SWISS LISTED 2019 - 2020
Switzerland’s largest listed companies 1st edition
trust communicating what matters trust communicating what matters
“A man I do not trust could get no money from me on all the bonds in Christendom… I think that is the fundamental basis of business.”
JP Morgan, 1912
SWISS LISTED 2019 Switzerland’s largest listed companies
If a century ago trust was mainly based on personal relationships, digital plays a fundamental role in the relationship between companies and stakeholders. For this reason, we have chosen to name our research .trust (to be read “dot-trust”).
The dot of the digital ecosystem is like a window through which to get to know, understand, and engage businesses and brands. Our ultimate goal is not to measure just the quality of communications but how companies are able to generate trust with customers and consumers, current and potential employees, journalists and local stakeholders.
The image we have chosen to represent this concept is the interweaving of threads because we believe that trust is woven together by different strands, day by day. This new research aims to capture the ability of corporate communications to support companies’ competitiveness and inspire trust, the “currency” of business today just as it was 100 years ago.
.TRUST: HOW TO GENERATE TRUST THROUGH COMMUNICATION
Gaining the trust of investors, clients, and other stakeholders is the key to growing a business with solid foundations and prospects. Transparency, credibility of a company’s commitments, and strategic plans are all elements that earn it. The new Lundquist research series “.trust: communicating what matters” measures the ability of companies to generate trust.
HOW DOES COMMUNICATION HELP COMPANIES BE We concentrated on companies’ ability to channel clear MORE COMPETITIVE? and coherent messages through various digital channels, Companies today face two great challenges: transforming since this is how strategic communication is deployed. their business to respond to a shifting competitive context and playing a more active role in society. These For companies to have a common thread running through changes also bring a radical shift in the way companies their digital communication strategies, they will need to communicate. share an overall vision amongst all company functions.
Communication, in fact, holds an increasingly important role in forging trust and guaranteeing the solidity of a business. It must all begin with identifying key company- Moreover, we provide and stakeholder-specific topics. Companies need to then companies with the means of be able to present their strategic activity, in tandem with deploying communications to quantifiable achievements and concrete actions. grow their business COMMUNICATING WHAT MATTERS Purpose, leadership, storytelling, innovation, and Global Sustainable Development Goals are being used as catch- all terms to discuss the future of a business. But what .trust is a privileged observatory that includes only do they mean for businesses in concrete terms? How companies that have been able to stand out because can businesses use these elements to strengthen their of their commitment to transparent digital corporate business and to elicit trust? communications. We started with a sample of 55 of Switzerland’s largest listed companies, and only 28 made .trust makes sense of new the cut (see page 11).
trends and gives companies This research endeavour is borne of 15 years of building blocks for effective experience in Lundquist, gained by listening to the needs corporate communication of companies and stakeholders alike, and consulting listed and non-listed companies in Switzerland and across Europe to better their corporate communications.
HOW COMMUNICATION GENERATES TRUST How do you create a credible communications strategy in the eyes of stakeholders? DISTINCTIVENESS (STRATEGIC AND ENGAGING NARRATION) As a starting point, there needs to be a strategic message that makes sense of the company’s Making sense of data and major commitments and strategies, what we concrete actions have termed a “line of sight”. Making commitments concrete This alone is not enough, concrete examples of initiatives and the way a company works, as well as transparent communications of the results of SUBSTANCE (DATA AND CONCRETE EXAMPLES) these efforts are fundamental in substantiating a company’s narrative.
4 lundquist.trust COMMUNICATING WHAT MATTERS: A WINNING STRATEGY
STRATEGY AND VISION AS A GUIDE FOR COMMUNICATION .trust rewards companies that are able to demonstrate how their mission or purpose are connected to the business, their strategy, and the way they operate. It is not enough to declare a strategy, but it must be substantiated to be credible. This means including concrete facts and data which provides more clarity about the company than any lofty statement could. Companies that are most convincing are also those that balance their communications strategy between clarity and engagement. 1 Further details on page 12
GIVE MEANING TO INNOVATION AND SUSTAINABILITY Leading companies in presenting innovation and sustainability projects that are consistent with their business strategy, vision, and mission. Substantiating these commitments involves providing concrete examples of initiatives, possibly supported by stories and articles (i.g. the circular economy, investments in local communities, digitisation, etc.). Further details on page 15 2
MOVING PAST THE “LIKES”: MANAGERS AS INFLUENCERS ON COMPANY TOPICS Companies that want to make a clear stand and have their voice heard would do well in having their CEOs act as flagbearers for company themes, especially when it comes to social media. What’s more, highlighting company leadership on corporate sites goes hand-in-hand with creating a more personalised and believable approach. 3 Further details on page 16
STORYTELLING: FROM A GOOD STORY TO SUBSTANTIVE NARRATIVES For users to feel more engaged in company themes and messages the expectation is for companies to concretely narrate their strategic experiences in terms of impacts, innovation, and transformation. A step above such storytelling would be to address the external realities and context the company operates within, using a tone that humanises companies’ efforts. Narrating the company’s vision, addressing hot topics, and creating an engaging story are the 3 basic elements for successful storytelling. Further details on page 18 4
AIDING UX WITH STORYTELLING Effective content presentation can truly bring companies ahead of the game when it comes to gaining public attention and recognition. A company’s communication style is defined by its visual communication, language choice, page organisation (an interaction between page structure and design with content and meaning), and mobile navigation, all elements that create a good user experience. 5 Further details on page 21
5 THE ELEMENTS OF SUCCESSFUL CORPORATE COMMUNICATION
We evaluated corporate websites, social media channels, and Wikipedia presence, focussing the entire research around two fundamental pillars for creating trust and communicating the company’s leadership: “Substance” & “Distinctiveness”.
These two pillars, Substance and Distinctiveness, are then divided into a total of 10 subsections, composed of over 170 individual evaluation criteria that award a maximum of 100 points.
The reasoning behind our decision to focus on these two pillars as fundamental aspects in the creation of trust and leadership, is as follows:
Substance: evaluates a company’s ability to provide a forward-looking and integrated presentation of its purpose. This should then act as a common thread weaved through the business strategy, sustainability commitment, and innovation projects. Moreover, the way in which company management is able to channel these messages and reinforce company leadership is fundamental.
Distinctiveness: evaluates the way in which the company presents its substantive content, if they are able to create an effective narrative and use storytelling to engage their users and stakeholders. We take into consideration elements such as the use of stories, case studies, effectiveness of language and visual communication, the coherent use of social media, and good user experience (on mobile devices as well).
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SUBSTANCE
1 . PROJECTING THE COMPANY IDENTITY How companies express their identity through a mission or vision that acts as an underlying theme throughout the entirety of the company’s narrative.
2 . DESIGNING THE FUTURE OF THE COMPANY The future vision for the company is clear and concrete within the presentation of the company’s strategy and approach to innovation.
3 . CONVEYING SUSTAINABILITY EFFORTS The company presents key information, including approach, material issues and stakeholder engagement, data, goals, and reporting.
4 . DEMONSTRATING LEADERSHIP The opinion and visibility of company leadership is highlighted on the site and social media to engage stakeholders.
5 . ATTRACTING TALENT A detailed overview of what it is like to work at the company in addition to information on job openings and recruitment.
6 . COMMENDABLE CONTENT Extra points for companies that go the extra mile with out-of-the-box content.
DISTINCTIVENESS
1 . TELLING STORIES & TAKING A STAND The company’s ability to present itself and its business through visual and textual narrative elements.
2 . BEING OPEN TO ENGAGEMENT Openness towards the public: company contacts and activity on various social media channels to engage in dialogue with company stakeholders.
3. INTERACTING WITH THE USER Content form and its presentation as means of better engaging the user. Particular attention is given to the effectiveness of language used and content design.
4 . MAKING IT EASY TO NAVIGATE Efficient navigation aids users in finding their way to the information they’re after and helps to define corporate identity. NOTE The size of the wedges correspond to their relative weight in the research 7 WHAT’S YOUR STYLE?
When it comes to providing information and doing so in an engaging way, it’s not a choice of either/or. Both are fundamental in explaining the business, and communication must carefully balance both aspects.
Because .trust is organised around two pillars that On the horizontal axis (Distinctiveness), we measure encompass the essential ingredients of effective user experience and engagement, from the business communication, it offers a new way to presentation of stories and viewpoints, navigation understand how companies are positioned in relation and access to information, and use of social media. to their peers and competitors. This communication model positions companies On the vertical axis (Substance) we measure the and their peers according to their approach to information that users need in order to understand communications. Find out what each quadrant means a company, the facts and figures that define the below. substance of what it does.
Four communication styles
THE EXPLAINERS
These are companies that have a well-defined identity but lack the
ability to engage effectively. 50 punti The tendency here is to explain and
describe the company in rational SUBSTANCE tones. They tend to have overly lengthy sites, made up of long-form text, numbers and documents.
RISKS AND OPPORTUNITIES: these sites tend to be weighed down by large amounts of information and multiple menu levels, requiring considerable effort from users looking to find out more about the company. This will work for users willing to invest time and energy, but they are increasingly rare.
THE TRADITIONALISTS This is the most “dangerous” area to be in, since it demonstrates the absence of a culture of transparency and attention to the digital user. These companies tend to focus on technical and compliance disclosure, without demonstrating a distinct corporate identity. Key themes (if any) are treated in a basic way.
RISKS AND OPPORTUNITIES: to avoid moving into the “explainers” or “glitterati” categories, these companies should focus on transforming their traditional, dry disclosure into distinctive communications.
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THE QUESTIONS THAT GUIDED OUR ANALYSIS • Does the company project its own vision for the future as well as communicating its role and mission? • Does the company narrate their business context, including what factors contribute to its success and what creates trust in the brand? • Does the company respond to the growing expectations of its clients and of the market context overall in terms of innovation, contribution to the development of the countries the companies operate within, attention to the supply chain, and fight against climate change? • Does the company emotionally engage its readers? Do they provide concrete examples of the way they act in the market, environment, and society? • Is the company able to use different digital channels to convey their messages?
THE NARRATORS
This category includes companies that present comprehensive and
50 punti information-rich content, through stories or viewpoints, which are supported by
SUBSTANCE proactive user engagement and social media use. Distinctive elements of the corporate identity are conveyed in both a rational and emotional way, without neglecting current industry and contextual issues.
RISKS AND OPPORTUNITIES: digital is driving a convergence between corporate and commercial communication. But be careful not to sacrifice important corporate content in the quest to simplify user experience. DISTINCTIVENESS
50 punti
THE GLITTERATI Companies in this category focus on visually striking elements. While their websites certainly give off a “wow factor”, the lack of substance and the inability to explore the content in further depth creates frustration.
RISKS AND OPPORTUNITIES: strong attention to digital is precious because it tends to put the user at the centre; however, being able to communicate with different stakeholders may imply the need for a cultural shift within the company.
9 HOW DO THE BEST COMPANIES IN SWITZERLAND COMMUNICATE?
The .trust research series is a privileged observatory that analyses only companies that have consistently demonstrated a commitment towards transparent digital corporate communications. This is why our research only includes 28 Swiss companies out of an initial sample of 55.
There are companies that stand out in the sample, This demonstrates a rather high dedication to form and they have achieved a standing in the Narrators over function, as Swiss companies seem to be quadrant (in the top right hand corner of the graph), prioritizing the way they present company information since they are able to balance the presentation of a over providing all the necessary substantive clear corporate vision as well as engage the user. information.
The companies that excel in the Narrators category are Roche, Swisscom, Nestlé, Sika, Novartis and Givaudan. These companies have a consolidated stance on transparency and invest greatly in their Company positioning digital corporate communications. In particular, Roche is the company that was best able to communicate its role and the activities it is involved in that help it reach the goals laid out in its strategy, which is why it achieved the best results in Substance. Many Swiss companies fall into the Glitterati category, that is, 46% of companies. SUBSTANCE
No Swiss companies included in the list have made it into the EXPLAINERS quadrant, which is the category that most heavily relies on substance, without investing enough in making a company distinctive.
This is a clear indication that Swiss companies tend to lack a high degree of concrete and relevant information that backs up their company narratives.
Credit Suisse Schindler Just about 25% of companies can be categorized as TRADITIONALISTS. To be sure, it is a positive sign that few companies fell into this category, as it is a category in which companies Swiss Prime Site SGS present basic information with little Idorsia narrative effort. Lonza Many companies in this quadrant Richemont have a clear stance, but they invest too heavily in commercial Dufry statements without providing enough Straumann evidence in their digital corporate communications.
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Swiss Sleepers and Traditionalists make up about 62% of the initial company sample of 55 WHAT COMPANIES WERE INCLUDED IN companies. Swiss companies now find themselves .TRUST? at a significant crossroads on the journey towards The .trust sample began with the 55 companies creating a distinct sustainable and trustworthy corporate that had been included in the 2018-2019 edition communications culture. of Webranking research, which includes the largest Swiss companies by market cap. While it might be appealing to take the easier path towards becoming a Glitterato with quick aesthetic We evaluated only the 28 companies that fixes, companies should aim higher. In fact,companies have reached a base-level of transparency and should aspire to become Narrators, achievable only by passed the Webranking “stress-test”, which balancing company communications with coherent and means companies that were able to surpass the consistent facts and presentation styles. 50-point mark (out of a total of 100 points).
Eight companies (29%) are in the NARRATORS category, meaning these companies are able to present a clear vision of the company supported by a distinct capability to engage the user-
SUBSTANCE stakeholder. Their strength lies in their Roche attention to Substantive information and therefore also have a very transparent approach to digital communications, although there is room for improvement. Swisscom Five of these eight companies are Sika consumer companies. Nestlé Few companies have yet to invest enough Novartis Givaudan in corporate storytelling and in content that is both engaging and concrete as a Zurich Insurance means of distinguishing their company’s Sonova DISTINCTIVENESS digital presence.
Credit Suisse OC Oerlikon Schindler ABB Baloise In the most populated quadrant, the Barry Callebaut GLITTERATI, we see companies such as LafargeHolcim Barry Callebaut and Baloise, companies UBS Clariant that have user friendly and visually Georg Fisher appealing websites, without the necessary Swiss Re substantive information to make them credible. Swiss Life Barry Callebaut is a particularly Sulzer interesting case, in 2019 the company launched a new site and opted for simplicity and aesthetic presentation and left out some of the information that matters most to stakeholders. Simplicity does not always benefit a company when it comes to communicating with their stakeholders on digital platforms.
11 THE ROLE OF A CLEAR PURPOSE
In August of 2019, about 200 American CEOs at the Business Roundtable declared that companies not only need to cater to the interests of investors, but they also need to invest in the interest of their employees, the protection of the environment, and a correct handling of suppliers. This declaration on “the purpose of a corporation” responds to growing external pressures so that companies can face the problems of the contexts they operate within.
More and more companies are in need of redefining their mission and vision is connected to their business, their mission and purpose, that is, the impact that they their strategy, and their modus operandi. And, on the intend to have on society. However, to be credible it other hand, that concretely expose their commitments. is important for companies to demonstrate that their Most companies clearly define their mission and purpose purpose is not simply a marketing instrument, but that (this research does not distinguish between the two even it also brings about significant changes in a company’s though the difference is substantial). day-to-day business. More companies like Roche, Sika, and Sonova are using It is necessary to use substance as a starting point: a comprehensive approach wherein their mission is not concrete facts and data better define a company in presented as a simple declaration extrapolated from relation to any topic they might be addressing. their annual report, but as a guide to understand the This is precisely why .trust has rewarded companies company’s business actions and approaches. This is what that, on the one hand, were able to demonstrate how is conveyed through their communication.
Are the company’s mission and strategy following the same line?
An effective way to understand whether the mission is describe a strategic approach without limiting indeed an integrated part of the company (and not an themselves to the presentation of their business plan, empty statement), is to understand if it is linked to the few make an explicit connection with their mission company’s business and sustainability strategies. (29%). Some companies that do so successfully are Although the majority of the companies considered Baloise, Givaudan, Nestlé, and Barry Callebaut.
Companies’ performance in Substance Average score percentage of the maximum section score. BEST COMPANIES IN “FUTURE OF THE COMPANY” Company identity Future of the company 71% 41%
Sustainability efforts 41%
13% 11% Demonstrate leadership 49%
Attracting talent Commendable content 12 lundquist.trust How to be credible in the presentation of your company strategy: 5 key elements
Based on our experience and practices collected in the analysis we have created a handbook for the presentation of a credible business and sustainability strategy.
1. Defining commitment Commitment The first step is to transmit a company vision, how the company is looking to the future.
2. Connecting strategy and market trends A strategy needs to be contextualized in its broader business environment, Context including the challenges such an environment creates, and global and sector trends that influence the company.
3. Sharing precise goals The strategy needs to become concrete in the form of precise goals (both Goals qualitative and quantitative), and not only economic or financial goals, but ones that touch on various aspects of the business.
4. Presenting actions to reach company goals To make the company’s commitment concrete, it is necessary to present Actions examples of actions the company has taken to reach their objectives, either in the form of stories or case studies.
5. Measuring progress towards company goals Progress To prove that the company is following through on commitments, it must highlight the steps taken in that direction. This means including data that provides solid proof that the company is “keeping their word”.
Buzzword: Innovation
Companies have always needed to be flexible towards A majority of companies considered refer to innovation, their surroundings, adapting and responding to while half of the companies sampled make a savvy external changes that in today’s world have increased connection between their innovation efforts and their in pace and are without precedent. strategies using concrete examples.
This is precisely why the need for companies to Companies to keep an eye on in this regard are Baloise, invest in innovation has become fundamental for all Givaudan, Nestlé, Novartis, Oc Oerlikon, Roche, and companies, even among sectors that are traditionally Sika. conservative.
Exemplary Companies for innovation
GIVAUDAN Givaudan makes it clear that innovation is at the heart of their business, and they do well to link it with their sustainability commitments.
In fact, they specify that their innovation programs are directed towards expanding their natural ingredients base, increasing health and well-being by delivering healthier taste- alternatives, and ensuring a sustainable production process.
13 Exemplary Companies for innovation
BALOISE SIKA Baloise has an entire section of their website dedicated to Innovation is key to the way Sika operates. their innovation timeline, a creative way of presenting their To substantiate this claim Sika dedicates an entire section of investments in R&D. Each innovation on their timeline links their website to Innovation, both in terms of the R&D efforts to a related video, story, or article. Baloise also connection they are pursuing, as well as the technologies they have innovation efforts to their mission, stating explicitly that it is developed and are perfecting for construction materials. part of their “Simply Safe” strategic journey.
WIKIPEDIA: WHY AND HOW TO INVEST IN IT “It may seem easy to step in and correct mistakes or fill in missing information but you need to do so Entries about companies on Wikipedia, the 5th correctly. Without full knowledge of Wikipedia’s most visited website in the world, are part of rules and community etiquette, users risk any company’s digital corporate identity. For this generating alerts or even having their accounts or reason, Wikipedia entries are evaluated within our IPs blocked, thus provoking reputational damage”, new research .trust. says Daniele Righi, head of Lundquist’s Wikipedia research. The vast majority of companies have their own Wikipedia article, in fact, only Idorsia is lacking one. Companies can take part in the content-building However, only 7 articles out of 27 meet the criteria process, together with the community, in a laid out by our research, made up of basic elements productive manner. that any Wikipedia page should contain. These companies are Zurich Insurance Group, Swiss Life, This is demonstrated by our 10 years of experience Roche, OC Oerlikon, Nestlé, Credit Suisse, and working with Wikipedia and supporting companies ABB. looking to establish a collaboration with the online encyclopaedia. It is interesting to note that 14 companies do not satisfy one of the most basic criteria for a credible Wikipedia page (having a good number of references), and 8 companies present some form of alert which signals problems with the page such as self-promoting information or a lack of reliable sources. For further information: lundquist.it > Our thinking
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Connecting business and sustainability strategies
A sustainability strategy is a key element when it Some however, have been able to stand out particularly comes to evaluating a company’s commitment for in this area, with Nestlé and Roche at the top of this list, many stakeholders. followed by Sika, and Swisscom.
The fundamental elements to an effective presentation of sustainability information is similar To be competitive, companies to those that we have delineated for the business strategy. need to not only engage with their market, but they need to While most companies considered present their sustainability strategies, few connect it to their address their reputation, their mission or vision (29%), and even fewer prevent talent, and their ability to attract substantiating case studies (21%). This is definitely individual attention. an area in which Swiss companies need to invest far more to see good results.
THE BEST COMPANIES IN PRESENTING THEIR SUSTAINABILITY EFFORTS
OUR SUSTAINABILITY RESEARCH SERIES
When it comes to communicating a company’s sustainability commitments, companies are being called upon to give their readers concrete and convincing answers.
To do so, we need to break with the report-driven approach that can end up creating static and heavily technical content that ignores the needs of the digital user.
This extraordinary evolution in the sustainability scene is reflected in our future. research series, formerly known as CSR Online Awards, which concentrates on the interaction between the Substance and Distinctiveness of a company’s digital communications and disclosure of their sustainability commitments. for this evolving scenario. Our evaluation of the Our ambition with .future is to evaluate what first Swiss.future 2018, which we published in companies are leading the way, and share collaboration with the Zurich-based Centre for some of the best practices and guidelines as Corporate Reporting, found that Swiss companies to how companies can better construct their are sleeping on sustainability communications. To find sustainability communications and prepare out more, head over to our website: www.lundquist.it
15 THE ROLE OF COMPANY LEADERS IN CREATING TRUST
Narrating the commitment of a company’s top management on the corporate website and through social media is a key step in the journey towards gaining attention and forging a reputation.
Just as any organization, a company evolves within With the rapid transmission of digital information, we its temporal context and constantly projects a have grown accustomed to having direct relationships vision for the future. To generate trust, therefore, with people, brands, and organizations, and we have it is fundamental for company vertices to transmit gained the ability to follow the faces of those who this vision and purpose, and to express a concrete work “behind the scenes” as a means of humanizing business strategy. a company.
Our communication context continues to evolve, As a direct consequence, there is a growing mistrust of and requires companies to instil and maintain trust everything that reads as impersonal. amongst its audiences, without taking it for granted.
To be competitive, companies need to not only engage with their market, but they need to address their reputation, their talent, and their ability to attract individual attention.
MANAGERS CONTINUE TO HAVE LOW VISIBILITY The most followed CEOs are also those that post most ON CORPORATE SITES frequently about topics related to their company. Many companies prefer to not highlight individual Novartis’ Vasant Narasimhan and UBS’ Sergio management figures, which is reflected particularly Ermotti reflect this statistic especially well, both CEOs by the lack of the CEO’s “voice”, and even less so of post at least twice a week, and are in fact the only other leadership figures that could provide interesting CEOs whose followers hit six figures. Other CEOs with insight on various business areas or company a higher LinkedIn following are Jerome Lambert from activities. The section of the research “Demonstrating Richemont, Christian Mumenthaler from Swiss Re Leadership” has in fact received the lowest average and Gilles Andrier from Givaudan. scores in the entire research. CEO Twitter presence is less common: only 4 CEOs of Often the presence of managers is reduced to a single the companies included are present on this platform. citation within the website, but it is much rarer to find However, the four that do have a Twitter account (UBS, a more significant presence in the form of videos, for Novartis, ABB, and Baloise) directly engage with key example. company topics.
However, social media provides the ideal platform to The social media channels CEOs choose to use also directly engage with the public and to promote themes reflects a company-specific decision. Almost all that are at the heart of a company: about 61% of CEOs companies in fact are active on LinkedIn, preferred of the companies included in .trust have LinkedIn above Twitter, but especially above Facebook and profiles. Instagram.
THE MOST FOLLOWED CEOS ON LINKEDIN
Sergio Ermotti UBS Vasant Narasimhan Novartis Jerome Lambert Richemont Christian Mumenthaler Swiss Re Gilles Andrier Givaudan
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AREAS OF STRENGTH WHERE TO INVEST MORE (% of companies included) (% of companies included)
61% CEOs present on LinkedIn 7% CEOs that post company-related information on LinkedIn 93% companies post on Linkedin 11% CEOs with a Twitter presence
Commendable examples on corporate sites
ROCHE NOVARTIS Roche dedicates an Novartis includes entire page to its CEO Dr. citations from their Severin Schwan, complete company management with video interviews of across their website, his point of view on key particularly well-placed company topics such as the when it comes to the digitisation of healthcare, company’s corporate as well as an overall responsibility and company presentation. The commitment to providing company adds a personal healthcare access in touch with insights from developing countries – an their CEO on how he deals insight from Novartis’ with stress, his ambitions, Head of Sustainability. and his pride.
Commendable examples on social media
ABB UBS Dr. Peter Voser, ABB’s CEO UBS is one of the few is particularly active on companies whose CEO Twitter, posting often about posts frequently enough to company topics and even attract a significant follower more frequently retweeting base. Dr. Sergio Ermotti’s company tweets as means posts are directly related to of gaining visibility. the company he represents, The themes addressed writing posts of his own and on social media are in line re-posting company posts. with topics discussed Ermotti stands out for his throughout the corporate articles on LinkedIn as well, website and aid in providing wherein he addresses some audiences with a consistent of the company’s material company narrative. themes.
17 INSPIRING TRUST THROUGH STORYTELLING
Presenting the company transparently is essential for effective communication, but it is no longer enough. Companies need to invest in defining a clear corporate narrative, accompanied by concrete examples and case studies. These “exemplary narratives” bring the reader closer to the company.
In the past few years, words such as “storytelling”, What emerges from our analysis is that many “brand journalism”, and “content marketing” are on companies lack maturity when it comes to their everybody’s lips. digital corporate communications: many engage in storytelling without providing substantive elements Stories, articles, videos and blogs: these are just and clear messages to back up their claims. some of the ways companies today are looking to go beyond traditional disclosure in their A successful story needs to be able to face key communications. Our Swiss results are encouraging: company topics and topics of stakeholder and public well over two thirds of the companies in our research interest, without engaging in unfounded self-praise. sample are experimenting with these new forms of content.
New digital tools have provoked an explosion of activity, but the only form of effective storytelling is that which exposes the company’s strategic objectives and business context.
INGREDIENTS OF CORPORATE STORYTELLING Based on our years of experience in the field and How can storytelling content contribute to a multiple research projects, we have come to the relationship of trust with users and stakeholders? conclusion that corporate storytelling can be broken How can stories and articles effectively contribute to down into two distinct parts (and this is what, projecting the distinctive elements of a company? ultimately, makes it different from brand storytelling and content marketing):
THE “WHY” THE STORY Storytelling has to link to The narrative presentation the company, its corporate including the “who”, the identity and its strategic “where” and the “when”, vision, mission, or purpose, along with the technical key elements in meeting execution of the story and stakeholder expectations. its ability to prompt an It is important to use emotional response in the storytelling as a medium to user. support business goals.
CORPORATE STORYTELLING In .trust, we have combined these two elements so that we can evaluate not only how effective the content produced really is but also the story’s ability to depict a company’s daily reality, from its strategic commitments to the context whitin wich it operates.
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Storytelling initiatives in Switzerland
Storytelling elements fare relatively high within a tool to explain the external context in which the Swiss corporate communication standards. In fact, company operates. However, only 7 companies do so about 68% of companies use stories to develop consistently. their company themes on a deeper level. However, 6 companies out of the 28 evaluated present no Notwithstanding this significant attention to narrative content, such as articles, case studies, or storytelling, it is far rarer to find companies withstories stories that assist the user-stakeholder to better in the fullest sense of the word. Many in fact present understand the company. stories massed together with other articles and news items. Nestlé fares particularly well when it comes to Those that do present company stories most often the presentation of stories. write about their own products or business services (75%), sustainability (71%), and innovation and R&D Visual communication is also significant for Swiss topics (57%). There are still few companies that corporate sites, with a little more than half occasionally present narrative content related to their identity and using images and videos. Though there is definite room business strategy, rather most present information for improvement: companies that develop a distinctive that has a direct commercial purpose. Swiss company visual communications strategy fare best at captivating stories often address topics that are relevant their audience. Swiss Life, Baloise, and Swisscom are internally, 64% go the extra mile and use stories as examples of this.
BEST IN “STORYTELLING AND TAKING A STAND”
Exemplary Companies
ROCHE CLARIANT Roche demonstrates Other than the company’s consistent effort consistent commitment to towards storytelling storytelling throughout the and a significant site, Clariant’s “Discover amount of topic Value” section provides variation. Moreover, informative content that the website’s presents Clariant’s products textual content is and innovations, doing accompanied by so in a very engaging and coherent consistent aesthetically pleasing way. visual elements.
Key elements for successful storytelling
ADOPT A FIRST-PERSON POINT SPEAK TO THE CONTEXT AND THE TECHNICAL EXECUTION OF VIEW HOT ISSUES What formats are used for this type 1 Does content allow us to understand 2 Does content address industry 3 of content? How are they integrated - and see - the company, its work and topics and the business context? into wider corporate communication? people? Does it reveal its strategy, Does it provide a point of view on Does the digital ecosystem promote mission and purpose? current issues? this content? Do they provide a human touch?
19 HOW TO GAIN ATTENTION IN AN INCREASINGLY CROWDED DIGITAL SCENE
In the social and digital era, “noise” represents a significant challenge for communication. The cost of publishing and distributing content has plummeted, which has brought about an excess of information dissemination. In this context, it becomes increasingly more difficult for companies to attract attention from their intended audience. Other than the relevance and credibility of the content (substance) it is fundamental to display this information in a narrative and presentative manner, which must be engaging and easily accessible.
HOW TO ATTRACT ATTENTION As was revealed through the Siteimprove analysis Clear, concise and direct language, coherent visual which is part of .trust, no companies have a particularly communication in line with the company’s mission, fast website on mobile devices. a page structure that aids in the understanding of content, and overall aid for the navigation of the site (search engine, speed of the website from mobile devices as well, and navigability) are all fundamental OUR RESEARCH CHECKLIST FOR COMMUNICATING aspects of effective communication. EFFECTIVELY Clear and concise language It is interesting to note the efforts of many companies Coherent visual communication on the list in structuring their pages through Page layout that aids users in prioritizing “progressive disclosure”, highlighting general concepts first and delving into greater detail later in information the page or the navigation structure. Ease of navigation Good mobile user-experience What needs to be improved, however is the organization of the menu, that needs to prioritize ease of use over aesthetic appeal.
THE BEST COMPANIES IN USER EXPERIENCE Swiss performance in Distinctiveness Average score percentage of the maximum section score.
Telling stories & taking a stand
45%
Being open to engagement 58%
64% Interacting with the user
57% Make it easy to navigate
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Exemplary companies
TECHNOLOGY AT THE SERVICE OF USERS User experience is the grouping of methods a company uses to optimize the experience of their audience.
To evaluate various websites’ user experience in a precise and consistent manner, we partnered up with Siteimprove, a software company founded in Copenhagen. Thanks to this collaboration we were able to monitor the effectiveness of various websites thanks to a platform that analyses over 300 parameters, grouped into four macro- categories. NESTLÉ Nestlé invests in a page structured for an The analysis conducted through the use of optimized mobile user experience, with a menu Siteimprove’s software significantly contributes that is easy to use and a website that is overall to the evaluation of user experience in .trust, easy to navigate thanks to a logical flow and specifically with regards to those elements that branching out of sections. can be classified as quantitative.
WHAT WE MEASURED THROUGH THE SITEIMPROVE PLATFORM
Quality assurance: We verified the presence of non-functioning links, both in HTML and in PDF documents, orthographical errors, and unsafe domains.
SEO: is the part that resulted in the best performance in our ranking. We analysed three different components that are needed to optimize the traffic coming from search engines: meta description, structural content with titles, velocity on mobile, and navigation paths.
SWISS PRIME SITE Accessibility: the automatic evaluation of alt tag, Swiss Prime Site is one of only two companies meta description, and structural problems that can that fare particularly well when it comes to be an obstacle to smooth navigation. website accessibility as demonstrated by our Swiss companies have a good average score. partner Siteimprove’s analysis. Performance: evaluation of the loading speed of the homepage on mobile interface, slow and fast 3G simulation, 4G, and fixed landline. Swiss THE “Q-FACTOR” companies have a very low average score in this The .trust research series accredits area. companies based on the presence of necessary information on the corporate “The analysis with Siteimprove highlights the fact website, as well as the way in which it is that Swiss companies have done a good job in presented. quality assurance in past few years when it comes to maintenance and website SEO, but they still lag This is why we both heavily weighted behind when it comes to more current themes such the Distinctiveness section and also as accessibility and performance of the mobile introduced criteria for qualitative site.” evaluation of the most relevant Marcus Kosak information of the Substance section. Managing Director Switzerland – Siteimprove
21 THE PLACEMENT OF SWISS COMPANIES IN THE 2019 RESEARCH
.trust rewards those companies that are best able to balance substantive and engaging content. We therefore divided the companies in different classes, based on their ability to balance these two elements without investing too much in one to the peril of the other.
Roche
Swisscom
Sika GOLD Nestlé Novartis Givaudan R SILVE Zurich Insurance Sonova ZE BRON Credit Suisse OC Oerlikon Schindler ABB Baloise Barry Callebaut LafargeHolcim UBS Clariant Georg Fisher Swiss Prime Site SGS Swiss Re Idorsia
Lonza Swiss Life Richemont Sulzer Dufry Straumann
NOTE
*WHAT COMPANIES WERE INCLUDED IN .TRUST? HOW WAS THE ANALYSIS CONDUCTED? We believe that to reach effective corporate .trust evaluates the English version of corporate communication and gain the trust of stakeholders, Websites and social media, concentrating on two first and foremost companies need to exhaustively elements that we consider to be essential to inspire communicate their identity and activity. trust in a company’s stakeholders: SUBSTANCE (50 maximum points) and DISTINCTIVENESS (50 This is why the study only evaluated companies that maximum points). were able to demonstrate consistent commitment, by having reached a good level of transparency in The evaluations are carried out between September the 2018-2019 edition of Webranking (reaching and October. 50 points and above). The companies that were excluded have been termed “Sleepers”.
To gain access to the next edition of .trust it will be possible to request an ad hoc re-evaluation of your corporate transparency.
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GOLD CLASS
Givaudan Nestlé Novartis Roche
Sika Swisscom
SILVER CLASS
Baloise Credit Suisse Sonova Oc Oerlikon
Zurich Insurance Group
BRONZE CLASS
ABB Barry Callebaut Schindler UBS
ON THE BENCH
Clariant Dufry Georg Fischer Idorsia
Lafarge Holcim Lonza Richemont SGS
Straumann Sulzer Swiss Life Swiss Prime Site
Swiss Re
THE SLEEPERS (those not included in .trust)
ADECCO LINDT & SPRUENGLI ALCON LOGITECH BANQUE CANTONALE VAUDOISE MEDACTA GROUP BB BIOTECH PANALPINA BUCHER INDUSTRIES PARTNERS GROUP DKSH HOLDING PHILIP MORRIS DORMAKABA PSP SWISS PROPERTY EMS-CHEMIE STADLER RAIL FLUGHAFEN ZURICH SUNRISE GAM SWATCH GROUP GEBERIT TEMENOS GROUP HELVETIA VAT GROUP JULIUS BAER VIFOR PHARMA KUEHNE+NAGEL INTERNATIONAL
23 ABOUT US
THE VALUE OF .TRUST Our new .trust research series evaluates companies’ ability to narrate their strategic vision, the strengths of Lundquist bridges the gap between companies and their their brand and business, to communicate leadership and audiences: that’s because we get to know both intimately. inspire trust amongst their stakeholders.
As specialists in corporate communications and The research represents a privileged observatory that sustainability, we are independent, international, and includes companies able to distinguish themselves trusted to guide companies towards greater transparency through their efforts towards transparent digital and stakeholder requirements. communication.
We put our minds to work using structured and rigorous For further information on the research and to request an approaches to ensure each project is unique and tailored to in-depth analysis of your company, please contact: the client’s specific circumstances. Arianna Evans For more information: lundquist.it Country Manager for Switzerland [email protected]
Research as a foundation for our approach
Our approach is grounded in 15 years of experience and of research projects that measure the efficacy of corporate communications.
.future Wikipedia Webranking Blurring Boundaries This research series Going back to 2008, Since 1997, Webranking New in 2018, the research investigates how companies we have been monitoring monitors corporate and financial seeks to guide companies use their digital channels the exhaustiveness of communications through the through the transforming to inform and engage with Wikipedia articles about major digital channels of the largest landscape of sustainability stakeholders on sustainability corporations. Through the listed companies in Europe. reporting. It focuses specifically issues. .future helps companies study, we defined guidelines It measures the gap between on integration of sustainability understand trends, assess for companies to help them stakeholder expectations and themes into the broader their current situation and engage with the Wikipedia what companies are actually reporting ecosystem and get concrete suggestions to community in a constructive presenting. The research is provides a benchmark of 50 improve their sustainability manner. based on a yearly survey of sustainability leaders communications. stakeholders’ needs. in Europe.
CONTACTS Markus Kosak For the analysis of user experience, we collaborated with Siteimprove, a software company Managing Director Switzerland that aims to simplify the handling of websites. Its intelligent automation software provides all T: +41 445510346 - E: [email protected] necessary guidance for managing a website with excellent performance. www.siteimprove.com
24 lundquist.trust Our experience
.trust is part of a structured program that Lundquist The research provides the foundation for higher-level implements to help companies communicate more strategic projects by understanding and establishing effectively by engaging public interest, investor where the company’s starting point is. interest, and client and media interest. Our goal is to find the right balance between external points of view The challenge for companies is then to create and corporate communications goals. a coherent and convincing narrative, capable of describing the company’s role today, and its vision for Thanks to its clear and measurable criteria, .trust the future. To better face this challenge, order a .trust can help to resolve weaknesses in digital corporate assessment from Lundquist! communications and define strategies to improve both in the short and long term. Our goal is to support companies during this phase, as attention from traditional disclosure shifts to It’s a great opportunity to raise awareness internally effective corporate communications. This is why about the importance of communications, engagement our new research activities evaluate transparency and dialogue as assets for successful communications levels (“Substance”) and companies’ ability to create strategies and for learning from best practice an effective and engaging corporate narrative companies. (“Distinctiveness”).
HOW WE CAN HELP Thanks to our understanding of stakeholder The .trust research is a tool that allows you to expectations and our corporate experience, we are better understand the degree of maturity of your able to support companies not only in improving the digital corporate communications. It measures effectiveness of their corporate communications but a company’s ability to inspire trust through its also in defining clear communication strategies and digital communications, looking at transparency presenting them effectively, engaging in dialogue with of information, stakeholder engagement, and stakeholders. distinctiveness.
How we meet your needs
MEASURE EFFECTIVENESS BRING YOUR VISION TO LIFE • Thanks to our research and our experience, • We help define a “line of sight” that creates we measure the effectiveness of your digital coherence in company messages communication compared to peers and best • We define content strategy that guides the
practices. organization and production of content
• We present tactical actions and concrete • We give life and concreteness to content by suggestions for improvement defining a consistent tone of voice and visual • We help companies understand the needs of their strategy
stakeholders and the navigation on the site • We provide ideas for engagement campaigns • We help companies in the handling of their Wikipedia entries
TAKE REPORTING TO THE NEXT LEVEL ENGAGE FOR A SUSTAINABLE FUTURE • We support companies in the creation of • Thanks to an approach based on stakeholder needs sustainability documents (sustainability reports, and an analysis of company priorities, we help create NFD, thematic reports, abstracts, etc.) following a culture of sustainability that represents a real added a narrative approach that surpasses mere value for the company compliance, and values a company’s key messages • We define sustainability and communication and distinctive elements strategies that help companies face impacts and • We design communication projects that begin stand out from the definition of material themes to guide and • Within the company we create a sustainability structure visual and textual content, all starting culture through dialogue and training from the needs of the audience
25 Get in touch for more information about our work
Joakim Lundquist Sara Rusconi James Osborne Lundquist CEO Content Strategist Head of Sustainability and Lundquist Partner and Lundquist Partner
t (+39) 339 5013612 t (+39) 347 2457669 t (+39) 349 7937853 [email protected] [email protected] [email protected]
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