Welcome to the May/June edition of Directions Supplement – a look into the future. Have you been rather bored by the endless debates around online corporate reporting? The pros and cons of html over PDF and the technicalities? Now it’s not that the current debate around online reporting isn’t important – it absolutely is. It’s just that as far as we can see it’s actually not as difficult and radical as some people make out. Surely it’s just about delivery channels and getting better information to the right people more effectively? No rocket science in that as far as we’re aware. And we think a lot of the debate is missing the point.

1. DIRECTIONS
SUPPLEMENT
MAY/JUNE 08
TRENDS AND ISSUES IN THE WORLD
OF CORPORATE REPORTING
A few years from now in a galaxy
not too far away…

2. Has the challenge really changed or is it about
how form meets content in a new online world?
Last week, I was with the CEO of a leading The challenge is largely what it has always
property company, long-standing supporters been. To tell a compelling story, which says
of Tomorrow’s Company. He had just received what is being done, why and how, backs
an independent analyst’s report rating the this up with evidence, and shows what is
performance of his company best in class. He distinctive; which builds on previous reports,
produces a fabulously well designed corporate to ensure consistency, and uses long-term
report, a glorious coffee table work of art. indicators; which above all is framed by what
But he is the first to say that what matters is we call the virtuous circle of governance –
Tony Manwaring walking his investors around London, giving mapping the company’s purpose, vision and
Chief Executive them a clear ‘line of sight’ with what he is values, setting out its key relationships, laying
Tomorrow’s Company doing with their money on the street. out its model for business success, and only
then talks ‘KPIs’.
In so doing, he shows them what he means by
success: a definition which goes well beyond But yes, there are new challenges and
cutting costs much less cutting corners, and opportunities. They are about content –
invests in the quality of the buildings, and the achieving sustainability outcomes, the
variety, life and dynamism of those who live, probability that carbon emissions reporting
work and visit that urban space. will become mandatory for quoted companies
for example. And form – electronic reports
available through multi-channel media, but
not if it is just an e-copy of the paper document,
and only if it is user-friendly. It is the difference
between a video and a great special edition DVD.
What is really different is what happens when
form meets content in our new Web 3.0 world.
Is there evidence of strategic transformation
so that value is created which is profitable
and contributes to ‘one planet’ living? Are
stories being told in our 24/7 flat-world
continuously, so that the next annual report
is today’s edition? Are stakeholders being
truly respected as consumers, investors,
employees and citizens able to see through
the corporate walls?
The opportunity and challenge are one and the
same: to create a real-time dialogue with as
much intimacy and integrity as the CEO whose
story I started with.

3. Directions Supplement
May / June 08
Welcome to the May/June edition of Directions Supplement
– a look into the future. Have you been rather bored by the endless
debates around online corporate reporting? The pros and cons of
html over PDF and the technicalities? Now it’s not that the current
debate around online reporting isn’t important – it absolutely is. It’s
just that as far as we can see it’s actually not as difficult and radical
as some people make out. Surely it’s just about delivery channels
and getting better information to the right people more effectively?
No rocket science in that as far as we’re aware. And we think a lot
of the debate is missing the point.
For us, the point is the longer term picture where companies’ communications with stakeholders
become truly dialogue based and start to use the real potential of the internet rather than just
using it as a place to put the same old information in a slightly different format. If you’ve only
just woken up to the concept of Web 2.0 then I’m afraid you need to move faster – the interesting
stuff will happen with Web 3.0 – and this is what the cutting edge companies are spotting.
So rather than keeping the debate about online reporting turning in ever decreasing circles we’ve
used this edition of Directions to star gaze a little. We’ve asked Aviva, E.ON and Tomorrow’s
Company to help us look into a galaxy not too far away, a few years from now, and to tell us what
they see as the most likely developments in online corporate stakeholder communication. Light
sabres at the ready – will the world of communications be turned upside down? Will the forces
of conservatism prevail or will the valiant champions of innovation and imagination win through?
Or will Web 3.0 turn out to be a Jedi mind trick?
Our predictions Some specifics
When we consider the future of the web and > Prepare yourselves to live without
specifically stakeholder communications, it’s the annual financial statements cycle.
sobering to take a look at the reality of web You’ll need to move from 6 monthly or
users and their browsing habits. The latest quarterly communications to constant
report into this area by usability guru Jacob two way dialogue.
Nielson shows people are becoming much
less patient when they go online. > Heard of a ‘cloud’ yet? Well you’ll probably
be needing an investor community cloud
No longer willing to investigate websites, sometime soon.
many users simply want to reach a site
quickly, complete a task and leave. Most will > And in the old world of annual reporting, we
ignore or are even suspicious of efforts to think there’ll still be a need for some printed
hold their attention. The single best piece of documents. But we would put a small bet on
advice we can give is to engage and invest in the document being called a ‘stakeholder
the social media revolution. Your story will be report’ – the main report will be held online
told in the forums and chatrooms, the blogs and will be linked to a digital print-on-demand
and the Podcasts (whether you like it or not!). facility at the printers – so no wasted copies.
So make sure you take part.
Nigel Salter
Director
salterbaxter

4. Watch out, the Wii tennis-playing generation is here and
getting pickier. They will hit the ball into our side of the
court, faster and faster. How are we going to return it?
Aviva, the world’s fifth-largest insurance group www.six-steps.org, our financial education
and largest insurance services provider in the website. Both these contain a whole range
UK has 57,000 employees in 27 countries of Web 2.0 stuff – personalisation, blogs,
serving around 45 million customers. So a embedded video, RSS – all designed to meet
boring old insurance company then? Well you the needs of building online communities.
might think that but perhaps it’s fair to ask
you to think again. Some key elements of this have now launched
on www.aviva.com. As part of our newly built
Stuart Bartram At a corporate level we have been keen to investor centre, we offered a tool which enables
Senior Manager, improve our internet presence, not only to users to keep their personalised content
Corporate Internet and Design support our developing brand but more choices, subscribe to RSS feeds, manage their
Aviva importantly to make sure we meet the shareholding and view embedded management
differing needs of our growing audiences. interviews and brand communication videos.
Corporate websites nowadays are big and Surprised at the rate of sign-up for this,
“How are we going getting bigger. Aviva.com itself has more than thousands rather than hundreds, six months
12,000 pages. A great resource for all you down the line we can begin to look at the
to respond to those need to know about Aviva. A whole stack of usage stats to determine whether this is a
needs from these content from text to movies. Our audiences novelty or it has longer lasting benefits for
stretch from analysts and shareholders to users. In short, how often do they use it and
‘digital natives’?” jobseekers and an ever-increasing number what for?
of worldwide customers.
At Aviva we are keen on offering choice to
But in meeting these differing user needs our users, as we understand and recognise
are we in danger of losing control of the that increasingly they all have different needs.
corporate message? I often draw on my own day-to-day life in
thinking about this. As a single customer of
We believe not, the next few years will be my bank I have multiple, complex demands.
more about offering users different choices
of viewing and engaging with content rather That leads me to think about what we do in the
than new, different content. online world each day and what we should be
doing in the future to ensure we cater for these
Web 2.0 has been around for a little while now kind of demands. How are we going to respond
and we are beginning to see it move into the to those needs from these ‘digital natives’?
corporate webspace and at Aviva we have Walk into any school or home now and you
been early adopters. We believe using these can see the rise of digital technology in the
initiatives gives us the chance to engage all everyday lives of young people. Watch them
these audiences to provide meaningful online use it, often several things at the same time.
experiences and get across key Plc messages.
Watch out the Wii tennis-playing generation is
We were among the first, if not the first here and getting pickier. They will hit the ball
FTSE 100 company, to have a mobile version into our side of the court, faster and faster.
of key investor relations content to help users How are we going to return it?
keep in touch with us when they are on the
move. It first saw light of day in 2002. You Key points for the future:
can access it on a PDA or mobile phone at > individual choice – we will all need to
www.aviva.com/mobile find ways to provide individuals with
the information they want, in the format
We tend to trial a number of Web 2.0 they want, at the time they want
technologies via a kind of ‘hothouse lab’
> experiment – be prepared to have to trial
type experiment where we plant these
and research lots of ideas to identify which
initiatives in some of our other sites and then
work best
monitor the use. We run two campaign sites,
www.avivaoceanracing.com, to support Aviva’s > dialogue – corporate communications will
sponsorship of yachtswoman Dee Caffari, and be about conversations, not publications.

5. My advice is as follows; firstly, work with
Corporate communications existing online communities, and spend time
– as much time as you feel comfortable –
from the inside out listening to what they are saying; secondly, try
to cross-reference key sites and discussions
with your stakeholder group. Do not make the
assumption that your stakeholders – however
‘corporate’ – are completely detached from
social media. They are part of your journey
Ubiquitous, open, and democratic social too, and if they are not ‘on the bus’ already,
networks and media are gaining massive then educate them – and everyone will gain
popularity. They have the power to transform from your advice in how to play a part.
corporate reputation in the blink of an eye –
without any formal communications transaction At E.ON, we have taken both of these points
having taken place. The challenge for companies on board, in the delivery of what are the initial
is how to be part of these transactions phases of our social media activity. A very
without forcing the issue, or indeed to try useful activity prior to the launch of our
Paul Squires to start conversations on their terms and in regular Podcast was for me to stand up in
Online and New Media Manager their context. front of a group of Podcast professionals and
E.ON ask them what they thought of our strategy.
Turning up to an ultra-trendy club in a suit The result is that we now have a new Podcast
and tie will probably look out of place. This available every three weeks which reflects a
principle is brought even more into focus diverse range of subjects, produced in-house
online. At least the smart suit-wearer can leave in an accessible style which attracts a wide
“ This is a highly the club, never to return (at least in the same range of stakeholders and audiences. What
clothes); poor attempts to communicate we haven’t done is actively promote the
important activity within social media networks remain largely Podcast – it is something which our audiences
where the company permanent. This danger has two aspects; in these fields need to take and adopt as their
firstly, there is, of course, the short-term own; bringing with it the more human side of
can both embrace embarrassment within corporate delivering reputational success.
and educate its communications departments that the project
has gone wrong, for all to see. Secondly, and The democratic role that a social network can
employees regarding take means that companies need to be highly
more importantly, it puts any future social
social media.” media activity into jeopardy, with earlier failed ‘sensory’. The role – and indeed the power
projects casting a long shadow in communities – which a company employee has online, is
that matter. We are all aware of the ghostwritten theoretically equal to that of the company
blog which was rumbled, or the Wikipedia entry itself. Again, although it presents a potential
which was too heavily modified. threat, this is a highly important activity where
the company can both embrace and educate
Although coverage of ghostwritten blogs has its employees regarding social media, in two
been largely US-focussed, the spotlight will ways: firstly, regarding its own social media
now shift to the UK, where the Consumer strategy; and secondly, the framework by which
Protection from Unfair Trading Regulations it expects employees to refer to the company –
now prevent social media content from being and refer to their own employment within it.
published without the publisher identifying
their relationship with the brand. All of this provides a significant opportunity for
corporate websites. It’s perhaps a relief to note
As Facebook, Youtube and blogging have that they won’t change overnight. However,
become firmly embedded in the public psyche, their role within corporate communications
many larger companies have struggled to will change, and they will both complement
come to terms with them. corporate social media activity, as well as find
themselves containing more ‘social’ features
However, with a reasonable degree of trust, going forward. The recently-launched Social
foresight and pragmatism, combined with total Media Release format for press releases is
support on both a strategic and operational certainly an attempt at formalising such
level, companies can utilise social media and activities for journalists.
social networking to the advantage of everyone.
In conclusion, corporate communications is
starting to change into something more
fundamentally two-way, democratic, and
conscious of the web around it. The challenge
for companies is to be aware – in perpetuity –
of this, and to execute strategies which take
advantage of the innate sociability of the web
in a pragmatic way that delivers benefit for the
full range of stakeholders, and beyond.

6. About us
Contact:
Lucie Harrild
Salterbaxter advise companies
lharrild@salterbaxter.com
Tel: +44 (0)20 7229 5720
on branding, corporate
Pavan Athwal responsibility, corporate reporting
pathwal@salterbaxter.com
Tel: +44 (0)20 7229 5720 and employee engagement.
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