Show me the money? Not anymore, at least not according to the
team that put together the 2002 annual report for pharmaceutical
giant Pfizer.
While the traditional annual report has focused on bottom-line
returns, Pfizer went for something completely different in 2002:
changing the annual report so it would appeal to stakeholders ---
employees, communities and customers -- rather than just
"shareholders."
"In the past, the typical annual report for pharmaceutical
companies would show a glowing patient on the cover," says John
Santoro, executive director of leadership communications. "This
time we wanted to show the human face of our donation programs."
The hook for the 2002 cover photo -- featuring the visage of a
South African AIDS patient - - was free medicines and medical care
under Pfizer's Diflucan Partnership Program, a joint effort with
the South African Ministry of Health to distribute the AIDS-related
drug Diflucan to those who lack access to healthcare.
"We literally scoured through dozens and dozens of images, and
this face kind of jumped out at us," says Jeff Brand, manager of
communications. Knowing that the report would focus on Pfizer's
efforts to make medicines more widely accessible, the shot "really
galvanized the discussions."
The cover photo made up just one component of the overall
package, which its presenters hoped would be more accessible and
relevant to its readers than were annual reports in the past. The
publication was to have a more "magazine" feel, achieved "in the
way the stories were written, how they were laid out on the page.
People could digest it more easily," Brand says. (Pfizer won PR
NEWS' Platinum PR Awards/2003 for best annual report.)
In a $45 billion public company, that's not the kind of idea
that gets put into play without some serious consideration. So the
communications team conducted extensive focus groups with
investors, non-profit groups and internal management. They also
engaged Shareholder Analytics to survey some 7,000 shareholders. In
all these discussions, subjects saw a wide range of different
covers and different layouts.
When all the data had been collected, it was clear that "people
preferred something that did not look like an annual report," says
Joe Levine, assistant director of corporate communications. "They
preferred a more journalistic approach and they wanted to know both
what we were doing to make money and also what we were doing to
help the world."
Building a consensus continued as the content came together for
the report. "When we canvas management, part of what we are doing
is to ask for its ideas," Levine says. "What are the stories that
have to be told this year, no matter how we shape this thing? We
get everybody's feedback and see what speaks the loudest."
Senior managers understood that while all ideas would be
considered, not all would be accepted. "They know that the book is
only so many pages long," Brand says.
Levine recalls meeting with the head of Pfizer's U.S.
pharmaceutical division to talk about ideas. At the time the
communications team had two ideas for themes that might appear in
the report. (In addition to the chosen theme of access to
medicines, the PR team also considered an emphasis on Pfizer's
efforts related to the aged.) The division head handed over a pile
of story ideas, knowing that half went with one theme and half with
the other. He understood that something would have to give - and
the same holds true for most members of the senior staff, who have
been encouraged by the communications team to understand the
realities of the process.
Direct access to senior executives helped move things along.
"There was a lot of just going upstairs and talking to the CFO,
which allowed us to resolve some issues really quickly," Santoro
says. Still, it all was not smooth sailing. In particular, "we took
a long time to solidify the look of the book," Levine recalls. "We
spent a lot of time in discussion with the design firm [VSA
Partners], and we were reworking the design pretty late in the
game." Lesson learned: In future years the communication team plans
to get moving a little sooner on design aspects.
While it is hard to quantify the specific PR impact of an annual
report, follow-up studies showed that the average shareholder spent
30 minutes perusing the piece, while conventional wisdom holds that
investors typically spend three to four minutes reading an annual
report (if they don't toss it onto some pile never to be read)
"Clearly we kind of broke through the mold and were able to reach
our shareholders and stakeholders in a special way," Santoro
says.
Contacts: Jeff Brand, 212.573.2259, [email protected]; Joe
Levine, 212.733.2078, [email protected]; John
Santoro, 212.733.7100, [email protected]
New Look for New Year
In 2002 the Pfizer communications team set out to create a new
kind of annual report for the pharmaceutical giant. What did they
learn?
- Focus the message: "The annual report that tries to be all
things to all people just ends up diluting the messages until it
all just ends up sounding like corporate- speak," says John
Santoro, executive director of leadership communications. - Highlight an issue: In addition to make money for its
shareholders, Pfizer also has played a leading role in making
medicines more readily available to those in need. The 2002 report
brought this issue to the fore.
Canvas the stakeholders: In crafting the report, communications
leaders held focus groups with managers, employees and outside
parties. Surveys of shareholders likewise helped to formulate the
presentation.