CEOS’ DIGITAL IDENTITY: December 2015

BARCELONA BOGOTA BUENOS AIRES LIMA LISBON MADRID MEXICO CITY CITY QUITO RIO J SAO PAULO SANTIAGO STO DOMINGO Contents

Presentation 3

Key results 4

The CEO, another digital asset for companies 7

How to implement a Digital Identity Strategy 8

Methodology 9

Team of Specialists 10 Presentation

The digital revolution that has been taking This study is a starting point that aims to place in recent years is transforming the measure the reputation of top Mexican CEOs communication, economic, social, and in the Internet by analyzing their presence political models of the world in which we and digital reach through personally-created live, and top businesspeople and CEOs must content, third-party mentions (notoriety), and remain aligned with this new reality. In the ratings (notability) shared by the stakeholders digital world, people are the key players. of an organization via the Internet. The aim Networks give society a voice, and before the is to ascertain whether in 2015 the leaders widespread use of the Internet, this voice of the most important companies in Mexico consisted of individuals who did not have a have been able to evolve at the same rate place in which to express in real time their as social networks, and if those leaders are interests and opinions about what took place ready to understand the rules of the game in their surroundings. The Fourth Estate, imposed by the Internet as to how their which up until a few years ago was an area company’s reputation and communication exclusively reserved for the news media, must be managed. To do so, we have selected is being democratized. This space, in its and analyzed a representative sample of CEOs multiple dimensions, is occupied by citizens, from 100 organizations located in Mexico that communities, and social groups of a variety were chosen because of their importance in of types and interests, including politicians, terms of business, visibility, and reputation. journalists, investors, businesspeople, citizens, consumers, and employees who take advantage of the ease with which social networks allow people to communicate, connect with others, and influence a wide array of topics in order to achieve radical changes in how society, organizations, and governments operate.

Top leaders are embracing this digital revolution by participating in the dialog just like anyone else, disclosing relevant information, and helping to build public opinion, while taking into consideration that there are risks, but also countless opportunities if a well-structured plan is implemented in order to minimize threats and focus on advantages.

3 Key results

1. MEXICAN CEOS ARE STARTING TO BUILD CEO with a proactive focus who has profiles in DIGITAL IDENTITY STRATEGIES: 58 % OF THE the four platforms analyzed as part of this study CEOS ANALYZED HAVE ONE OR MORE SOCIAL (Wikipedia, , LinkedIn, and a personal NETWORK PROFILES blog), allowing him to have better control of his interactions in the digital world through personal More than half of the 100 CEOs involved in the channels that help him minimize any potential study have a profile in one of the social networks negative situations that could affect his reputation. that were analyzed (Twitter and LinkedIn), a Another aspect to highlight is the digital strategy personal blog/site, and/or a Wikipedia entry. This of Carlos Slim, who is present in all the channels, reflects the interest that Mexican CEOs are slowly but with a defensive focus. In other words, he having in the digital world. has positioned personally-created content via his channels in order to establish a positive digital Of the profiles with the strongest presence, the footprint, but without interacting with other social businessperson Ricardo Salinas Pliego is the only network users.

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Figure 1. Top 10 Mexico

Mario San Román TV Azteca ® Index: 62.78 Ricardo Salinas Pliego Index: 72.99

2 Emilio Lozoya Austin Arturo Elías Ayub Pemex 3 Telmex Index: 60.23 Index: 77.49

4

1

Emilio Azcárraga Jean 5 Index: 60.06

6 7 8 9 10

Olegario Vázquez Aldir Carlos Kasuga Miguel Alemán Xavier de Bellefon Carlos Slim Domit Grupo Empresarial Yakult México Magnani Axa Seguros América Móvil, Carso, Ángeles Index: 56.29 Interjet Index: 41.11 Sanborns Index: 59.80 Index: 42.81 Index: 40.83

4 2. THE MOST-USED SOCIAL NETWORK: Figure 2: Most popular Social Networks among LINKEDIN IS THE PREFERRED ALTERNATIVE Mexican businessmen FOR CEOS IN MEXICO

LinkedIn is the social network that businesspeople use the most (29 %). It has 300 million users throughout the world, of which 5.8 million are in Mexico, and it is growing at a rate of two users per minute to become the new Facebook for CEOs and professionals.

Twitter is the second most-used social network by the CEOs analyzed in this study (23 %), and it is also the network that offers the most visibility and proactiveness in terms of generating content. The top real-time social network is one of the channels that leaders use to maintain a digital presence, and in some cases, to establish close relationships with their company’s stakeholders.

3. DIGITAL FOOTPRINT, BUILT THROUGH THIRD PARTIES: ONLY 6 % OF THE LEADERS ANALYZED 29 % HAVE MORE PERSONAL RESULTS THAN THOSE GENERATED BY THIRD PARTIES WHEN A GOOGLE SEARCH IS PERFORMED The social networks that Although there is interest in entering the digital world —either to establish a dialog with are used the most by the stakeholders or to create a protective strategy—, it businesspeople analyzed are is worth noting that when their names are searched in Google, only 6 % of the top CEOs analyzed in this LinkedIn (the new Facebook for study have more mentions for their own channels CEOs and professionals) and than mentions generated by third parties. Twitter, which is sometimes used This shows that although most have started to strengthen their digital identity, some CEOs at to establish close relationships large Mexican corporations do not have a defined with audiences strategy that allows them to properly manage their image and create a digital footprint that helps improve their personal reputation as well as their company’s reputation.

deof losthe empresarios business people 99%analizados muestra un analyzed have more de los empresarios mamentionsyor número for their de own analizados cuenta mencioneschannels than a sus mentions canales con presencia en el propiosgenerated que by de third menciones buscador Google generpartiesadas por terceros

5 Business CEOs must have a digital identity strategy YouTube (which is the second most-used search or they risk becoming a potential weakness for the engine behind Google and has 18 million unique company in the event of an involuntary personal users in Mexico), only 11 % of the business leaders exposure. All CEOs generate talk about their roles in the study have more than 10 results that make in the Internet, and an ostrich strategy, which reference to their identity. consists of hiding your head when faced with constant change, does not build a reputation. Even 5. THE MOST INFLUENTIAL IN 2015: THE MOST when the aim is to maintain a low profile, a strategy INFLUENTIAL CEO IS ARTURO ELÍAS AYUB must be defined for a company’s top CEOs because these individuals are the most visible face as well as The CEO with the strongest presence and reach is the people who journalists, activists, investors, and Arturo Elías Ayub, Director of Strategic Alliances employees will seek out. at Telmex, followed by Ricardo Salinas Pliego, of the Grupo Salinas, and Mario San Román, of Tv 4. OPPORTUNITIES IN THE STRATEGY: Azteca, from the same group, so it can be inferred CORPORATE WEBSITES, PERSONAL WEBSITES, that the company has a digital identity strategy AND REPOSITORY CHANNELS for its top CEOs. The Top 5 ranking also includes Emilio Lozoya, CEO of Pemex, and Emilio Azcárraga Half of the CEOs involved in the analysis do not Jr., President of Televisa and also the most popular appear in the corporate website of the company Twitter user with more than 1.2 million followers they represent (despite being the most visible (however, he stepped away from social networks a face of the business and one of its key assets), year ago, so his reach is slowly wavering). and only 4 % have a personal website, which is an underused tool that could protect their identity Of the Top 10, an aspect worth highlighting is and add value to the personal and corporate digital the fact that 8 of the 10 CEOs are from renowned communication strategy of the organization they family-owned Mexican businesses. lead. Additionally, in repository channels such as

Figure 3. CEOs with personal websites

6 The CEO, another digital asset for companies

CEOs in Mexico are facing a new reality defined by Conveying the corporate mission, vision, and the digital whirlwind that is taking over the world: values with a human touch. Companies and being present in social networks is no longer a choice. their leaders have the incredible opportunity A company’s stakeholders are going to talk about of conveying the identity of organizations and its CEOs, regardless of whether or not those CEOs what they do from a perspective that is closer to have a digital presence, so it is important to establish stakeholders. a proactive or a low-profile strategy that has been planned and includes a thought process as well as a Inspiring a company’s partners and customers. series of goals. The digital presence and participation Studies have shown that a social CEO inspires of CEOs, especially those at large global corporations, others and is considered to be the closest partner. are another way of building a company’s reputation, In addition, 77 % of consumers are more likely to especially when brands, companies or institutions buy from a company and 82 % have more trust in are faced with a reputation crisis because they have an organization if its leader uses social media. found a constant flow of rumors in the Internet about their operations and in which a “face” gives Ease in connecting with stakeholders. A digital much more credibility than an image or logo. An CEO CEO is able to establish relationships with is the highest authority who is able to talk on behalf stakeholders faster and more easily. Connecting of a company, internally as well as externally, and with an influential journalist via Twitter or influence the various stakeholders involved. interacting with an industry opinion leader via LinkedIn is more organic, agile, and effective than The strategies to be followed are countless and varied. a phone call. In terms of proactiveness and positioning, one of the most famous examples in the world is Richard Engagement and brand loyalty. The Internet Branson, the founder of the Virgin Group who uses makes it possible to publicly show when the Twitter to reach and interact with more people than followers of CEOs feel empathy towards their the company itself. In Mexico, the former Chairman messages and those of the companies they and CEO of CEMEX, Lorenzo H. Zambrano (1944-2014), represent. This acknowledgment is expressed was one of the nation’s pioneer CEOs in terms of how with the “Like” button in Facebook, “Favorites” and he handled his digital identity by finding a symbiosis “Retweets” in Twitter, and other digital displays of between his reputation strategy and the strategy of affection that we are familiar with. the company he represented. Understanding what is happening around us. Faced with this scenario, in which more trust is placed Staying informed via the Internet and social on an individual and the fact that the presence of a networks makes it possible to stay in touch “digital CEO” makes a significant contribution to the with the reality that affects the business and company, it is important for Mexican organizations to the user perceptions that are conveyed through take advantage of the opportunities provided by the their digital expressions (Facebook posts, tweets, digital identity concept as a tool that boosts corporate YouTube videos, etc.). reputations. When an CEO has a digital identity and presence strategy that is well-defined and focused, a Ability to respond in the event of a crisis. Social number of benefits appear, such as: networks, especially Twitter (the top real-time platform), are the main areas in which to access and broadcast information in times of crisis or catastrophes. An instinctive reaction of people and journalists is to see what the leader of a company that is experiencing a delicate situation says in social networks, as an official communication channel.

7 How to implement a digital identity strategy

A six-step methodology is described below:

2. Defining the strategy: This defines the how and the discursive line of the digital identity to be managed. From a reputation management perspective, the strategy can be promotional or protective, depending on the objective defined earlier: a. A promotional strategy attempts to improve an CEO’s visibility and positioning with selected audiences, and with a clear theme or focus. b. A protective strategy looks after reputation and positioning, without proactive visibility. In other words, the aim is to generate a low-profile strategy. This format requires extreme awareness of the actions to be implemented and constant digital monitoring.

1. Defining the objective: What do I want to achieve with my digital 3. Asset tactics: The identity? This is the first question digital assets or channels that CEOs should ask themselves through which we are because the answer will define the going to implement the strategy, presence and interaction strategy are selected. tactics, and KPIs (key performance For example, we can use indicators) used to measure social networks, document whether or not the objective is networks, a website, one met. or several blogs, etc., and the decision will depend on the target audience.

6. Indicators and metrics: Finally, all actions must be measured in order to ascertain the impact and progress. 4. Participation procedures: The The most appropriate KPIs must be moment has arrived to establish selected along with the corresponding conversations and interactions, and reporting methods. The suggested this requires having a clear idea of metrics must always focus on with whom. It is essential to identify reputation improvement, which is stakeholders and analyze their based on two variables: notoriety and current proximity and empathy. This notability. step requires defining the interaction 5. Active listening: Being a procedures, the frequency of actions, proactive digital leader involves and the implementation method. participating and communicating, but it also requires listening to what stakeholders say in order to extract insights and use them as feedback in participation activities and conversations between leaders and their contacts.

8 Methodology

PERIOD OF STUDY • Corporate website

The data for this study was collected between May • Wikipedia and July 2015. The digital identity of each CEO selected was analyzed and diagnosed in November. Platforms in which we measured the activity and influence of CEOs: SELECTED SAMPLE Twitter: Globally, more than 1,100 CEOs located in the countries where LLORENTE & CUENCA has an office • Number of followers were analyzed: Spain, Portugal, Mexico, Panama, the Dominican Republic, Colombia, , Ecuador, Brazil, • Average number of tweets generated Argentina, and Chile. • Handle mentions Locally, the top 100 companies that operate in Mexico were analyzed. They were selected based on their Webpage: importance in terms of total staff, turnover, and visibility. • Inlinks, links generated from other websites to personal digital assets and personal positioning in FIELD WORK search engines.

The study’s data collection, analysis, diagnosis, Figure 4. Sectors of the companies analyzed in Mexico and preparation tasks were carried out by LLORENTE & CUENCA consultants. 22% 2% 4% INDICATORS 2% 1% 22% Twelve measurement indicators were defined in 4% order to determine the presence, participation, and influence of Presidents, CEOs, and CEOs in the 5% Internet conversations that take place in digital mediums as well as in their own assets. 5% Platforms in which we identified accounts or 8% personal spaces: 4%

3% • Twitter 3% 1% • LinkedIn 5% 5% 2% • Personal website or blog 9% 10% 1% Platforms in which we measured digital presence: Food and beverage Manufacturing • Google Automotive industry Mining Construction Retail Consumer goods Health • Google News Energy Insurance Entertainment Iron and steel • YouTube Finance Technology Hydrocarbon Telecommunications Holding Transport • Twitter Industrial Tourism

9 Reputation Management, Communication and Public Affairs Leader in Spain, Portugal and Latin America

LLORENTE & CUENCA is the leading Reputation, Communication and Public Affairs management consultancy in Spain, Portugal and Latin America. The team comprises 22 partners, of which 20 are professionals and two are financial, along with more than 450 professionals that provide strategic consultancy services to companies in all business sectors with operations targeted at the Spanish- and Portuguese-speaking markets.

LLORENTE & CUENCA currently has its own offices in Argentina, Brazil, Colombia, Chile, Ecuador, Spain, (Miami), Mexico, Panama, Peru, Portugal and the Dominican Republic. It is also able to offer its services through affiliate companies in Bolivia, Paraguay, Uruguay and Venezuela.

In 2015, the firm’s international development earned it 56th position on the Global Ranking of the most important communication companies in the world, a leader board drawn up by The Homes Report.

It is the communications firm that has won most awards in the markets where it operates. So far this year it has won 56 awards through campaigns carried out for clients like Embratur, Coca-Cola Iberia, Avon, Antamina, Gas Natural Fenosa, Gonvarri Steel Services, CaixaBank, SABMiller or L’Oréal, inter alia, and corporate projects like the launch of the new corporate site, the annual report 2014 or the interactive animation document “Entertainment Territory”. Furthermore, it competed in the LinkedIn #PremiosIN2015 to be the company that best communicates on LinkedIn in Spain.

Team of Specialists

Juan Rivera General Manager Mexico [email protected] @juanriverallyc

Juan Arteaga Digital Area Manager [email protected] @JuanArteaga_

Maria Luisa Villegas Manager [email protected] @LaMarys

Monserrat Montes de Oca Consultant [email protected] @monmontesdeoca www.llorenteycuenca.com

10 CORPORATE MANAGEMENT SPAIN AND PORTUGAL MEXICO, CENTRAL AMERICA SOUTH AMERICA AND CARIBBEAN José Antonio Llorente Barcelona Buenos Aires Founding Partner and Chairman Mexico City [email protected] María Cura Pablo Abiad Partner and Managing Directorw Juan Rivera Partner and Managing Director Enrique González [email protected] Partner and Managing Director [email protected] Partner and CFO [email protected] [email protected] Muntaner, 240-242, 1º-1ª Enrique Morad 08021 Barcelona Av. Paseo de la Reforma 412, Piso 14, CEO for Southern Cone Jorge Cachinero Tel. +34 93 217 22 17 Col. Juárez, Del. Cuauhtémoc [email protected] Corporate Director of Innovation CP 06600, México D.F. [email protected] Madrid Tel. +52 55 5257 1084 Daniel Valli Senior Director of New Business Joan Navarro Panama City Development for the Southern Cone MANAGEMENT - SPAIN AND Partner and Vice-president [email protected] PORTUGAL of Public Affairs Javier Rosado [email protected] Partner and Managing Director Av. Corrientes 222, piso 8. C1043AAP Arturo Pinedo [email protected] Tel. +54 11 5556 0700 Partner and Managing Director Amalio Moratalla [email protected] Partner and Senior Director Av. Samuel Lewis. Rio de Janeiro [email protected] Edificio Omega - piso 6 Adolfo Corujo Tel. +507 206 5200 Yeray Carretero Partner and Managing Director Goyo Panadero Director Partner and Senior Director [email protected] Santo Domingo [email protected] [email protected] Iban Campo Rua da Assembleia, 10 - Sala 1801 MANAGEMENT - LATIN Managing Director RJ - 20011-000 Lagasca, 88 - planta 3 AMERICA [email protected] Tel. +55 21 3797 6400 28001 Madrid Tel. +34 91 563 77 22 Alejandro Romero Av. Abraham Lincoln 1069 Sao Paulo Partner and CEO Latin America Ana Folgueira Torre Ejecutiva Sonora, planta 7 [email protected] Tel. +1 809 6161975 Marco Antonio Sabino Managing Director of Impossible Tellers Partner and Brazil Chairman Luisa García [email protected] [email protected] Partner and CEO Andes’ Region ANDES’ REGION [email protected] Diego de León, 22, 3º izq Juan Carlos Gozzer 28006 Madrid Bogota Managing Director José Luis Di Girolamo Tel. +34 91 438 42 95 [email protected] Partner and CFO Latin America María Esteve [email protected] Lisbon Managing Director Rua Oscar Freire, 379, Cj 111, [email protected] Cerqueira César SP - 01426-001 Madalena Martins Tel. +55 11 3060 3390 HR MANAGEMENT Partner Carrera 14, # 94-44. Torre B – of. 501 [email protected] Tel. +57 1 7438000 Daniel Moreno HR Manager for Spain Tiago Vidal Lima and Portugal Managing Director [email protected] [email protected] Luisa García Partner and CEO Andes’ Region Marjorie Barrientos Carlos Ruiz [email protected] HR Manager for Andes’ Region Director [email protected] [email protected] Av. Andrés Reyes 420, piso 7 San Isidro. Karina Valencia Avenida da Liberdade nº225, 5º Esq. Tel. +51 1 2229491 HR Manager for North America, 1250-142 Lisbon Central America and Caribbean Tel. + 351 21 923 97 00 Quito [email protected] Alejandra Rivas Karina Sanches UNITED STATES General Manager HR Manager for [email protected] the Southern Cone Miami [email protected] Avda. 12 de Octubre N24-528 y Alejandro Romero Cordero – Edificio World Trade Partner and CEO Latin America Center – Torre B - piso 11 [email protected] Tel. +593 2 2565820

600 Brickell Ave. Sergio Cortés Santiago de Chile Suite 2020 Partner. Founder and Chairman Miami, FL 33131 [email protected] Claudio Ramírez T​el​. +1 786 590 1000 Partner and General Manager Calle Girona, 52 Bajos [email protected] 08009 Barcelona Tel. +34 93 348 84 28 Magdalena 140, Oficina 1801. Las Condes. Tel. +56 22 207 32 00

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