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Dear Friends & Clients, !!Two names changes in a year is a lot — even for us! In almost fourteen years in the same job, I’ve had eight. That’s a lot of email addresses and too many t-shirts, hats and coffee mugs to keep track of. We appreciate that we sometimes create confusion for clients, friends – spouses, parents, and children. !We are grateful for your partnership and friendship over the years. Our team loves what we do, and we wouldn’t have a lot to do without such great clients! We’re inspired by your work. We learn from your successes and failures. We take seriously our shared responsibility to improve educational outcomes for all students. And we have a lot of fun along the way. !When I joined our firm in 2000, we were building the first integrated multi-state government relations practice. Governors were rapidly becoming the most influential force in US policy and politics. Most played an active role in Washington on critical issues – especially education.

From U. of VA Center for Politics, © 2013, and Wikipedia

2002 Gubernatorial Results 2014 Gubernatorial Elections!!!!!!!!!!

Dark Red: Rep holds Red: Rep Pickups Dark Blue: Dem Holds Blue: Dem Pickups

!!!!!We launched an education practice that year with the ambitious goal

of helping transformative technologies and organizations scale and improve student outcomes. Data-driven decision-making (D3) was a big

deal. No one had heard of blended learning. We “HotSync’d” our Palm Pilots. Washington and state governments were embracing technology and investing

heavily in "e-government” initiatives. In 2001, the No Child Left Behind Act transformed the education landscape. A mega-election-year, in 2002, then ushered in a cadre of innovative leaders willing to experiment with new approaches. !Another mega-election year is on the horizon in 2014 with 36 state-level elections. The smart enterprise wave, which is transforming the way that businesses and government work, is beginning to make its mark in education. The shift toward common, higher standards has sparked a national debate. Policymakers, practitioners, and parents are grappling with the educational and privacy implications of big data in education. And although ESEA reauthorization is unlikely in the coming year, the Obama Administration’s waiver initiative is ushering in sweeping state and local changes that will have a profound impact over the next decade. !

The Smart Innovation Wave, Formation 8, www.formation8.com, 2013 !

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!!!!We continue to believe that ideas matter — and good ideas can

have a profound, positive impact on children and families. Emerging technologies and solutions are achieving scale — even in noisy,

complex and politically charged environments. !Of course, none of this matters unless we provide exceptional service to great

clients. And our clients continue to demand more. They want the ability to go local – and global. Now. We used to describe our work as chess match. We’re now playing chess in 3-D. Communications problems often present themselves as regulatory challenges. Federal issues are solved in state capitols. The so-called 24-hour news cycle is actually a lot less than 24 hours. All politics is local. Local politics can quickly become national news. Everything is digital.

This is why we’re excited about the Grayling Effect. We’re part of a global team that gets it. As we head into the New Year, I’d like to share some vital stats – and a few reasons we’re excited about 2014: !

• Grayling has 26 offices in 54 countries. The name-change reflects thehard work of integration across brands, cultures, continents, anddisciplines. Skilled advocacy in Brussels. Investor relations in London.Market-entry in China. Digital-guru Pete Pedersen joined from Edelmanas our global CEO in March and kicks-off his first full year on January 1.!

• In the US, we’ve officially welcomed Atomic PR to the Grayling family. Ispent 6 weeks with the Atomic team in the Bay Area this Fall and canreport that they are a genius-level team of PR geeks and digitalmarketers: the communications equivalent of our crack WhiteboardAdvisors team. Peter Harris joins as the CEO of Grayling US this week,and will lead our 11 offices across the country.!

• With our expanded presence in San Francisco and Palo Alto, I will head anew “Innovation and Advocacy” practice that spans Washington andSilicon Valley to help transformative companies manage the NewInnovators Dilemma. I’ll still remain deeply involved in the day-to-day ofDC operations and, of course, our education team.!

• Anna Kimsey Edwards and I celebrate our 9th “anniversary” this year. Inaddition to leading education outreach, Anna has been appointed co-chairof our State and Local practice with former White Houseintergovernmental affairs director David Beightol. This reflects both

Anna’s expertise and commitment to helping clients at the state-and-local level and

the increasing importance of education as a major practice area for Grayling globally. Top lobbyist Steve Perry will head our

Federal Group. In case you missed it, we were thrilled to welcome Noah Sudow and former Superintendent Dwight Jones to our

education team this fall. !• Meanwhile, Whiteboard Advisors,

now an independent Graylingaffiliate, continues to developcutting-edge research andstrategies for high-impact educationorganizations, investors, andphilanthropies. Whiteboard advised investors on a number of transactionsin 2013. Jenna Talbot and Peter Cunningham are supporting organizationsand entrepreneurs with innovative communications strategies. DavidDeSchryver and Rachel Gibson continue to dig deep on complex policyand regulatory issues. Erica Price continues to expand W/A’s high-impactphilanthropy practice.!

Of course, the difference that our clients are making for learners, families, and schools is what gets us all out of bed in the morning. We thank you for your dedication to that mission, and we are proud to serve you. We look forward to a productive new year, and to finding new ways to successfully champion your good work. !Happy New Year! !My very best, !Ben Wallerstein Managing Director Grayling