How Do I Manage My Reputation?A Best Practice BluePrint for Building a Reputation Management
Capability in Your Organization
24 July 2018
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the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Focus For Today
2
• Strategic Importance of Reputation
• Business Case for Reputation
• Process for Business Integration
• Cross-Functional Collaboration and Stakeholders
• Implementation: Knowledge and Internal Ambassadors
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the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
report that reputation has become a strategic imperative for their business– increased every year the past 4 years
67% report that reputation is a high priority for the CEO and Board of Directors – increased every year the past 4 years
75%
72% of companies believe reputation is a critical KPI for the firm
(Executives tell us) reputation continues to grow in strategic importance
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Lack internal knowledge, training and engagement with key internal stakeholders
73% lack a structured process to integrate reputation into the business
43%
52% Lack cross functional collaboration and buy in on reputation
And yet………
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the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Who has done this? And how?
• How do you build a business case for reputation management?
• How do you build a reputation capability internally?
• How do you engage the business to work with/on corporate reputation?
• How do you build and deliver achievable short and long term strategic KPIs?
• Do I understand what my reputation risks are?
• What roles can employees play?
• What role should I play?
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Prove reputation matters, and specifically link to the business
45% need to make the business case for reputation management, including ROI of reputation initiatives
Problem 1
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the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
The Macro-economic discussion
Relationship capital matters more than ever
Intangible assets are increasingly critical to the value of businesses today.
Evolution of market value,1975-2009
Source: International Integrated Reporting Council
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the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Reputation positively impacts financial performance
FACT:
The most reputable companies outperform the financial markets
HigherStock Price
2.5Xbetter stock market performance for the RT10 companies as compared to the S&P 500 Index since 2006.
A 1-point increase in reputation score yields a
2.6% increase in market cap – for a typical S&P 500 company translates into
$1.3bnper reputation point
“Reputation has a profound influence on our financial metrics.
11% of the variation can be explained by Reputation.
Increasing Telefonica’s Reputation with our clients by 1% increased our financial indicators by 7%”
Alberto Andreu PinillosManaging Director, Telefonica
44.1
17.9
0
50
100
150
200
250
300
350
400
450
500
Jan '2006 Jan '2007 Jan '2008 Jan '2009 Jan '2010 Jan '2011 Jan '2012 Jan '2013 Jan '2014 Jan '2015 Jan '2016
Top 10 Most Highly Reputed Companies S&P INDEX
Jan’2017
8
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
…and protects value during risk scenarios
FACT:
Reputable companies are able to
better manage and recover from crises
MoreCrisis Proof
Stakeholder give reputable companies more benefit of the doubt in a crisis.
More than 80% of
the general public support companies with an excellent reputation
MoreResilient
Most companies take a similar hit in stock price after a crisis:
8% on averageBut companies of higher repute bounce back faster.
Crisis strikes
0%
20%
40%
60%
80%
100%
120%
140%
160%
1 5 9 13 17 21
25
29
33
37
41
45
49
53
57
61
65
69
73 77
81
85
89
93
97
101
105
109
113
117
121
125
129
133
137
141
145
149
153
157
161
165
169
173
177
181
185
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197
20
1
20
5
20
9
213
217
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1
24
5
24
9
Higher reputation companies Lower reputation companies
65.5 48.5
64.1 43.4
78.5 70.0
-17.0(-25%)
-10.3(-13%)
-20.7(-31%)
-8.5(-11%)
75.0 64.7
9
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed withoutthe express written permission of Reputation Institute. RepTrak ® is a registered trademark of Reputation Institute. © 2017 Reputation Institute, all rights reserved.
Micro discussion: Reputation links directly to stakeholder support
Companies with Excellent or Strong Reputations receive exponentially more support
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.11
Aware
Consideration
Shop/Compare/Price
Purchase
Reputation Impact
Reputation impact
...and impacts the selection cycle
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the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
But you MUST link it to your key corporate indicators to get buy in
AT&T Reputation Impact Analysis:1 point ncrease in RI reputation value (pulse score):
o 7,800 Digital TV gross adds per montho $93m Lifetime Value per year @ $1000 per adds
Positive movement of the RepTrak Pulse has a significant positive impact SAP commercial activity.
Across 12 observed countries, Reputation improvement (pulse) influences marketing qualified leads (“MQL”) and qualified sales lead (“SQL”) volume as follows:
• On average, in each country and each quarter, a 1 point Pulse increase results in 10.6% increase in marketing pipeline, with a confidence level of 95%.
• In average, in each country and each quarter, a 1 Pulse Point increase results in a 5.98% increase in qualified sales leads , with a confidence level of 95%
Purchase: Reputation Impact on Specific Product Sales
Consideration: Reputation Impact on Sales Pipeline
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Build an internal reputation management capability
48% lack a structured process to integrate reputation into the business
Problem 2
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the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Define what gets measured, who manages, and who matters
Set Specific Data driven reputation
measurement capabilityClearly defined team,
responsibilities and goalsDefine key stakeholders
Responsibilities (1-3 FTE)• Multi-Stakeholder research & analysis• Internal Stakeholder Education• Proactive Communication and Reporting• Specific Recommendations and Advice• Strategy Input
Internal
External
Goals• Provide overall reputation vision• Lead achievement of reputation goals • Use quantitative data to drive reputation
improvement across stakeholders• Link reputation to corporate value/KPIs• Engage employees in our reputation strategy
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Engage, inform and advise your internal stakeholders
52% lack cross functional collaboration and buy in on reputation
Problem 3
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Clearly define scope and focus of internal stakeholder communication
Responsibilities (1-3 FTE)• Multi-Stakeholder research & analysis• Internal Stakeholder Education• Proactive Communication and Reporting• Specific Recommendations and Advice• Strategy Input
Reputation Team
CEO/Board of Directors Executive Leadership
Reputation Leadership Team
Inform Inform, Advise
Inform, Advise, Engage, Ideate
FinanceRiskLegalCustomer ExperienceHuman Resources
ProductSalesMarketingStrategy Corporate Comms
Internal Comms
Media Relations
Citizenship, Philanthropy
Public Affairs
CEO Comms
Employee Eng’ment
Business Unit
Business Unit
Business Unit
Corporate Comms
Inform, Advise, Engage, Ideate, Implement
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
62% Have not developed a cross-stakeholder strategy
Problem 4
Identify, prioritize and build stakeholder specific strategies
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Stakeholder Examples
Consumers
Non Consumers
Opinion Elites
Investors
Customers
RegulatorsEmployees
Policy Makers
STAKEHOLDER MAPPING: UNDER CONSIDERATION
Discuss and develop a list of
prioritized Stakeholders
Community Leaders
Media
Understand and prioritize your (external) stakeholders
Importance in Driving
Reputation
Importance in Driving Enterprise Value
NonConsumers
Media
Opinion Elites
Investors
Consumers
Regulators
Employees
Policy Makers
Customers
CommunityLeaders
Stakeholder Priorities
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Set specific annual and multi-year goals, communicate and report often
53% lack knowledge, engagement and specific reputation goals
Problem 5
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the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Identify key KPIs
Prioritize and determine the specific KPI’s unique to your firm
123
Select attributes with the largest reputational impact, map closely to your strategy, and you can control
Examine performance over time of the company and peers on those key attributes
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Link KPIs to specific business goals of specific stakeholders
4CEO OFFICEB
2016-10-04
ACTION PLAN PROPOSAL – DIMENSION XXXXCorporate Reputation Survey
# Attribute Stakeholder Countries Priority Details
1
2
3
▪ Key findings to be addressed
▪ Proposed action plan# Key
findings
Perimeter Content Pilot Support Planning Budget
1&2
2
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Simply, proactively and frequently report
Multi Stakeholder Analysis Stakeholder Deep DivesCore Reputation Dashboard
Quarter at a Glance
Dimensions Pulse Score BehaviorsCognitive Considerations Emotional Connection Reputation Outcomes
Product 78.6 61% Recommend Company
Innovation 67.7 58% Say Positive
Workplace 69.1 75.4 42% Benefit Of Doubt
Governance 71.3 50% Trust To Do Right Thing
Citizenship 68.2 68% Buy
Leadership 72.1 Chg QoQ 35% Invest
Performance 73.8 +0.3 37% Work For
Oct-17 Nov-17 Dec-17
73.6 76.0 76.4
Benchmark 1Benchmark 2Benchmark 3
71.9 78.8 75.4
Chg QoQ Chg QoQ Chg QoQ
(1.7) (1.7) +0.3
Dimension
Dimensions + Fencesitters
Weight BIC Fencesitters = Uncertain + Not Sure
Q3 Chg QoQ
Product 21% 78.6 50% +6% 47% 3%
Innovation 14% 67.7 66% +7% 59% 7%
Workplace 11% 69.1 86% +6% 49% 37%
Governance 15% 71.3 81% +3% 49% 32%
Citizenship 14% 68.2 81% +7% 61% 19%
Leadership 13% 72.1 73% +5% 54% 19%
Performance 12% 73.8 65% +5% 51% 15%
Dimension per Benchmarks
Weight BIC Schick Sharpie GilletteQ3 Chg QoQ Q3 Chg QoQ Q3 Chg QoQ Q3 Chg QoQ
Product 21% 78.6 (0.1) 74.2 (1.6) 81.0 (1.4) 77.0 (2.1)
Innovation 14% 67.7 (1.5) 67.0 (2.1) 71.4 (2.1) 70.4 (3.9)
Workplace 11% 69.1 (1.5) 66.7 (3.3) 70.1 (1.3) 67.3 (3.8)
Governance 15% 71.3 (0.4) 69.0 (1.4) 72.4 (0.7) 68.6 (4.1)
Citizenship 14% 68.2 (0.8) 67.4 (1.0) 70.1 (1.5) 65.7 (5.4)
Leadership 13% 72.1 (0.4) 70.1 (1.8) 72.2 (1.8) 70.3 (3.7)
Performance 12% 73.8 (0.7) 71.9 (2.4) 74.8 (1.5) 72.4 (4.8)
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
36% are ready to proactively manage reputation risk
Problem 6
Identify, assess, prioritize and track reputation risks
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the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Identify, assess, prioritize and track Reputation Risks
Identify and Map the set of reputational risks to the company
Assessment of reputational risks – internally evaluate the likelihood
of each risk, externally measure the impact of each risk
Prioritization of reputational risks – analyze priority risks
Mitigation plan – define action plans to mitigate priority
risks and develop internal governance for managing
reputational risks
Continuous tracking of reputational risks over time for
ongoing assessment, prioritization and mitigation planning
2
34
5
1
Reputation Risk Management
Process
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Identify, assess, prioritize and track Reputation Risks
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
23% have implemented an employee engagement program to support the firm’s reputation
Problem 7
Engage your employees in your reputation strategy
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
The most reputable companies who have successfully mobilized employees to become reputation and brand ambassadors share the following best practices:
They engage employees and promote reputation enhancement as mutually beneficial to both.
They have a mission that rallies employees around a common cause.
They connect causes they support to their business strategy.
Key Components of EE Programs from most reputable firms
1
2
3
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the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
What do Ambassadors do? Client Examples:
1) Protect and promote a positive image of the firm2) Champion firm and its products and services to customers and other
stakeholders 3) Refer firm to family and friends4) Propose ideas to grow and/or maintain reputation5) Model best behavior to other employees6) Understand/promote current products and help develop new products and
services7) Volunteer in the community on behalf of company8) Recruit other ambassadors
The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without
the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.
Is there a reputation and financial return on employee engagement?
Engaged Employees1. Rate the firms reputation much higher
2. Are more willing to believe in and support the company vision, and say positive things about the firm
3. Are far more willing to refer potential employees and clients, and recommend the products and services
4. Have significantly higher retention rates
5. Score higher/perform better in annual reviews