Kremer Executive

Be accountable for a change

Kremer Executive namens NIMAMarion KremerRotterdam, 3 november 2009

Welkom

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Today

• Accountability

• Accountability for corporate communications

• The question of KPN

• The case KPN (by Hans Koeleman Director corporate communications KPN)

• Closing

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Planning

Ability to plan end-to-endimplementation

30%Strong

Implementation

Ability to execute quicklyand stay ahead ofcompetitors

63%Strong

Strategy

Ability to develop growthinitiatives

Senior executives rated their ability to develop, plan, and executestrategies for growth and this was the result:

Source: Innovation & Growth Survey, March 2006; The Economist Intelligence Unit

Change is needed

5

Reporting

Our vision to implement a strategy

Change way ofworking

Implementationstrategic

instruments

Controle

Correct

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What does this mean?

Change way of working

Accountabilitytargetsetting, planning,

budgettering and reportingmanagement

Alignement of activities andstrategic goals

Development of knowledgecenters and learning loops

Instruments

Research, online dashboardsfor (realtime) insight of targets,

activities and results

Planning and visibility ofmanagement information

Conversion and progressmonitoring and optimisation of

activities7

Continuedmonitoring ofthe activities

Relationshipbetween

targets andresults

Fact-basedworking as

the standard

Determinatorfor influenceon company

policy

* De invloed van marketing in Nederland, onderzoek van Leeflang, Verhoef RUG, 2007)

Accountability

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Accountability model

AccountabilityScan

Strategic Target Pyramid

Measurements

Reporting Management Line

Change way of working

Procesimplementation

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Accountability model

AccountabilityScan

Strategic Target Pyramid

Measurements

Reporting Management Line

Change way of working

Procesimplementation

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Accountability for corporate communications

Accountability is new and scary for thetraditional field of corporatecommunications

No one has real experience with the setup and implementation

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Central question KPN

Help me to put the corporatecommunications departmentback in a central positionwithin the KPN organization

ConditionsThis should be done with a dramaticallylower budget and lower # of fte’sSolution should be practical and easy to implement

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Which steps did we identify?

Status Quo Create team accountability

Get the basics right

Clear actionplan

Transform the team

Permanently monitor the progress

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Reputation Management at KPNTransforming a communications team

Hans KoelemanDirector Corporate Communications3 november 2009

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Contents

• Status quo 2007

• Develop clear vision and mision corporate communications

• Get the basics right

• Create team-accountability

• Transform the team

• Permanently monitor the progress

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Status Quo 2007

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Key findings first month

• Good willing people with a green hart• Strategy unclear for customer/employee• Leadership not inspiring and remote• Employee engagement insufficient• Communication not customer focused• A group of islands, no execution power

The company

• Darling of the financial world• Elsewhere: Solid, not sympathetic• Closed, sending not listening• Focused on shareholders, not customers• Responsibility and societal role not visible• Reliable, not innovative or leading

The image of KPN

• Many projects, but are we doing the rightthings?

• Not many ‘leading professionals’• Disconnected from business, strategy,

Board/management and key issues• Lots of plans, but no hands-on ownership• No support for the business with its fight in the

market place, wrong focus

Communications department

• Strong in crisis communication• Business gets insufficient support• No strategic internal communications• In need of more strategic clever PR• Products (website etc.) need improvement• Solutions need to be more clever and effective

Activities Communications

1919

Top ten most valued brands in the Netherlands 2007

1. Google

2. Pickwick

3. Kruidvat

4. Albert Heijn

5. Nokia

6. Blokker

7. Hema

8. Douwe Egberts

9. Senseo

10. Postbank

2020

KPN expressed as a person

“Not a friend butcould be a colleague

at work”

“Not unpleasant butvery businesslike”

“He’s got a family butfirst puts it down in his

diary whenever he’sgoing to spend time

with them”

“Dull kind of guy,could do with a bit of

spark”

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Our reputation: how it looked in 2007Which elements can we improve?

Price/quality perception: maintained vigilance needed

High appreciation of strategy, but we need to takecare we deliver on expectations

Moderate appreciation by professionals.Still not friendly, transparent and non-bureaucratic.Staff want equal opportunities and involvement.

OK, we’re # 1 in the market butvision & leadership remaininadequate

Openess and transparency must improve

KPN is changing but isn’t very innovative

Responsibility for what goeson around us and influence onsociety not visible

Performance Products Workplace Innovation Governance Leadership Citizenship

Slight increase(+1.9 vs. Q4)

Almostidentical

(-0.1 vs. Q4)

Slightincrease

(+2.9 vs. Q4)

Slightdecrease

(-0.9 vs. Q4)Slight

increase(+3 vs. Q4) Slight

increase(+2.2 vs. Q4)

Slight increase(+1.4 vs. Q4)

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We were not a socially involved companyStatus at the end of 2007

• No strategic CSR policy

• Not ‘best in class’ in sustainability indices

• Internal survey: KPN CSR performance needs upgrading

• Low score on GRI sustainability reporting benchmark

• Increasing pressure from external stakeholders

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Action plan 2007

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Action plan 2007

Performance

Transforming the team

• Defining strategic focus areas

• Driving new initiatives

• Building operational excellence

• Defining new ways of working

• Reorganizing and start new team in 2008

• Raising team to best in class

2525

Strategy base and focus

1. Make ‘the new KPN’ strategy crystal clear

2. Increase engagement and sympathy

3. Facilitate transformation to ‘the new KPN’

4. Position business leaders

5. Raise team to best in class

1

5

4

3

2

Department

Company and its

Businesses

The five strategic vehicles for corporate communications:

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Repositioning KPN as a service leader

KPN as a true consumer company, closer to its customers,its employees and to society.

Corporate SocialResponsibility

Management closerto employees

AppealingKPN Brand

Increasedsales

Proudemployees

Customersrecommend

KPN

Clear strategy

Time

Val

ue

‘Turnaround’2002-2004

Cash

Profit

‘Attack-Defend-Exploit’

2005-2007

‘Back togrowth’

2008-2010

Growth

2727

Vision: what perception does a new KPN need?

• With simple and transparent solutions that simplify ourcustomers’ lives. First rate service that’s right first time.

• With a personal, open and carefully targeted approach thatresults in dedicated and enthusiastic staff.

• With a crystal clear and credible strategy that generatesgrowth.

• With a clear and active social positioning that’s anchored insociety at large.

Shareholders

Customers

Employees

Society

That likeable Dutch brand people want to identify with

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Vision: how will this new KPN communicate?

1. Active and aggressive [We ourselves determine the agenda so that we take charge and

create the preconditions for responsiveness.]

2. Using our strengths and opportunities [Construction and communication are

opportunistic and offensive, drawing on our strengths and opportunities.]

3. Customer perspective is leading [We communicate from the perspective of customer

relevance. So our starting point is: the customer is always right.]

4. Open to the outside [We open ourselves up to the outside world and invite it in as well.]

5. Personal [We personalize our communication and invest both company and strategy with

maximum recognition.]

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Get the basics right

Get the basics right

• Create a result driven and efficient team

• Solve the main issues

– Introduce new framework internal communicationsfor media and face tot face

– Renew the CSR approach

– Solve main issues of the board

• Select the key monitoring instruments

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3131

• human

• contemporary

• recognizable images

• wording that is easy to understand

• transparent

• invites interaction

The KPN1 concept stands for simplicity and ambition andtakes the existing brand values and promises to a higher level

Confident

Simple

Personal

Concept: the rationale

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Media

Magazine

• 6x per year• 4 versions (1 gen./ 3 divisions)• 32 - 40 pages• Focus on strategy, brand values, context

Digital news source(part of Agora)

• Daily paper on Agora• Text, pictures, audio and video; basis content for Narrowcasting, Mobile/PDA, RSS, Podcasts• Focus on news

Specials(additional)

• No fixed formatfor use inspecial projects(example:project ZMCustomerOrientation)

Mobile / PDA NarrowcastingTP 9

Face to face

• Management Café’s• Board visits• Dialogue sessions• Story Telling

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Intranet

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Chat Top 600

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Chat all employees (english version)

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2. Telling

1. Wording

Stories and Examples,Town hall meetings

Listening and learning,Dialogue

We shape ourstories and

afterwards theyshape us

3. Anchoring

Management communication: Storytelling

From strategy to personal

Key monitoring instruments

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Reputation

Employee involvement

Overall 08 07

ShellRabobankPhilipsKPNING GroepAholdUnileverKLM/AirFranceABNAmroDSMAkzoNobelAchmeaMicrosoftNSHeineken

231648795121116102914

231547681214917112113

1. KPN(1)2. Capgemini

(2)3. Microsoft(3)4. IBM(n.b.)5. Vodafone

(n.b.)

ICT&Telecom1. Philips(2)2. Shell(3)3. Rabobank

(1)4. Unilever(5)5. ING(4)6. KLM(6)7. Heineken(8)8. Ahold(10)9 Politie(12)10. TNO(11)11. KPN(15)

Overall

Intermediair meet de favoriete werkgevers onder

hoogopgeleiden tot 10 jaar werkervaring

09

123456789101112131415

External listings

Recognition of the board

38

Create team-accountability

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Activation of strategy into new initiatives andOperational Excellence

1.1 Strategy and mission1.2 Corporate website1.3 Communicate strategy and improve brand1.4 Annual Report, CSR Report, Annual Review2.1 CSR action plan2.2 Sponsoring3.1 Internal Communication project3.2 Translate strategy and brand for personnel3.3 Intranet as place for active employee participation3.4 Involve employees in CSR specification4.1 Change management /culture

5.1.1 HR5.1.2 ZM change management5.1.3 WSO IC change management5.1.4 CM IC change management5.1.5 IT NL

4.2 Internal leadership conference5.1 ZM external mission5.2 CM external6.1 Corporate Center reorganization6.2 Redesign KPN internal processes

Tactics

MarinusHansMarionHansHansMarionHans

ChantalIngrid WIngrid WMarionChantalChantalIngrid WMarionHansCorinne

Design owners

• Greater clientsupport in brandresearch

• Several (media)appearances onleadership

• Employeeinvolvement +20%

• Stakeholderreputation to top 10

Measures

1. Position strategyand brand

2. Increase sympathy

3. Increase employeeinvolvement

4. Facilitatetransformation

5. Project leadership

6. Develop into topdepartment

Strategies

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Transforming the team

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Building from a solid base

Spearheads

Starting points for reorganization

Vision

New way of working: Keep it simple

1. What we do and don't do

2. How we are organized

3. How we treat our customers

4. In our chosen solutions

5. One -time fix

1. Media relations

2. Issues management and directingmarketing PR

3. Executive communications

4. Internal communications

5. CSR

Employees with other competences1. Understanding the business

2. Professional discussion partners

3. Result achievers

Mission

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The core competences we expect in our people

Committed

Uncomplicated

Expertise

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Perceivable behavior

We are looking for this behavior in our employees (1/3)Uncomplicated: in approach, activities and solutions

• You will always link a solution to your analysis

• You will always take full ownership of your projects

• You will direct your project from a to z

• You will help customers without always wanting to do everythingyourself

• You will communicate directly, simply and with clarity

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Perceivable behavior

• You will endeavor to be the best in your field, for the benefit of KPN

• You will take responsibility for the quality of the results you deliver

• You will ensure that others accept you on the basis of your addedvalue as a professional

• You will act independently based on trust

• You will take a systematic approach towards the customer and yourcolleagues

We are looking for this behavior in our employees (2/3)Expertise: recognized professionals in communications

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Perceivable behavior

• You are the department!

• You will operate in line with the Corporate Communications Strategy

• You will initially take the customer’s point of view in order to provide themost effective help

• You will actively contribute to the development of KPN, yourself andyour colleagues

• You will build structural contacts with colleagues and customers

We are looking for this behavior in our employees (3/3)Commitment: to KPN as well as your CC colleagues

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Team – engagement program

ObjectiveBuild better business results via a high performing team with a clearand common goal.

Strategy• Building committment: to goal and to each other

• Creating openness: trust, asking and offering support, building anenvironment where feedback is seen as a good way to grow

• Building leadership: pro-activitity, consciousness of own behaviour,responsibility to keep looking and acting on this

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How?

• Build on the 3 strategy elements and growing self awareness

• Provide consistency and peace of mind in the process

• One trainer who is known and trusted throughout the team

• Use the increased awareness to build further focus in the team (to have clear follow-up and produce concrete results)

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Teambuilding program sessions 2008-2009

November: MT

February: Consultants

April: Project team

June: Total team • Q&A and feedback to MT• Workshops on team vision• Understanding each place in the team• Committment to vision and feedback MT

• Personal/business experiences• Communication in the team• Common appealing team vision

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Permanent monitoring of progress

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Disciplining: CSR Governance KPN Group

Program Director:

People connected

Staff:

CommunicationsDirectorCSR managerHR manager

Program Director:

Responsibleenergy use

Program Director:

The NewWay of Working

Businessowner:

E-PlusDirector

Businessowner:

GetronicsMarketingmanager

Businessowner:

GetronicsDatacenters

Director

Businessowner:

KPN W&ODirector

Businessowner:

KPN CMInternetDirector

Businessowner:

KPN ZMMT member

Chair:

MemberExecutive

Board

Businessowner:

KPN GroupBelgiumDirector

Target SettingReviewingReporting

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Mid term results CSR

→ 1,800 visitorsResto van Harte

→ ~7,000 senior citizens

→ 1,000 volunteers

2008 → 2009

• Employees engagement 71% → 77%

• KPN is a socially responsible company 64% → 77%

• CSR is higher on KPN’s agenda then a year ago 47% → 60%

→> 11,000 KPNersTelework enabled

→1,000 KPNers over toNew way of working

→53% Green Power

→well underway toachieve 20%reduction in 2020.

People connected

New way of working

Responsible energy use

52

MT 500 Intermediair

Other stakeholders research

Overall 08 07

ShellRabobankPhilipsKPNING GroepAholdUnileverKLM/AirFranceABNAmroDSMAkzoNobelAchmeaMicrosoftNSHeineken

231648795121116102914

231547681214917112113

1. KPN(1)2. Capgemini(2)3. Microsoft(3)4. IBM(n.b.)5. Vodafone(n.b.)

ICT&Telecom1. Philips(2)2. Shell(3)3. Rabobank(1)4. Unilever(5)5. ING(4)6. KLM(6)7. Heineken(8)8. Ahold(10)9 Politie(12)10. TNO(11)11. KPN(15)

Overall

Intermediair meet de favoriete werkgevers onder

hoogopgeleiden tot 10 jaar werkervaring

09123456789101112131415

53

Employee Engagement survey mid term 2009

KPN employees engagement: from 71 to 77%

KPN is a socially responsible company:CC 2008: 70 %CC 2009: 83 %

KPN 2008: 64 %KPN 2009: 77 %

CSR is higher on KPN’s agenda then a year ago:CC 2008: 69 %CC 2009: 77 %

KPN 2008: 47 %KPN 2009: 60 %

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Engagement Corporate Communicatie

A lot needs to happen before I seriouslylook for another job outside KPN

Management’s decisions are in line withour care values and norms

I am proud to work for KPN

I would recommend KPN as a greatplace to work

KPN values it’s most talent employees

+29%(significant)

+25%

+19%

+18%

+17%

Highlights vs 2008

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So take care of the accountability of corporate communications

Focus

Visibility

Success

Accountability of corporate communications

More then only monitoring of results

Change way of workingClear and measurable strategySet aligned targetsUse learning loopsResult driven team

Start basic

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