Corporate online communications during the global financial crisis

1. Corporate online communications during the global financial crisis WFE Workshop on Leadership & Communication Zurich, February 19, 2009 Joakim Lundquist

2. Online communication and the crisis Defining features of communications during the crisis Scarcity of information Widened interested audience Short window of opportunity to communicate A unique opportunity to look at how companies communicate Allowed us to see what kind of crisis response companies had developed Allowed us to see what priority they placed on online communication Allowed us to see how present the management was During a crisis the demand for information on companies goes beyond investors and journalists who are interested in the company on a day to day basis, but also extends to depositors and the general public, who are worried about the possible failure of financial institutions, and the consequences for the general economy In this situation companies have a responsibility to be proactive in communicating with stakeholders and the public and inform them about the crisis and how the company is being affected 2

3. Why the web? Allows you to get your message across Can provide context for the information presented Hub for communicating Reach a wider audience, 24 hours a day Cost and time effective Ability to supply greater amounts of company information Interactivity

4. Information demand • What people want to know what happened, what they can do, and how the crisis will affect them • Response is huge in terms of searches regarding the crisis in general and companies specifically • Reaction is immediate but short-lived • Short window of opportunity to respond • Financial news and research sites have also seen enormous increases in traffic over this period • Proliferating sources of information 4

5. The Research – the supply of information Survey of 51 of the world’s largest financial institutions and how the communicated during the month of October 2008 Looked at forms and types of ways they used the web 13 criteria examined CRITERIA: Press releases Web pages Webcast Management Statement External links Newsletter Q&A Home page Direct reference to the crisis Background to the crisis Statements on financial stability Economic analysis Information about government action 5

6. Companies surveyed 6

7. Main results Results can be analysed in 3 ways: By overall types of responses used to the crisis Geographical perspective By reaction based on what happened to the company Revealed: Companies ignored the crisis online (only 17 made a direct reference to it on their site) – “business as usual” Management absent Companies were slow to react Failure to contextualize the crisis Little use of the homepage Best companies (13 criteria,max 13 points): Wells Fargo (10/13), BNP Paribas (9), Glitnir (9), Danske Bank (9), RBS (9), Aegon (8), Kapupthing (8), Swedbank (8) – Average score 4.5

8. Online leadership 8

9. Contextualised and accessible

10. Ways forward… Tell your story quickly or else other sources will rush to fill the vacuum If you do not talk to the press, there is always someone else who will Speed Tell it all Explain and contextualise Management should be up-front and present Use the web effectively – make the information easy-to-find, accessible and interactive Be transparent

11. This requires… Management commitment Internal culture Built up web capabilities Organisation – standard operating procedures, dedicated resources Make sure your message is consistent and coordinated Live up to your brand promise!

12. Thank you Lundquist Srl Joakim Lundquist Joakim.lundquist@lundquist.it Piazza XXV Aprile, 1 20121 Milan, Italy Tel. +39 (0) 2 4547 7681