Introduction Financial Highlights Letter to Shareholders In The Company of Leaders Financial Results Cox At A Glance Directors & Management Shareholder Information Community Commitment

 

 

The Traits of
Leaders

Impact

Mike Miller (left), Cox Media General Manager in San Diego, has always believed sales reps should focus exclusively on selling. As Cox Media GM in Omaha, he pioneered IMPACT, an industry-leading structure where Account Coordinators handle all administrative functions, allowing sales reps to focus on selling. He introduced the structure in San Diego upon moving there, and it has since spread to other Cox operations. Miller cites IMPACT as one of the factors that has made Cox Media the top local television ad revenue generator in the San Diego market.

Initiative

Cheryl Hobgood, Supply Chain Strategist in Cox’s corporate materials management department, once told her boss, “I’m not satisfied unless I’m making a real impact.” She certainly proved that point by taking the initiative to launch two online “reverse auctions,” in collaboration with co-workers (right, with Cheryl, left to right): George Garcia, Derrick Hanson and Scott Hill. Similar to typical online auctions, except that prices decrease with each bid, the tool saved Cox more than $2 million in purchasing costs.

Excellence

Cox Digital Telephone won the highest honor in J.D. Power and Associates’ 2003 Residential Local Telephone Customer Satisfaction Study. Ranked highest in overall satisfaction in the Western region, Cox received the highest ranking in all six factors measured – company image, customer service, performance and reliability, billing, cost of service, and offerings and promotions – thanks to thousands of employees companywide, including San Diego customer care team members (at left, left to right) Gil Rapley, Jocelyn Castro and Adriana Mendoza. The honor marked the first time any broadband communications company received a telephone service award from J.D. Power and Associates.

 

Diversity

Recognizing that developing a diversity of leadership talent would enhance Cox’s success, Ron Dickinson, Cox Media General Manager in Northern Virginia, launched a partnership with Howard University to place minority students in media sales positions. Since the program’s 2002 inception, Cox has hired seven graduates in multiple markets – including Account Executives Brian Howell and Tyra General (right, from left, with Ron). Tyra cites “access to great training and the fact that Cox cares about me as a person” as highlights of her job at Cox Media.

Distinction

Offering customers programming they can’t get elsewhere gives Cox a distinct competitive advantage. Just ask Cox Orange County, which added “Retro Saturday Morning” to its extensive slate of community programs. Securing syndication rights to beloved ’70s staples like H.R. Pufnstuf, Sigmund and the Sea Monsters and Land of the Lost, they created a block of shows that has developed a fervent local following, proving that everything old can be new again.

 

Principle

Sometimes, leadership requires taking a stand when no one else does. With the skyrocketing cost of sports programming threatening to diminish the long-term value of cable TV for consumers, Cox took a stand in 2003. We launched an extensive public education campaign revealing the difficulties of keeping cable TV prices reasonable given the major sports networks’ exorbitant price increases. The campaign paid off, thanks in large part to our customers’ interest and involvement. ESPN, for instance, reduced its price increase demands considerably. While the rising cost of programming remains a big challenge, the moderated price increases negotiated in connection with the campaign will enable Cox to continue offering great programming at a good value for customers.

Perseverance

Several years ago, legislation was introduced mandating that Kansas schools connect to a state Internet service. The KAN-ED legislation, as it was called, would have shut out all Internet providers except the incumbent local phone company. Jay Allbaugh (left), Cox’s Vice President of Public Affairs in Kansas, worked hard to insert cable companies into the process and educated legislators that, as proposed, the program would deny schools access to powerful broadband services. The legislation was defeated twice. When it came up for a third vote, Cox and other cable providers were included – a testament to Jay’s perseverance – and it passed. The state has since honored Jay with the KAN-ED Pioneer Award, and Cox secured a portion of the KAN-ED contract to provide fiber circuits between several Kansas communities.

Achievement

Cox Business Services (CBS) signed up its 100,000th customer in 2003 and has increased revenues approximately 180% since 2000. The organization’s tremendous success companywide is exemplified by its healthcare strategy in New England. Three years ago, CBS had minimal presence in the region’s healthcare segment, but recognized the enormous untapped potential. Led by Vice President Mark Scott, CBS deployed a comprehensive sales strategy targeting healthcare, supported by Cox’s network engineering team and other local Cox departments. Before long, the teamwork began paying off and CBS was providing a range of customized network solutions for healthcare businesses. Today, Cox provides comprehensive video, voice and data services to the two largest healthcare providers in New England and numerous other medical clients, generating significant annual sales.

Heroism

Heroes don’t always wear capes and tights. Sometimes they can be identified by their Cox logo and willingness to lead in times of crisis – like Field Service Representatives Raymond Williams of Cox Middle Georgia and Greg Alexander of Roanoke. Taking the term “customer service” to heart, both men recently saved lives by helping residents escape fires.

 

Service

Demonstrating leadership and tremendous initiative, Regulatory Affairs Analysts (right, left to right) Leslie McLaughlin, LaTanya Linzie and LaRhonda Williams helped Cox provide phone service to low-income families. They doggedly tapped existing state and federal programs that offer reimbursement to companies providing reduced rates to low-income customers. Through their initiative, almost 90,000 new Cox phone customers in three states were able to get reduced-rate service, while Cox generated additional revenue through the reimbursement programs.

Collaboration

When Cox’s information technology teams in Kansas, Oklahoma and West Texas discovered each was duplicating efforts trying to solve similar problems, they created a virtual IT team to pool resources and leverage best ideas. Dubbed the “Three Amigos,” their innovative collaboration has created common, best-of-breed software solutions to meet the challenges each team faces. The result? Satisfied internal customers, improved functionality and happier IT employees. “We’re trying to demonstrate how employees from different systems can put aside egos and work together,” explained Larry LaFreniere of West Texas, who collaborated with Mark Whitmire in Oklahoma and Rick Shannon in Kansas. “Our collaboration is a lesson in leveraging your impact without leaving your field site.”

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