2005 Global Profile: Porter Novelli

CEO

Helen Ostrowski

Headquarters location

New York

Total US staff

Not supplied.

Total non-US staff

Not supplied.

Worldwide office locations

Wholly-owned locations: North America, South America, Europe

Majority-owned agencies: Central America, Asia Pacific.

Minority-owned firms: Middle East.

Global structure

Organized globally around three disciplines - marketing, corporate, and public affairs - with global leaders in each. Each global client has a client relationship leader. Local office managing directors report into regional managers, who in turn report to global discipline leaders.

Key clients:

HP

Regions where account is serviced, and whether the work is done by an affiliate, partner or a wholly-owned office of the firm

The Americas, Asia-Pacific, and EMEA.

Type of work done on the account, including practice areas involved

Technology and Consumer Industry Groups and Corporate and Public Affairs disciplines. Full-service account work from strategic counsel to tactical implementation and all points between and beyond.

Length and type of engagement

Porter Novelli has been working with HP since 1988.

Management structure of the account

Account is led by Sandy Skees, EVP (Bay Area). Interdependent HP team across various agency offices and across industry, discipline and specialty areas to best serve HP's business objectives. Porter Novelli staff work on-site at HP on an as-needed basis, but typically there will always be someone on-site.

How account is billed

Fee for service billing arrangement.

Size of budget

Not supplied.

Qualcomm

Regions where account is serviced, and whether the work is done by an affiliate, partner or a wholly owned office of the firm

The Americas, India, and project work in Japan.

Type of work done on the account, including practice areas involved

Technology Industry Group and Corporate discipline. Full-service account work from strategic counsel to tactical implementation and all points between and beyond.

Length and type of engagement

Porter Novelli has been working with Qualcomm since 1999.

Management structure of the account

Account is led by Lisa Rodriguez, SVP (San Francisco), and Kelly McFalls, VP (Boston). Interdependent Qualcomm team across various agency offices and across industry, discipline and specialty areas to best serve client's business objectives. Porter Novelli staff work on-site at Qualcomm on an as-needed basis, but typically there will always be someone on-site.

How account is billed

Fee for service billing arrangement

Size of budget

Not supplied.

Gillette

Regions where account is serviced, and whether the work is done by an affiliate, partner or a wholly owned office of the firm

The Americas and select markets in Europe and Asia-Pacific.

Type of work done on the account, including practice areas involved

Consumer Industry Group and Corporate and Marketing disciplines Full-service account work from strategic counsel to tactical implementation and all points between and beyond.

Length and type of engagement

Porter Novelli has been working with Gillette since 1989.

Management structure of the account

Account is led by Julie Winskie, partner, consumer industry leader and marketing discipline leader (NY), Lisa Rosenberg, partner and director of New York consumer, Jonathan Hemus, in our London office Interdependent Gillette team across various PN offices to best serve client's business objectives.

How account is billed

Fee for service billing arrangement.

Size of budget

Not supplied.

Global revenues change from one year ago (Global revenue is defined as revenue generated by all regions.)

Global revenues are expected to climb modestly in 2005 vs. 2004.

International revenues change from one year ago (International revenue is defined as revenue generated by all regions excluding the region in which the agency is headquartered.)

Outside the US, we expect revenues to increase in the low single digits in the aggregate.

Global staffing change from one year ago

Only very modest increases in head count.

International staffing change from one year ago

Relatively flat.

Performance in light of expectations and the sociopolitical factors affecting performance

Thus far, global and international performance has met or exceeded expectations

Business won, or lost, in the past year due to a global PR consolidation by the client

None.

Best-performing and under-performing regions

The best performing major markets over the last year are the US, France, Belgium and Australia. Latin America has also seen a good recovery. Markets with slower market recovery include Germany, UK, Singapore, and The Netherlands, although we began seeing a strengthening market in many of these countries at the end of last year.

Although cautious, clients are increasing budgets somewhat, and the pace of new business opportunities continued to pick up as the year progressed. Notable is the fact that in many markets, we've seen few major RFPs of the type seen only a few years ago.

Region targeted for increased investment of resources this year

Our main opportunity areas are China and Central and Eastern Europe (C&EE). In C&EE, the expanded EU presents a whole range of opportunities. Many of them are tender-based and need to be carefully analyzed to maximize the investment in these time-consuming bids. Given our expansion into Central & Eastern Europe (see question 20), we are better placed to respond to these and our Brussels office, from where much of our pan-European business is coordinated, has real depth of expertise on EU tenders.

Having established Porter Novelli China in January, Porter Novelli and our partner BlueFocus are investing in developing our brand and business. Five major global clients immediately placed work with us in China, and we expect more to follow in the coming months.

Region targeted for decreased investment of resources this year

We constantly monitor for signs that markets are slowing or becoming less strategically important, but at this time, with our network at its most stable in its near 10-year history, we will continue to support all three regions strongly.

New region/country under consideration to enter this year

Poland. We have made great strides during the last twelve months to enhance our network in Central & Eastern Europe and with new strong agencies in Switzerland, Hungary, Slovakia and Austria to augment our well-established presence in Germany and Russia. Poland is the natural next step for us in completing our C&EE 'map.'

Consideration of international acquisitions or organic growth

We expect to migrate one or two brand partners to owned status. Additionally, we continue to evaluate acquisition candidates to further deepen our disciplines or industry sector bench strength.

International pro bono activities and other ways the firm connects with the regions in which it operates

What binds Porter Novelli's international operations together is 'interdependence' - a shared belief in building the best teams wherever they are located to achieve results for clients that make an impact on their business.

This same belief extends, albeit in a slightly different way, to our local offices throughout the world - working together within their communities to make an impact. For this reason, pro bono activities are managed at the office level to better engage and serve local/regional priorities. However, Porter Novelli has a commitment to supporting youth causes in many global markets. For example, our Netherlands office works with War Trauma Foundation (trauma help for young children in war areas), our Vancouver office does pro-bono work for a youth theatre group called Theatrix and our office in Mumbai works with Akshara Foundation, which supports universal quality elementary education.

Our offices also support local charities through volunteering and organizing toy/food/clothing drives. For example, our New York office ran a toy drive last Christmas to benefit a local children's charity. In order to decide which local charity to support, staff nominated worthy charities and then a vote was held.

Key changes made over the past couple of years that were driven by clients' changing needs

During the last two years, Porter Novelli has been engaged in an intensive, disciplined visioning process - looking at the evolving public relations industry and our place within this industry. We uncovered a number of changing client needs namely, a demand for improved ROI, as well as a changing communications landscape that is impacting how clients interact with their consumers.

Based on these findings, we are challenging the market to think differently about public relations. We believe the discipline has been primarily restricted to media relations, which, while important, focuses on only one aspect of the full range of public relations strategy and tactics. True public relations is about building effective relationships with a client's critical stakeholders.

Key Changes:

Focus on stakeholder relationship management and media- and discipline-neutral approach - we believe our clients need a consultancy partner that can take a 360-degree view of their communications challenge and stakeholder landscape and architect solutions that are not dependent on any one discipline, tool, technique or medium.

Organizational re-structure - Porter Novelli has realigned its internal structure to better meet client demands for unbiased input to their communications challenges. Transitioning from its previous practice-based structure, the agency has now organized according to the three overarching stakeholder communications disciplines of marketing, corporate communications and public affairs. Our core industry sectors currently are health care, technology, consumer, financial services, diversified industries (e.g. automotive and manufacturing), resources (e.g. energy, agriculture and chemicals) and government and non-profit institutions. Porter Novelli also offers specialty expertise on a global basis in the following areas: strategic planning and research/corporate brand strategy; media and influencer relations; multicultural; alliance building; advertising/corporate identity; direct marketing; interactive; sponsorships; event management; customer relationship management; and crisis and issues.

Global branding campaign launched in June 2005 - the new branding is based on the strategic platform of "Many Minds. Singular Results" and clearly communicates Porter Novelli's range of expertise, and how these individual capabilities work interdependently to deliver results that impact our clients business. This branding was created by a cross-specialty, in-house team drawn from the agency's global offices and has been rolled out on a global basis.

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