Case Study - Qinetiq
Background:
Mediatrack has provided Qinetiq with bespoke media evaluation for
several years and our analysis has shown that the company enjoys a very favourable
profile across a range of media outlets. Given the issues surrounding this IPO (Initial
Public Offering), we felt it was vital to evaluate it as a stand-alone event and
then assess the impact on Qinetiq‘s reputation overall.
Through our knowledge of Qinetiq, we knew that the company had
begun to re-position itself for some time before the float, delivering key messages
about the company’s transformation, its growth strategy and its financial strengths.
As well as tracking the delivery of these messages, it was imperative to identify
and track negative issues arising during the IPO process, enabling us to identify
how they were impacting on the company’s reputation.
We developed a series of short reports focusing specifically on each step of the
IPO to understand if and how the media perception was changing and to report on
the emerging trends.
Strategy:
We created a bespoke coding protocol to enable us to track the impact
of the main issues, to monitor the communication of key messages
(both positive and negative) and to assess to what extent key commentators and senior
management influenced the coverage. The press office needed to
make sure that messages of the IPO were getting through and weren’t being diluted
by the debate about whether the Government was right to float
Qinetiq.
Because the IPO was linked inextricably with the Government and
the Carlyle Group, we needed to ensure that we could provide
Qinetiq with information on its specific performance compared to that
of its shareholders. Therefore each item of coverage was analysed in terms of its
favourability for Qinetiq, the Government and
the Carlyle Group to enable comparison.
Quick turnaround of reports was vital to help the press office understand how and
where they were winning and to demonstrate that the PR activity was having a positive
impact on the outcome. Given the pressures facing the team, we provided clear and
concise reports with easy-to-understand graphs charting changes in coverage and
bullet points to highlight the main issues.
Our analysis confirmed the strengths and weaknesses in the coverage and the team
used the findings to pinpoint areas of concern and plan appropriate responses.
"The reports reinforced the effectiveness of what we were doing and helped
to reassure us that we were doing it right! Internally, they demonstrated to the
team that what we were doing was working – we were getting the right messages out
there."
Nicky Louth-Davies, Head of Media & Corporate Affairs, QinetiQ
Conclusions:
How did Qinetiq perform in comparison to the Carlyle Group and
Government?Despite the controversial nature of the IPO, Qinetiq
escaped harsh criticism. There were few direct criticisms of the organisation itself,
with the emphasis much more on the Government’s handling of the
sale and the money Carlyle stood to make. The overall favourability of the reporting
of the three organisations was distinct: Qinetiq consistently achieved
the highest favourability and remained within the favourability range that we would
expect from companies in ‘normal’ circumstances. Naturally, Qinetiq
could not escape the media’s attention, but it is important to note that the company’s
profile improved over time.
Were the right messages communicated? What was the impact of negative messages?
Analysis of coverage over the whole IPO process showed that the company delivered
favourably on its key messages – the flotation being of benefit to the taxpayer,
the company’s strong growth strategy, the fact that it was a transformed business
and the IPO being the logical next step in the company’s growth. The two most negative
messages overall – that Carlyle paid too little and that there were no private investors
were messages that related to the company’s shareholders. During the three distinct
phases of the IPO, our reports showed a number of other messages gaining prominence
according to the issues of the day – Qinetiq’s strong financial
track record and the UK’s retention of defence and security interests (aided by
frequent references to John Reid’s assertion that the Government
would retain a "special share in Qinetiq to protect the UK’s defence
and security interests") coming through particularly positively. The analysis proves
that key messages were positively conveyed throughout the process and negative issues
were well managed. In particular, defence minister Lord Drayson pushed positive
messages through in the latter stages, with a significant impact on the overall
profile.
To what extent did key commentators impact on the coverage? Interestingly, none
of the commentators specifically targeted Qinetiq for criticism.
We identified the Lib Dem Shadow Chancellor Vince Cable as one of the most vociferous
of the commentators; although not specifically critical of Qinetiq,
his concerns about the valuation of the company and alleged ‘sweetener’ contracts
did have an impact on shareholders’ coverage overall. The sharpest criticism of
the float came from former defence minister Lord Moonie. However, the intervention
of Lord Drayson in the debate had a positive effect on the story. Lord Drayson defended
all aspects of the IPO and both QinetiQ and the Government achieved
higher favourabilities in coverage where he was quoted than overall.
How did senior management fare from the coverage?Unsurprisingly, senior management
at QinetiQ came under a great deal of examination during the float. As with all
major organisations, the media hone in on the financial gains of the senior management
team. Our analysis showed that it was the management’s gains, albeit on paper, that
were under scrutiny, and the impact on coverage was well contained. Their skills
in transforming and shaping the business were widely acknowledged.
Overall conclusions: Coverage relating to the IPO impacted differently on the three
main stakeholders. There were very few direct criticisms of QinetiQ, with the emphasis
much more on how much the Carlyle Group stood to make, as well
as the Government’s handling of the sale itself. Throughout the
coverage there was a strong and positive recognition of the company’s transformation
from a motley collection of labs to a commercial business, and its portfolio of
products and services. The analysis has shown clearly that the company’s strength
is in its ability to innovate and its growth strategy, and that the emphasis placed
on this during the IPO was absolutely correct. This has been borne out by the resumption
of ‘business as usual’ coverage and favourability levels immediately following the
company’s flotation.
"Mediatrack’s analysis has helped us review the media relations activity surrounding
the IPO and has provided strong reassurance that we pursued the right strategy.
Their client-friendly project management during this extremely busy time has been
very helpful."
Nicky Louth-Davies, Head of Media & Corporate Affairs, QinetiQ