Brunswick Future of Stakeholder Engagement Report February 2013

The Future of Stakeholder EngagementViews of Senior European Communicators on Current and Future Best PracticeFebruary 2013

2 | 2013 | © BRUNSWICK INSIGHT

Table of contents

Introduction

Key findings

The current state of stakeholder engagement

Benefits and risks of stakeholder engagement

The future of stakeholder engagement

Blueprint for success: What does it take to build a successful programme?

Implications

About the study

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© BRUNSWICK INSIGHT | 2013 | 3

Conventional wisdom holds that “Stakeholder Engagement” is important and organisations should be doing it. But there’s very little data available about what “it” is, or about the benefits and risks organisations see from engaging in new ways with groups they may not have dealt with in the past.

The purpose of this survey was to explore what stakeholder engagement looks like with those who are closest to the front line: senior European communicators at large corporations, government bodies, NGOs, associations and other organisations.

Several questions drive this research project:

• What exactly are organisations doing in terms of stakeholder engagement – and with whom?

• What are the risks and benefits they associate with engaging with “non-traditional” stakeholders? (i.e., stakeholders other than employees, suppliers, business partners, or customers/members)

• And, perhaps most importantly, what does the future of stakeholder engagement look like from senior communicators’ perspective?

We were able to include communicators across a variety of organisational types and sectors in the survey. However, respondents were predominantly from the corporate world and half were based in the UK (nearly 4 in 10 of the UK respondents were from FTSE 100 companies). The remainder were distributed across Europe, with sizeable proportions of respondents in Brussels/Belgium (15%) and Germany (11%). Where significant or interesting, differences between the UK, Brussels/Belgium and Germany are highlighted in the report.

While the results of this survey offer a unique perspective and provide a blueprint for creating a successful programme, they tell only part of the story. To provide a more global context, Brunswick Insight is currently conducting similar research in the United States and China, and will issue the results as soon as they are available.

Introduction


Key findings

Senior communicators across Europe (82%) consider stakeholder engagement to be important to their organisation’s success, with 55% saying it is “extremely important”. The scope and scale of stakeholder engagement activities are expected to increase dramatically in the next five years, with a sizeable increase in the percentage who say engagement will be important to their organisation’s success (90%) and nearly as many saying their organisation will be doing more engagement in the future (82%).

Most (80%) believe senior management at their organisation understand and appreciate the value of stakeholder engagement. However, while the team at the top appears to understand the value of engagement, more work remains to create buy-in across and down the organisation, as respondents say lack of understanding, particularly at these levels, is the biggest internal obstacle to creating engagement programmes.

One way to increase understanding and buy-in could be to have a more strategic approach, where success is clearly demonstrated. Currently, at most organisations, stakeholder engagement tends to be ad hoc (79%) rather than strategic and just three in ten (29%) use specific KPIs to measure the success of their organisation’s engagement. Communicators appear ready to make this shift as more than eight in ten (85%) say it will be important for their organisation to have an engagement strategy in five years’ time.

Currently, communicators are much more likely to engage with traditional (e.g., employees, suppliers, business partners, customers/members) rather than non-traditional (e.g., NGOs, consumer groups, special interest groups, activist groups) stakeholders. Communicators acknowledge that engagement with non-traditional stakeholders carries sizeable risks, the biggest of which is the possibility of not meeting expectations (60%). Four in ten or more are also concerned about possible damage to their organisation’s reputation (45%), wasting time and money (42%), and loss of control (41%).

Nevertheless, most communications professionals have already seen compelling evidence of the benefits of engagement for their organisation. The biggest benefits include improved reputation (89%) and increased understanding of their organisation and its activities amongst stakeholders (89%).

Primary responsibility for engagement activities tends to reside with communications (32%) and corporate affairs (23%). Currently, two in three communicators (68%) feel overwhelmed by the amount of time and resources required to engage properly. This suggests that securing additional resources for engagement will be important for communicators if they are to cope with the pressure, navigate expected risks and deliver results.


The blueprint for creating a successful stakeholder engagement programme now and in the future is surprisingly consistent, requiring:

• Trust

• Mutual respect

• Commitment from the top of the organisation

• Alignment with the organisation’s long-term goals

At present, social media and online engagement activities tend to involve more monitoring than active engagement – but that is expected to change in five years’ time. While 79% currently monitor social media channels, just 30% blog, 28% map online influencers, and 19% create online panels at present. However, one in three (34%) think social media and online tools will be the most effective ways to engage with stakeholders in general in five years’ time.

In contrast, when it comes to engagement with non-traditional stakeholders, in-person meetings (75%) are expected to remain the most effective way to build deep and lasting relationships. While there is no substitute for in-person meetings, communications professionals recognise that they will need a combination of engagement techniques to work effectively with both traditional and non-traditional stakeholders in the future.


“Reputation management” is the top priority for corporate communicators, followed by stakeholder engagement

When asked to rate the importance of a variety of activities they encounter in their jobs to the success of their organisation, senior communications professionals are most likely to say that reputation management (93%), stakeholder engagement (82%), internal/employee communications (82%), crisis communications (79%), and media relations (79%) are “important” (rating of “4” or “5” on a scale of 1 to 5).

(% who rate each as…)

• Views on the importance of stakeholder engagement differ by market: while 91% of those in the UK rate it as important, fewer in Brussels (65%) or Germany (50%) consider it as important

• Communicators in Brussels are especially likely to rate “public affairs/lobbying” (80%) as important, while those in Germany are more likely than others to rate “marketing/brand and consumer communications” (71%) as important

Q. Here are several activities that communication professionals may encounter in their jobs. For each, please indicate how important you believe it is to the success of your organisation [1 to 5 scale, where 1 = not at all important; 5 = extremely important] (Base=130)

93%

82%

82%

79%

79%

78%

77%

74%

67%

65%

65%

49%

6%

16%

17%

16%

19%

19%

19%

11%

19%

25%

22%

35%

1%

2%

2%

5%

2%

3%

4%15%

15%

11%

13%17%

Reputation management

Stakeholder engagement

Internal/ employee communications

Crisis communications

Media relations

Issues management

Corporate communications

Investor relations

Public affairs, lobbying

Marketing/brand and consumer communications

Corporate social responsibility and sustainability

Social media engagement

Top box (4-5) Middle box (3) Bottom box (1-2)

Few believe that stakeholder engagement has no impact on the success of their organisation. In fact, only 18% of communicators say they have yet to see any compelling evidence that stakeholder engagement has a direct impact on the success of their organisation.

The current state of stakeholder engagement


Talking to the people who matter to your business about the things that matter to them.

Defining stakeholder engagement: a dialogue for understanding, mutual benefit and business success

There is widespread consensus in how communicators define “stakeholder engagement”. When asked to describe stakeholder engagement in a sentence or two, six in ten (61%) respondents define it as a two-way dialogue with those who have an interest in, are affected by, or can influence your organisation.

(% who describe stakeholder engagement as . . .)

Q. How would you define “stakeholder engagement” in a sentence or two?

8%

2%

2%

3%

4%

4%

5%

13%

61%

Other

Demonstrate you are open to stakeholders /their concerns

Involving stakeholders in / listening tooutside opinion in the decision making

process

To ensure positive attitude of key parties /positively influence stakeholders

Regular communication with relevant parties

Ensuring coordination with stakeholders onissues of mutual interest

Identifying who your key stakeholders areand understanding what their views /

expectations are

Ensuring key stakeholders are well informed/ have access to information about your

company

Two-way dialogue with key parties who havean interest in your company or organisation /who may be affected by your decisions / caninfluence your organisation and its decisions


Communicators more likely to engage in traditional stakeholder engagement activities at present; online activities lag behind

When asked to say which of a number of stakeholder relations or engagement activities their organisation is currently doing, communicators are much more likely to mention traditional rather than non-traditional activities. The top five activities are: monitoring traditional media (94%), membership in industry groups (87%), creating lasting relationships with stakeholders (86%), attending networking events (85%), and hosting events (80%). In terms of social media, while most (79%) say they are monitoring social media channels, respondents are much less likely to be blogging (30%), mapping online influencers (28%), or creating online panels to share information (19%).

(% who say their organisation is doing each of the following…)

Q. Currently, which of the following types of stakeholder relations or engagement activities does your organisation do? Please select all that apply. (Base=130)

94%

87%

86%

85%

80%

79%

79%

72%

69%

68%

62%

61%

56%

52%

52%

30%

28%

19%

Monitor traditional media

Membership in a trade association or industrygroup

Long term engagement to create lastingrelationships

Attend networking events

Host events

Monitor social media channels

Ad-hoc engagement on specific issues of concernto your organisation

Survey stakeholder’s views and concerns

Map stakeholders

Host roundtables or panels

Map issues

Have a stakeholder engagement strategy

Use social media for purposes other thanmarketing

Undertake consultation exercises as you developpolicies and programmes

Publish and share thought leadership work

Blog

Map online influencers

Create online panels to share information


• Communicators in the UK are particularly likely to say they survey stakeholders’ views and concerns (80%), use social media for non-marketing purposes (67%), and undertake consultation exercises as they develop policies and programmes (61%)

• Communicators in Brussels are particularly likely to say they map stakeholders (85%), host roundtables or panels (85%) and have a stakeholder engagement strategy (80%)

• Communicators in Germany are particularly likely to say they are members of a trade association or industry group (93%) or they host events (86%). They tend to be less likely than others to say they attend networking events (57%), map stakeholders (57%) or issues (36%)


Traditional rather than non-traditional stakeholders top the list of important stakeholders

Most communicators rate their company’s business partners (84%), national government (83%), employees (83%), and traditional media (76%) as important stakeholders. Fewer say EU institutions (64%; 95% for Brussels/Belgium) and local government (60%) are as important.

“Non-traditional” stakeholder groups, such as activist groups (30%), online communities of interest (28%) and charitable organisations (23%), are much less likely to be rated as important.

(% who rate each stakeholder as “important”)

Top Box rating of 4 or 5

Q. Likewise, how important to your organisation would you say engagement is with each of the following stakeholder groups currently? [1-5 scale, where 1 = not at all important; 5 = extremely important](Base=130)

84%

83%

83%

76%

64%

60%

52%

50%

45%

44%

40%

40%

30%

28%

23%

Business partners

National government

Employees

Traditional media

EU institutions

Local government

Consumers

Local communities

Non-Governmental Organisations (NGOs)

Consumer groups

Special interest groups

Universities/academics

Activist groups

Online communities of interest

Charitable organisations


Prompted biggest benefits: improved reputation, increased understanding of the company, long-term relationships and better understanding of stakeholder concerns and expectations

When asked to rate a list of possible benefits of stakeholder engagement in terms of their importance, communicators are most likely to say improved reputation (89%), increased understanding of the organisation (89%), developing long-term relationships (88%) and better understanding of stakeholder concerns and expectations (84%) are “important”.

The benefits they are least likely to rate as important are demonstrating to others that you’re engaging (53%), product innovation (44%), and facilitating social change (35%).

(% who rate each as “important”)

Q. How important to you or your organisation are each of the following as possible benefits of doing stakeholder engagement? [1-5 scale, where 1 = not at all important; 5 = extremely important] (Base=130)

Benefits and risks of stakeholder engagement

89%

89%

88%

84%

78%

78%

77%

74%

68%

65%

63%

62%

60%

59%

57%

53%

44%

35%

Improving your organisation’s reputation or image

Increasing understanding of yourorganisation and its activities

Developing long-term relationships

Better understanding stakeholders’ views, concerns and expectations

Better understanding of views of those onthe other side of an issue

Influencing the views or actions of otherstakeholders

Building a network of advocates

Avoiding conflict before it emerges

Resolving or reducing conflict

Identifying and mitigating the risk of crises

Creating better public policy

Attracting and retaining high calibreemployees

Sharing expertise

Collaborating to develop programmes andpolicies for the organisation

Finding a solution to a complex problem

Demonstrating to others that you’re engaging

Product innovation

Facilitating social change


• Communicators in the UK are more likely than others to say increasing understanding of their organisation (95%), avoiding conflicts before they emerge (81%), and attracting and retaining high calibre employees (73%) are important benefits of engagement

• Those in Brussels are more likely than others to say building a network of advocates (90%), creating better public policy (90%), and finding solutions to complex problems (70%) are important benefits

• Communicators in Germany are more likely than others to say product innovation (57%) is an important benefit of engagement

If done well to the right people, they will tell your story for you much more powerfully than you can. Customers will want, not just need, to buy from you, investors will increase their holdings as trust and confidence grows - and in a crisis, you will be given the benefit of the doubt.


Volunteered biggest internal obstacles to stakeholder engagement are lack of understanding and buy-in, and lack of resources (people, budget and time)

Several factors emerge as internal obstacles to conducting stakeholder engagement programmes, most importantly lack of understanding and buy-in (29%), lack of people and budget (18%), lack of time (15%), and the lack of a joined-up approach (13%).

Two thirds (68%) of communicators agree that stakeholder engagement is important but they feel overwhelmed sometimes by the amount of time and resources required to do it.

Lack of understanding about the importance of engaging in a timely, consistent and credible way with stakeholders. To many colleagues, stakeholder engagement looks like a PR exercise, which does not deserve time and effort.


Volunteered biggest external challenges or risks are identifying and prioritising stakeholders, loss of control, and expectation management

When asked to volunteer what they consider to be the biggest external challenges or risks to stakeholder engagement, one in ten or more communicators mention: being able to identify who to engage with (12%), loss of control (12%) and expectation management (11%).

Dialogue carries risks - people may not always ‘get’ the message or love it… but people will talk about you anyway, so we need to be in there shaping the debate about ourselves and our industry.


Prompted biggest potential risks of engagement for their organisations

Respondents were also asked to rate a list of possible risks to their organisation from engagement with non-traditional stakeholders (i.e., stakeholders other than employees, suppliers, business partners, or customers/members). Expectation management emerges as the number one potential risk (cited by 60% of communicators), followed by concerns about reputation damage (45%), waste of time and money (42%), and loss of control (41%).

(% who rate each as “significant”)

• Communicators in Brussels are more likely than others to see loss of control (65%) and reputation damage (60%) as significant risks

• Those in Germany are more likely than others to think criticism or attack (57%) is a significant risk

Top Box rating of 4 or 5

Q. How significant a potential risk do you think each of the following is for your organisation when conducting stakeholder engagement with non-traditional stakeholders? [1-5 scale, where 1 = not at all a risk; 5= extremely significant risk](Base=130)

60%

45%

42%

41%

39%

39%

37%

35%

30%

30%

28%

27%

24%

18%

Not meeting expectations

Reputation damage

Waste of time and money

Loss of control

Compromised principles or goals

Internal tension within yourorganisation

Criticism or attack

Exploitation of your organisation

Loss of credibility

Creates conflicts of interest

Dilutes the message yourorganisation is trying to communicate

Slows down the organisation

Loss of intellectual property

Harm to sales


Primary responsibility for engagement rests with communications and corporate affairs organisation’s

More than half of all respondents (55%) say that primary responsibility for coordinating their organisations’ stakeholder engagement activities rests with the communications (32%) or corporate affairs (23%) department. A quarter (25%) say that no single department has responsibility.

(% who say…)

Just four in ten (39%) say there is one person in their organisation that has ultimate responsibility for managing their organisation’s stakeholder engagement.

(% who say…)

• Among those that have one person with ultimate responsibility, this person either reports to the most senior person in their organisation (42%) or reports to the most senior person and also sits on the board themselves (40%)

• Among those organisations that do not have one person with responsibility, engagement is most often managed by a department or business unit (32%) or the comms/corporate affairs team coordinates engagement (21%)

Q. Is there one person who has ultimate responsibility for managing stakeholder engagement in your organisation?

39%

55%

7%

Yes

No

Don't know/ no answer

Q. Which department within your organisation has primary responsibility for coordinating stakeholder engagement activities? (Base=130)

32%

23%

9%

3%

3%

1%

25%

4%

Communications

Corporate affairs

CEO, Chairman or Organisation Board

CSR/foundation

Operational or business unit level head

Strategic planning and risk

All the above departments/ No singledepartment has responsibility

Other


Half measure the effectiveness of their engagement

Half of all communicators (52%) say their organisation measures the effectiveness of their engagement efforts. Only three in ten (29%) measure the effectiveness of their stakeholder engagement with specific KPIs.

(% who say…)

Among those who measure the effectiveness of their stakeholder engagement efforts formally with KPIs, market and opinion leader research is the most common method of doing so (50%).

Nearly half (44%) of communicators agree that they feel pressured by their organisations’ senior leadership to quantify their stakeholder engagement efforts.

Q. Do you measure the effectiveness of your stakeholder engagement efforts? (Base=130)

Yes, 52%

No, 37%

Don't know, 12%


Importance of stakeholder engagement expected to increase in the next five years

When asked to rate the importance of stakeholder engagement to the success of their organisation, communicators believe stakeholder engagement is set to become even more important in five years’ time - going from 82% today to 90% in the future.

(% who rate each as “important” to organisation success)

• There is little change in perceptions for UK and Brussels communicators, around nine in ten respondents in each market rate stakeholder engagement as important both at present and in five years’ time (UK 91% now, 89% future)

• However, communicators in Brussels and Germany believe the importance of stakeholder engagement will increase (Brussels 65% now, 90% future; Germany 50% now, 79% future)

Q. Please indicate how important you believe stakeholder engagement is to the success of your organisation [1 to 5 scale, where 1 = not at all important; 5 = extremely important] (Base=130)

Q. Now looking ahead to the future. How important do you think stakeholder engagement will be in five years’ time to the success of your organisation? [1-5 scale, where 1 = not at all important; 5 = extremely important] (Base=130)

The future of stakeholder engagement

Now In five years’ time

82%

90%

Now In five years' time


Quantity of stakeholder engagement expected to increase in the next five years

Not only will stakeholder engagement be more important, but communicators expect to be doing more of it. Four in five (82%) communicators believe their organisation will be doing more stakeholder engagement in five years’ time.

(% who say…)

• Communicators in Germany (86%) and Brussels (85%) are slightly more likely than those in the UK (77%) to say their organisation will be doing more stakeholder engagement in five years’ time

Q. In five years, do you expect your organisation will be doing more, the same amount or less stakeholder engagement?(Base=130)

More, 82%

Same, 18%

Less, 1%


Communicators believe traditional stakeholder engagement activities will remain important but view online activities as increasingly influential

When asked to say how important various types of stakeholder relations or engagement activities will be to their organisation in five years’ time, communicators are increasingly focused on developing a more strategic approach, mapping and considering their online options within their stakeholder engagement strategy.

There is a sizeable difference between the proportion of respondents who have a stakeholder engagement strategy now (61%) and those who believe that having one will be “important” in five years’ time (85%). Communicators also expect to see substantial increases in the importance of mapping stakeholders (79%) and issues (78%).

Similarly, in terms of social media, majorities (73%) think monitoring social media channels and mapping online influencers (60%) will be important in five years’ time. However, while creating online panels to share information (46%) or blogging (36%) is predicted by some to be important in the future, these percentages are still below half.

Most communicators (87%) agree that social technologies offer new opportunities to build relationships.

Clearly, developing a stakeholder engagement strategy will be a key focus for many organisations in the next five years, as three in five (58%) agree that currently their organisation has a wide variety of stakeholder engagement programmes, but no overarching engagement strategy.


Q. Currently, which of the following types of stakeholder relations or engagement activities does your organisation do? Please select all that apply. (Base=130) Q. How important do you expect each of the following types of stakeholder relations or engagement activities to be to your organisation in five years’ time? [1-5 scale, where 1 = not at all important; 5 = extremely important](Base=130)

(Base=130)

Organisation is currently

doing

Activity rated as

important in five years' time

Net Difference

Hot topics

Mapping online influencers 28% 60% +32%

Creating online panels to share information 19% 46% +27%

Having a stakeholder engagement strategy 61% 85% +24%

Mapping of issues 62% 78% +16%Publishing and sharing thought leadership work

52% 65% +13%

Mapping of stakeholders 69% 79% +10%

Blogging 30% 36% +6%Using social media for purposes other than marketing

56% 62% +6%

Undertaking consultation exercises as you develop policies and programmes

52% 58% +6%

Long term engagement to create lasting relationships

86% 88% +2%

Conducting surveys of stakeholders views and concerns

72% 71% -1%

Monitoring social media channels 79% 73% -6%

Hosting roundtables or panels 68% 59% -9%

Cooling topics

Hosting events 80% 62% -18%Monitoring traditional media 94% 69% -25%

Attending networking events 85% 56% -29%

Becoming a member of a trade association or industry group

87% 56% -31%


• Communicators in the UK are particularly likely to say that in five years’ time the following activities will be important: long term engagement to create lasting relationships (91%), conducting surveys of stakeholder’s views and concerns (77%), monitoring social media channels (77%), using social media for non-marketing purposes (70%) and undertaking consultation exercises as they develop policies and programmes (67%)

• Communicators in Brussels are particularly likely to say attending networking events (70%), and becoming a member of a trade association or industry group (75%) will be important in five years’ time

• Communicators in Germany are particularly likely to say that publishing and sharing thought leadership work (79%) will be important in five years’ time. While two in three (64%) say having a stakeholder engagement strategy will be important


14%

2%

2%

2%

2%

2%

3%

4%

4%

4%

6%

6%

7%

7%

8%

15%

34%

Other

Dedicated departments / specialists / skilledindividuals

More regular / active communications

More direct contact

More time / resources invested in stakeholderengagement

More long term engagement

More central to companies' activities

Joining focus to solve problems for mutualbenefits

More engagement with non-traditionalstakeholders

More monitoring / measurement /assessment

Broader engagement across organisation -beyond CEO / comms team

Coordinated / aligned across organisation

Similar to present / current principles willremain

Building personal relationships will remain key

More transparency / honesty

Face-to-face will remain key / becomeincreasingly important

Social media / online

Volunteered: Future engagement expected to use more social media and online, to complement on-going face-to face interaction

Communicators volunteer a range of suggestions as to how stakeholder engagement will look in the future, with social media and online (34%) and face-to-face engagement (15%) considered to be the most effective ways to engage with stakeholders in the future.

(% who describe it as…)

If an organisation does it in a structured way with a consistent strategy, and relationship-management, then not much will fundamentally change. The channels to reach key constituencies will change, with a growing focus on social media, but even here this should never usurp strong face-to-face engagement where trust and mutual respect are best fostered.

Q. In a sentence or two, what do you think the future of stakeholder engagement will look like? What will be the most effective ways to engage with stakeholders in the future? (Base=130)


Prompted: In-person meetings the most effective way to communicate with non-traditional stakeholders in five years’ time

When asked to rate several channels of communication in terms of how effective they would be with non-traditional stakeholders in five years’ time, respondents rate in-person meetings (75%), web-based collaboration tools / applications (43%) and working groups (36%) as most likely to be effective. This suggests that a mix of communication channels will be necessary, but that face-to-face communications will remain the best way to build trust and mutual respect with non-traditional stakeholders.

(% who rate each as “most effective”)

The best way to engage with stakeholders is to build long-term relationships and be open and honest, even in the difficult times.

Q. Which of the following do you think will be the most effective ways to communicate with non-traditional stakeholders in five years’ time? Please select up to three. (Base=130, multiple responses allowed)

75%

43%

36%

26%

25%

22%

20%

12%

9%

6%

3%

3%

In-person meetings

Web-based collaborationtools / applications

Working groups

Website

Trade or industryassociation

Blogs

Conference speakeropportunities

E-mail

Panels

Videoconferencing

Conference calls (voiceonly)

Mobile text messaging

Two thirds (68%) say developing alliances with non-traditional stakeholders will be key to successful programmes and policies in the future.


Developing a successful stakeholder engagement programme and achieving your organisation’s objectives involves putting in place several elements, some of which will likely require collaboration with internal stakeholders, as they may be outside the control of the communications team.

Factors that are considered most important to success for programmes

Communicators say the most important factors for creating a successful stakeholder engagement programme are trust (95%), commitment from the top of the organisation (93%) and mutual respect (92%). Nearly as important are alignment with organisation’s long-term goals (88%), transparency (86%), and long-term focus (84%).

(% who rate each as “important” to success)

Blueprint for success: What does it take to build a successful programme?

Q. Thinking now about creating successful stakeholder engagement programs. How important are each of the following for a stakeholder engagement program to be successful? [1-5 scale, where 1 = not at all important; 5 = extremely important](Base=130)

95%

93%

92%

88%

86%

84%

80%

79%

71%

65%

60%

58%

44%

37%

Trust

Commitment from most seniorpeople in the organisation

Mutual respect

Ensuring the program aligns with your organisation’s long-term goals

Transparency

Long term focus

Identifying areas of mutual interest

Being clear about what success lookslike

Personal relationships

Identifying and avoiding possibleconflicts of interest

Shared values

Increased credibility from workingwith others

Building alliances with non-traditionalstakeholders

Focus on social purpose


• Communicators in Brussels are more likely than others to say transparency (95%) and shared values (80%) are important

• Interestingly, while communicators in Germany are more likely than others to say identifying and avoiding possible conflicts of interest is important (79%), they are less likely than others to say identifying areas of mutual interest is important (57%)

Almost all communicators agree companies that acknowledge the link between their stakeholder engagement and core business goals are more likely to be seen as honest and credible (99%) and that success requires long-term commitment (98%).

Four in five (80%) communicators agree that senior management at their organisation understand and appreciate the value of stakeholder engagement.


Factors considered most important to success for programmes now will be equally important in the future.

Communicators tend to rate the factors for creating a successful stakeholder engagement programme at present as similarly important in five years’ time. While there are slight differences in the order of importance, the top six factors remain unchanged: commitment from the top of the organisation (97%), trust (95%), alignment with the organisation’s long-term goals (92%), long-term focus (91%), transparency (90%) and mutual respect (87%).

(% who rate each as “important” to success)

• Communicators in Brussels are more likely than others to say mutual respect (100%), identifying areas of mutual interest (80%), identifying and avoiding possible conflicts of interest (70%) and building alliances with non-traditional stakeholders (65%) will be important in five years’ time

• Communicators in Germany are less likely than others to say transparency (79%), mutual respect (71%), shared values (50%) and a focus on social purpose (36%) will be important in five years’ time

Q. Thinking now about creating successful stakeholder engagement programs. How important are each of the following for a stakeholder engagement program to be successful? [1-5 scale, where 1 = not at all important; 5 = extremely important] (Base=130)

Q. How important will each of the following be for a stakeholder engagement programme to be successful in the future, say in five years’ time? [1-5 scale, where 1 = not at all important; 5 = extremely important] (Base=130)

95%

93%

92%

88%

86%

84%

80%

79%

71%

65%

60%

58%

44%

37%

95%

97%

87%

92%

90%

91%

74%

85%

75%

59%

65%

79%

55%

57%

Trust

Commitment from most senior people in theorganisation

Mutual respect

Ensuring the program aligns with your organisation’s long-term goals

Transparency

Long term focus

Identifying areas of mutual interest

Being clear about what success looks like

Personal relationships

Identifying and avoiding possible conflicts ofinterest

Shared values

Increased credibility from working with others

Building alliances with non-traditionalstakeholders

Focus on social purpose

Now In five years


The results of this survey demonstrate that communicators believe stakeholder engagement is important to the success of their organisation, and will only grow in importance in the future.

As organisations contemplate engagement with non-traditional stakeholders, several important implications emerge from the research that should guide thinking and behaviour:

1. Internal understanding and buy-in are a prerequisite to success. They exist but, as we see, even greater understanding and buy-in across and down the organisation are needed if programmes are to be as effective as possible

2. Alignment with the organisation’s long-term goals is an important element of this buy-in process, and requires greater integration with the overall business strategy. Senior communicators will need to ensure they are part of the process of setting their organisation’s strategic compass

3. Short-term, ad hoc engagement is likely to be less effective than a long-term, strategic approach. A strategic, joined-up approach will enable organisations to engage in the most effective ways, both in terms of time and budget. Such an approach will involve a clear engagement plan for each stakeholder group, and the ability and flexibility to use traditional and new modes of engagement as required

4. The sheer amount of time and effort needed for engagement activities is likely to increase significantly. Communicators will need to lobby for additional resources to cope with the growing internal pressure for results and external expectations for sustained engagement

5. Managing the expectations of non-traditional stakeholders will be key to creating programmes that deliver on objectives. As we see, establishing trust and respect, as well as being transparent about where the organisation’s and stakeholders’ interests converge and diverge, will be critical to keeping expectations in check

6. Measurement is a useful way to demonstrate effectiveness and justify increased focus and budget. Communicators need to establish realistic, outcome-focussed KPIs for their programmes and track them over time

7. As part of future best practice, we are likely to see a blending of traditional and new approaches. We can expect greater integration between online and traditional activities, and a combination of channels being used to engage successfully with stakeholders. While online activities will increase in importance, face to face interaction will remain vital to forging the close relationships based on trust and respect required for success

What will successful engagement look like in the future? As we have seen, on the surface, in many respects it will be similar to what it is today. But digging deeper, we uncover a number of implications related to engaging with non-traditional stakeholders that will require significant changes from communicators in approach, tools and techniques. Communicators who factor these implications into the development of their engagement blueprint, and then follow through with sustained programmes, can expect to be more successful at achieving their organisation’s objectives, as well as to grow the influence of their function within their respective organisations.

Implications


Methodology

The research was conducted by Brunswick Insight, the opinion research practice of Brunswick Group, a corporate communications consultancy. Brunswick Insight conducted an online survey of 130 European senior communications professionals between 30th August and 23rd October 2012 to understand their views and practices in the area of stakeholder engagement. Interviews were conducted online in English and respondents work in a wide range of industries and sectors in Europe.

Survey participants were drawn from several sources, including our own and publicly available databases, as well as members of the European Association of Communications Directors. Most respondents were from companies, but a sizeable number of associations, government organisations, NGOs and other organisations also took part. Qualitative research in the form of 8 in-depth interviews with senior corporate, association and NGO communicators preceded the quantitative phase and was used to design the survey instrument.

Note: Percentages may not total 100%, due to rounding or multiple responses.

About the study


Demographics

18%

17%

12%

11%

8%

6%

5%

3%

20%

12%

10%

10%

9%

9%

8%

8%

5%

4%

3%

22%

Head ofCommunications

Director ofCommunications

Public Affairs Director

CommunicationsManager

Global CommunicationsDirector

Head/ Director/Manager of IR

CommunicationsDirector

Head of PublicRelations

Other

Finance

Healthcare

Industrial Goods

Professional & SupportServices

Telecoms & Technology

Food and Beverage

Energy & Resources

Consumer Goods

Transport & Logistics

Construction & BuildingMaterials

Other

Type of company

Years in role

Gender

Country

Job title

Participant sector

69%

14%

6%

5%

3%

3%

15%

39%

22%

19%

4%

2%

55%

45%

49%

15%

11%

3%

2%

2%

2%

2%

2%

13%

Listed company

Private company

Industry association ortrade body

Governmental organisation

Non-profit organisation

Other

Less than 1

1 – 3 years

4 – 5 years

6 – 10 years

11 – 15 years

16 – 20 years

Male

Female

United Kingdom

Brussels/Belgium

Germany

France

Italy

Austria

Luxembourg

Netherlands

Sweden

Other


About Brunswick Insight

Brunswick Insight operates globally with colleagues located in the Americas, Asia and Europe. We specialise in assessing global business issues and corporate reputation. Brunswick Insight uses a range of qualitative and quantitative research techniques to help companies and organisations inform and measure their communications and policy strategies. We work across a broad spectrum of sectors, geographies, languages and mandates and offer a wide range of services, from stakeholder and issue mapping through to opinion polling and focus groups.

If you have questions or would like more information about the research please contact Phil Riggins at Brunswick Insight on 0207 396 3564 or at [email protected].

Brunswick Future of Stakeholder Engagement Report February 2013

Business

Transcript of Brunswick Future of Stakeholder Engagement Report February 2013