Transcript Introduction to AFGRI strategic discussion process

8 October 2010
Alan Kirschner
Purpose of workshop
 Review progress in implementing the Feb /
Sept 2008 strategic plan.
 Start the process of developing a 3 to 5
year strategic action plan of the FIA
We are talking strategy…
Overall strategic planning process...
Today: everybody will have input here
Current
reality?
Our Charter
Purpose
Focus
Areas?
Next month: Based
on your input, Exco
will identify key focus
areas and action
plans
How? i.e.
Action plans
Strategic alignment
FIA Charter
We are a recognised professional
organisation representing our members with
a code of conduct governing our behaviour.
We exist to serve our members and promote
our image through industry representation
and the provision of services including the
development of the intermediary market.
The FIA’s primary Purpose:We represent, protect, promote and
further the common interests of our
members.
Current reality
 Review of 2008 strategic initiatives
 Feedback from preliminary stakeholder
research
 Feedback from Epic research
 Advisory Council views –
 Hindering factors
 Helping factors
 Trends…
Review of 2008 strategies
 Three strategic focus areas
 Structural Blueprint & Design
 Communication: Internal and External
 Image and influence
Focus Area: Structural Blueprint & Design
 Definition of Success
1.
All members (Corporates and individuals) recognise the value of FIA
2.
3.
4.
5.
6.
7.
membership (The need for development and clarification of value
proposition)
Highly competent individuals in the secretariat with limited dependence on
volunteers, efficiently executing agreed action plans
Clarity on membership categories/structures, voting rights and fees
A recognised umbrella body exists (yes) which consists of all financial
services intermediary bodies in South Africa (not there yet)
We have efficient and effective structures (including committees, divisions,
branches) which meet the needs of members across the country
An effective performance management process is in place for all staff
members
Effective and regular communication internally and externally occurs
during the blueprint rollout
Focus area: Communication Plan
 Definition of Success
1. Timeous and effective two-way electronic communication
2.
3.
4.
5.
6.
7.
8.
with all our members
Our members are well informed about FIA and relevant
industry issues
Timeous response from FIA to specific member concerns
An annual road show/conference for members/potential
members (more work needs to be done for potential
members)
Positive feedback from members on our communication
Existence of communications database which includes
appropriate employees of member companies (needs work
for larger member organisations)
FIA seen as a proactive, valued, regular contributor and
participant with financial press and industry bodies
Positive column inches on FIA
Image and Influence
 Definition of Success
1. Recognised by regulators, legislators and
government as the voice of intermediaries (great
strides; must continue the work with Treasury and
government)
2. Consumer knows the value of dealing with
intermediary (no)
3. Product providers make membership of FIA a
preference of granting agencies (great strides in the
short term and health space. Others no)
4. Sound and healthy and productive relationships with
SAIA (yes), LOA/ ACI/ ASISA (patchy), Inseta (great
strides), IISA(yes), FPI(yes), Council for Medical
Schemes(yes) etc... valued by them
Stakeholder research (preliminary)
 Respondents
Viviene Pearson (GM sustainability), SAIA
Godfrey Nti (CEO), FPI
Sandra Dunn (CEO), Inseta
Anna Rosenburg (Senior Policy Advisor –
insurance and regulatory issues), ASISA
5. Barry Scott (CEO), SAIA
6. Jonathan Dixon (Director – Insurance),
FSB
7. Peter Stephan (Senior Policy advisor –
marketing and distribution), ASISA
1.
2.
3.
4.
What are the biggest challenges facing the FIA?
 Building a bridge between the very different
needs and interests of the small and large
brokers
 Helping most members understand the
broader issues affecting the industry
 Providing value to membership base members want FIA to provide everything in
the sector. I.e.. Keeping members happy in
terms of value proposition
 Dealing with regulation - I'm happy with the
way they engage with policy makers (they
also engage early)
Communication improvements
 Need more knowledgeable specialists who
participate and give leadership input and
substance (like Barry Taylor)
 Need more formal (quarterly) meetings
Overall when you think of FIA, in what
areas would you say they excel or have
been successful?
 Have some very competent people -
knowledgeable, experienced with drive and
energy
 A visible, organised, principled body that are
credible (to regulator) and flexible enough to
see things in terms of consumer interests
 Good personal relationships with secretariat
and leadership
 They know the industry
 Supportive of other associations
Where do you think the FIA most need
to improve to meet your needs?
 Improve in input and participation - more
specialists, not generalists
 More regular formal interactions
 End of preliminary stakeholder feedback
Media perception audit and PR
campaign:
FIA
October 2010

The perception
research

The qualitative
results

ResearchOverview
summary

Campaign to date

Results

Questions
Before a new media communications campaign is launched
it is imperative to gauge what the current brand perception
is, in order to affect it.
The perception research
A media audit is essentially a ‘dipstick research’ tool across
a wide spectrum of media. In order to gauge whether or not
a media campaign has been successful a re-audit is
recommended six-months to a year later - with the same
media - to ascertain if perceptions have in fact changed.
Note that the media audit was conducted within the first
two weeks of Epic Communications taking on the FIA
account, prior to the PR campaign.
Why conduct a media audit?
For the FIA, Epic Communications has audited key business
and consumer journalists in the following arenas:
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Mainstream Newspapers (Business / finance editors /
Consumer personal finance)
Financial industry trade
Online
Radio
Television
Prepared for FIA
Perception research
Epic Communications conducted dipstick research among 20 key South African journalists across 22 media into:

The current communication process between the FIA and the media :
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The level of brand awareness among the media;
The level of understanding of the role that the FIA plays in SA’s financial services space;
The level of understanding as to how the FIA differs from other financial services industry bodies;
Knowledge of spokespeople / representatives;
Frequency of content delivery;
Epic Communications surveyed:
General comments.
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3 x National newspapers
2 x Regional newspapers
2 x Financial weeklies
1 x radio
2 x online
3 x television
5 x Financial trade magazines
2 x consumer glossy magazine (with finance / investment section)
Overview
Perception research cont...
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Financial Mail: Weekly financial magazine focusing on business and investment issues with an investigative journalistic approach. (Circulation: 30
200)
Business Report: The most widely read South African daily business newspaper - published by Independent News and Media and carried by The Star,
Cape Times, The Mercury, Pretoria News and Sunday Tribune. Covers local and international business news and offers insight from leading business
experts. (Circulation: 282 968)
Sake24: Business supplement carried by three daily newspapers Beeld, Die Burger, Die Burger Oos-Kaap and Volksblad.(Circulation: 484 785)
SAFM: National radio station, focusing primarily on decision makers seeking insightful and enabling information to keep themselves informed. Age 3549, LSMs 7-10
(Listenership: 602 000)
iAfrica.com: iafrica.com is South Africa’s most established portal and one of the biggest web brands with one of the largest, loyal user bases in the
country.
(Unique Users: 450 000)
CNBC Africa: CNBC Africa is the continent’s first 24 hour international business channel. It delivers real-time information and insightful analysis about
African business and Africa’s financial markets. CNBC Africa also presents regular updates from CNBC affiliates around the world including Europe, Asia
and the US. The channel offers a unique global perspective from an African platform.
(Viewership: 1.6 million)
Rapport: Major newspaper containing full mix of editorial. See separate entries for supplements: Sake Rapport, Rapport Tydskrif, Kaap Rapport and
Gauteng Rapport. Afrikaans speaking population nationally. Every week, cover day of Sun. (Circulation 295 694)
Finweek: Major financial and business weekly magazine. Target Financial and business people.
(Circulation 30 890)
Perception research cont...

The Times: Daily newspaper with a full mix of editorial. Every week, cover days of Mon, Tue, Wed, Thu, Fri
(Circulation 140 116)
Destiny: Women's magazine combining substantial business content with fashion, beauty and lifestyle. Targets
working women LSM7-10, age 25-55. Sold at CNA, Exclusive Books,
Woolworths, Pick 'n Pay and other retail outlets. Monthly, cover date 1st of January to December (Circulation 27 619)
Enterprise Risk: Official journal of the Inst. of Risk Management SA (IRMSA). Covers the identification and measurement of risk in order to prevent or insure against enterprise
exposure. (Circulation 4 101)
RISKSA: Target Professionals in the life, short-term and health insurance sectors, financial planners, brokers and retirement advisors. Covers short term, life and health insurance
industry plus risk related news and technology related to the business. (Circulation 6 301)
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The Witness: Major daily newspaper with full mix of editorial. Includes Job Guide on Mondays and monthly home improvement supplement. English speaking adults in
Pietermaritzburg, Natal Midlands plus Durban and rest of KwaZulu-Natal. (Circulation 20 771)

Saturday Star: Major weekly newspaper with full mix of editorial. Target English speaking adults, greater Johannesburg Every week, cover day of Sat (Circulation: 108 592)

Sarie: A general interest women’s magazine. Includes fashion, decor, beauty, food, crafts, relationships, fiction etc. Target the more affluent Afrikaans speaking woman. Monthly, cover
date 1st of January to December (Circulation: 132 646)

Money Marketing: Contains analysis of changes within the industry and aspects of the financial services industry. Targets Brokers, independent financial advisers, management
companies. (Circulation: 6 840)
Audit conducted: Question listing
SECTION A: QUESTIONS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
.
Have you heard of the FIA? Note: If the answer is ‘yes’ continue on, if not refer to SECTION B’s line of questioning.
What is your understanding of the role of the FIA?
In your experience, what word(s) best define the FIA? Note: This answer must be quick and ‘off the top of their heads’.
Can you differentiate how the FIA differs from other financial services industry bodies i.e. FSB, ASISA, SAIA?
What is your perception of financial intermediaries?
Have you utilized the FIA for comment on savings, investment, insurance, healthcare issues in the past?
Which organizations do you normally use for comment on these issues?
What type of information would you like to receive from the FIA?
Can you name any of the FIA’s top executives?
Have you had any contact with them for comment on any articles?
When was the last time that someone representing the FIA contacted you? How valuable was the information / media release supplied?
Would you be interested in receiving media releases from the FIA in terms of their expertise in insurance and investment issues affecting consumers and financial advisers?
How do you prefer receiving information (select an option):
 Direct telephone pitch
 E-mail
 New technology methods i.e. Podcasts / blog links, RSS feeds etc.
Audit conducted: Question listing cont...
SECTION B: QUESTIONS
1.
Have you heard of the FIA? No.
Answer:
The Financial Intermediaries Association of Southern Africa (FIA) represents more than 15 000 licensed financial services advisers throughout
Southern Africa. Its primary purpose is to represent, protect, promote and further the common interests of its members.
2.
3.
4.
Who do you normally use for comment on savings, investment, insurance, healthcare issues?
Would you be interested in receiving media releases pertinent to the industries in which the FIA operates?
How do you prefer receiving information (select one):
 Direct telephone pitch
 E-mail
 New technology methods i.e. Podcasts / blog links, RSS feeds etc.
CAMPAIGN 2: JUNE - SEPTEMBER 09
.
Focus on hotel bookings
CAMPAIGN 1: APRIL - JUNE 09
Focus on the sale of units
The qualitative results: Business media
Business media feedback: Brand knowledge
On having heard of the FIA brand…
“Yes, I know of them” (x7)
“No, I don’t” (x3)
Business media feedback: Brand knowledge cont…
Of the “yes” answers (7):
Perception of how the FIA differs from other financial
services industry bodies…
On knowledge of the role that the FIA plays...
“I don’t know” (x5)
“Looking out for the needs and interests of financial
intermediaries” (x3)
“They are the official financial intermediary body and
regulatory board” (x1)
“They prevent financial bad practice” (x1)
The word(s) that best defines the FIA…
“I don’t know” (x3)
“Broker friend”(x2)
“Organisation” (x1)
“Professional” (x1)
“Regulator?” (x1)
“Standardism” (x1)
“Large” (x1)
“They deal specifically with the interests of intermediaries”
(x4)
“I don’t know” (x1)
“The FIA plays an advisory role in intermediary legislation”
(x1)
“They play a similar / same role as the FSB” (x1)
Perception of financial intermediaries...
“They are easy to work with and play a positive role in
informing consumers” (x3)
“They are under serious stress” (x1)
“Lots of corruption exists among intermediaries” (x1)
“The role is currently in transition” (x1)
“10% are honest and have integrity, 30% are average and
60% provide a poor service” (x1)
On having used the FIA in the past for commentary...
“Yes, I have” (x3)
“No, I have not” (x3)
“I have tried, but it has been difficult to get anything.” (x1)
Business media feedback: Brand knowledge
cont…
Business media feedback: Brand knowledge
cont…
Of the “yes” answers (7):
Of all surveyed:
On identifying an FIA spokesperson…
“Justus, Manie and Seamus” (x4)
“I don’t know” (x2)
“Arnold” (x1)
On receiving communication from the FIA / the last t
ime they received info...
“No I have not” (x5)
“A long time ago” (x1)
“Once” (x1)
On the type of information they would like to receive...
“General / industry updates” (x5)
“Feature stories and case studies” (x1)
‘Intermediary-focused pieces” (x1)
On who they use for commentary on savings, investment and
healthcare issues…
“Banks and savings institutes” (x5)
“The FSB / SAIA” (x3)
“Investment houses” (x2)
On being interested in receiving consumer-related media
releases / industry commentary / event invites from the
FIA...
“Yes please” (x10)
On their preferred communication format / channel…
“E-mail” (x10)
Consumer media feedback: Brand knowledge
On having heard of the FIA brand…
.
“Yes, I know of them” (x7)
“No, I don’t” (x3)
On knowledge of the role that the FIA
plays...
“I don’t know” (x5)
The qualitative results:
Consumer media
“They are a regulatory body that represents
financial planners” (x3)
“They are financial advisers” (x1)
“They police financial advisers’ (x1)
The word(s) that best defines the FIA…
“I don’t know” (x3)
“Insurance” (x2)
“Money” (x1)
“FIA” (x1)
“Regulatory board with no teeth” (x1)
“Ruthless” (x1)
“Vague” (x1)
Consumer media feedback: Brand knowledge cont… Consumer media feedback: Brand knowledge cont…
Of the “yes” answers (7):
Of the “yes” answers (7):
Perception of how the FIA differs from other financial
services industry bodies…
On identifying an FIA spokesperson…
“I don’t know” (x5)
“They deal specifically with the interests of intermediaries” (x1)
“FIA deals with brokers, the FSB with investments” (x1)
“I don’t know” (x6)
“Justus” (x1)
Perception of financial intermediaries...
On receiving communication from the FIA / the last time they
received info...
“I don’t have one”(x2)
“They aid consumers” (x1)
“They are salesmen” (x1)
“They are good in theory, but in the end don’t aid the consumer”
(x1)
“They don’t act in the consumer interest. They should be banned”
(x1)
“I personally think that they are good, but my readers are very
cynical about their role” (x1)
On having used the FIA in the past for commentary...
“No, I have not” (x6)
“Yes, I have” (x1)
“No I have not” (x5)
“Once, a long time ago” (x2)
On the type of information they would like to receive...
“Anything / general” (x3)
“Content for non-sophisticated investors / average consumers” (x3)
“Answers to my reader questions” (x1)
Consumer media feedback: Brand knowledge cont…
Of all surveyed:
On who they use for commentary on savings, investment and
healthcare issues…
“ASISA / FSB” (x3)
“Brian Hirsch” (x2)
“Various regulatory bodies” (x2)
“Banks” (x1)
“PR companies” (x1)
On being interested in receiving consumer-related media
releases / industry commentary / event invites from the FIA...
“Yes please” (x10)
On their preferred communication format / channel…
“E-mail” (x10)
Research summary
Summary: Positive and negative results
Research summary (Positives)
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
100% of all media (consumer and business)
audited were interested in receiving media
releases / information / invitations to events
from the FIA
70% of all media (consumer and business)
audited had heard of the FIA
Research summary (Negatives)
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50% of all media (consumer and business)
had no knowledge of the role that the FIA
plays
86% of consumer media could not identify an
FIA spokesperson
Only 58% of business media could identify an
FIA spokesperson
Only 30% of business media and 10% of
consumer media have used the FIA for
commentary
80% of consumer and business media said
that had not received proactive information or
commentary in the past from the FIA
Campaign to date: July September 2010
Campaign objectives
1. Enhancing the perception of intermediaries
among consumers via lifestyle-focused media;
2. Enhancing the perception of intermediaries
among businesses and consumers via industry
media (i.e. servicing the agricultural,
engineering and medical sectors etc.);
3. Reinforce the FIA’s service offerings to
intermediaries via business, financial and
insurance trade media;
4. Position FIA professionals as experts and
thought leaders within the investment,
medical and insurance space in South Africa;
5. Build stronger media relationships.
Monthly initiatives
1.
-
Media relations:
Researched, conducted interviews, generated and
disseminated 8 releases to the media:
 New conflict of interest code requires greater transparency
 Consumers down but not out when it comes to insurance
 Consumers to benefit as FIA takes tough stance against unethical
intermediaries
 Farmers urged to use informed brokers
 Insurers imposing stricter terms on brokers
 Short –termism impacts on savings habits
 Botswana insurance conference
 RISKSA column: Big players keen to strengthen relationships with
brokers
2.
-
Internal communications
From the CEO newsletters
Member communication letters: i.e. FSB levy increases,
New Code of Conduct, STRIDE
Results and ROI
RESULTS: JULY - SEPTEMBER 2010

Delivered an average of 25
placements per month

Total number of editorial
coverage achieved: 76
- Print:
- Online:
- Radio:
- Television
Results
24
19
17
16

Editorial value of coverage: R7
002 464.00

Return on investment ratio:
83:1 times (Current
industry ROI average is 3:1)
Breakdown of coverage to date by medium
Results cont…
TOPIC(S) WITH THE BEST MEDIA RESULTS:
TOP 3
Se
p

11
12
9

TV/Radio
Au
g
5
Jul
y
Newspapers
7
0
Online
10
1
5
9
10

New conflict of interest code requires greater
transparency (40 media hits)
Short termism impacts on savings habits (20
media hits)
Insurers imposing stricter terms on brokers (12
media hits)
MEDIA HIGHLIGHTS
Note: During the campaign, coverage was
achieved in, among others:
12
15
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eTV
SABC3
Sunday Times
Business Day
Business Report
Beeld
Sake24
Finweek
SAfm
Classic FM
Examples of coverage achieved
Examples of coverage achieved cont...
Examples of coverage achieved cont...
Examples of coverage achieved cont...
Objectives
Strategy going forward
Objectives
1.
Continue to enhance the perception of intermediaries among businesses and consumers via consumer, financial and
industry trade media
 Maintain regular news flow to key media via:
 Media releases
 Media pitches for interviews
2. Maintain strong media relationships
Identify and secure regular one-on-one relationship building sessions between the FIA’s senior management and key journalists on a
consistent basis (1 per month minimum)
3.
Continue to position FIA’s professionals as thought leaders in South Africa’s
insurance, investment and medical
space
 Monitor topical industry and consumer issues for opportunities for proactive and reactive commentary
 Draft and disseminate opinion / thought-leadership pieces
4.
Profiling senior executives
Motivate and secure profiling opportunities for key professionals - showcasing their skills-base - in relevant business, finance and industry
trade media
5.
Assist with internal communication channels
Advisory council feedback
 Responses from 43 of 65 (66%)
 40 responses to all 3 questions (62%) – a
few not totally legible.
 Three questions
1. Internal things that hinder our ability to
achieve our goals
2. Internal things that help us to achieve
our goals
3. Trends (positive and negative) outside
our control
Internal Hindering factors
Consolidated responses
Trying to serve the needs of different membership groups effectively
(small and large brokers)
Member apathy: members not willing (or able) to participate in FIA
activities and projects
Marketing / branding of FIA & intermediaries to members, potential
members including black brokers / public
Internal communication e.g. Communication from national exec to
members & vice versa
Structure not aligned to strategy including Branch & divisional
structures (Linked with item 1)
Lack of technical expertise and skills (including compliance officer
services?) Split these 2 issues (part of value proposition issue)
No
14
13
13
11
9
9
Internal Hindering factors (continued)
Consolidated responses (continued)
No clear focused value proposition for the intermediaries and provide
value for money
Other
Lack of branch and divisional leadership / parochialism
Members not willing to change and adapt
Adequate training is not provided to members
Lack of teeth leading to reluctance to act against intermediary
Reluctance to use our power to put pressure on service providers
Fee structure needs to change
No FIA orientation for new leadership and new members
7
7
6
6
3
2
2
2
Internal Helping factors
Consolidated responses
#
Credibility of the FIA - professional, track record, recognised, respected
22
Leadership and Board - strong, involved, effective, committed
Membership - representative, passionate, strong base, motivated and
competent
14
Communication - high standard and is effective
11
Structure of the organisation - national infrastructure and well organised
10
Committed, experienced & competent FIA staff / secretariat
Good co-operation & relationships with industry bodies e.g. FSB/ relationships /
networking
8
Support and commitment of members
8
Use of Technology within FIA
3
14
8
External trends and factors
Consolidated responses
#
Legislation / increasing regulation
22
Threat and attacks from direct marketing
14
Other
Membership - losing membership / age profile of members / not attracting new
members to the profession (succession planning)
11
Growing and improving relationships with regulatory bodies / trust & esteem of FIA
Industry demand for Professionalism - market place demanding ethical,
knowledgeable practitioners and professional organisations
7
Need to belong to professional body
6
Increasing cost pressures on intermediaries
5
Emergence of entities regarded as alternatives
3
Continuous lack of knowledge of the industry.
3
Enhancement of technology
3
Training / knowledge (incl education of consumers)
2
Lack of disciplinary measures/ removal of unscrupulous operators
2
Unlevel playing fields.
2
Limited Black members
7
6
Next steps…
 Have we given the executive all the
information they will need to develop a
strategic action plan?
Actions:-
Overall strategic planning process...
Today: everybody will have input here
Current
reality?
Purpose
Focus
Areas?
Next month: Based
on your input, Exco
will identify key focus
areas and action
plans
How? i.e.
Action plans
Our Charter
Workshop facilitated by:
Alan Kirschner
Customer Diagnostics (Pty) Ltd
Tel:
+27 (0)11 465-5182
Fax:
+27 (0)11 465-2041
Mobile:
+27 (0)82 891-4268
Email:
[email protected]
Web site:
www.customerdiagnostics.com
PO Box 899, Fourways, Sandton, 2055
South Africa