This presentation was given at the EACD Regional Debate on 18 October in Amsterdam and deals with securing stakeholder understanding and engagement at DSM.
- 1. Securing the understandingand support of our stakeholdersAligning strategy, values, culture and identity throughcorporate branding18 October 2012, EACD Meeting, Amsterdam@JosvHaastrechtDirector Global Branding and Integrated Communications
2. Agenda DSM: Who we are Creating share value Case: Nutritional Challenge 360 degrees DSM Closing the loop 3. DSMs global presence170+ locations, 22,000 employees, appr 9 billion sales Europe: 64 locationsChina:North America: 13,000 employees31 locations33 locations 3,000 employees4,000 employeesLatin America:Sales by region 2011 India:15 locationsNorthHigh Growth 8 locations1,000 employees AmericaEconomies 700 employees 19%39%36%Western 6%EuropeOther 4. Key activity areasHealthAdvanced, cost-effective health and medicalinnovations, and healthier food and beverages, to meetthe needs of a growing and ageing global populationNutritionWorlds leading producer of vitamins and nutritionalingredients meeting the growing need for morenutritious and more sustainable food and animal feedMaterialsEnabling lighter, stronger, more advanced and moresustainable performance materials 5. Global societal trends drive DSMs markets Health & Wellness Global shiftsClimate & EnergyAgeing populationPopulation growthResources constraintsHealthcare costsUrbanizationEnergy security Food security WealthSustainabilityHealthNutrition Materials 6. MissionOur purpose is to create brighter lives forpeople today and generations to come.We connect our unique competences inLife Sciences and Materials Sciences to createsolutions that nourish, protect and improveperformance. 7. Sustainability: core valuePeople: improving peoples lives through DSMsactivities, products and innovations (People+).Respect for people and recognition of theirfundamental rights.Planet: improving the environmental footprintthrough DSMs activities, products and innovations(ECO+) (more value with less environmentalimpact)Profit: creating profitable business and value forDSMs shareholders while meeting DSMs objectivesto provide solutions to global societal needs. 8. StrategyDSM in motion: driving focused growth 9. Culture 10. Brand PromiseDSM is a science-based company committed to creating solutions withits partners and customers to bring healthier, better performing andmore sustainable products to the lives of people today and forgenerations to come. 11. One DSM in a nutshellOur purpose is to create brighter lives for people today andgenerations to come.Mission We connect our unique competences in Life Sciences andMaterials Sciences to create solutions that nourish, protectand improve performance.DSM activities should contribute to a more sustainable worldCore Value People. Planet, ProfitDriving focused growth in Life Sciences and MaterialsStrategySciences meeting societal needsExternal Focus - Accountability for Performance Culture Collaboration and Speed - Inclusion and DiversityBrand Promise 12. Step change in sustainability:market-driven focus Opportunity-seeking Creating ValueMeeting the challenges of global societydoing well by doing goodProcessProduct Securing Value Robust DSMsystems and processesRisk-reduction 12 13. Clear sustainability aspirationssupport strategySustainability aspirations 2011 - 2015Dow Jones Sustainability Index Top ranking (Gold)ECO+ (innovation pipeline) At least 80% of pipeline is ECO+ECO+ (running business)from ~34% towards 50%Energy efficiency20% improvement from 2008 till 2020Greenhouse gas emissions 25% reduction from 2008 till 2020Engagement Surveytowards High Performance Norm 14. Agenda DSM: Who we are Creating shared value Case: Nutritional Challenge 360 degrees DSM Closing the loop 15. Creating shared value for our key stakeholdersMore engagement andDelivering differentiationreward working at ato provide better solutions company enabling ato the challenges facingPOTENTIAL contribution to a bettersociety worldEMPLOYEESCUSTOMERS ANDEMPLOYEESPROSPECTSKEY OPINIONLOCALLEADERS COMMUNITIESSHAREHOLDERSAND INVESTORS NGOs UNIVERSITIESAND RESEARCHGOVERNMENTSINSTITUTESSustainable growthSolving keyand profitability SUPPLIERS societal challengesPage 15 16. Organizational alignment critical CEO and Board ultimate owner of the brand, mission, values,strategy and culture. Communication and Branding fully integrated CorpComs directs Communications and Branding Regional and Business Group coms heads co-responsible forCommunications and Branding Cross-functional approach with key functional disciplines includingHR, Marketing, IR, Public Affairs et cetera. 17. Integrated and cross-functional CommunicationsBrand Promise, Mission, Core Value, Strategy, Culture Corporate messaging, visual identity and behavorial frameworkCustomersShareholdersEmployeesCommunitiesMarketing/BGs/CC IR/BGs/CCHR/BGs/CC PA/BGs/HR/CCStrategicStrategicStrategic StrategicPriorities Priorities PrioritiesPrioritiesCommunicationCommunication CommunicationCommunicationpriorities prioritiespriorities prioritiesTactical TacticalTactical Tacticalinitiativesinitiatives initiativesinitiatives 18. Agenda DSM: Who we are Creating shared value Case: Nutritional Challenge -360 degrees DSM Closing the loop 19. From 7 billion to 9 billionPage 19 20. Nutrional challenge - context 1 out of 7 people go to bed hungry 2 billion people live with hidden hunger (micronutrient malnutrition) Rise of nutrition-related diseases: 366 mio people with diabetes 1.6 billion people are overweight and obese, increasingly also in developing world 21. Resource-constrained worldDSM is helping to address this global challengewith nutritional solutions for the developed anddeveloping world.Page 21 22. Stakeholder approach &Critical Success Factors Create leadership position in Nutrition amongst key stakeholders(customers, key influencers, NGOs, media, governments, employees) thathelp us to drive reputation and favorably influence the political, social andbusiness world in which we operate. CSFs: Establishing supportive stakeholder management by increasingawareness, understanding, engagement and ultimately endorsement Defining and driving the agenda Organizational alignment and integrating communications & brandingapproach (360 degrees) Repurposing content 23. Strategic and Tactical ExamplesA number of strategic and tactical examples andinitiatives to increase supportive stakeholderengagementPage 24. 360 degree approach and manifestation strategy, alliances & partnerships 25. Driving agenda essentialPage 26. Public-private partnerships forthe greater goodPage 27. Community engagement:School meals program at schools made withDSM composite materials 28. strategy, alliances communications& partnerships 29. Nutrition media coveragePage 30. Bright stories libraryPage 31. Active dialogue via social Media(owned + earned) Externally Internally Facebook/Google+Twitter/Weibo LinkedinYammer Youtube/Flickr/SlideShare DSM website External BlogsIntranetPage 32. Third party endorsementDSMs actions are excellent examples of how the private sectorcan be a force for good in bringing about better quality of lifesustainable growth and a low-carbon prosperity for allBan Ki-Moon, UN Secretary-GeneralA lot of companies CSR initiatives have nothing to do with theircore business. DSM, by contrast, has used its savoir faire, itsexperience, and mobilized staff to improve the nutrients in thefood given in situations of famine or hunger. If we could cloneFeike Sijbesma, the CEO, the world would be a better placePamela Hartigan, University of Oxford Page 33. strategy, alliances marketing and& partnershipscommunicationsProducts & services 34. Succesful innovations addressingmalnutritionIncrease micronutrientLipid-based complementary Innovative approches tocontent in WFPfood supplements with reduce vitamin Afood basket, e.g. MixMe. micronutrients/enzymes. deficiency in India.Slide 34 35. Health benefit platforms drive growthSlide 35 36. strategy, alliances marketing and& partnershipscommunicationsproducts & services people, culture& behaviors 37. Global Bright Experience: DSM/WFPProgram awareness and fundraising 38. Global World Food Program assignments 39. We cannot besuccessful nor canwe call ourselvessuccessful in asociety that failsFeike Sijbesma,CEO/Chairman ofthe Managing Board 40. Agenda DSM: Who we are Creating shared value Case: Nutritional Challenge 360 degrees DSM Closing the loop 41. From responsibility to a business driverSustainability highlights 2011: ECO+ % of running business on track50% Eco+ sales ~41% of running business Eco+ innovations 94% of pipeline clearlyabove aspiration level > 80% Energy efficiency of 13% well on track toreach 20% improvement by 2020 versus200825% 10 million beneficiaries reached by WFPSustainability external recognition Leader Dow Jones Sustainability Index0%(sector leader 6 out of 9 years)CMD FY FYTarget 2010 World Business and Development 2010 2010 20112015Award from United Nations 42. Employee recognition and performance Accountability for Performance/Acting Responsibly standardbehavior Bright Science Awards Program MB Incentives related to sustainability targets ECO+ products Energy-efficiency improvement Employee Engagement Index 43. Sustainable Measurement Employees: 2011: employees proud to work for DSM up to 78% from 76% in 2010 Dedicated Brand Index within Annual Global Employee Engagement Survey in 2012 (social) Media: continuous share of voice/favorability analysis Analysts/Investors: annual qualitative survey Customers: Integrated approach with global NPS studies Prospects: Integrated approach with annual dedicated survey as from2012/2013Measurement on output and impact including perceptions relatedto key drivers and brand preference parameters. 44. More information on DSM dsm.com linkedin.com/company/DSM twitter.com/DSM facebook.com/DSMcompany flickr.com/DSMcompany youtube.com/DSMcompany 45