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

1. Integrating CR into your Business Plan: The Best PR Move to Make PRSA Luncheon April 2009

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

3. 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

4. About Avnet

5. 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”

6. 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

7. Company Snapshot • Founded in 1921 • Incorporated in 1955 • NYSE: AVT in 1959 • Relocated headquarters to Ariz. in 1998 • No. 163 on Fortune 500 • June 28 - fiscal year 2008 end • FY08 Annual Revenue, $17.95 billion • 57 acquisitions since 1991300 locations in over 70 countries • 300 suppliers/100,000 customers TS 41% TS 42% EM 59% EM 58% Q4 FY08

8. Corporate Facts • Exchange: NYSE • Ticker Symbol: AVT • Sector: Technology • Founded: 1921 by Charles Avnet • Incorporated: 1955 • CEO: Roy Vallee • Global Headquarters: Phoenix, Ariz. • Employees Worldwide: 12,500

9. Vital Link in Global Technology Supply Chain Semiconductors Interconnect Passive Electro-mechanical Original Equipment Manufacturers End Users EMS / ODM Resellers andSystems Builders EM TS Software Vendors Avnet manages the complexity of the technology supply chain in a cost-efficient manner, delivering value to suppliers and customers

10. Avnet Suppliers and Customers SuppliersCustomers

11. Key Industries Served • Industrial • Includes Military & Civil Aerospace and Medical • Automotive • Wired Communications • Mobile Communications • Consumer • Data Processing • Computers, Enterprise Systems

12. Learning to use CR as a Strategy

13. 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

14. 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

15. 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

16. Avnet Community Relations Strategy

17. 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

18. 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

19. 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?

20. 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

21. Evolution of Community Relations

22. Finding “The Fit” Forces outside the organization. Needs of customers, stakeholders, competitors, allies. Social, economic, political and technology forces. OPPORTUNITIES THREATS MISSION PURPOSE GOALS What do you intend to do? What is feasible and needed in your service area? THE FIT STRENGTHS WEAKNESSES Forces inside the organization. Resources. Capabilities. What are you capable of doing?

23. 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.

24. 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

25. Charitable Giving … After • Avnet Contributions Council • New focus • Guidelines for giving • Avnet Cares Governing Board -- Americas • Employee Volunteerism • Disaster Relief Policyvs. 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

26. 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

27. 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)

28. 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

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

30. 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

31. Results

32. 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

33. 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

34. 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.”

35. 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

36. Questions? • About • Avnet • Community Relations • Strategic Planning • Integrated Approach to CR • Tying CR to Business Plan

37. Thank You! Out of clutter, find simplicity. From discord, find harmony. In the middle of difficulty, lies opportunity. Albert Einstein