USAA LEADERSHIP COMMUNICATIONS PLAN

Scope of Plan The USAA Leadership Communications Plan defines leadership as all EMG, including the CEO. However, most of the tactics are designed for vice presidents through presidents, as these individuals possess the expertise, status and responsibility to serve as USAA spokespersons for internal and external audiences. While members of the USAA Board of Directors are not included in this plan, they could conceivably play a role in maintaining and enhancing USAAs reputation, valuable brand, industry leadership, member relationships and competitive position. The USAA Leadership Communications Plan targets the associations three primary audiences: employees, members and the public. While the plan was developed with a broad user-group and three key audiences in mind, a number of the tactics are appropriate only for particular leadership subgroups and audiences; for example, vice presidents and above communicating only to employees. Each tactics user-group and target-audience are clearly labeled in parentheses. Business Objectives The USAA Leadership Communications Plan is designed to contribute to the following USAA business objectives. Increase the number of USAA members, products per household and member retention. Improve USAAs recruitment and retention of employees of choice. Support USAAs operating state and mission.

Business Objective #1 Corporate Communications will employ the following communications strategies and tactics to increase the number of USAA members, products per household and member retention. Communication Strategy #1 Maintain and enhance USAAs excellent reputation, valuable brand and industry leadership.

Tactic #1 (VP and above. Member and Public) Identify key economic forces, regulatory issues and industry trends affecting USAAs business along with subject matter experts/centers of excellence qualified to communicate on these subjects. These forces, issues and trendsand their corresponding SMEsmight include: The Member Value Equation, Bob Davis Optional Federal Charter, Butch Viccellio Information Security and Privacy, Steve Yates The Graying of America, Karen Presley Creating an Employer of Choice in the 21st Century, Liz Conklyn Direct Marketing in the Electronic Age, Mark Rapp The Changing Face of Retirement, Chris Claus The New Market: What Will It Look Like, Stuart Wester

We would develop a Leadership Message Platform defining USAAs understanding of and position on these forces, issues and trends. This message platform would be updated quarterly and should be integrated into such external leadership communication vehicles as USAA Magazine and other member publications, op-eds and bylined articles in targeted media outlets, keynote speeches at industry conferences and testimonies at legislative hearings. (Leverage Corporate Research as well as the positioning platform, key messages and proof points from Public Communications Reputation Management Program.) All materials produced for external audiences could be repackaged into educational white papers, presentations and talking points for internal audiences (available in print or online). Tactic #2 (VP and above. Member and Public) Implement a Grass Tops program through which USAA leaders reach out to senior members who either are influential in the economic, legislative and political arenas or have connections to people who are influential in those arenas. By reaching out to these people through letters, informal gatherings, or formal speeches and presentations, USAA leaders can influence legislative outcomes, shape public opinion and counteract negative or inaccurate media coverage. (See Ken Simpson example in Florida referenced by Katie Spring.)

Tactic #3 (VP and above. Member and Public) Leverage third-party endorsements such as industry awards, external rankings and ratings, and notable media impressions in senior leader-authored articles in USAA Magazine and other member publications. Communication Strategy #2 Enhance USAAs competitive position and its relationships with members. Tactic #1 (VP and above. Member) Produce issues-based articles authored by USAA leaders for USAA Magazine and other member publications. (Leverage Corporate Research, Leadership Message Platform described above and CoSA-generated market commentaries. See Stuart Westers The New Market: What Will It Look Like in the March 2003 issue of USAA Magazine.) Tactic #2 (VP and above, Member) Create a Q&A-format Leadership Profile feature for member publications in which leaders address a range of questions concerning their personal values and philosophies; professional experiences and expertise; and industry perspectives and outlooks. This feature would increase the visibility of leaders among members while bolstering member confidence in and loyalty to USAA. Tactic #3 (VP and above, Member) Develop a multi-media Dimensions of Trust campaign through which leaders explore the different aspects of trust that are integral to USAAs ability to build and sustain relationships with our members. We also could apply this idea to Business Objective #2 by exploring the key role that trust plays in USAAs efforts to become an employer of choice. Tactic #4 (ED and above) Implement a formal Tag-Along program in which every EMG member across the organization would be assigned to spend one day a year with a frontline employee. During their tag-along, the employee would perform his/her normal daily duties and the EMG member would observe and assist as appropriate. EMG member observations would be captured on a standard reporting instrument, with findings compiled, sorted and summarized through USAA corporate research. Key findings and action items from these tag-along events would be broadly communicated within seven days following the tagalong. To create some organizational weight around this initiative, this event would occur once a quarter with approximately 25 percent of EMG participating each quarter. This program would achieve two main goals: first, the experience serves as a real-time quality-control and operational-improvement exercise; and second, rank-and-file employees gain some familiarity on a personal level with company leaders, which will begin to break through some institutionalized hierarchical barriers.

Communication Strategy #3 Increase leaders knowledge of members perceptions of USAA and its competitors. Tactic #1 (ED and above) Capture members experiences with competitors products and services through MSR contacts and solicitations in various internal and external publications such as Inside USAA, Connect, usaa.com and USAA Magazine. Integrate this anecdotal feedback with other sources of competitive intelligence, such as ECHO, and then document the cumulative results in a monthly report/newsletter for leaders. Track the number of product or service innovations that result from this competitive intelligence.

Business Objective #2: Corporate Communications will employ the following communications strategies and tactics to improve USAA s recruitment and retention of employees of choice. Communication Strategy #1 Provide leaders with the skills and tools they need to build and sustain employees awareness of, confidence in and commitment to USAA. Tactic #1 (VP and above, Employee) Meet with individual leaders to define the parameters of formal and informal employee forums they would be comfortable participating in. These might include: One-on-one sessions Small-group employee roundtables Large-group town-hall meetings (with Q&A) Skip-level meetings (VPs and directors, EDs and mid-level managers, directors and front-line managers) Diagonal-slice meetings (cross-functional with employees from operations, sales and service, marketing, etc.) Management meetings with direct reports

We would provide leaders with customized training that will allow them to excel in their desired forums. (Leverage media training from Public Communications Reputation Management Program.) Leaders should host at least two desired forums (one for employees and one for managers) per month.

Tactic #2 (VP and above. Employee) Leaders host informal coffees, breakfasts or lunches to address employee concerns and respond to employee feedback. These could begin with five-minute state-of-the-business addresses by leaders and then move into open-ended dialogue. Corporate Communications would collect employee questions and concerns communicated through Speak Up, PRIDE or other employee vehicles, prepare speaking points for leaders and ensure that discussions stay on topic. We should document any employee suggestions coming out of these meetings as well as report specific steps that leaders subsequently take to act upon the suggestions. Tactic #3 (EVPs and presidents. Employee) Create a Dissect the Decision program and/or Executive Council Exposs through which we present to employees the Executive Councils decision-making processes for critical business and operational issues. This tactic should illustrate that USAA leaders consider the realities of frontline employees, managers and support staff when they make important decisions. Tactic #4 (EVPs and presidents, Employee) Initiate leadership e-mail programs that thoughtfully respond to individual questions or concerns relevant to large numbers of employees. Communication Strategy #2 Sustain and enhance USAAs values-based, member-centric culture. Tactic #1 (EVPs and presidents, Employee) Implement a Culture and Core Values multi-media campaign through which we profile and/or interview leaders to get their unique insights and personal experiences on USAAs core values and culture. This campaign could be rolled out to employees through vehicles like Connect, Inside USAA and Utv as well as to members through various publications. Tactic #2 (ED and above. Employee) Involve leaders not only as sponsors of, but also as active participants in, communityservice projectsworking side-by-side with employees. Share these stories with employees through video, print and online media. Communication Strategy #3 Provide leaders with insight into employee ideas, concerns, issues and needs. Tactic #1 (VP and above, Employee) Leaders host monthly small-group meetings with the top up-and-coming employees in their organizations as identified by managers. In these meetings, leaders solicit best ideas from the top performers and then further refine the ideas with their direct reports, tracking those exceptional ideas that are eventually operationalized and rewarding their inventors.

Tactic #2 (VP and above, Employee) Conduct surveys with key employee audiences to ascertain their understanding of the financial services industry and USAAs business as well as their perceptions of leadership in general and specific leaders at USAA. Document research findings in a formal report and present the report to leaders to educate them and influence their future behaviors. (Several tactics within Business Objective #2, Strategies #1 and #2 above will contribute to the realization of this strategy. In addition, Tactic #4 within Business Objective #1, Communication Strategy #2 above will contribute to the realization of this strategy.) Communication Strategy #4 Exemplify an engaged leader. Tactic #1 (ED and above) Create a USAA Leader Engagement Matrix (based on the Wheel of Engagement Matrix) by listing the typical behaviors of a champion leader, a loose-cannon leader, a weak-link leader and a bystander leader. Share this matrix with leaders to influence their behavior and incorporate related metrics into their performance evaluations. (Leverage the leadershiprelated results from the recent USAA Employee Survey as well as results from the Learning Systems/Human Resources Manager Competencies initiative.) Tactic #2 (ED and above, Employee) Implement a formal Leadership Walk-Around program in which leaders consciously, but casually: Thank individual employees in person or through thank-you notes for jobs well done. Stop by work areas or project rooms to ask employees how theyre doing and take time to listen to their responses. Take time to share relevant personal experiences and anecdotes with employees facing critical challenges.

Tactic #3 (ED and above) Develop opportunities for leaders to experience and participate in frontline work (e.g., Kent Williams sitting in on Y-cord calls). We could communicate these events to employees through programs called Into the Trenches or Where the Rubber Meets the Road using Inside USAA, Connect and Utv. Tactic #4 (VP and above, Employee) Write senior leader profiles for various employee communications (print, online and video), illustrating how USAA leaders engage employees.

Tactic #5 (VP and above. Employee) Create online video diaries following leaders when they do media tours in key media outlets as part of Public Communications Reputation Management Program. Tactic #6 (ED and above, Employee) Produce video and print diaries of senior leaders interacting with junior leaders through the mentoring program. These mentoring diaries could be used to demonstrate USAAs commitment to developing future leaders, as well as to help instruct current and future leaders in their coaching efforts.

Business Objective #3 Corporate Communications will employ the following communications strategies and tactics to support USAA s operating state and mission. Communication Strategy #1 Help employees understand USAAs business and their role in its success. Tactic #1 (CEO. Employee) Continue to execute post-Management Meeting communication to all employees using media such as Connect, Inside USAA and Utv. Tactic #2 (CEO, Employee) Devote at least one Management Meeting a year to frontline employees. For this meeting, only Member Service Reps are invited to attend. All other attendees are encouraged to watch the live broadcast. The meeting should be held in a more casual setting, such as the large studio, rather than the auditorium. The configuration should encourage interaction between Mr. Davis and the attendees. Content for the meeting would be generally the same as for regular management meetings. Following the formal presentation of the meeting material, the broadcast ends, but the meeting continues with the live studio audience and Mr. Davis. For the next 30 minutes, Mr. Davis fields questions from the attendees. This content is videotaped and edited for broadcast and also distributed on CDROM to frontline managers for use in stand-up meetings (no VCR required). Tactic #3 (CEO. Employee) Create a monthly Business at a Glance section on Connect through which Mr. Davis provides a state-of-the-company overview every month. The level of detail provided on this section would be comparable to the material Mr. Davis shares at his Management Meetings.

Tactic #4 (VP and above, Employee) Identify key economic forces, regulatory issues and industry trends affecting USAAs business along with subject matter experts/centers of excellence qualified to communicate on these subjects. These forces, issues and trendsand their corresponding SMEsmight include: The Member Value Equation, Bob Davis Optional Federal Charter, Butch Viccellio Information Security and Privacy, Steve Yates The Graying of America, Karen Presley Creating an Employer of Choice in the 21st Century, Liz Conklyn Direct Marketing in the Electronic Age, Mark Rapp The Changing Face of Retirement, Chris Claus The New Market: What Will It Look Like, Stuart Wester

Develop a Leadership Message Platform defining USAAs understanding of and position on these forces, issues and trends. This message platform would be updated quarterly and should be integrated into such internal communication vehicles as monthly letters to employees, management meetings, town halls and other face-to-face opportunities. (Leverage Corporate Research as well as the positioning platform, key messages and proof points from Public Communications Reputation Management Program.) Create Issue Briefs or Message Mementos for print and online media that articulate to employees USAAs position on these key forces, issues and trends. (Visual Communications Focus platform can produce in-depth stories on external and internal issues.) Tactic #5 (VP and above, Employee) Repackage leaders external media pitches, bylined articles and op-ed pieces (from Public Communications Reputation Management Program) for internal audiences. Tactic #6 (VP and above, Employee) Repackage executive speeches given at key industry, academic and local communityoriented conferences (from Public Communications Reputation Management Program) for internal audiences. Tactic #7 (VP and above, Employee) Leaders host town-hall meetings in which they discuss current or upcoming line-ofbusiness initiatives in the broader context of USAAs business and the financial services 8

industry at large. Tactic #8 (VP and above, Employee) Involve more USAA leaders in Mr. Davis monthly Management Meetings, speaking about some issue or aspect of their business that is important for employees to know about. This effort also would entail leaders speaking at other CoSAs management meetings and town halls. Tactic #9 (VP and above. Employee) Develop a What Does World-Class Mean, Anyway? multi-media campaign through which leaders define USAAs world-class stature relative to such key issues/initiatives as: Governance Workforce development Safety and security Operating state Service delivery Quality of products Compliance Core values

Tactic #10 (VP and above, Employee) Create a Q&A talk show on Utv (possibly as an extension of Mr. Davis Perspectives) in which USAA leaders address a range of questions and issues within their respective areas of business/expertise. Communication Strategy #2 Motivate and inspire employees to take personal responsibility for the success of USAA Tactic #1 (VP and above, Employee) Implement a Heroes in Our Midst program through which USAA leaders share personal anecdotes or employee stories (in face-to-face meetings and employee publications) about how theyve overcome ethical dilemmas, business challenges and personal tragedies or helped members deal with similar crises. These stories should illustrate how one persons resilience, creativity or resolve in the face of overwhelming odds can have a profound impact on the lives of USAA employees and members.

Tactic #2 (VP and above, Employee) Implement a Connect the Dots multi-media program through which leaders tell real-life stories about how the actions of frontline employees have created positive rippling effects throughout their organizations that ultimately help USAA achieve its mission. This program should demonstrate leaders understanding of and appreciation for frontliners. In general, storytelling is one of the most effective vehicles for educating and inspiring employees. USAA leaders should share personal anecdotesincluding successes, failures and lessons learnedthroughout their communications with employees. Tactic #3 Leverage third-party endorsements such as industry awards, external rankings and ratings, and notable media impressions in leaders internal communications to enhance employees pride in USAA.

Overall Program Measurement Measure the number of media impressions that USAA leaders make and evaluate the extent to which key messages are pulled through these media mentions. Measure the number of media requests and conference-speaking invitations USAA leaders receive, including the number of requests and invitations our leaders accept. Implement communication metrics by which USAA leaders are evaluated each year. For example, every year each senior leader must hold a certain number of management meetings, large-group town halls and small-group roundtables. In addition, each leader must author a certain number of issue-based articles in internal and external print and online publications and speak at a certain number of external community-oriented and industry events. Incorporate these communication metrics into leaders performance reviews. Send questionnaires to leaders peers, direct reports and the general employee populationasking them to grade leaders performance based on these metrics. Conduct informal enterprise-wide and CoSA-specific surveys to see if employees perceptions of leaders, their commitment to USAA and their understanding of USAAs key business objectives, opportunities and challenges have changed since the inception of the Leadership Communications Plan.

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