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Master Dissertation: Internal Communication Plan at Bekaert

Liesbeth Dejonghe May 2010

Promotor: Prof. dr. G. Jacob

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TABEL MET BESCHRIJVING VAN DE STAGE :

VOORAAN IN TE VOEGEN BIJ DE SCRIPTIE bedrijf

stagebegeleider

afdeling

taken

Naam : NV Bekaert SA Straat : President Kennedypark 18 Postnummer + Gemeente : 8500 Kortrijk

An Goedgezelschap

Corporate Communication

Bedrijfsblad redigeren, Intranet subsites realiseren, event voorbereiden, presentaties vertalen

Lieven Somers

Global Marketing

Communicatieplan schrijven, enquête opstellen, PowerPoint presentaties maken

Telefoon : 056 61 76 61 056 23 05 37

talen tijdens de stage Nederlands Engels

stageperiode 26 april 201025 juni 2010

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Acknowledgements I would like to thank a few people for their advice and help. First and foremost, I would like to thank my internship supervisors, An Goedgezelschap and Lieven Somers. They supported me through my internship and gave me constructive feedback. I learned a lot from them and appreciate all the advice they gave me. Furthermore, I would to thank Prof. dr. Geert Jacobs and Tom Bruyer for their advice during the writing process of this dissertation. Finally, I would like to thank Jonas Vandroemme for correcting my dissertation. He supported me a great deal and without him it would have been a far more difficult task.

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Table of contents Acknowledgements ............................................................................................................................. 3 0.

Introduction ................................................................................................................................. 6

I.

Bekaert ......................................................................................................................................... 8 1.

Company .................................................................................................................................... 8

1.1.

Company history .................................................................................................................... 8

1.2.

Company description.............................................................................................................. 9

1.3.

Structure ............................................................................................................................... 10

1.4.

Company values ................................................................................................................... 12

2.

Products and Customers ........................................................................................................... 15

2.1.

Automotive sector ................................................................................................................ 16

2.2.

Energy and Utilities .............................................................................................................. 17

2.3.

Construction sector ............................................................................................................... 17

2.4.

Agricultural sector ................................................................................................................ 17

2.5.

Consumer goods ................................................................................................................... 18

2.6.

Equipment sector .................................................................................................................. 18

2.7.

Basic material sector ............................................................................................................ 18

3.

Competition.............................................................................................................................. 19

3.1.

ArcelorMittal ........................................................................................................................ 20

3.2.

ThyssenKrupp ...................................................................................................................... 20

3.3.

Voestalpine ........................................................................................................................... 21

3.4.

Klöckner ............................................................................................................................... 21

4.

Conclusion: SWOT-analysis .................................................................................................... 22

4.1.

Strengths ............................................................................................................................... 22

4.2.

Weaknesses .......................................................................................................................... 23

4.3.

Opportunities ........................................................................................................................ 24

4.4.

Threats .................................................................................................................................. 25

5.

Bibliography ............................................................................................................................ 26

II. Theoretical frame ...................................................................................................................... 27 1.

Internal communication ........................................................................................................... 27

1.1.

What? ................................................................................................................................... 27

1.2.

Why? .................................................................................................................................... 28

1.3.

How? .................................................................................................................................... 29

2.

Communicating change ........................................................................................................... 34

5 2.1.

What? ................................................................................................................................... 35

2.2.

Why? .................................................................................................................................... 35

2.3.

How? .................................................................................................................................... 35

3.

Communication plan ................................................................................................................ 37

3.1.

What? ................................................................................................................................... 37

3.2.

Why? .................................................................................................................................... 38

3.3.

How? .................................................................................................................................... 38

4.

Bibliography ............................................................................................................................ 43

III. Internship................................................................................................................................... 45 1.

Communication plan ................................................................................................................ 45

1.1.

SPE-project........................................................................................................................... 45

1.2.

My input: communication plan ............................................................................................ 47

1.3.

Evaluation............................................................................................................................. 57

2.

Secondary tasks ........................................................................................................................ 58

2.1.

SPE-house ............................................................................................................................ 58

2.2.

Intranet ................................................................................................................................. 58

2.3.

International Health and Safety Day .................................................................................... 59

2.4.

Employer branding ............................................................................................................... 59

2.5.

Link ...................................................................................................................................... 60

2.6.

Newsletter............................................................................................................................. 60

IV. Conclusion ................................................................................................................................. 61 Bibliography ...................................................................................................................................... 63 Appendix ............................................................................................................................................ 66 Attachment 1: Communication plan ............................................................................................... 67 Attachment 2: SPE Awareness Survey ........................................................................................... 88 Attachment 3: Intranet screenshots ................................................................................................. 95 Attachment 4 : HR Advertisement .................................................................................................. 97 Attachment 5: General Meeting of Shareholders 2010................................................................... 98 Attachment 6: Link °248 ................................................................................................................. 99

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0. Introduction This dissertation was written within the framework of the Manama Multilingual Business Communication at Ghent University. In partial fulfillment of the requirement for the degree, a dissertation was written about the internship that was completed. The first part of the dissertation is dedicated to the company where the internship took place: Bekaert. Different aspects of this large Belgian multinational are examined in this part. First of all, I inspect the company itself. Here, I look at the long history of Bekaert, a description of the company, its structure and its values. Secondly, the company‟s products and customers are investigated. This is done by examining the different sectors Bekaert is active in: the automotive sector, energy and utilities, the construction sector, the agricultural sector, consumer goods, the equipment sector and the basic materials sector. In the third section, I focus on the competition of Bekaert by looking at some of the largest European steel companies: ArcelorMittal, ThyssenKrupp, voestalpine and Klöckner. Here, I show that Bekaert has no direct competitors at this moment. Finally, I conclude by composing a SWOT-analysis of the company by searching strengths, weaknesses, opportunities and threats. The second part of the master dissertation consists of a theoretical frame. This framework was chosen based on the tasks performed during the internship. At Bekaert, my main task was creating an internal communication plan for a change project. Therefore, my theoretical frame consist of three subjects. First, I examine internal communication in general. Next, I take a closer look at the importance of communication within change projects and finally I focus on the communication plan. I will examine these subjects by asking three questions. What is it? Why is it important? And how is it used? These three subjects lead to the third part concerning the internship. In this part, I describe the different steps I took to complete the communication plan. Next to this, I also provide an overview of the other tasks I was given. In the final part, I conclude with an overview of what I learned during this MTB year, personally and professionally. Furthermore, I evaluate the MTB program and examine which parts of the program

7 were useful during my internship. Moreover, I explore what I learned during the internship and how this correlates with what I was taught in MTB. These parts are followed by a bibliography and a collection of attachments, featuring some of the tasks I completed at Bekaert.

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I.

Bekaert

In this first part of my dissertation, I provide an overview of multinational Bekaert, where I did my internship. Bekaert is one of the best known companies in Belgium, with worldwide success. First of all, I take a closer look at the company itself with a short history, a description, an overview of the structure and the company values. Then, I focus on the products and customers that are located in certain sectors. Next, I investigate Bekaert‟s competitors and finally, I provide a SWOT-analysis of the organization.

1. Company 1.1.

Company history

Bekaert was founded in 1880 by Leo Leander Bekaert. In Zwevegem, local farmers were faced with the problem of cattle escaping the fields and destroying other people‟s property. Leo Leander Bekaert came up with a solution for that problem: barbed wire made by putting nails into twisted wire. He did not invent this, but created his own version of the wire: star shaped „crowns‟ with six sharp points which can be woven into the wire. He patented this invention in 1881 Figure 1: Leo Leander Bekaert

(Bekaert History).

In 1894, Bekaert started drawing wire himself. From then on, Bekaert became a real producer. In the same year, he started applying a protective zinc layer to his products. This treatment avoids corrosion and provides a better quality. Also in this year, Bekaert expanded its product portfolio to include wire and fending products (Bekaert 12). Bekaert goes international in 1922 with its first production plant abroad, in Bourbourg, France. From then on, the company never seized expanding. In 2006, Bert De Graeve became the CEO of Bekaert. Before this, he was Bekaert‟s CFO. Moreover, he was CEO of the VRT from 1996 to 2002. De Graeve was honored for his managing capabilities, when he Figure 2: Baron Buysse and Bert De Graeve

9 was voted Manager of the year in 2009. The Board of Directors is chaired by Baron Buysse since 2000 (Introducing Bekaert 2).

1.2.

Company description

Nowadays, Bekaert is a worldwide player active in selective applications in two core competences: advanced metal transformation and advanced materials and coatings. It has customers in 120 countries and in the most diverse industry sectors (Introducing Bekaert 2). Bekaert is a global manufacturing platform and employs 23.000 people worldwide, 1700 employees in North America, 6600 in Latin America, 6200 in Europe and 8500 in Asia Pacific (Introducing Bekaert 2).

Europe North America € 469 million combined sales

€ 823 million combined sales

25%

14%

Asia-Pacific Latin America € 1 237 million combined sales

€ 814 million combined sales

24%

37%

Production plants Offices and distribution centers

Combined sales 2009: € 3.3 billion

Figure 3: Geographical spread

In 2009, combined sales of €3.34 billion and consolidated sales of €2.44 billion were reached. Furthermore, the company is listed on Euronext Brussels and on the BEL20 (Introducing Bekaert 2).

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1.3.

Structure

Bekaert has a very complex structure. At the head of the company, we can find the Bekaert Group Executive. This is chaired by the CEO, Bert De Graeve and consists of Chief Financial Officer Bruno Humblet, Chief Technology Officer Dominique Neerinck, Group Executive Vice President Steelcord Geert Roelens and Group Executive Vice President Wire HenriJean Velge. In this last business unit, I did one part of my internship. On the subsequent level, there are four more departments who report directly to the CEO. This is Engineering, led by Marc De Sauvage, Corporate

Figure 4: Bekaert Group Executive: left to right: Dominique Neerinck, HenriJean Velge, Bert De Graeve, Bruno Humblet, Geert Roelens

Communications, led by Katelijn Bohez, Group HR under Bart Wille and Procurement and Business Development led by Phillippe Armengaud. The second part of my internship took place in the Corporate Communications department.

CEO

Level 1

Bert De Graeve

CFO

Steel Cord

Bruno Humblet

Geert Roelens

Level 2 Wire

CTO

Henri-Jean Velge

Dominique Neerinck

Level 3 Engineering

Communication

Group HR

Marc De Sauvage

Katelijn Bohez

Bart Wille

Table 1: Group structure

Procurement & Business Development Phillippe Armengaud

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WIRE GLOBAL MARKETING

On Mondays, Tuesdays and Thursdays, I worked at the Wire department in Zwevegem. The structure of Wire is a very complex one, so I simplified it for this dissertation. Wire is divided into 7 departments, that are divided into more departments. For the internship, I was stationed in Global Marketing. This department is led by Mike Ferringer. Within this department, I did my internship under Lieven Somers, one of the Global Marketing Managers.

Wire Henri-Jean Velge

Wire Europe

Wire NorthAmerica Geert Voet

Building Products

Wire Asia

Chambaere

Hulse

Stainless Technologies

Bekaert Carding Solutions

Cluydts

Van De Velde

Global Marketing Mike Ferringer

Table 2: Structure Wire

1.3.2. CORPORATE COMMUNICATIONS On Wednesdays and Fridays, my internship took place in Kortrijk at the Corporate Communications department. Head of the department is Katelijn Bohez. Within the department, I did my internship at the internal communication department under guidance of An Goedgezelschap.

Corporate Communications K. Bohez

E. Vanhauwaert

External Communication

Internal Communication

N. Meert

A. Goedgezelschap

Table 3: Structure Corporate Communications

K. Vandamme

Marketing Communication A. De Ridder and V. De Pauw

e-communication S. Delvoye and E. Devos

Communication support A. Parez

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1.4.

Company values

1.3.2.

BETTER TOGETHER

The baseline of Bekaert is better together. This term can be found all over Bekaert and represents the core of the company. Bekaert and everyone of its employers work better if they are working together, with colleagues, suppliers and customers. An example of this was the „better together for Chile and Indonesia‟-benefit that was organized for the victims of the severe earthquake in Chile and the flood in Indonesia. 240 Bekaert employees were badly hit by these disasters. Therefore, an action was organized in which Bekaert employees all over the world worked a couple of hours for their colleagues, thus donating parts of their wages. A total amount of €274 772 was collected. Bekaert doubled this amount at corporate level to a round figure of €550 000 (Link °248 4). With this money, houses were repaired and rebuild. Clothes were bought and destroyed goods replaced. This action illustrates the better together-spirit of Bekaert.

1.3.3.

MISSION STATEMENTS

We want: 

to safeguard the future of our company through sustainable profitable growth.



to be recognized as a world leader in our selected business segments, offering our customers – as their preferred supplier – innovative and high-quality products and services.



to maintain our position as an employer of choice for the best talent by providing professional growth opportunities and competitive rewards, thereby reflecting the value we place on global diversity.

(Introduction to the Bekaert Way 1)

As can be seen in this mission statement, Bekaert pays a lot of attention to the concept „sustainable profitable growth‟. This term is used a lot within the Bekaert walls. It stands for Bekaert‟s long-term strategic goal. The company has to be profitable, yet, sustainability is just as important. There are two forces that drive the success of Bekaert: worldwide market leadership and technological leadership. This is reflected in the second mission statement. A third important aspect of Bekaert are

13 the employees. Bekaert strives towards an HR policy where employees are giving opportunities to fully develop their talent. When it comes to the actual reality of Bekaert, some remarks have to be made. The first two mission statements are reality within Bekaert. Sustainable profitable growth is a concept that is given a lot of attention. Bekaert is a very cost- and environment-conscious company. The Bekaert-buildings for example are proof of that. For a large international corporation as Bekaert one would expect bigger, shinier buildings. The Wire building in Zwevegem, for example, does not even have airconditioning. Some employees are not very happy with their working environment. This leads us to the third mission statement. I repeatedly asked some employees what their thoughts were about the HR-policy of Bekaert. Their answers force me to conclude that there seems to be a considerable gap between the policy on paper and the reality on the work floor. However, most employees have been working at Bekaert for a very long time and do not plan to leave anytime soon. This leads me to think the policy cannot be that bad.

1.3.4.

BELIEFS We believe that: 

we derive our strength as a company from the lasting relationships we build with our customers, suppliers and other business partners, with a clear focus on creating win-win solutions.



continuously meeting customer expectations is the foundation of our growth.



our people make the difference: the resilience, trust and integrity they demonstrate in their daily work generate the power needed to fulfill our mission.



our focus on innovation and our relentless pursuit of operational excellence give us a competitive advantage.



sustainability also stems from the way we take full responsibility for the impact of our operations on the environment and society.

(Introduction to the Bekaert Way 2)

The Bekaert beliefs are quite similar to the Bekaert mission statements. Bekaert wants to create longlasting relationships with customers, suppliers and other business partners. This is of course the

14 better together-credo. Meeting customer expectations and thus being the preferred supplier is another important aspect of the Bekaert-beliefs. In the third belief, the focus is on the employees again. Bekaert beliefs in the importance of the employees as a driving force behind the company, therefore they have to be offered growth opportunities and a competitive salary. Innovation is a very important aspect in a technological company like Bekaert. This is why innovation managers are constantly trying to find new solutions to different problems. The final belief is again related to sustainable growth. Bekaert tries to be environment-conscious en has ecological products available. They are constantly looking for green alternatives.

1.3.5.

THE BEKAERT WAY

The mission statements and beliefs are summarized in the Bekaert Way. These are the most important values and aspects within Bekaert. It is divided into 5 parts.

Vision

CSR

TQM Ambitions

Way of working

Values

Figure 5: the Bekaert way

The first part is the vision of Bekaert. This is again „sustainable profitable growth‟. This is achieved by realizing a strategy of worldwide market and technological leadership and by establishing relationships with suppliers, customers and other business partners (Introduction to the Bekaert Way 4).

15 The second part of the Bekaert Way is corporate social responsibility, which revolves around people, environment and society. Growth is only achieved with consideration of these three elements. Bekaert strives for a minimal impact on the environment and considers safety and health the most important Key Performance Indicator (Corporate brochure 9). An International Health and Safety Day is therefore organized every year. Total Quality Management is the third step of the Bekaert Way. This means Bekaert strives to be the preferred supplier with committed employees through operational excellence. Fourth, the way of working is based on customer focus, innovation, results, self management and a focus on talent. Finally, we come to the true values of Bekaert. Resilience is the ability to bounce back after a setback and seize every opportunity with a positive drive (Introduction to the Bekaert Way 8). It means flexibility, versatility and adaptability (Corporate brochure 9). Trust is highly valued at Bekaert, and integrity is crucial as well. When asking around about these values, it appeared there is a gap between theory and reality. The values were created at group level and are therefore known at that level. When it comes to the business units, it seems the values are not that clear. Those who do know these values feel they are not really present within the company. Trust and integrity do not seem to be valued very highly, according to some.

2. Products and Customers In this section, the products and customers will be discussed by examining the different sectors Bekaert is working in. Bekaert is active in very diverse sectors. As can be seen in the figure below, Bekaert is mostly active in the automotive sector (36%), followed by energy (21%), construction (19%), agriculture and consumption (both 8%) and equipment and basic materials (both 4%) (Corporate presentation 5).

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Figure 6: Diverse sectors

2.1.

Automotive sector The automotive sector is the biggest customer of Bekaert (36%). Bekaert is present in nearly all automobile components: under the hood, in the steering mechanism and power system, in the doors and windows, the wheel housing and bumper, and in the interior (Shareholders‟ guide 9). A car can contain up to 30 kilograms of

Figure 7: Tire reinforcement

different Bekaert wires. For example, Bekaert supplies steel cord for

reinforcing radial tires to nearly all major tire manufacturers in the world. In fact, one out of four tires in the world is reinforced with Bekaert steel cord (Corporate brochure 27). Furthermore, due to more stringent emission regulations, Bekaert increasingly offers products that lower the environmental impact (Shareholders‟ guide 9).

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2.2.

Energy and Utilities

The energy and utilities sector is experiencing strong growth. Bekaert is catering to this trend by aiming at the energy and distribution sector, but also at activities in water and telecom. Bekaert wire reinforces cables, overhead power lines and flexible pipes. Moreover, components for oil and gas drilling, mining, water desalinization, and solar and wind power generation are featured in the Bekaert

Figure 8: Cables

product gamma (Shareholders‟ guide 10). In 2009, Bekaert developed a number of products that support the drive towards renewable energy. Sawing wire, for example, can cut silicon for solar cells with a minimum loss of materials (Corporate brochure 31).

2.3.

Construction sector

19% of Bekaert‟s sales come from the construction sector. Wire, mesh, window film and innovative fiber products can be found in construction, lifts and burners, fencing and reinforcement, roads and bridges, architectural solutions and concrete reinforcement (Link °247 8). Bekaert Murfor® masonry reinforcement, for example, was chosen by Spanish architect Rafael Moneo to expand the celebrated Museo Del Prado in Madrid (Corporate Brochure 10). Another famous building where a Bekaert application was used is the world‟s largest airport building Beijing Capital International Airport. The beautiful glass ceilings caused a solar heat problem, so window film from Bekaert was used to cover the 10 000 square meters of glass (Link °248 33). Figure 9: Beijing Capital International Airport

2.4.

Agricultural sector

Bekaert offers innovative solutions that facilitate the growing of crops, the raising of cattle and the farming of fish and oyster (Shareholders‟ guide 10). In Latin America, Bekaert is successful with the more traditional wire products, such as barbed wire, the Figure 10: Vineyard wire

18 best known Bekaert product. In mature markets, higher quality is required such as materials with a high resistance to corrosion (Link °247 8). Vineyards and other fruit and vegetable growers around the world also rely on Bekaert wire for training their vines. Recently, Bekaert even developed a biodegradable version (Corporate brochure 32).

2.5.

Consumer goods

Bekaert products can also be found in everyone‟s home: in stationery items, books, paper clips, music wire and kitchen tools. Moreover, Bekaert produces bra wire, heatable clothing, champagne cork wire, upholstery springs and wire in electronics, sanitary equipment and toys. In medical tools, wire is present in monitoring devices, catheters and diabetes sampling strips (Shareholders‟ guide 11). In other words, Bekaert is all around you. Figure 11: Champagne cork wire

2.6.

Equipment sector

Machine builders and operators use a variety of Bekaert‟s specialized wire products and components, for example spring wire, hydraulic filter media, fine cord and hose wire. These products can be used in both the construction of machines and in the machine Figure 12: Hose wire equipment itself (Link °247 9).

2.7.

Basic material sector Many Bekaert products are used to explore and produce raw materials, such as coals, metals, glass, pulp, paper, chemicals and textiles. For example, Bekaert makes cables and wefts for

Figure 13: Conveyor belt

19 conveyor belts (Shareholders‟ guide 11). In the glass industry, Bekaert is a trendsetter with its sputter hardware and rotating targets (Link °247 9).

3. Competition In this section, I examine Bekaert‟s competition. Since Bekaert is active in very diverse sectors, not much competitors can be discerned. At the communications department, no file could be found were competitors are mentioned. Therefore, I use a J.P. Morgan analyst report, dated 12 march 2010 and compare Bekaert to the other European steel companies. Bekaert only generates one third of its revenues in Europe, while it remains the main market for the competition. ArcelorMittal, ThyssenKrupp, voestalpine and Klöckner generate approximately 50%, 61%, 80% and 81% of their revenues in Europe, respectively. Moreover, while Bekaert has a large revenue out of the automotive and energy sector, the company also plays a role in construction, agriculture and consumer goods (J.P. Morgan 4). This shows that Bekaert is a very versatile player who is not really affected by any competitors. J.P. Morgan adds to this that “While in our opinion Bekaert falls under the classification of steel company, Bekaert is not a steel producer but a steel wire rod processor, so there are relatively few comps within the steel universe. Bekaert also exhibits different characteristics than steel producers. For example, its primary raw material is steel wire rod while steel producers consume iron ore, coking coal and scrap” (J.P. Morgan 4). This quote shows that Bekaert is indeed an outsider in the steel market, who has relatively few competitors. For every product Bekaert makes, a competitor can be found, of course, but doing this would lead us too far. There is no other company who does exactly the same as Bekaert does on the same scale. Therefore, I take a closer look at the European steel companies to see why they are no real threat to Bekaert.

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3.1.

ArcelorMittal

ArcelorMittal is a steel company operating in more than 60 countries, in all major global steel markets, including automotive, construction, household appliances and packaging. In 2009, ArcelorMittal had revenues of $65.1 billion and crude steel production of 73.2 million tonnes, representing approximately 8% of world steel output. Moreover, ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Brussels (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS) (ArcelorMittal). ArcelorMittal offers a full range of steel products and services. From commodity steel to valueadded products, from long products to flat, from standard to specialty products, from carbon steel to stainless steel and alloys, ArcelorMittal offers a complete spectrum of steel products (ArcelorMittal). Nevertheless, these products are different kinds of steel plates, whereas Bekaert produces steel wire. In Brasil, Bekaert even has a joint venture with ArcelorMittal: Belgo Bekaert Arames. Moreover, J.P. Morgan expects the EBITDA margin of ArcelorMittal in 2010 at 14%, while they expect that of Bekaert to rise to 18% (J.P. Morgan 5).

3.2.

ThyssenKrupp

ThyssenKrupp is a global integrated materials and technology group, active in more than 80 countries with almost 188 000 employees. In the 2008/2009 fiscal year, they generated sales of more than €40 billion. Eight business areas focus the Group's activities in a Materials division and a Technologies division. The Materials division focuses the Group's worldwide materials activities. In the Steel Europe business area, premium flat carbon steel activities are grouped, from intelligent material solutions to finished parts. The product range includes custom tailored products made from steel sheets of different thickness, grade and finish. The Steel Americas business area focuses on the American market for high-quality steel products. Furthermore, the Stainless Global business area specializes in flat stainless steel products and high-performance materials such as nickel alloys and titanium. Finally, the Materials Services business area is focused on materials services all around the world, and particularly in Europe and the NAFTA region. Carbon and stainless steel, titanium,

21 aluminum and plastics are supplied to customers and prepared for further processing (ThyssenKrupp). As can be seen, the products ThyssenKrupp manufactures are different from Bekaert‟s product range. Furthermore, J.P. Morgan expects only a EBITDA margin of 6% for ThyssenKrupp in 2010 (J.P. Morgan 5).

3.3.

Voestalpine

Voestalpine is an Austrian steel company with annual sales of €8.6 billion in 2009. Moreover, they had an operative result of €352 million. The company has 39.400 employees, the majority employed at locations outside Austria and is represented worldwide by more than 360 production and sales companies in more than 60 countries throughout the world. Voestalpine is an innovative company that invests around €112 million per year on Research and Development. The company is also listed on the Vienna Stock Exchange. They produce switch technology and special steel (such as tool steel), heavy plates and seamless tubes for the energy sector, steel strip, rails, special tubes and highquality automotive components (voestalpine). As with ArcelorMittal and ThyssenKrupp, voestalpine‟s products are different from Bekaert‟s. J.P. Morgan expects an EBITDA margin of 14% for voestalpine in 2010 (J.P. Morgan 5).

3.4.

Klöckner

Klöckner is the largest producer-independent steel and metal distributor in the combined European and North American market. They are the link between steel and metal manufacturers and small and medium-sized metal customers. The German company is active in 15 countries and employs around 9500 people. Klöckner‟s annual sales amounted to €3.860 million in 2009, with an EBITDA of -€68 million (Klöckner). As we can see, this company was hit a lot harder by the economic crisis than Bekaert. J.P Morgan calculated their 2009 EBITDA margin at -3%, but expects a rise to 5% in 2010 (J.P. Morgan 5).

22 Since the company is a metal distributor, it is no direct competition of Bekaert. In some cases, it could even be a customer, selling Bekaert‟s products to customers. After taking a look at these four largest European steel companies, it is clear that they are not really Bekaert‟s competitors. Even though they are active in the steel sector and provide the same customers, they offer different products. Therefore, it can be said that Bekaert is in an excellent position and truly is an outsider in the steel market.

4. Conclusion: SWOT-analysis 

Outsider in steel market



Emerging markets



Sustained investment in R&D



Diverse markets



Family ownership



New entrant risk is limited



Growth of radial tires



Competition invade other sectors



Values are no reality



Complicated structure



Move abroad

Table 4: SWOT-analysis

4.1.

Strengths

OUTSIDER IN STEEL MARKET As shown above by comparing Bekaert to ArcelorMittal, ThyssenKrupp, voestalpine and Klöckner, Bekaert is an outsider in the steel market. It is not a steel producer but a steel wire rod processor. As a result, Bekaert has few competitors.

23 SUSTAINED INVESTMENT IN R&D Innovation is very important to Bekaert. Approximately 3% of consolidated sales are directed towards R&D every year (€63 million or 2.6% of 2009 sales). The investment in R&D has grown substantially in the last 8 years (+31%) (J.P. Morgan 5).

FAMILY OWNERSHIP Bekaert family members control 38% of the Bekaert shares. The presence of this stable reference shareholder keeps management focused on cash generation and a high payout ratio. The company aims at distributing 40% of its earnings to shareholders over the cycle. This compares favorably to dividend payout ratios in the European steel sector (typically 30-33% of earnings). J.P. Morgan calculates that Bekaert has paid an average of 46% of earnings since 1997 in the form of dividends (J.P. Morgan 5).

4.2.

Weaknesses

THE BEKAERT VALUES ARE NO REALITY Bekaert has a nice set of values, but these do not seem to be reality in the company, according to employees. Of course, I can only speak for the business unit Wire. I believe this is related to the global structure of the company. Bekaert‟s headquarters can be found in Belgium and the strategies are thought out here. Therefore, the values should be known and present there, which is apparently not the case. If these values cannot be found in Belgium, then it can be assumed that they are not known in the other regions as well.

COMPLICATED STRUCTURE The Bekaert company structure is a very complicated and hierarchical one. It is sometimes not clear who is responsible for what. For example, in the communications department all global decisions are made. Every business unit also has a communication officer. It sometimes occurs that these interfere with the global decisions made by Corporate Communications or think a certain decision is theirs to make while it is not.

24 The hierarchical structure causes processes and decisions to take a long time. I helped organizing the International Health and Safety Day, for example. We thought giving a gadget would be nice to support the event. But before we could ask for a budget, we had think out everything: gadgets, prices, amounts, etc. Of course, this took a very long time. Finally, we presented the ideas to the head of the communications department and she simply told us no budget would be available. Knowing this beforehand would have saved us a lot of time. All decisions have to be approved by so many people it becomes hard to achieve certain goals in a short amount of time.

MOVE ABROAD Bekaert is expanding exponentially in Russia and China. Therefore, bigger opportunities can be found for those who are willing to move abroad. This limits the promotion possibilities for employees and thus their motivation. It is also not very family-friendly.

4.3.

Opportunities

EMERGING MARKETS Developed steel markets are in a period of slow growth, as opposed to the fast growing emerging markets Bekaert is active in, especially China and Latin America. Emerging markets represent approximately 50% of Bekaert‟s consolidated sales and should continue to grow as the company invests further in these regions. J.P. Morgan expects the Asia Pacific division to grow at a double digit rate in 2010 due to its exposure to the Chinese automobile market (approximately 58% of divisional sales). In Latin America, the construction end market should remain strong and sales in that division are expected to grow by approximately 9% in 2010 (J.P. Morgan 3).

DIVERSE MARKETS Diversified end markets allow for relative earnings stability. Bekaert is a very diversified company in terms of geographical footprint and end markets. As mentioned before, Bekaert generates only about one third of its revenues in Europe as opposed to the other European steel companies. Furthermore, Bekaert is active in very diverse sectors (see 2). Therefore, the company remains relatively stable if one sector collapses.

25 NEW ENTRANT RISK IS LIMITED Bekaert faces limited threats from new entrants in its core markets, because the company‟s operations are located close to customers and are primarily geared to domestic markets (J.P. Morgan estimates approximately 90% of production stays local). Bekaert has technical expertise and longstanding customer relationships, which makes it difficult for new entrants to take market share from Bekaert in mature markets. J.P. Morgan estimates Bekaert enjoys a five year advantage in terms of quality and technology versus new competitors in emerging markets. Furthermore, they estimate the company will continue to record 30%+ EBITDA margins in coming years (J.P. Morgan 5).

GROWTH OF RADIAL TIRES In emerging countries, more cars are being bought and more paved roads are laid. This causes a growth of the tire market. The need for radial tires also increases since highway infrastructure evolves and these roads require radial tires. Radial tires have a reinforced steel structure which allows for increased load, enhanced fuel economy and improved safety and are therefore practically a necessity for use on paved roads. They reduce the risk of for example tire blowouts, which can be common when non radial tires are used on paved roads. As the largest producer of steel cord for radial tires globally (with approximately 25% market share), Bekaert stands to be one of the primary beneficiaries from the trend of increasing radicalization of car and truck tires in emerging markets (J.P. Morgan 7).

4.4.

Threats

COMPETITION MIGHT INVADE OTHER MARKETS AS WELL There is of course a risk that the competitors can invade the emerging markets and diverse sectors as well. Yet, as mentioned above, it will be hard for new entrants to gain ground in the markets Bekaert dominates.

26

5. Bibliography ArcelorMittal. “About ArcelorMittal”. Web. 7 July 2010. . Bekaert. Bekaert. Tielt: Lannoo, 2005. ---. “Bekaert History”. Web. 18 May 2010. . ---. Corporate Brochure 2009. ---. Link °247, November 2009. ---. Link °248, May 2010. ---. Presentation Introducing Bekaert . ---. Presentation Corporate Presentation. ---. Presentation Introduction to the Bekaert Way. ---. Shareholders’ Guide 2010. J.P. Morgan. Analyst report Bekaert. 12 March 2010. Klöckner. “At a glance”. Web. 9 July 2010. < http://www.kloeckner.de/en/group/at-a-glance.html>. ThyssenKrupp. “Group”. Web. 7 July 2010.. Voestalpine. “Corporate Group”. Web. July 8 2010. .

27

II.

Theoretical frame

During my internship, I worked on a change project for sales performance excellence. Within this project, I was responsible for the internal communication plan. Therefore, it seemed only natural to select this topic as the subject for my dissertation. First of all, I look deeper into what internal communication is all about. Secondly, I investigate how communication helps to create change, as communication is a very important aspect within a change project. Finally, I take a closer look at what a communication plan is. These three topics are investigated by answering three questions. What is it? Why is it important? And how is it used?

1. Internal communication 1.1.

What?

Generally, communication is divided in two fields: external and internal communication. External communication can further be divided into concern communication and marketing communication. Concern communication centers around the image of the entire organization, such as public affairs, crisis communication and financial communication, while marketing communication focuses on the

Communication

products and services the company offers. Internal communication, on the other hand, is concerned with

External communication

Internal communication

the organization of the communication within a company (Communicatie 33). It is defined as the

Concern communication

sharing of information with members of the same organization

(Communicatie

128).

dissertation,

I

on

communication.

will

focus

For the

this

internal

Marketing communication

Figure 14: Communication

28

1.2.

Why?

The importance of internal communication can hardly be overestimated. Internal communication takes place at and between all levels of an organization (De Rooij 114) and is equally important as external communication, because everyone within the organization has to be aligned in the same direction before communicating that direction externally (Basisboek 94). Internal communication is constantly gaining importance. This is due to four trends. First of all, the aspect of service is becoming more important. Customers no longer buy a product, but they also expect a service. Therefore, employees need to be well-trained to deliver the desired service. Secondly, organizations need to be flexible and able to implement change quickly. Needless to say, employees are an important part of changes within organizations. Thirdly, there is an augmenting need for information and involvement. A higher level of involvement is a great motivator. Finally, it appears that an important reason for employees changing jobs is disgruntlement with the internal communication (Floor, Van Raij 65-67). These reasons prove internal communication is an important aspect within a company‟s communication mix and it fulfills a number of functions. Internal communication has three important functions. First of all, it has an important coordinating function and aids in implementing actions more efficiently. Without internal communication, goalorientation of activities is missing and every employee tries to reach his or her own goals instead of those of the company. Thus, internal communication is the oil for a well-oiled machine. Furthermore, it has a binding function. Employees need to feel connected to their company and to each other. They need to share values and ideas. Finally, internal communication has a process function. It facilitates all communication processes and improves mutual cooperation (Reijnders 911). In order to improve employee involvement through internal communication, four important factors can be defined. The kind of information that is shared is primordial. It needs to come at the right time and in the right way. Furthermore, the degree of formality cannot be ignored. The communication needs to be offered in the right tone. Another important aspect is the direction of the communication (see below). Finally, the degree of comprehensibility needs to be right for the employees to know who is responsible for what and what is expected of them (Van Putte 98-9).

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1.3.

How?

Internal communication can be conducted in several directions and is used to disperse four kinds of information. Furthermore, the communication has a number of channels at its disposal.

1.3.1.

COMMUNICATION DIRECTION

The information provided by internal communication can flow in several directions. Top-downcommunication is the most widely used type. Top management sends the information to the middle management, and they send it to the employees (Koeleman 33). This direction is mostly used for information regarding instructions and policy. Next to this direction, there is also bottom-upcommunication. In this form of communication, employees inform top management and middle management about their wishes and general workings. This helps to keep management informed about what goes on on the work floor. These two types are forms of vertical communication (Handboek 133). Another form is horizontal communication. Here, information is exchanged between members with the same position in the hierarchy. A third communication direction is diagonal communication (Basisboek 100). This communication flows between diverse levels in an organization and is not horizontal nor vertical. Finally, there can also be communicated in a parallel way. Here communication is sent to all levels of the hierarchy at the same time. Examples of this are the corporate magazine or speeches by top management (Handboek 133).

Top management

Parallel comm

Vertical comm Horizontal comm Middle management Vertical comm Employees

Figure 15: Communications direction

Middle management

Diagonal comm

Horizontal comm

Employees

30 1.3.2.

TYPES OF INFORMATION

Four types of information are delivered through internal communication. Job-related information provides the necessary information for an employee to perform his or her job, e.g. work instructions or work schedules. Policy information, on the other hand, informs about the general state of the organization and the planning for the future. Thirdly, social information is related to human resources and provides the employees with knowledge about promotions, holidays and career opportunities. Finally, a company can also inform employees about the progress it is making, such as the annual report or production numbers. This type of information is called „management information‟ (Reijnders 5-6).

1.3.3.

COMMUNICATION CHANNELS

To communicate effectively, several communication channels can be used. A distinction is made between written, oral, electronic, audiovisual and other media. In this section, I provide an overview of the most commonly used media.

A. Written media Written media are most commonly used. This type of media has the advantage that the receiver can choose when to read it. The information can reach a large number of people and is relatively cheap. Yet, the lack of personal contact makes it unclear if the message is received and understood (Reijnders 12). The corporate magazine is made by the company for the employees, based on the assumption that informed employees are motivated employees. The magazine is meant to strengthen the bonds between the company and its staff (Basisboek 106) and aims at motivating employees, supporting management and strengthening moral (Kleijn 345). It offers articles about developments within the company, festivities, and policy. Interviews with members of all levels of the hierarchy, images and

31 entertaining information can also be found here. Disadvantages of the corporate magazine are its cost and long production time that causes articles to be outdated (Basisboek 106-7). Newsletters are the perfect medium for reaching small target groups. They can provide support for internal newspapers, magazines and other media by enabling rapid updates under the same brand (Scholes 46). Newsletters have the advantage of being a fast medium that do not require long production time. They can be used to inform employees about a project or inform in between corporate magazines. Newsletters can be distributed on paper or online (Handboek 151). A notice-board is another written medium that organizations use. In order to be effective, the board needs to be positioned in a central place and the information offered has to be user-friendly: clear, actual and not filled with too much information. The board can also be divided into different sections (Handboek 151-2). Notice-boards can carry everything from the menu in the staff restaurant to share information (Scholes 132). Moreover, posters are often used to communicate a specific project. They are placed where they can be spotted well to confront employees with a certain slogan or message of a campaign or project (Reijnders 171). They offer a clear way to get a simple message across (Scholes 132). Brochures and reports can range from information about particular sites or products to employee versions of annual reports (Scholes 51). The latter show how the company is doing and how the market is evolving. The annual report informs employees about their company and motivates them in case of positive growth (Reijnders 171). Brochures and reports can increase the credibility of the organization and convey its values through the powerful combination of text and graphics (Scholes 53). Manuals, guides and handbooks with instructions or rules are distributed as well within organizations. Bekaert, for example, has a booklet with the rules of conduct that every employee receives when he or she starts working at Bekaert. This medium is too often neglected. Companies often invest massively in new machines, but rush the job when it comes to producing the accompanying manuals, guides and handbooks. The advantage here is that the guides provide a permanent record and reference (Scholes 48). Booklets can also be made for specific projects.

32 B. Personal or oral communication Oral communication is often used in internal communication. This can range from a formal conversation between manager and employee over a management speech to an event. The feeling of involvement is generally higher with this type of communication because there is a possibility for feedback due to the two-way traffic. A disadvantage is that the information that is provided through personal communication is usually retained less. Brainstorm sessions, group discussions, personnel events, team meetings, workshops, presentations and conferences are also useful personal communication tools (Koeleman 26). Team meetings are particularly successful because there is a possibility to ask questions and the teams are motivated and get to know each other better (Handboek 145). This medium is well-suited as a medium in organization changes (de Natris 71). The disadvantage is that teams are always located within divisions and no cooperation or bonds are formed between the different divisions. This is why personnel meetings are interesting (Handboek 146). Workshops and seminars are used to involve people more actively in a semi-formal way. They are conducted in small groups, with personal contact and are highly interactive, practical and focused (Scholes 37). Conferences are another form of oral communication. They usually tend to take place in bars, restaurants and hotel lobbies. According to Scholes, these are the places where bonds between colleagues are formed, renewed and strengthened. Moreover, conferences can be a powerful force for motivating and channeling of the talent of the entire organization (Scholes 25). Finally, the last forms of oral communication I discuss are presentations and speeches. They are the principal media at most events and can have a powerful impact on an emotional level when supported by striking graphics, lightning, sound, choreographed events and stagecraft (Scholes 31).

33 C. Electronic media E-media are gaining importance and are used more frequently (Reijnders 13). A life without computers can no longer be imagined in the western world. E-media have become very powerful media, especially in external communication. Nevertheless, E-media are just as important for internal communication. The mostly used types are intranet, e-mail, CD-ROMS, SharePoint and PowerPoint. The most popular electronic medium is intranet. Almost every organization with more than 100 employees uses it (Koeleman 28). Intranet is internet within an organization where information is gathered. This relatively new tool has a number of advantages: it provides actual information, limits the paper waste, makes information accessible to everyone and at anytime and provides interactivity. Nevertheless, it also has some disadvantages. Intranet is an expensive medium that is highly technological, which makes it difficult to maintain. It is always unsure who reads the intranet and long pages are difficult to read. The intranet can be seen as an archive where information is constantly stored, added and updated (Handboek 147). Slevin points out that intranet is more than a new distribution network for information and communication. He claims that intranet allows for new forms of social relationships within corporations and that companies do not fully use the possibilities this medium offers (Slevin 437). Another form of electronic media is e-mail. E-mail marketing is a form of direct marketing via internet and intranet under the form of short digital messages with attachments. It is a cheap, effective, fast, personal, measurable, flexible medium (Schuurmans 170-3). CD-ROMs can be used to store all types of electronic information. It is used a lot to share multimedia: “a buzzword open to broad interpretation and not fully understood by the general public” (Scholes 98). It refers to computers combining text, sound, video, animated graphics and telecommunications (Scholes 98). SharePoint is usually a part of intranet. It is a virtual space that allows interaction and sharing of information. As opposed to intranet which is usually for the whole organization, different SharePoint sites can be made for specific groups and projects. This is a widely-used medium within Bekaert.

34 The final electronic communication medium that is discussed here is the PowerPoint presentation. This can be used as a supportive tool during an oral presentation, but can also be used independently. Video clips, images and text can be inserted (Schuurmans 189).

D. Audiovisual media Audiovisual media can have a greater impact due to their visual aspect. Seeing something creates bigger repercussions in the brain than hearing or reading it (Koeleman 31). Psychologists claim we retain about 20% of what we hear, 30% of what we see and 50% of what we hear and see (Scholes 98). Therefore, it is usually better to make a video of user instructions than a written document. Unfortunately, making a video is a very expensive business. That is why not every communication benefits from its use (Koeleman 31).

E. Other Other communication devices are gadgets, excursions or even games. Communication offers a lot of possibilities and it can often be challenging to try something new. Gadgets have the advantage of offering something tangible that employees will use and keep close. Excursions and games are both fun ways to inform, motivate and interest an employee. Games can also be used to educate employees (Schuurmans 200).

2. Communicating change An important aspect in change projects is communication. In this part of the dissertation, I focus on what makes change processes difficult and why communication can facilitate this process. Furthermore, I take a look at how communication can be used best to support a change process.

35

2.1.

What?

Change processes are very frequent within organizations, yet seventy to eighty percent of organization changes in companies fails (de Natris 11). Three types of changes are generally discerned: a change of strategy (new policy), a change of structure and a change of culture. The last one implies a change of values and is most difficult to obtain (Handboek 137). It requires a different behavior from employees and managers, a different set of values and a different image (Van Dijk 188). The situation needs to be changed and this effects everyone in the process. A major problem within these processes is the willingness of the employees to change (Reijnders 29). Changes cause insecurities and people prefer being secure (Handboek 136). Therefore, employees are often quite reluctant when it comes to change. This resilience can occur when changes are forced upon them. This can be due to a number of reasons: they do not see the need for change, they do not believe in the chosen method, they do not trust the management, they are afraid of losing power, they act out of their own interest, and so on. The resilience also increases when they are not involved in the process, or when change processes have not ended well in the past (Reijnders 29).

2.2.

Why?

To allow for a change process to take effect, the resilience of the employees needs to be taken away. This resilience can be counteracted with communication. 50 to 60% of process leaders feel good internal communication is the most important factor in a big change process like a fusion (Koeleman 9). Of course, communication alone cannot take away all the resilience. Other means, such as education, financial rewards or social pressure, can also achieve this. Communication is mostly used as a supportive tool. Good communication cannot save a bad change process, yet bad communication can severely damage a good one (Koeleman 147).

2.3.

How?

On the level of content, a lot of attention has to be given to the clarity of the objective and the result. It is important to stress what the goal of the change process is and what results are expected. These

36 need to be repeated multiple times during the process. The desired situation also needs to become tangible for the employees. In case of a relocation, it helps to show them this new location. Furthermore, radio silence needs to be avoided at all costs. Results need to be communicated periodically to enhance the acceptation of the new situation by the employees. Moreover, during the entire process, management needs to pay attention to the daily problems of the employees that are caused by this change. This will decrease their resilience (Koeleman 148). Communication can be a monologue, but also a dialogue or even a discussion. The way in which communication is approached can make a significant difference. A dialogue-approach allows employees to voice their opinion to the management. The discussion-approach goes even further and allows management and employees to discuss the process and adapt it to suggestions given by the employees. The more open the communication is conducted, the more easily employees can adapt to changes. The degree of participation also plays a role in this. The more involved employees feel, the more flexible they become. Managers are usually afraid to give their employees a large degree of participation. Yet, this will decrease their resilience (Reijnders 31). Timing is another important element. Employees will be less resilient if they are informed from the beginning. This also allows for more participation (Reijnders 34). Van Ruler designed four basic strategies for communication during change. In her „communication grid‟ she distinguishes between choosing two-way traffic with the environment and the influencing of target groups (Van Ruler 149). Controlled one-way traffic

Information

Persuasion

Denotation

Connotation Consensusbuilding

Dialogue

Two-way traffic Figure 16: Van Ruler's Communication Grid (Van Ruler 123-143)

37 The first basic strategy is „information‟. The focus is put on giving information about the change process. This strategy can be found in the quadrant of denotation and controlled one-way traffic. Information is offered in order for the other to form an opinion and take initiative. This strategy works well when the need of the internal target groups is taken into account and targeted specifically. „Persuasion‟ focuses on influencing and is the second basic strategy. It is a mix of connotation and controlled one-way traffic. This is the basis of propaganda and advertising. With this strategy, the sender tries to persuade the other of his or her point. The need of the specific target groups is of great importance here as well. The third strategy is „dialogue‟, an open exchange of thoughts and ideas. This strategy can be found in the quadrant of connotation and two-way traffic. The groups participating in the dialogue are considered equal. The final strategy is the creation of consensus, a mix of denotation and two-way traffic. This is a collaboration between groups and the forming of coalitions between opposing parties. With this strategy, the sender strives towards a winwin situation (Koeleman 149-150).

3. Communication plan In this section, I concentrate on the communication plan. The same questions are answered as in the previous sections. What is a communication plan, why is it used and how is it composed?

3.1.

What?

A good communication plan provides a view of the communication as a whole within an organization. It provides clarity as to what is expected the next year or years and estimates costs and Corporate communication plan

personal efforts (Handboek 104). Communication plans can diverge in a number of levels. A general corporate communication plan can be made. Here the vision and the policy is focused on.

Concern communication

Marketing communication

Internal communication

Figure 17: Corporate communication plan

38 Such a plan can be divided into a concern communication plan (image of the organization), a marketing communication plan (products and services) and an internal communication plan (organization within the company) (Handboek 104). The goals of these plans are different, yet the approach remains largely the same. The plan is usually divided in seven steps. First an analysis of the situation is made. Then the objectives and target groups are discerned. In the fourth phase, a general approach is defined and the message and communication media are chosen. This is followed by a timing and a budget. Finally, the plan is evaluated (Handboek 105).

3.2.

Why?

According to Thierry Libaert there cannot be communication within an organization without a communication plan. To have communication in a company and to have it recognized as a profession, it needs to be based on a methodological pillar. Without profound reflection on the communication plan, there can be no room for professionalism in communication (Libaert 1).

3.3.

How?

As mentioned earlier, the plan is divided in seven steps: situation analysis, objectives, target groups, approach (message and communication media), timing, budget and evaluation.

3.3.1.

Situation analysis

First of all, the situation needs to be analyzed. It is important to know how the situation is now and what the desired situation is. Therefore, the situation as it is and the potential problems need to be well-known. The product or service that is promoted has to be analyzed thoroughly. Furthermore, some questions need to be answered. What communication tools are used now? What is the culture and the structure? What is the desired identity and the image? How is the product or service positioned (Handboek 107-8)?

39 These questions are very general and are used in most communication plans. However, in my case, the product or service is an internal project. Therefore, a somewhat different approach needs to be used. It is more relevant to analyze the project instead of the organization. So, the questions that have to be asked when preparing a communication plan for a project are the following: what is the reason for the project? What influence will this project have on the organization? Is it temporary or permanent (Waardenburg 37)? A practical way to analyze the situation is to compose a SWOT-analysis. Here the strengths, weaknesses, threats and opportunities of the project are defined. This will help in seeing where the problems are located (Waardenburg 28).

3.3.2.

Objectives

After the situation is analyzed, the objectives can be defined. First, we need to make a distinction between

organizational

objectives,

marketing objectives

and

communication

objectives.

Organizational objectives are concerned with the mission of the company: the place and function of the company in society and its contribution to community. Mainly these objectives are profit and return (Handboek 112). Marketing objectives are focused on turnover, market shares and competition. They are statements about what needs to be achieved by the marketing plan within a certain timeframe (Belch 253). Important for the communication plan are the communication objectives. They describe the desired communication effects in terms of knowledge, attitude and behavior. What does the target group need to know, think and do (Handboek 112)? A guideline for communication objectives are the SMART criteria. The objectives need to be specific, measurable, attainable, relevant and time-bound (Handboek 113).

40

3.3.3.

Target groups

A very important aspect of the communication plan is defining the target group. When the target group is too big or different, it is useful to divide it into different segments. The segments need to be big enough and attainable however, to be really useable (Handboek 109). Segmentation can be done in a number of different ways. The target group can be divided according to geographic data (country, region, city, etc.), demographic data (age, sex, religion, etc.), socioeconomic data (profession, income, education, etc.) or psychographic data (attitude, opinion, interest, etc.). Next to these, the buying and consuming behavior and the phase in the lifecycle can also be relevant benchmarks. The latter shows the different stadia a person completes in life based on combinations of cohabitation, income and age (Handboek 109-111). After the target groups have been segmented, they need to be examined thoroughly. As much information as possible about the target groups has to be collected: geographic, demographic, socioeconomic and psychographic characteristics are useful to determine communication strategies (Waardenburg 53).

3.3.4.

Approach

After determining the target groups, a communication approach needs to be developed. First of all, a message has to be defined for every target group. Then, the different media that will be used have to be chosen. 3.3.4.1.

MESSAGE

In this step, a message needs to be chosen. In our current society, it becomes ever harder to reach target groups. People become very selective when it comes to receiving information due to the overload of it. Therefore, the message needs to address the target group directly and appeal to them. Three important factors determine whether the message will appeal. The message needs to be distinctive. It cannot be too general, for in this way no one feels attracted. Moreover, the message needs to be comprehensible. Words need to be chosen carefully to convey the message clearly.

41 Finally, the message also needs to be recognizable. Messages are only interesting to the receiver if he or she can relate to it. Strong messages tap into expectations, problems and dreams of the target group (Handboek 114). The content of this message needs to be chosen wisely. It needs to contain the relevant facts, information and emotional charge. It has to be reliable and cannot create resilience in the target group (Waardenburg 59). 3.3.4.2.

MEDIA

Next to the message, the corresponding media have to be selected. What media convey the message best and is able to reach the target groups best? As seen in 1.3., internal communication can resort to a large scale of different communication media. The difficulty now is to find the right media to convey the message, the concept and the content. The selected media need to be as efficient as possible. Every medium has a different advantage, disadvantage, cost and function. A billboard, for example, can be spotted by a lot of people, but cannot carry much information. The chosen medium depends on the objectives, the target group, the message, the budget and the available knowledge and experience with the medium. It is usually best to select more than one medium and combine these in a communication mix. Mostly, one medium is chosen as the main medium and the others support it (Handboek 118).

3.3.5.

Timing

A communication plan needs to be timed. As time passes, the project and target groups become more complicated. That is why a decent timing has to be made. A timeline is the easiest way to do this. The start and end date of the campaign is usually known, so the rest is just a matter of filling in the blanks (Waardenburg 65). Another approach is creating a table with dates and media (Handboek 119).

42

3.3.6.

Budget

Money is of course important in a communication plan. The budget has to be kept in mind during the entire process of composing a communication plan. The size of the budget can be determined in a couple of ways. It can be based on the communication objectives. With this method, we look at what the objectives are, what activities are needed and how much they cost. The budget can also be based on the previous communication budgets. Another method is basing the budget on a percentage of last year‟s turnover. This, however, means that the budget diminishes when the turnover diminishes. To counteract this, the anti-cyclic method can be used. Here the organization provides a larger budget when the turnover goes down and a smaller when it goes up (Handboek 121-2). The different costs that need to be taken into account are a.o. personnel, publishing costs, distribution, advertising space, press, research, etc (Waardenburg 67).

3.3.7.

Evaluation

The final step of the communication plan is the evaluation. This is not a single step, but a process. The plan needs to be monitored constantly in order to keep it on the right track. Evolution afterwards is also useful to determine whether the objectives have been reached. The weak and strong points will be determined and will be useful for the composition of other communication plans (Waardenburg 78). Different factors can be evaluated. In a process analysis, the general course of action is discussed. Product evaluation focuses on appreciation. What did the target group think about e.g. the brochure or clarity of the communication? The effect of the communication can also be evaluated (Handboek 122).

43

4. Bibliography Belch, G., and M. Belch. Marketingcommunicatie: reclame en promotie. Den Haag: Academic Service, 2004. De Natris, D., and W. Zomer. Werkoverleg als interactief communicatiemiddel bij organizatieverandering. Alphen aan den Rijn: Kluwer, 2009. De Rooij, M., and T. De Grefte. “Communicatiemanagement.” Het beste uit handboek interne communicatie. Ed. Scholten, O. Alphen aan den Rijn: Samsom, 2000. Floor J. and W. Van Raaij. Marketingcommunicatiestrategie. Groningen: Wolters-Noordhoff, 2006. Kleijn, F., R. Nolet, and J. Siebelink. “Personeelsbladen maken in een veranderende omgeving.” Het beste uit handboek interne communicatie. Ed. Scholten, O. Alphen aan den Rijn: Samsom, 2000. Koeleman, H. Interne communicatie als managementinstrument. Alphen aan den Rijn: Kluwer, 2008. Libaert, T. Le plan de communication: définir et organiser votre stratégie de communication. Paris : Dunot, 2008. Michels, W.J. Basisboek communicatie. Groningen: Wolters-Noordhoff, 2000. ---. Communicatie handboek. Groningen: Wolters-Noordhoff, 2006. Reijnders, E. Interne communicatie: aanpak en achtergronden. Assen: Koninklijke van Gorcum, 2003. Scholes, E. Guide to internal communication methods. Hampshire: Gower, 1999. Schuurmans, U. Digitale marketing en communicatie: toepassing in de ervaringseconomie. Culemborg: Van Duuren Media, 2008. Slevin, J. “Een Intranet is meer dan een nieuw distributienetwerk voor informatie en communicatie.” Het beste uit handboek interne communicatie. Ed. Scholten, O. Alphen aan den Rijn: Samsom, 2000.

44 Van Dijk, J. and T. Wijbenga. “Interne communicatie en cultuurverandering.” Het beste uit handboek interne communicatie. Ed. Scholten, O. Alphen aan den Rijn: Samsom, 2000. Van Putte, M. Interne communicatie: van theorie naar praktijk. Bussum: Uitgeverij Coutinho, 1998. Van Ruler, B. “The communication grid: introduction of a model of basic communication strategies in public relations practice”. Public Relations Review vol. 30(2) (2004): 123-143.

Waardenburg, M. Het communicatieplan: opzet en uitvoering in 8 stappen. Alphen aan den Rijn: Kluwer, 1999.

45

III.

Internship

My internship took place at Bekaert from April 26 to June 25 in two different departments: Wire Global Marketing in Zwevegem and Corporate Communication in Kortrijk. At Wire Global Marketing, I was given my main task on which I spent three days a week. In this section, I focus mainly on this task. The first part provides a detailed overview of the communication plan and my input. In the second part, I look into the secondary tasks I performed during my internship: working on the SPE-house, the intranet, the International Health and Safety day, employer branding, Link and newsletters.

1. Communication plan The largest task I was given during my internship was in the Wire Global Marketing department. Lieven Somers had been working on a project and asked for someone to write a communication plan for the project. The management would not hire someone to do this, so they thought an intern would be a useful addition to the project. I worked on this plan three days per week and learned a great deal. I was given a large amount of responsibility and had no one to ask questions. Therefore, I relied on my own knowledge and books.

1.1.

SPE-project

The project I worked on was a project of Sales Performance Excellence (SPE). It started in 2006 under project leader Marcello Xavier, who was replaced by Lieven Somers in 2008. The goal of the project is to improve the performance of the sales and marketing staff in the Wire business units. A number of important processes were defined that are of paramount importance to quality sales and marketing. These processes are represented in a house of SPE, where they are clustered into 14 bricks. These bricks fit into different floors (ground floor and first floor) or they function as walls for the entire process. The ground floor is dark blue and represents the process of marketing analysis,

46 while the first floor is light blue and stands for people, sales organization and management. The IT infrastructure and sales tools are the walls that enable the other processes to work. House of SPE

Sales Performance Excellence

Sales Competency Management

OMC

Sales Tools

Sales Structure

Sales Strategy

Roadmaps/ Plan. /Forec.

Value Communication

Industry/Market Analysis

Pricing/Commercial Policy

IT Infrastructure

Sales Objectives

Sales Function Leadership

Segmentation, Targeting and Differentiation

Innovation

Figure 18: SPE-house

Several phases are discerned in the project: assessments, improvement projects, best practices and 1 What? learning stops. We are currently in the second phase. Assessments

4

Learning Stops • SPE steering committee • SPE in Steelcord • OPEX in Wire • organize “SPE Day” to share experiences and learn from one another

1

CHECK ACT

PLAN

• organizing self-assessment per SPE entity. • aggregating results (in case of individual assessments) • analyzing assessment + writing feedback report • cross-assessments

SPE DEPLOYMENT 3

Best Practices • Identifying Best Practices/Good Practices • Describing BP/GP through interviews • Making BP/GP available through Sharepoint

What | Why | How

Figure 19: Phases of SPE 3

2 DO

Improvement Projects • organizing workshop/ assisting in setting KPI‟s • ad hoc assistance in implementation • pilot projects

47 An assessment sheet was launched in September 2009. This excel-sheet contains a number of statements (based on the 14 bricks) that the respondents had to evaluate by giving scores (0, 3, 7 or N/A). The file was filled out by all divisions within Wire. According to the departments‟ performance different colors were awarded to the bricks (green, yellow and red). The main objective of the project is for every department to have an entirely green house and thus a good working sales organization. The results of the assessment were rather disappointing. Therefore, the project will continue to exist permanently and help employees to improve their skills. The SPE-project will influence the entire Wire business unit, since sales and marketing are essential functions within the BU‟s. For this reason, it is essential that the project succeeds. To accomplish this, the project and its goals need to be communicated to the sales and marketing staff of Wire. This should make them aware of a problem within their departments and help them focus on these problems and on solving them.

1.2.

My input: communication plan

It was important that the SPE-project was communicated clearly to the employees. Only then could a change in their behavior be achieved. Due to a lack of time and employees, Lieven Somers asked me to make a communication plan (see Attachment 1) about this large project. In this part of the dissertation, I will go through the different steps I took to realize the plan.

1.2.1. ANALYZING SITUATION To make a communication plan, the situation needs to be analyzed thoroughly. I did this by composing a SWOT-analysis.

48

  

SPE-assessment sheet Better together BU managers are cooperative



Competition between BU‟s

   

Only one project leader Change is difficult to implement Personal approach is not possible Complicated model to explain



Competition between BU‟s

Figure 20: SWOT-analysis

I found that a strength of the project is the assessment sheet. It lists certain criteria that make it easier to judge a performance. The assessment is made by the employees themselves, so the outcome will also be more acceptable to them than when an outsider evaluates them. The project also fits perfectly within the better together spirit. It comes from the idea that different parts of the organization should be working together more closely and better results are reached in this way. This approach can be seen throughout the entire organization and better together is what makes Bekaert work. Another important strength is that the business unit managers are cooperative. They feel that the project is useful and are willing to invest their time in it. This may motivate their employees to work for this project as well. A couple of weaknesses can be detected as well. Lieven Somers is the only project leader. If he were to quit, the project would end. Moreover, implementing change is a very difficult task that will require a long period of time. Thirdly, a personal approach is not possible due to the size of the target group. Finally, the SPE-house is a difficult model to explain. Competition can arise between the different business units. This could be both an opportunity and a threat. Therefore, competition is best avoided.

49 1.2.2. DEFINING OBJECTIVES After analyzing the situation, I took a look at which objectives I want to reach with the plan. The marketing objective is to achieve a change in the performance of the target groups. The project is a process of continuous improvement and does not end when all blocks are green. Even then, improvement can still be achieved. Furthermore, I discerned four communication objectives: 1. To create awareness First of all, all sales and marketing staff should be made aware of the project. Only then can the other goals be reached. 2. To create involvement The target group should feel involved in the project. They should feel like they are part of it and that it can only succeed if they cooperate. 3. To convince the target group of the importance They need to be aware of the importance of the project and the consequences in case of failure. 4. To introduce SPE into the mindset of the target audience The project should become part of the mindset of the target audience. They should be constantly aware of it and strive to help their business unit succeed. In this way, a change of behavior will be accomplished. The staff should change their way of operating and work more closely together with the other departments. Sales and marketing need each other and they should also cooperate more with production.

50 1.2.3. DEFINING TARGET GROUP: SURVEY 1.2.3.1.

COMPILATION

The target group of the SPE-project is very diverse. It is the entire sales (sales managers, sales reps, internal sales) and marketing (Product Market Managers and Segment Managers) staff within Bekaert‟s business unit Wire. The business unit Wire is spread over the entire globe and is therefore not an easy target. It consists of SSW Europe, ISW Europe, Wire North-America (WNA), Wire Asia (WA), Building Products (BP), Stainless Technologies (Stainless Wire (SW), Bekaert Combustion Technology (BCT) and Bekaert Fiber Technology (BFT)), Bekaert Carding Solutions (BCS), Global Marketing, Belgo Bekaert Aramesh and Division Latin America (DLA). To get more insight into this group, I proposed to create a survey. I created it on http://www.checkmarket.com/ and launched it on 18 May 2010. I sent it to 115 email addresses of sales and marketing employees from the business units of Wire who already filled in an assessment. The survey consisted of 28 questions concerning general media behavior, attitude towards the SPEproject and personal data (see Attachment 2). 1.2.3.2.

RESULTS

The survey was filled out by 51 respondents (44.3%) and some important differences were defined in the results. The first aspect is the use of SharePoint, a major communication medium within Bekaert. Do the employees use SharePoint? How often and what for? The second aspect is the level of received information about SPE. Do they know the project? On the basis of these criteria, three different target groups can be defined.

Use SharePoint

Are informed

SSW Europe

100%

50%

ISW Europe

100%

27%

Stainless Wire

100%

0%

Wire Asia

33%

67%

51

DLA

20%

80%

North America

0%

100%

Building Products

0%

100%

BCS

17%

17%

Table 5: target groups

As seen in the table above, SSW Europe, ISW Europe and Stainless Wire show similar communication need patterns, so we will group these three. The survey was not sent to BCT and BFT, but they are part of Stainless Technologies together with Stainless Wire. Therefore, these two will also be added to the first target group. North-America, DLA, Wire Asia and Building Products will be the second target group and BCS will be treated as a target group on its own. The project will be communicated to these groups in different ways.

Target group 1: SharePoint users, uniformed Use SharePoint Are informed

Everyone in this target group has access to the intranet and they use it several times a week

SSW Europe

100%

50%

ISW Europe

100%

27%

(SSW 50%, ISW 64%). The employees of SSW Europe and ISW Europe are very active SharePoint users (100%). They use SharePoint

Stainless Wire 100% Table 6: target group 1

0%

several times a week (SSW 100%, ISW 82%). The SPE-project is not well-known among the

members of this target group. In SSW, only 50% has heard of the project, while in ISW this number is only 27%.

52 Target Group 2: No SharePoint users, informed SharePoint is not used a lot by the second Use SharePoint Are informed

target group: 67% in Wire Asia and 80% in

Wire Asia

33%

67%

DLA do not use SharePoint. Furthermore, we

DLA

20%

80%

see that those who do use SharePoint only

North America

0%

100%

use it several times a month (DLA 100%,

Building Products 0%

100%

WA 67%) or a year (WA 33%). The second target group is better informed about the

Table 7: target group 2

SPE-project than the first target group. In WA, 67% have heard of the project, yet those who have heard of it feel they do not receive enough information (60%). 80% of the DLA-employees have heard of the project and 75% of them feel they receive enough information.

Target Group 3: No SharePoint users, uninformed

BCS

Use SharePoint 17%

Table 8: target group 3

Are informed 17%

Target group 3 does not use SharePoint very often: 83% do not use it. Those who do, use it several times a week (100%). Furthermore, the respondents do not

receive enough information about the project, since 83% have never heard of it.

We can conclude that this target group will be hardest to reach. Their internet-usage and degree of knowledge about the project are very low.

1.2.4. APPROACH When the target group is analyzed the approach per target group has to be defined. 1.2.4.1.

Message

Target group 1 Target group 1 needs to be convinced of the importance of the SPE-project to get involved. They do not know what it is yet and do not understand why it matters to them. As a consequence, they will

53 not change their behavior. Therefore, the message that needs to be conveyed to them is SPE makes a difference for you.

Target Group 2 This target group is already convinced of the importance of the project. Yet, seeing as how SharePoint will be a major communication medium for sharing knowledge in this project, they need to be convinced of SharePoint. Once they use it, they will be able to contribute to the project and help convince target group 1 of its importance. That is why the message for them is SharePoint is an important communication tool at Bekaert and it makes sharing information easy.

Target Group 3 This group is a mixture of the first two groups. They need to be convinced of the importance of both SPE and SharePoint: SPE matters to you and SharePoint facilitates sharing information.

1.2.4.2.

Media

To reach the four communication goals, e-media, written and oral media and an event will be used.

E-media: o Intranet The intranet is an online place where information is gathered. A page with all the relevant information about SPE is therefore necessary to meet the needs of those looking for information there. This will be an important medium for target group 1. The other target groups need to be allowed access to it. o SharePoint 

Interactive explanations (PowerPoints) of the project will be placed on SharePoint. This will facilitate understanding. Users of SharePoint also have a profile there. Through these profiles, it will be possible to track the progress by filling in the

54 assessment sheet and seeing all the different colors changing constantly. This will motivate the sales and marketing staff to move ahead if they see they are making progress. Feedback is a very important aspect in this project and can therefore not be neglected. 

SharePoint can also be used to ask questions and share best practices. Points will be awarded to those asking and answering questions. The best answers will be gathered and placed in a Wiki-page.



General information about all the different building blocks will also be available in Wiki-pages. This information can be edited and completed by everyone.



Since most people indicated in the survey to be interested in a virtual environment, a forum will also be designed. This is currently under development. This will allow for dialogue, which is very important in a change project, as seen above.



The SharePoint-site needs to be simple and well-structured to attract target group 2 and 3, who are not very familiar with the medium. Clear explanations are therefore necessary.

o PowerPoint presentation The model of the project is a very complex one. To facilitate understanding and reduce resilience, the SPE-house was created. Nevertheless, the house remains difficult to understand. Through a PowerPoint presentation, information can be conveyed in an interactive way. A booklet is too static to explain a process as complex as the SPE house. A video would also be a good option, but would be too time- and money-consuming. Therefore, I have made two PowerPoint presentations. The first PowerPoint explains what the SPE-project is, why it is important and how it works. This is especially important for target groups 1 and 3, but can also be used by the second target group. The second PowerPoint presentation shows the SPE house and clearly illustrates the different parts, their meaning and interdependency. This will help in understanding the entire process. It can be consulted at any time. This will come in handy for all target groups.

55 For the second and third target group, a presentation should also be made in which the basic principles of SharePoint are explained. This will help them see why it is useful and how it works.

Written media: o Newsletter A newsletter is a cheap and useful medium to make the target group aware of the project. The first communication objective will be reached in this step. For target group 1, the focus in the newsletter will be on the project. What is it, what is it for and why should we use it? For target group 2, the focus will be on the use of SharePoint for the project, and the benefits of this. In the case of target group 3, the focus will first be on the project. Once they feel SPE is important and can make a difference for them, they will see how SharePoint can be useful and they will start using it. For the last two target groups, newsletters will be a very important medium. Since these target groups are not active intranet and SharePoint users, other media have to be used. Via newsletters, the information is immediately available and lands directly in the mailbox of the recipients. o Desk item A desk item such as a mouse pad, a card or a desk calendar with the image of the SPE-house could be created. In this way, the house is always present on the desk and therefore on the mind. This will help achieve a number of communication objectives. The target groups will be made aware of the importance of the project, they will feel more involved and the project will become part of their mindset. o Board A magnetic board with a blank SPE-house should be given to every business unit. After every assessment the business unit will receive magnetic bricks in the right colors and they will attach these to the board. This way they can easily track their progress and feel they are fighting for a common goal. This will reinforce the team feeling necessary to reach the common goal of better performance. In this way, the employees also receive feedback.

56 The board should be placed centrally in the business unit and should stand out, since not many people notice the Bekaert posters according to the survey. 39% of the respondents read the posters quickly, so the board should be simple and easy to understand.

Oral media: o Presentation The PowerPoint presentations that explain the project and the house can also be presented orally in case more explanation is required. This provides more room for questions, interaction and feedback. o Workshops The target groups will get to know the project by working with it. Workshops are already being organized. o Team meetings Team meetings can be organized to discuss the project and come up with a strategy to achieve the common goals. Discussions will help the group in making the project part of their mindset. It will also make sure the project is being handled by a group and not an individual. Team meetings are very important in change projects (see part II 1.2.3.).

Event o SPE-day A day will be entirely dedicated to the SPE-project. Workshops, team meetings, presentations, etc. will be organized. This is meant to remind people of the project and actively involve them in it. Several initiatives can be organized according to the needs of every business unit. Best practices can be discussed or a certain theme can be highlighted.

57 1.2.5. TIMING The final step in my communication plan is the timing. The budget is calculated by other departments and I was therefore not allowed to calculate it myself. Evaluation is the real final step of a communication plan, but that can only be done after it is launched and my internship was not long enough to evaluate the plan. For the timing, I used a table as Michels suggested. I planned the communication of the project for twelve months. 1

2

3

4

5

6

7

8

9

10

11

Intranet SharePoint Newsletter Presentation Desk item Board Oral Presentation Workshops Team meeting SPE-day Table 9: Timing

Since this is a communication plan in a change project, I made sure frequent communication to the employees is provided. It is very important no radio silence occurs.

1.3.

Evaluation

The assignment I was given was not an easy one. Yet, I was happy with it, because it was very challenging and informative. I was given a lot of freedom, which meant my supervisors had confidence in me. I feel I approached the assignment in the right way. It was clear there would be no help within Bekaert, so I went to the library and consulted friends that have experience with this sort of work. The only remark I have about the assignment is the lack of guidance. My supervisor did not know how to make a plan and therefore he also did not know if the plan was good. I was not provided with a lot of feedback on the plan. My internship supervisor thought it was very good, but

12

58 perhaps he was not the best judge, since he has no experience with communication plans. It was also difficult to find relevant books about the subject, because most communication plans are external and are about products, instead of internal and about a project. I feel I have provided Bekaert with a useful plan that they will really use. I also came up with some ideas to help the project, such as the interactive PowerPoint presentations and the survey.

2. Secondary tasks 2.1.

SPE-house

Another part of my tasks on the SPE-project was to help build the SPE-house. I spend a lot of time brainstorming with my internship supervisor about the different bricks and definitions of these bricks. Some appeared useless, some appeared missing. Finally, we came to the house as it is shown above (see 1.1.).

2.2.

Intranet Throughout Bekaert, intranet is used to share and update information.

Yet,

the

Bekaert intranet was very outdated when I started my internship. That is why one of my major tasks was updating the intranet. A whole new interface was designed and I had to fill in certain parts of it. I was Figure 21: Intrant page I made

given an SAP-training and

learned to work with the Web Page Composer-program. I coordinated with IT to improve the

59 structure of the site and made a document with possible pitfalls for the WPC-program. This program is quite complicated and it took me a while to find my way around it. Basically, I was the test person for the program. I had to find out how to use it best and teach colleagues the tips and tricks. In the end, I managed to create a large number of new pages on the intranet-site (see Attachment 3).

2.3.

International Health and Safety Day

Since 2008, every year an International Health and Safety Day is organized by Corporate Communication. On this day, the entire Bekaert World performs activities related to safety and health, since those are very important issues to address in an industrial environment. I assisted in the organization of this day and participated in meetings with the different communication departments and the environmental department. The day will take place in September and the theme will be „order and cleanliness‟. In team, we brainstormed for slogans, such as „Play it safe. Go clean!‟, „Keep it clean to keep it safe!‟ and my „Be safe, be organized‟. We also had to design the posters for the campaign. I came up with the idea of a before and after situation, where the first situation is dangerous and dirty and the other one safe and clean. We made photos to test this scenario and decided to go through with it. A teasing campaign was also thought out. Orange, green and red smileys will be placed on the desks and factories a couple of weeks before the event to indicate clean, dirty or mediocre clean working situations. Finally, we wanted to provide the employees with some gadgets. I had to think of some and ask for price offers. We came up with a first-aid kit, more post-its and a storage bag. In the end, no budget was allocated for a gadget. Figure 22: Poster 2009

2.4.

Employer branding

I also aided Kathleen Vandamme in a couple of HR advertisements. I helped write the ads and select photos for them (see Attachment 4). This advertisement was send by BEST (Board of European Students of Technology) to all European technology students.

60

2.5.

Link

Link is the corporate magazine of Bekaert, distributed to the management, and it appears about 4 times a year. During my internship, I edited a lot of texts, selected photos and wrote articles for the latest edition of the magazine, such as the report of the general meeting on May 12 (see Attachment 5). I corrected all the articles in the latest Link (°248) (see attachment 6).

2.6. Newsletter

Figure 23: Link °248

Internal communication also means writing newsletters for the employees. I helped composing one for the „better together for Chile and Indonesia‟-action.

61

IV.

Conclusion

This MTB year, I have learned a lot on a personal and a professional level. I have discovered characteristics about myself and about others. During class and seminars, we filled in a lot of personality tests, which pointed out many things I already knew about myself, but also some of which I was not aware. The internship also taught me some things about myself. My internship supervisor thought I was very assertive, something no one has ever said to me. On a human level, I realized how competitive people can get. Suddenly, class mates can become competitors when they have applied for the same internship. During the projects, a lot of competition was present as well. Especially in Business Communication in English, the competition was felt enormously. Each team had their own project and constantly had to fight the other teams, because only one project could be the best. This resulted in secrecy about the projects, theft of ideas and arguments. I did not like discovering this side of my class mates. Nevertheless, I fear this is a good example of what might happen on the work floor. Professionally, I learned a great deal as well. The courses and guest lectures provided a good idea of what corporate life might be like and the internship completed this image. I have learned a lot in the guest lectures, about communication, but also about corporate identity and values. I know better how to prepare a motivation letter and a CV, and know what to say in a job interview. I am glad I had some courses about economics, law, accounting and marketing. I found these very interesting after four years of literature studies. The internship was also very interesting, because now I have a better idea of what a job in communication might entail. I now know what I like doing, and what I dislike. This knowledge will help in looking for a job. Furthermore, I learned how communication is handled in a international environment and how to write a communication plan. The MTB program has been very useful for my internship, especially the marketing communication plan my team wrote for Mio. Since a marketing communication plan is constructed in the same way as an internal communication plan, it provided a blueprint for my plan. I had to use an entirely different approach, but the experience with the marketing communication plan proved very useful. The internship showed me that the MTB program has prepared us well for what professional life has to offer. There were no big surprises as to the workings in a company. My internship supervisor did

62 say that I was a bit too naïve and expected things to work more smoothly in the company. He also pointed out that this was because the program makes us expect too much of corporate life. I found out that not everything is as efficient and logical as was explained to us. Yet, that is something we have to discover on our own and not something MTB can really prepare us for. To conclude I must say I am glad I did this extra year, because it taught me a lot about myself and about what I can expect in the years to come. After four years of mainly theory, I now finally have some practical skills that I will be able to rely on in the coming years. Therefore, I really hope the program will not disappear, for it has a lot of added value for students with a knack for languages and communication.

63

Bibliography ArcelorMittal. “About ArcelorMittal”. Web. 7 July 2010. . Bekaert. Bekaert. Tielt: Lannoo, 2005. ---. “Bekaert History”. Web. 18 May 2010. . ---. Corporate Brochure 2009. ---. Link °247, November 2009. ---. Link °248, May 2010. ---. Presentation Introducing Bekaert . ---. Presentation Corporate Presentation. ---. Presentation Introduction to the Bekaert Way. ---. Shareholders’ Guide 2010. Belch, G., and M. Belch. Marketingcommunicatie: reclame en promotie. Den Haag: Academic Service, 2004. De Natris, D., and W. Zomer. Werkoverleg als interactief communicatiemiddel bij organizatieverandering. Alphen aan den Rijn: Kluwer, 2009. De Rooij, M., and T. De Grefte. “Communicatiemanagement.” Het beste uit handboek interne communicatie. Ed. Scholten, O. Alphen aan den Rijn: Samsom, 2000. Floor J. and W. Van Raaij. Marketingcommunicatiestrategie. Groningen: Wolters-Noordhoff, 2006. J.P. Morgan. Analyst report Bekaert. 12 March 2010.

64 Kleijn, F., R. Nolet, and J. Siebelink. “Personeelsbladen maken in een veranderende omgeving.” Het beste uit handboek interne communicatie. Ed. Scholten, O. Alphen aan den Rijn: Samsom, 2000. Klöckner. “At a glance”. Web. 9 July 2010. < http://www.kloeckner.de/en/group/at-a-glance.html>. Koeleman, H. Interne communicatie als managementinstrument. Alphen aan den Rijn: Kluwer, 2008. Libaert, T. Le plan de communication: définir et organiser votre stratégie de communication. Paris : Dunot, 2008. Michels, W.J. Basisboek communicatie. Groningen: Wolters-Noordhoff, 2000. ---. Communicatie handboek. Groningen: Wolters-Noordhoff, 2006. Reijnders, E. Interne communicatie: aanpak en achtergronden. Assen: Koninklijke van Gorcum, 2003. Scholes, E. Guide to internal communication methods. Hampshire: Gower, 1999. Schuurmans, U. Digitale marketing en communicatie: toepassing in de ervaringseconomie. Culemborg: Van Duuren Media, 2008. Slevin, J. “Een Intranet is meer dan een nieuw distributienetwerk voor informatie en communicatie.” Het beste uit handboek interne communicatie. Ed. Scholten, O. Alphen aan den Rijn: Samsom, 2000. ThyssenKrupp. “Group”. Web. 7 July 2010.. Van Dijk, J. and T. Wijbenga. “Interne communicatie en cultuurverandering.” Het beste uit handboek interne communicatie. Ed. Scholten, O. Alphen aan den Rijn: Samsom, 2000. Van Putte, M. Interne communicatie: van theorie naar praktijk. Bussum: Uitgeverij Coutinho, 1998. Van Ruler, B. “The communication grid: introduction of a model of basic communication strategies in public relations practice”. Public Relations Review vol. 30(2) (2004): 123-143.

65 Voestalpine. “Corporate Group”. Web. July 8 2010. . Waardenburg, M. Het communicatieplan: opzet en uitvoering in 8 stappen. Alphen aan den Rijn: Kluwer, 1999.

66

Appendix

Attachment 1: Communication plan ............................................................................................... 67 Attachment 2: SPE Awareness Survey ........................................................................................... 88 Attachment 3: Intranet screenshots ................................................................................................. 95 Attachment 4 : HR Advertisement .................................................................................................. 97 Attachment 5: General Meeting of Shareholders 2010................................................................... 98 Attachment 6: Link °248 ................................................................................................................. 99

67

Attachment 1: Communication plan

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

Attachment 2: SPE Awareness Survey SPE Awareness Survey

*

*

Do you have access to the intranet?



Yes



No

Do you read it often?



Several times a week



Once a week



Several times a month



Once a month



Several times a year

What do you use it for?

*

Do you use SharePoint?



Yes



No

89 *

How often do you use it?



Several times a week



Once a week



Several times a month



Once a month



Several times a year

What do you use it for?

What do you like about it?

What do you dislike about it?

90 *

Do you look at the Bekaert posters?



Yes, I notice them, but do not read them



Yes, I read them quickly



Yes, I read them thoroughly



No, I never notice them



None of the above

How come you do not notice or read them?

*

Have you heard of the SPE-project?



No



Yes

Where did you hear about it?

91 *

*

Do you know what the SPE-project is?



Yes



No

Do you receive enough information about it?



Yes



No

What are your expectations of the project?

Do you feel these expectations have been matched?

92 *

*

Do you think the SPE-project is a useful project?



Very useful



Rather useful



Rather useless



Very Useless



None of the above

Does it help you do your job?



Yes



No

Why not?

Where do you look for information to help you do your job and find solutions for problems you encounter?

93

Do you have suggestions to do this?

*

Would you like a virtual environment where you can ask and answer questions and share knowledge and experience?



Yes



No



Maybe

Would you like to add suggestions about the project and the project approach?

94 *

*

*

What is your age?



20-30



30-40



40-50



50-60



60+

How long have you been working at Bekaert?



Less than 3 years



3-5 years



5-10 years



10-20 years



More than 20 years

In what business unit do you work?



BBA



BCS



Bekaert Combustion Technology



Bekaert Fiber Technology



Building Products



Division Latin-America



ISW Europe



SSW Europe



Stainless Wire



Wire Asia



Wire North America

95 *

What is your function?

Who is your sales manager? (Skip this question if you are a sales manager)

Attachment 3: Intranet screenshots

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Attachment 4 : HR Advertisement Email not displaying correctly? View it in your browser.

Dear,

Soon you will be dealing with exams for the last time. Afterwards, you will be ready to start your professional life: a life full of challenges but at the same time full of opportunities. Did you know Bekaert can offer these opportunities? We are a global market leader in drawn steel wire products and applications and also a technological leader in advanced metal transformations and advanced materials and coatings.

Although you may not know us, Bekaert is already part of your life. 

The electricity that powers your laptop is brought to you through our steel wires and strands for overhead power lines.



The elevator that lifts you is equipped with our elevator cables and belts.



The car you drive contains 30 kilograms of different Bekaert wires.



The roads you use are reinforced with Bekaert Mesh Track.



And the champagne you will open at graduation is now still sealed with our champagne cork wire.

Now, imagine 

you becoming part of Bekaert‟s life …

You can work as R&D Project Manager, Design Engineer, Process Engineer or Product Development Engineer.

98



You will be part of a company where 23 000 local and international talents truly win together, in 120 countries.



You will work in a high-tech learning environment where € 63 million was invested in Research & Development last year.



You will work for a reliable employer, introducing „green‟ products on the market, such as timing belts for wind turbines and sawing wire for solar panels.



You will obtain a competitive salary package and interesting career opportunities.

Curious? Have a look at www.bekaert.jobs.

Good luck with your exams and looking forward to meeting you,

Inge Swartelé Group HR Bekaert

Our mailing address is: NV Bekaert SA HR department President Kennedypark 27d Belgium – 8500 Kortrijk Copyright (C) 2010 NV Bekaert SA All rights reserved

Attachment 5: General Meeting of Shareholders 2010

General Meeting of Shareholders 2010 This year the General Meeting of Shareholders was held on 12 May. Baron Buysse, Chairman of the Board of Directors, led the meeting and was joined by CEO Bert De Graeve. The meeting approved the balance sheet and the income statement as at 31 December 2009, as submitted by the Board of Directors, including the distribution of a gross dividend of € 2.940 per share. Furthermore, the recommendation to re-appoint Messrs Roger Dalle, François de Visscher, Bernard van de Walle de Ghelcke and Baudouin Velge as Directors for a term of three years was accepted. The meeting also accepted the recommendation to re-appoint Lady Barbara Thomas Judge and Sir Anthony Galsworthy as independent Directors for a term of three and two years respectively, expiring after the Ordinary General Meeting of 2013 and 2012.

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Attachment 6: Link °248

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