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					Integrating CR into your Business
Plan: The Best PR Move to Make




                                 PRSA Luncheon
                                      April 2009


1   Accelerating Your Success™
Overview

 •   Teri’s Job
 •   Avnet, Inc.
 •   Community Relations (CR) Strategy Development
 •   CR at Avnet
 •   Results
 •   Q&A




2    Accelerating Your Success™
Teri Radosevich

    • Vice President, Community Relations and
      Public Affairs
    • Corporate Communications Department
    • Joined Avnet in 2000 as Director, Community
      Relations
         – Tech Industry down turn
    • Boss: Al Maag, Chief Communications Officer,
      sits on the Avnet Executive Board
    • Community Relations defined


3   Accelerating Your Success™
About Avnet
Avnet, Inc.

• Avnet, Inc., a Fortune 500 company, is one of the
  largest distributors in the world of electronic
  components and computer products. Avnet
  connects the world's leading technology suppliers
  with more than 100,000 customers.
• For more information, visit www.avnet.com.
• CEO, Roy Vallee
• Avnet named number one in its industry by Fortune,
  “Most Admired Companies”



 5   Accelerating Your Success™
Roy Vallee Profile
    • 37 years in technology distribution
    • 32 years at Avnet
    • Avnet Chairman & CEO since July 1998
    • Board member: AZ Governor’s Economic
      Resource Organization
• Former Co-chair for Governor’s Council on
  Innovation & Technology
• Board member: Teradyne & Synopsys, Inc.
• Inducted into CRN Industry Hall of Fame
• Recipient of NEDA’s Gail S. Carter Award



6    Accelerating Your Success™
Company Snapshot
    •    Founded in 1921
    •    Incorporated in 1955                  TS
                                              TS
                                              41%
    •    NYSE: AVT in 1959                    42%
                                                          EM
                                                              EM
                                                          59%
    •    Relocated headquarters to Ariz. in               58%

         1998
    •    No. 163 on Fortune 500
    •
                                                    Q4 FY08
         June 28 - fiscal year 2008 end
    •    FY08 Annual Revenue, $17.95           Asia
         billion                               19%
                                                              Amer
    •    57 acquisitions since 1991 300                       47%
         locations in over 70 countries       EMEA
    •    300 suppliers/100,000 customers       34%




7       Accelerating Your Success™
Corporate Facts
    •   Exchange: NYSE
                                    Asia
    •   Ticker Symbol: AVT          Pac
    •   Sector: Technology          18%
                                           Amer
    •   Founded: 1921 by Charles           50%
                                   EMEA
        Avnet                       32%
    •   Incorporated: 1955
    •   CEO: Roy Vallee
    •   Global Headquarters:
        Phoenix, Ariz.
    •   Employees Worldwide:
        12,500


8   Accelerating Your Success™
Vital Link in Global Technology Supply Chain

  Avnet manages the complexity of the technology supply chain in a cost-
    efficient manner, delivering value to suppliers and customers




Semiconductors
 Interconnect
                                                   Original           Resellers and
    Passive
                                     EMS / ODM    Equipment             Systems       End Users
    Electro-
                                                 Manufacturers          Builders
  mechanical
                 EM                                              TS



                                                   Software
                                                   Vendors




    9   Accelerating Your Success™
Avnet Suppliers and Customers

                Suppliers         Customers




10   Accelerating Your Success™
Key Industries Served

      • Industrial
           – Includes Military & Civil
             Aerospace and Medical
      •   Automotive
      •   Wired Communications
      •   Mobile Communications
      •   Consumer
      •   Data Processing
      •   Computers, Enterprise
          Systems

11   Accelerating Your Success™
Learning to use CR
      as a Strategy
Education

     • B.S. in Business, EIU
          – Energy Management Major
                • Only five women in the whole program
          – Geology Minor
     • Masters in Business Administration
          – Western International University, Phoenix, Ariz.
          – 1995
     • Certified Community Relations Professional
          – Boston College Center for Corporate Citizenship
     • Conversational Spanish, Certificate of Completion
          – intermediate level



13   Accelerating Your Success™
Career Path

     • Seven years with utility company in Illinois
          – First job did heat loss analyses and energy audits
          – Good communications skills, for a techie
          – Led to a transfer to the corporate office in public relations
     • Recruited by a Phoenix utility after they did a nation-wide
       search
          – Technical degree
          – Communications experience
          – Speak to public at an 8th grade level about scientific issues
     • Motorola
          – Community Relations Manager, Arizona
                • Moved to the dark side
          – Boston College Training
                • Tested the waters, put some ideas to practice
          – Promoted to Director, Advertising and CR
                • Put more ideas to practice
                • Wake Up! Campaign results


14   Accelerating Your Success™
CR Programs – Early Indicators

     • “Wake Up!” campaign addressing
       youth violence
         – Program is still active within Phoenix
           Police Department, 10 years later
         – Other PDs across the US have
           benchmarked this program
         – Emmy
         – Telly
     • PR News, Community Relations
       “Person of the Year,” 2007-2008
         – Avnet Tech Games
         – Avnet Science and Technology Fair
     • Avnet Tech Games
         – PRNews Awards, national
         – IABC Gold Quills, international
         – Media coverage in national publications



15   Accelerating Your Success™
Avnet Community
Relations Strategy
An Integrated Approach


 • Advertising
       – Mark Twain
 • Avnet Tech Games
       –   Signature event
       –   Paid advertising campaign
       –   Led to additional PR
       –   Created awareness with target audience
       –   Reached a local philanthropist
            • $150,000 multi-year grant
       – Allows us to focus on more strategic aspects of the ATG
       – Next year … enhance our social media approach which should
         lead to …
       – More PR

17   Accelerating Your Success™
Charitable Giving … Before

     • Avnet Contributions Council
          – www.avnet.com/community/
          – Grants to nonprofit organizations
          – Funding for Avnet employees who serve on a nonprofit Boards of
            Directors
     • Avnet Cares, Arizona
          –   Make a Difference Day (300 volunteers at its peak)
          –   Holiday collections and annual “drives”
          –   Jeans Day
          –   Races and Walks
     • Disaster Relief Giving, ad hoc
          –   9-11
          –   Tsunami
          –   Hurricane Katrina
          –   China Earthquake
     • Sponsorships


18   Accelerating Your Success™
What Do We Want From Our CR Outreach?

• It’s good to do CR for the right reasons
     – Grass roots efforts
• It’s also smart to use CR to accomplish other
  purposes
     – Can we get a halo effect from things we are
       already doing for the right reasons?
     – Can we get PR from it?
     – Can we use it to do advertising and branding?


19   Accelerating Your Success™
Next Steps

     • To create an awareness to locations outside of
       Phoenix that CR is important to Corporate
          – CR works as a means to an end, but …
          – Its impact, when tied to business goals, are
                • Community benefits – as the community prospers, so does
                  our business, our employees and our partners
                • Employee morale
                • Relationship building – suppliers and customers in your
                  community
                • Awareness of the Inc. brand
                • Financial: increase sales, profit, stock price



20   Accelerating Your Success™
Evolution of Community Relations

                                       Internalization
                                  (company policies & practices)


                                        Partnerships


                                         Volunteers

                                        Contributions
                                           ($’s, in-kind)

                                                                   Social/Community
                                                                         Vision


21   Accelerating Your Success™
Finding “The Fit”
                                                                   Forces outside the
                                                                 organization. Needs of
                                                               customers, stakeholders,
                                        OPPORTUNITIES          competitors, allies. Social,
      MISSION                             THREATS               economic, political and
     PURPOSE                                                       technology forces.
                                                  What is
      GOALS                                       feasible
      What do                     THE             and
                                                  needed in
     you intend
       to do?
                                  FIT             your
                                                  service
                                                  area?

                             STRENGTHS
                             WEAKNESSES                 Forces inside the
                                What are you              organization.
                              capable of doing?            Resources.
                                                          Capabilities.


22   Accelerating Your Success™
Our Community Relations Vision

• Vision: To execute an effective community investment
  strategy which aligns Company mission with community
  needs.
• Mission: To execute a strategic community relations plan
  that specifically addresses education, children’s issues and
  technology.
• Whenever possible, to work in partnerships and with
  customers, supplier and vendors to execute said mission.




23   Accelerating Your Success™
How Do We Do Get Strategic?
•    Define a target market
      – Who do we want to reach with our community relations messages? Be specific.
           • Phoenix Metro area is too big
           • Roy’s neighbor story
•    Focus, focus, focus
      – The more narrow your focus, the better
      – Big fish story
•    Partnerships
      – With select nonprofits, focus
      – With customers and suppliers, leverage
      – With members of the Board of Directors
           • A Stepping Stone Foundation
      – With employees and vendors
           • Tempe Pappas Regional Elementary School
               – Arizona Cardinals Training Camp Day
               – Other Ticket Donations, sports marketing
               – Clothing and Back to School Drives




24   Accelerating Your Success™
Charitable Giving … After

     •   Avnet Contributions Council
          – New focus
          – Guidelines for giving
     •   Avnet Cares Governing Board -- Americas
          –   Employee Volunteerism
          –   Disaster Relief Policy vs. ad hoc, from a new budget
          –   Dollars for Doers vs. Jeans Day
          –   Matching Grants vs. races and walks
                • Fundraising for charity
     •   In-Kind Donations, great to do in times when budgets are being cut
          –   Web Sites
          –   Videos
          –   Web casts (soldiers’ families)
          –   Training
     •   Signature Events vs. Sponsorships
          – Benefits to community partners … plus
          – Relationship building with business partners
          – Branding for Avnet and business partners



25   Accelerating Your Success™
Signature Events – Business Partners

     •   Past Sponsors of our Signature Events
          –   Accenture
          –   AMD
          –   Analog Devices
          –   Arizona Public Service
          –   AT&T
          –   Avid
          –   AZBA
          –   Belkin
          –   Calence
          –   Computer Associates
          –   EMC
          –   Freescale
          –   Fujitsu
          –   Humana
          –   IBM
          –   InterTel
          –   ITPartners
          –   MATEC
          –   Microsoft
          –   NetApp
          –   New Angle Media
          –   Protiviti
          –   Renesas
          –   Salt River Project
          –   Spark Design
          –   STMicroelectronics
          –   Symantec
          –   VMWare




26   Accelerating Your Success™
From Sponsorships to Signature Events

       • Avnet Honors the Women of Arizona
       • B2B Softball Tournament
            – Done with tech companies as participants
            – Charitable contribution to scholarship fund
       • Avnet Science and Technology Fair
            –   Honeywell
            –   IBM
            –   STMicro
            –   Arizona Public Service Company
            –   Calence

       • Avnet Tech Games (ATG)




27   Accelerating Your Success™
Avnet Signature Events

     The Avnet Science and Technology Fair
     • The Reason: Because Arizona’s AIMS test focuses on
       reading, writing and arithmetic …. Not science.
     • Partnership: worked with customers and suppliers to
       produce. Also used them as judges.
     • The Goal: targeting Arizona students grades 5-8
         – To encourage them to pursue careers in this field
         – To teach them science and technology is fun
         – To build the technology pipeline




28    Accelerating Your Success™
Signature Events

• The Avnet Tech Games
     – Colleges and universities across Arizona
       compete
         • Teams of students vie for top honors
         • Nine competitive events                2008
             – all related to technology
         • Scholarships for all winners
             – Each team members gets $1,000
         • Faculty gets honorariums
         • Chances for internships and jobs




29    Accelerating Your Success™
Signature Events – Avnet Tech Games

     • Students demonstrate decision making and
       creative skills while enjoying hands-on
       experience outside of the classroom
     • Students develop their
       communication, problem-
       solving and leadership
       expertise; gain skills
       needed for success in the
       business world
     • Branding for Avnet and
       business partners

30   Accelerating Your Success™
Results
Avnet Tech Games Successes
     • Number one supporter, CEO
          – Wide-spread participation from Avnet Executive Board
     • Networking has created dozens of examples of “doing
       business”
          –   Customers and suppliers jazzed
          –   Deb Carstens
          –   Belkin
          –   Microchip
     • International awards and recognition
          – Media coverage in national publications
          – Awards for CSR and Communications Management
          – Recognized for building the technology pipeline



32   Accelerating Your Success™
Avnet Tech Games Successes
     •   Students hired
            –   Internships
            –   Full-time jobs
            –   By Avnet
            –   By our sponsors
     •   Corporate Social Responsibility
            – Business partners involved in community outreach they otherwise wouldn’t do
            – Business-education partnerships created
     •   Changing outdated curriculum
            – Training future workforce
            – Xilinix
            – General Dynamics
     •   PR led to $150,000 in donations

     2009




33   Accelerating Your Success™
CR Strategy Results

     • Behavior Research Center
          – Avnet’s Baseline Study, August 2000, general
            public
                • Awareness Rating: 21% Aware of Avnet
          – Community Leader Study (Our Target Market),
            June 2006
                • Awareness Rating: 58% Aware of Avnet
                • Perceived involvement in CR programs: 53%
                     – At a time when our charitable giving was low
                     – BRC: “This is a very good number compared to your spend”
                • Awareness of specific programs increased
                     – BRC: “This is significant – it’s hard to gain awareness with single
                       events (limited appeal) vs. doing a full blown advertising campaign.”




34   Accelerating Your Success™
CR Strategy Results

     • Employee Survey Results (Watson
       Wyatt)
                • 80s% Favorability Rating in America
                • 40s% Favorability Rating in Asia/Pacific and climbing
                • 10s% Favorability Rating in Japan, climbing significantly

     •   GPL (Target Market)
     •   My Budget -- proportions
     •   The Avnet Contributions Council budget
     •   Differentiator

35   Accelerating Your Success™
Questions?

     • About
          –   Avnet
          –   Community Relations
          –   Strategic Planning
          –   Integrated Approach to CR
          –   Tying CR to Business Plan




36   Accelerating Your Success™
                            Thank You!

                                  Out of clutter, find simplicity.

                                  From discord, find harmony.

                                   In the middle of difficulty,

                                         lies opportunity.

                                            Albert Einstein




37   Accelerating Your Success™

				
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