Managing Corporate Communications in a Global · PDF fileManaging corporate communications in a global environment ... professional discipline on a par with HR, Finance, ... The relationship

Managing Corporate Communications in a Global Environment Martin Hirsch - The Roche Group CCI Leaders Forum - January 2014

© 2014 F. Hoffmann-La Roche Ltd

CCI Leaders Forum Key topics & themes

Managing corporate communications in a global environment

• Current context for corporate communications practice

• Navigating a corporate communications career

• Evolving role of the corporate communicator

• Leadership in corporate communications management

• Corporate communications & corporate reputation


Where the Story Begins

Challenges in a Global Organization

3 Things You Need to Get Right

Building a Legacy That Lasts


Fritz and Adèle Hoffmann-La Roche

• Service to Patients and Customers

• Respect for the Individual

• Commitment to - Responsibility - Performance - Society - Environment - Innovation

Where the Story Begins… Roche: shaped by “family values” since 1896


• Make ends meet

• Value honesty, integrity & discipline

• Commitment to

- Spending within means

- Education

- Security

- Simple, honest life

Where the Story Begins… Hirsch: shaped by “family values” since 1951

Martin Hirsch and his parents


• Work hard, pursue professional excellence – Support a comfortable life style

• Enjoy life – Travel and see the world

• Be loyal to family and friends – Treasure and nurture the precious relationships in your life

Martin and Lisa Hirsch-Lu Shaped by his wife’s values since 1991

Martin Hirsch and his wife Lisa


History, Synchronicity, Destiny

Hoffmann-La Roche Inc.: Nutley, New Jersey, USA

July 1982-June 2001

F. Hoffmann-La Roche Ltd: Basel, Switzerland

June 2001-Present © 2014 F. Hoffmann-La Roche Ltd

Evolution of an Industry “Over 100 years with one name above our door”

1982-2013

American Home Products Roche Warner-Lambert

Beecham Sanofi Wyeth

Burroughs-Wellcome Astra Pfizer

Ciba-Geigy Sandoz Glaxo

Hoechst SmithKline Pharmacia

Schering-Plough Squibb Johnson & Johnson

Merck Upjohn Novartis


Basic Facts at a Glance

• Founded 1896 in Basel, Switzerland

• Founding families still hold majority stake

• About 82,000 employees worldwide

• Active in 150 countries on all continents

• Sales: About 45 billion Swiss francs

• Clear focus on healthcare

• Leader in biotechnology, oncology, diagnostics

• No. 5 in pharma worldwide, a market leader in virology

• Pioneer and leader in personalized healthcare

• Unique innovation model © 2014 F. Hoffmann-La Roche Ltd






Challenges in a Global Organization Cultural diversity, competing priorities

• Diversity of culture and language

• Multiple priorities

• Message/info overload

• Initiative fatigue

• Complexity of coordinating info flow

• Inconsistent regard for communications as a: professional discipline on a par with HR, Finance, IT and Law value driver leadership competency

• Unique Roche challenge: congenital decentralization


Challenges in a Global Organization Strict labor laws, strong works councils

Novartis Reverses Plant Closure In Switzerland

January 17th, 2012 // 10:56 am Nearly three months of sustained pressure has prompted Novartis to change its corporate mind and abandon plans to close a plant in Vaud, Switzerland, a step that will save about 320 jobs. At the same time, the drugmaker will eliminate fewer than the 760 jobs that were originally to have been cut at a chemical plant in Basel.

The move comes in response to demonstrations by Novartis workers, protests from local politicians and, in one case, a publicized boycott of Novartis medicines by a doctor in Switzer-land, where the drugmaker is headquartered and residents were unnerved by the extent of the planned job cuts. Until recently, Novartis employees in other countries have borne the brunt of widespread layoffs…


Alignment Challenges in a Global Organization Clouded minds decrease performance

HQ Goals

Divisional Goals

Affiliate Goals

Functional Goals

Corp Comms Goals

Product Comms Goals

Global Strategic Initiatives

Local Strategic Initiatives

Internal Pharma Communications Children’s Walk

Global/Local Corporate

Programming “Phelophepa”

Roche Commissions “I’m unfit for duty. All I’m fit for

is early retirement!” “I’m fit to be tied!”

ARIVA

Fit to Win

CEO’s priorities GM’s priorities Boss’s priorities


The Triple S (Stretch, Shape, Strengthen)

Winning for the Future

Project Forward






3 Things You Need to Get Right It’s all about relationships

The relationship between the company and its employees

The relationship between the company and its external stakeholders

The relationship between headquarters and sites/affiliates © 2014 F. Hoffmann-La Roche Ltd

“Logic can convince but only emotion can motivate.”

Jonathan Alter, Former Senior Editor, Newsweek, and columnist for Bloomberg View

The Relationship With Employees How to engage, motivate & energize


The Relationship With Employees Clarity, clutter-busting, engagement & alignment

• Organizations whose employees understand goals deliver 24% higher shareholder returns (Watson Wyatt)

• Highly committed employees perform 20% better than disengaged employees; Emotional engagement is four times more valuable than rational factors in driving employees’ effort (Corporate Leadership Council)

• Leaders need to engage, motivate and energize employees by helping them to:

– Have a clear line of sight between their daily work and company goals

– Understand the company’s strategic vision and how they contribute to it

– Understand the necessity for change, and to be able to thrive in it

– Understand the rationale for and importance of specific change initiatives


The Importance of Global Alignment Corporate strategy

The Roche 2-Pillar Strategy:

• Combined strengths of Pharma & Dia

• Synergies in research, development & marketing

• Unique global network of alliances

• Pioneer & leader in personalized medicine

Early detection


Leader in Diagnostics

Leader in Pharma

Prevention Diagnosis Therapy Therapy monitoring

Driving personalized healthcare

The New Roche Purpose Statement We want to be recognized as THIS COMPANY

Doing now what patients need next We believe it’s urgent to deliver medical solutions right now – even as we develop innovations for the future. We are passionate about transforming patients’ lives. We are courageous in both decision and action. And we believe that good business means a better world.

That is why we come to work each day. We commit ourselves to scientific rigour, unassailable ethics, and access to medical innovations for all. We do this today to build a better tomorrow.

We are proud of who we are, what we do, and how we do it. We are many, working as one across functions, across companies, and across the world.

We are Roche.


Global Employee Engagement Survey GEOS 2011

What is working well? Our employees:

• Consider Roche one of the best places to work.

• Get a sense of accomplishment from their work.

• Feel they have a work environment that is open and accepts individual differences.

Where do we have room for improvement?

• Senior leaders not seen as valuing people enough.

• Senior management not demonstrating effective leadership.

• Career & development opportunities not meeting expectations.


GEOS Response Leadership Commitments

I firmly believe that each person at Roche deserves a great leader. Every day I strive to lead by example, consistently demonstrating our values of Integrity, Courage and Passion. This means:

• I take a genuine interest in people.

• I listen carefully, tell the truth, and explain "the why."

• I empower and trust people to make decisions.

• I discover and develop the potential in people.

• I strive for excellence and extraordinary results.

• I set priorities and simplify work.

• I congratulate people for a job well done.


Global Employee Engagement Survey GEOS 2013

Where was the greatest improvement?

• Participation rate up from 80% to 88%

• Most significant increase in “keeping promises”

• Overall engagement score up from 62% to 67% – “Remarkable” improvement, according to Aon Hewitt – Puts Roche ahead of global Pharma benchmark – and into “optimal range”

What are remaining “action areas”? • Work processes • Career opportunities • Senior leadership • People focus


The Relationship with Stakeholders No one wants this!


The Relationship With Stakeholders Everyone wants this!


Reputation Management Avoiding risks, exploiting opportunities

Doing now what patients need next

Embedding a culture dedicated to reflecting our purpose

Collaborate with Governance, Compliance, Risk Management

Strengthen Our Safety Shield

Benchmark, measure and monitor Roche reputation vs. peers, and assess stakeholder opinions on key business issues

Gather Actionable Insights (ExSOS)

Grow a “Best-Roche” grassroots movement: help make Roche first, best and most reputable

Embed a Reputation-Conscious Mindset


The Relationship Between HQ & Affiliates Business case for building bridges

“We are building too many walls

and not enough bridges”

Global alignment requires strong bridges that connect

• communications teams at hq

• hq and the affiliates

• Pharma and Dia to improve coordination, efficiency, alignment, implementation and business support.

Sir Isaac Newton


Roche-CCI Affiliate Relations Pilot Study How are multinationals bridging the gap?

Summary of Findings:

• No company in sample of 11 had AR function

• 2/3 had some, but not a dedicated, approach to communicating with affiliates

• 2/3 used extensive feedback loop

• 2/3 consider hq-affiliate comms & alignment a priority

• 1/3 said not enough being done to ensure effective hq-affiliate comms & alignment

• 2/3 said need for effective hq-affiliate comms & alignment remaining steady or increasing


Key Findings Among GMs Their priorities and HQ comms support needs

GM views on how HQ communicators can best help affiliate communicators: • Guide Global Strategy Alignment

Help them understand/connect/align global strategy with regional and local/country communications • Clarify “Line of Sight”

Enable them to tailor HQ content to connect and engage local staff • Ensure One Voice

Help ensure alignment with corporate messaging/policy • Clarify and Simplify the Corporate Value Proposition

Make it sell in the executive suite


Key Findings Among HQ Communicators Obstacles to meeting mutual expectations There is generally poor understanding of what PR and comms do to drive sales, so it doesn’t get the budget and headcount it needs. Comms people need to demonstrate how PR and comms help sales:

• Need proper recruitment to get the right people with the right skills

• We should visit them more to build relationships and involve them earlier

• They may not be aware of the context and need for change – we don’t do a good enough stakeholder analysis

• Lack of resources

• Global and local priorities not aligned


A Window on the Roche World Building a bridge to global alignment

HQ Communications

Employee Comms

Product Comms

Issue Management

Sustainability

CSR

Internet/Digital Comms

Change Comms

etc., …

Affiliate Relations Latin America

Western Europe Central &

Eastern Europe

Asia-Pacific

Key Regions, Plus

Emerging & Underserved Markets

Middle East India Africa

North America







Group Communications at Roche A work in progress

Group Communications Stephan Feldhaus

Diagnostics Communicatons Patty Lee

Branding & Publishing Emanuel Kuhn

Employee & HR Communicatons Jane Weinmann

Strategy Communications & Business Reporting

Jürg Huber

Finance & IT Communicatons Nicolas Dunant

Media Relations Alexander Klauser

Communication Excellence & Reputation Management*

Martin Hirsch

Communication Services Serge Baumgartner

HR Business Partner Navid Nazemian

pRED Communicatons Ron Fuchs

Roche Partnering Communicatons Emilie Gambert

Basel Site Communicatons Susanne Albiez

Genentech Corporate Relations

Geoff Teeter

Pharma Communicatons Annette Luther


Group Communications at Roche A work in progress


Building a Legacy That Lasts HQ-affiliate relations

HQ Communications

Employee Comms

Product Comms

Issue Management

Sustainability

CSR

Internet/Digital Comms

Change Comms

etc., …

Affiliate Relations Latin America

Western Europe Central &

Eastern Europe

Asia-Pacific

Key Regions, Plus

Emerging & Underserved Markets

Middle East India Africa

North America





Roche Group Communications

Our Communications Manifesto & Principles




Our Communications Manifesto



Communications Role:

Strategic, NOT just a support tool


Communications Role: Strategic, NOT just a support tool


• We are NOT order takers. • We ARE strategic advisers and counselors, as well as service providers.



Communications Principles:

Criteria for CREDIBILITY




Communications Principles: Criteria for CREDIBILITY


1. Credible 2. Consistent 3. Informative 4. Proactive 5. Audience-appropriate 6. Self-confident


Communications Principles: Criteria for CREDIBILITY


1. Credible: factual, balanced, not driven by “spin” or accentuating the positive while overlooking the negative; communicating good and bad news alike.

2. Consistent: aligned messages delivered with one voice world-wide. 3. Informative: providing perspective as well as conveying facts, giving audiences insight, orientation and understanding

of the broader context, the reasons behind decisions. 4. Proactive: taking the initiative to communicate significant developments, and not waiting until we have to respond. 5. Audience-appropriate: using the right language for each audience – scientific and technical for medical/scientific and

investor audiences; simple, plainspoken language for the broad public, patients and consumers. 6. Self-confident: asserting our rights to deal in facts rather than rumors or speculation, to refrain from disclosing

proprietary or share-price-sensitive information; defending our position vigorously when unjustly attacked or criticized.



Global Communications Governance







Global Communications Governance Strengthening the role of headquarters in providing global guidance, coordination, alignment and consistency in:

• Corporate positioning

• Messaging

• Branding

• Business Policy




Strengthened Internal Communications








Increased focus on employee communications & leadership communications as drivers of pride, engagement and organizational performance.





Strategic & Proactive Media Relations







Greater emphasis on pitching stories and themes, promoting key executives as thought leaders, and earning visibility for Roche corporate responsibility.







Integrated Communications







Ensuring coordination and maximization of news across teams and audiences (Employee Communications, Media Relations, Intranet, Internet, Investor Relations, Product Communications, etc.)








Customized Communication Services







Increased innovation, creativity, tailorization and value of content; increased emphasis on finding, publicizing and using best practices from the affiliates.









Connected Corporate Branding & Reputation Management







Greater emphasis on the link between branding/visual identity and policies, programs and activities that strengthen audience perceptions about Roche and influence what people think of when they see the company logo.










Communications Excellence







Upgraded standards of communications competency and professionalism throughout the world, accompanied by a rigorous, global professional development and succession-planning process.











Optimal Operating Model for Communications







Top communicator at headquarters reports to the CEO, and top communicators at affiliates report to the General Manager. Although others models may work, this one is best suited to the communications culture we envision. It puts communicators in the best position to advance the principles of our Manifesto, which aim to strengthen:

- credibility

- trust

- reputation












Real-World Communications






Real-World Communications Real-World Communications

Improved balance between serving corporate/business interests and providing employees with more balanced, interesting and sometimes provocative information that comes closer to what they experience in newspapers, magazines, television and the Internet.












Real-World Communications






How Will the Manifesto Change Things?


Our Communications Manifesto & Principles Is this vision achievable?

“At first dreams seem impossible, then improbable,

and eventually inevitable.” Christopher Reeve


Building a Legacy That Lasts Roche Academy of Business Communications

Three core elements: 1. Comprehensive curriculum for all communicators

2. Advanced curriculum for senior communicators

3. Master classes for communicators and those who must communicate effectively as part of

their job © 2014 F. Hoffmann-La Roche Ltd

Putting La Revolución into Perspective

• It is for real

• It’s not extraordinary…

• But it is dramatic

• It has to start with us, and we need to keep up the fight every day by:

– Feeling part of a global communications community, a unified team – Being clear and credible in our own communications – Counseling and demanding clarity, credibility and authenticity in our leaders’ communications – Adhering to our 6 Communications Principles – Striving for excellence and professional development – Speaking up when we see disconnects – with each other, and management

66 © 2014 F. Hoffmann-La Roche Ltd

Last words

• There are many paths to the place(s) that suit you, and more “seats at the table” than the ones within those four walls.

• You can find your place of influence, contribution and achievement if you: – Lead from where you are – Influence from where you are – Innovate and implement solutions from where you are – Evolve from where you are – Bloom where you’re planted (or transplanted)

• You’ll be more content in the long run if you learn to turn down the voices influencing you from the outside so you can listen to the voices guiding you from inside


… One More Thing Find a mentor (or let one find you)

Professor Hillier Krieghbaum

Dr. Leo H. Sternbach © 2014 F. Hoffmann-La Roche Ltd



70 © 2014 F. Hoffmann-La Roche Ltd



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Managing Corporate Communications in a Global · PDF fileManaging corporate communications in a global environment ... professional discipline on a par with HR, Finance, ... The relationship