SUSTAINABLE,
SOCIETAL CHANGE?
Increasingly, the evidence of the Unilever
Sustainable Living Plan says yes
PART FOUR:
Discussion