Internal Communications

UK Communications and Public AffairsJanuary 2009

The Purpose of Internal Communications

• A two-way conversation

• Requires listening and communication

• To build productive relations to ensure:– Growth– Understanding of company strategy– Clear visible leadership

• ‘Less than a third of employees say management provides a clear goals and direction’ - Harris study.

• 50% of employees don’t know the strategy.

• While 9 per cent of customers are lured away by competition, 68 per cent are turned off by an employees’ attitude.

• The average professional worker receives 178 messages per day and information load increases by 2 per cent per month.

• 70 per cent of change initiatives fail to deliver their planned benefits.

Poor Internal Communications – The consequences

Good Internal Communications – the benefits

• Employees become brand and employer advocates

• Understanding motivates - 91 per cent who understand overall role in the business, will work for success, only 23 per cent if they don’t.

• Companies’ ability to engage and retain employees is the single best predictor of excellence. - Fortune survey of the ‘World’s Most Admired Companies’

• Personal communication helps workers’ job satisfaction and commitment, and results in improved earnings - Chief Executives of 164 large companies

• Good Communications can help turn strategy into action and accelerate growth

• Drive customer satisfaction and company profits

• 50% more likely to have lower turnover and absenteeism*

• 27% more likely to create high profits*• 46% fewer accidents*• $27,000 more in sales/employee**• $18,600 more market value/employee**• $3,800 more profits/employee**• Gross return on capital 3 times higher**• 90% more motivated to help company

succeed***

* Source: The Gallup Organization** Source: Rutgers University*** Source: Towers Perrin

In the UK different channels do different jobs

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Inform UK employees - online and notice boards

Event driven

What happened and what is going to happen

GB Communications and Public Affairs

UK News

via Plaza, hard copy and fax

Weekly Hit rates / yearly survey

Inform UK Employees - with IT access

Latest news

Background information

Various/ Internal CX News Plaza Daily Hit rates / Yearly survey

Inform UK Employees - Face to face via Line Managers

Company performance

GB Communications and Public Affairs

Team Briefing pack for Face to face presentation via managers

Quarterly Yearly Survey / comments via line managers

Inform & Engage All UK employees For our people, about our people, by our people

GB Communications and Public Affairs

Our Voice 3 a year Yearly survey

Inform & Engage UK Employees - with access to IT

Strategy, Company performance, Health and Safety/campaigns

GB Communications and Public Affairs

DVD / online video ongoing Hit rates

Inform & Engage All UK Employees Last years’ results and next year plans & strategy

Country President UK Road shows Beginning of each year.

Form in paper and by email

Inform & Engage UK employees - with email accounts

Positive relevant story about CEMEX or urgent information

GB Communications and Public Affairs

Email When needed

Engage All UK employees - via email, telephone or fax

We want to know what you think

All levels of comms. Talkback Ongoing Answer from VP within 48 hours

Recognize & Engage

UK Employees Thank and encourage people

Directors End of the year event December. Online survey

Objective Audience Message / Content

Sender Channel Frequency/Timing

measurement

Audience segmentation and channel objectives

How Internal Communications added value in In 2008

• Launched quarterly traffic light results presentation channel

• Launched video messages from Country President to increase employee reach (av. 600 hits per video)

• 9 road shows (600 people) and 4 Tea & Talk events (260 people) to provide direction and facilitate dialogue between employees and senior management

• Developed best practice writing guides to improve UK News and Our Voice content Increased readers of UK News by 23% (1000 – 1300 readers)

• Provided Face to Face communications training for 47 managers, and best practice guides.

• Increased Christmas events from 11 to 50 and attendance by more than 200% (450 to 1500).