Te04 reputation  why it matters, what it means, and how to shape and exploit it
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Te04 reputation  why it matters, what it means, and how to shape and exploit it Te04 reputation why it matters, what it means, and how to shape and exploit it Presentation Transcript

  • Place Reputation Management 2013 Country & City RepTrak® The World’s Most Reputable Countries & Cities Fernando Prado Managing Partner @fpradoRI Copyright © 2011 Reputation Institute. All rights reserved. 1
  • Agenda 1. Reputation Institute 2. Background: a Globalized World 3. Place Reputation Unit: Knowledge & Advice 4. About Country & City RepTrak® Studies 5. Main Results in 2013 6. Top Trends in 2013 7. Place Reputation & Value Creation 8. Case Studies 9. Make Managing your Reputation a Priority Copyright © Reputation Institute. All rights reserved. 2
  • Reputation Institute: the World’s Leading Firm Knowledge Center Advice Group Publications Conferences Training Insight Strategy Alignment Global Value Proposition We enable leaders to make business decisions that build and protect reputational capital and drive competitive advantage. Copyright © Reputation Institute. All rights reserved. 3
  • Background: a Globalized World
  • Today’s World Context: International Tourism International tourist arrivals grew by 4% in 2012 to reach 1,035 billion Growth is expected to continue in 2013 by 3% to 4% Source: UNWTO World Tourism Barometer Copyright © Reputation Institute. All rights reserved. 5
  • Today’s World Context: International FDI Global foreign direct investment (FDI) inflows reached US$ 1.6 trillion in 2012 and is projected to reach US$ 1.8 trillion in 2013 Source: United Nations Conference on Trade and Development (UNCTAD) Copyright © Reputation Institute. All rights reserved. 6
  • Today’s World Context: International Trade International trade in 2013 is forecasted to grow by 3.3% and 2.1% for global GDP Source: WTO Secretariat Copyright © Reputation Institute. All rights reserved. 7
  • Places are Competing for Attention Nations Copyright © Reputation Institute. All rights reserved. Regions Cities 8
  • Why is Place Reputation Important? As in the case of companies, places also have their own reputation which has an impact their performance. Places with a good reputation welcome more tourists Places with a good reputation increase exports Places with a good reputation improve their public diplomacy Places with a good reputation attract FDI Copyright © Reputation Institute. All rights reserved. Places with a good reputation attract foreign knowledge & talent 9
  • Place Reputation Unit: Knowledge & Advice
  • Advancing Reputation Knowledge: Introducing RI’s Place Reputation Unit Reputation Institute has created a new business area conceived from the everrising need of countries, regions, and cities to manage their reputation. This new area is called Place Reputation Unit Copyright © Reputation Institute. All rights reserved. 11
  • How to Help a Place to Manage its Reputation? There are three basic elements on place reputation management: Tracking of perceptions Copyright © Reputation Institute. All rights reserved. Analysis of economic implications Action plans 12
  • Tracking of Perceptions: the Country & City RepTrak® Model Emotional Reputation Copyright © Reputation Institute. All rights reserved. Rational Reputation 13
  • Key Factors in Reputation: Dimension Weights Adj R2 = 0.656 N = 42360 Copyright © Reputation Institute. All rights reserved. Adj R2 = 0.634 N = 20002 14
  • Analysis of Economic Implications: the Reputation Economy Direct Experiences Perceptions Supportive Behaviors Value Creation Country Actions & Communications 3rd-party Influence Stereotypes Copyright © Reputation Institute. All rights reserved. 15
  • Action Plans The results of a comprehensive analysis of place reputation give way to two work-streams in implementation: • • Tactical: Immediate actions that can improve reputation and support (“quick-wins”). Strategic: Long-term plans that are designed for positioning the country/city/region in the eyes of diverse international stakeholder groups. - Place Branding is the set of initiatives designed to achieve a differential positioning for the country in the economic arena (exports, investment, tourism). - Public Diplomacy consists of the actions that work towards the positive positioning of the country through a political dimension. Place Branding (economic arena) Strategic Public Diplomacy (political arena) Action planning Tactical Copyright © Reputation Institute. All rights reserved. Quick wins in reputation through specific actions 16
  • Action Plans: Tactical Actions Immediate actions that derive from comparing three types of information: • • • Importance of the different reputation variables for each stakeholder. Perceived performance of the country/region/city on those variables. Reality of the country/city/region (contrasting if better or worse than perceptions) These actions can essentially be classified into two categories: communications actions & change actions. Communication is required to capitalize on good reality and overcome poor perceptions REALITY Good Change is required to alter ’reality’ and minimize reputational risk Bad Bad Good PERCEPTION Copyright © Reputation Institute. All rights reserved. 17
  • Action Plans: Strategic Approach Reputation Institute’s approach for developing long-term place branding strategies starts by understanding stakeholder perceptions and expectations, as well as its assets. Internal and External Expression A second step is the positioning process, in which a conceptual territory is determined. This is the basis of brand strategy development and consists of matching stakeholder needs and expectations with specific advantages that the country/city/region can offer to them. The outcome is a promise, the reputation platform. Next steps consist of implementing the reputation platform through all communication channels, including visual identity, advertising & PR, brand architecture, public diplomacy… Copyright © Reputation Institute. All rights reserved. Reputation Platform Public Diplomacy Brand Architecture 19
  • About Country & City RepTrak® Studies
  • 2013 Country & City RepTrak® Study Overview Stakeholder Group (Target) G8 general public (only people who were “somewhat” or “very” familiar). Stakeholder Group (Target) G8 general public (only people who were “somewhat” or “very” familiar). Country Selection City Selection • Largest economies • Largest populations • Countries of interest due to recent economic, political or natural events • Largest populations • Largest gross domestic product (GDP) • Cities which enjoy the highest amount of tourism Data Collection Method Data Collection Method CAWI (online interviews) CAWI (online interviews) Data Collection Period Data Collection Period From January to March 2013 From January to February 2013 Sample Sample Over 27,000 consumers from G8 countries rating the 65 nations included in the study. Over 22,000 consumers from G8 countries rating the100 cities included in the study. Copyright © Reputation Institute. All rights reserved. 21
  • Main Results in 2013
  • The Most Reputable Country in 2013 is… Copyright © Reputation Institute. All rights reserved. 23
  • 2013 Country RepTrak® – Top 10 1 2 3 4 5 6 7 8 9 10 Copyright © Reputation Institute. All rights reserved. Canada 76.6 Sweden 76.5 Switzerland 76.3 Australia 76.1 Norway 74.1 Denmark 73.3 New Zealand 72.5 Finland 71.8 Netherlands 70.6 Austria 70.6 24
  • 2013 Country RepTrak™ 76,6 76,5 76,3 76,1 74,1 73,3 72,5 71,8 70,6 70,6 68,3 67,6 67,1 66,2 65,1 63,9 63,4 62,0 61,6 58,3 57,8 57,4 54,9 54,3 53,2 52,7 51,5 51,0 50,7 50,2 49,3 47,4 47,2 47,2 47,0 46,8 46,1 45,8 45,5 43,9 43,7 43,3 40,1 37,8 37,8 36,7 34,0 28,8 22,6 Copyright © Reputation Institute. All rights reserved. 21,2 25
  • Canada Sweden Switzerland Australia Norway Denmark New Zealand Finland the Netherlands Austria Germany Ireland Belgium Japan the United Kingdom Italy France Spain Portugal Singapore Brazil United States of America Peru Thailand Jamaica Poland Costa Rica Taiwan Puerto Rico Chile Indonesia Dominican Republic India Argentina UAE (incl. Abu Dhabi & Dubai) Panama Greece Morocco Paraguay Turkey South Korea Mexico South Africa Uruguay Ecuador Israel Haiti Venezuela Cuba Honduras Egypt Bolivia Guatemala Ukraine El Salvador Nicaragua Saudi Arabia China Colombia Russia Angola Nigeria Pakistan Iran Iraq 2013 Country RepTrak™ (65 Countries) 76,6 76,5 76,3 76,1 74,1 73,3 72,5 71,8 70,6 70,6 68,3 67,6 67,1 66,2 65,1 63,9 63,4 62,0 61,6 58,3 57,8 57,4 54,9 54,3 54,0 53,2 53,0 52,7 Copyright © Reputation Institute. All rights reserved. 51,5 51,0 51,0 50,8 50,7 50,2 49,3 47,5 47,4 47,4 47,3 47,2 47,2 47,0 46,8 46,4 46,1 46,1 45,8 45,5 44,7 43,9 43,9 43,7 43,4 43,3 42,9 41,3 40,1 37,8 37,8 36,7 34,5 34,0 28,8 22,6 21,2 26
  • The Most Reputable City in 2013 is… Copyright © Reputation Institute. All rights reserved. 27
  • 2013 City RepTrak® – Top 10 1 2 3 4 5 6 7 8 9 10 Copyright © Reputation Institute. All rights reserved. Sydney 77.4 Toronto 76.9 Stockholm 76.9 Vienna 76.9 Venice 75.8 Florence 75.7 Edinburgh 75.1 Zurich 74.7 London 74.4 Copenhagen 73.0 28
  • Cities with a Strong Reputation (70-80 points) 1-32 Sydney Toronto Stockholm Vienna Venice Florence Edinburgh Zurich London Copenhagen Geneva Helsinki Munich Vancouver Melbourne Frankfurt Oslo Montreal Amsterdam Dublin New York Paris Barcelona Auckland Rome Osaka Madrid Brussels Adelaide Prague Tokyo Boston 77,3 76,9 76,9 76,9 75,8 75,7 75,1 74,7 74,4 74,3 74,3 74,2 74,0 73,6 73,5 73,1 73,0 73,0 72,8 72,6 72,6 72,5 72,2 72,1 71,9 71,4 71,0 70,8 70,7 70,4 70,0 70,0 Scoring scale: 0-100 All score differences > 2.5 are significant at 95% confidence interval Copyright © Reputation Institute. All rights reserved. 29
  • Cities with a Moderate Reputation (60-70 points) 33-59 San Francisco 69,6 Lyon 69,3 Berlin 68,3 Perth 67,9 Milan 67,9 Orlando 67,3 Washington DC 67,2 Lisbon 67,1 Dubai 66,6 Los Angeles 66,5 Houston 65,9 Miami 65,9 Seattle 65,3 Brisbane 65,0 New Orleans 64,8 Singapore 64,5 Atlanta 63,8 Bali 63,6 Budapest 62,2 Montevideo 61,8 Chicago 61,7 Hong Kong 61,4 Warsaw 61,3 Athens 61,1 Las Vegas 61,0 St.Petersburg Monterrey 60,2 60,0 Scoring scale: 0-100 All score differences > 2.5 are significant at 95% confidence interval Copyright © Reputation Institute. All rights reserved. 30
  • Cities with a Weak Reputation (40-60) 60-98 Cancún Cape Town Santiago Abu Dhabi Rio de Janeiro Buenos Aires Kuala Lumpur Istanbul Lima Taipei San Juan Seoul Sao Paulo Kiev Jerusalem Shanghai Johannesburg Macau Santo Domingo Port-au-Prince Bangkok Guangzhou Beijing Mumbai New Delhi Ryad Mecca Manila Hanoi Bogota Moscow Kolkata/Calcutta Jakarta Tel Aviv Caracas Mexico City Cairo Nairobi Karachi 59,4 58,9 58,6 58,5 57,6 57,5 57,1 57,1 56,6 56,5 56,4 55,8 55,8 55,3 54,7 54,6 54,5 54,4 54,0 53,3 53,2 52,7 52,6 51,9 51,7 51,2 50,7 50,4 50,3 50,2 50,0 50,0 49,9 49,4 49,0 47,2 46,1 44,4 43,5 Scoring scale: 0-100 All score differences > 2.5 are significant at 95% confidence interval Copyright © Reputation Institute. All rights reserved. 31
  • Cities with a Poor Reputation (0-40 points) 98-100 Tehran Baghdad 32,1 28,5 Scoring scale: 0-100 All score differences > 2.5 are significant at 95% confidence interval Copyright © Reputation Institute. All rights reserved. 32
  • The Most Reputable Countries are not Necessarily the Most Economically Relevant Population 1 2 3 4 5 6 7 8 9 10 Exports GDP FDI Tourism China USA China USA France India China USA China USA USA Japan Germany Brazil China Indonesia Germany Japan Australia Spain Brazil France UK Singapore Italy Pakistan UK France Russia Turkey Banglades Brazil Italy France UK Nigeria Italy South Korea Canada Germany Russia Russia Russia Germany Malasia Japan Canada Canada UK Mexico *Based on IMF & World Bank data. Copyright © Reputation Institute. All rights reserved. 33
  • The Most Reputable Cities are not Necessarily the Most Economically Relevant Population 1 2 3 4 5 6 7 8 9 10 Tourism GDP Tokyo Tokyo Bangkok Guangzhou New York London Jakarta Los Angeles Paris Shanghai Seoul Singapore Seoul London New York Delhi Paris Istambul Mexico City Osaka Dubai Karachi Chicago Kuala Lumpur Manila Moscow Hong Kong New York Shanghai Barcelona *Based on several sources. Copyright © Reputation Institute. All rights reserved. 34
  • But the Cities with the Best Quality of Life are Similar EIU’s 2013 Global Liveability 1 2 3 4 5 6 7 8 9 10 Mercer’s 2012 Quality of Living Monocle’s 2013 Most Liveable Cities Melbourne Vienna Copenhagen Vienna Zurich Melbourne Vancouver Auckland Helsinki Toronto Munich Tokyo Calgary Vancouver Vienna Adelaide Düsseldorf Zurich Sydney Frankfurt Stockholm Helsinki Geneva Munich Perth Copenhagen Sydney Auckland Sydney Auckland Copyright © Reputation Institute. All rights reserved. 35
  • As are the Most Beautiful Cities… Venice Cambridge Paris Tokyo Florence Vancouver Chicago World's Most Beautiful Cities Sydney Cape Town San Francisco New York London Copyright © Reputation Institute. All rights reserved. 36
  • …and the Safest Cities (and also Countries) IEP’s 2013 Global Peace Index Copyright © Reputation Institute. All rights reserved. 37
  • Positive Evolution of Country RepTrak® in the last year Italy 7.7% Portugal 7.3% Greece 8.5% Pakistan 7.5% Saudi Arabia 8.3% Nigeria 7.3% Evolution 2012-2013 Copyright © Reputation Institute. All rights reserved. 38
  • Positive Evolution of City RepTrak® in the last year Moscow 11.8% Toronto 11.5% New York 10.7% Amsterdam 11.2% Boston 10.5% Bogota 10.6% Evolution 2012-2013 Copyright © Reputation Institute. All rights reserved. 39
  • Negative Evolution of Country RepTrak® in the last year Spain -2.2% UAE -2.7% China -5.0% India -2.5% Argentina -2.4% South Africa -1.7% Evolution 2012-2013 Copyright © Reputation Institute. All rights reserved. 40
  • Negative Evolution of City RepTrak® in the last year Tehran -9.4% Cairo -9.2% México City -8.5% Taipei -8.6% Caracas -10.5% Nairobi -12.7% Evolution 2012-2013 Copyright © Reputation Institute. All rights reserved. 41
  • Top Trends in 2013
  • Europe Dominates the Global Stage in Reputation… Europe 69.8 North America 68.1 Asia-Pacific 57.3 Africa 53.2 Latin America 55.5 *Average score of the cities measured in each region. Country in which the city with the strongest reputation in the region resides. Copyright © Reputation Institute. All rights reserved. 43
  • …and It Consolidates its Position in 2013 European cities are among the best positioned in the world in terms of their reputations. Of the top 20 cities in the ranking, 15 are European, with Stockholm ranked #1. The evolution of European cities has also been stronger and more positive than NonEuropean cities, with an average increase of 3.1 points compared to the global average increase of 1.4 points. Copyright © Reputation Institute. All rights reserved. 44
  • BRIC: Contrasting Results Of the four BRIC countries, only Brazil significantly improves its reputation. +4.2% For their part, China and India are the two countries of the 50 measured in the study that lose the most reputation in percentagepoint terms compared to 2012. -5.0% -2.5% Russia maintains its reputation from last year. Copyright © Reputation Institute. All rights reserved. 45
  • Latin America: On the Rise Except for Argentina, which sees a very slight hit from the sheer volume of negative press last year (expropriation of YPF, renegotiation of the national debt, cases of corruption, etc.), the rest of the countries that make up the continent measured in the study improved their reputation. +3.4 points +2.8 points +1.8 points +2.4 points +1.5 points +2.3 points Copyright © Reputation Institute. All rights reserved. +2.1 points +1.5 points 46
  • The Reputation of a Country Defines the Reputation of its Cities There is a demonstrated correlation between the reputation of a city and the reputation of its country. In general, the reputation of a city tends to be higher than that of the country in which it resides. 90 80 70 Country RepTrak® 60 50 40 30 20 10 0 10 20 30 40 50 60 70 80 90 City RepTrak® Copyright © Reputation Institute. All rights reserved. 47
  • Cities in Italy & Greece are Recovering Reputation As was the case in the Country RepTrak® 2013 study where Italy and Greece start to recover, the cities in these countries improve their score significantly. Copyright © Reputation Institute. All rights reserved. +6.3% Florence +5.3% Venice Athens Rome Milan +4.2% +4.2% +7.6% 48
  • The Steady Growth of the USA's Reputation In the last few years, perceptions of the USA have been improving among the G8 countries, rising from 52.9 points in 2011 to 57.4 points in 2013. In the case of the American cities, the same occurs; they have experienced big jumps in the City RepTrak® Pulse indicator compared to last year. New York +7.8 points Miami Boston +7.3 points Washington DC +3.7 points Los Angeles +4.5 points Copyright © Reputation Institute. All rights reserved. Las Vegas +4.0 points +3.0 points 49
  • Although there are also Important Differences Despite the relation between the reputation of a city and the reputation of a country, there are certain gaps between the two. The most positive gaps occur in Chinese cities such as: Hong Kong Shanghai Guangzhou +23.5 +16.7 +14.8 Which have a stronger reputation than China. Copyright © Reputation Institute. All rights reserved. While the most negative gaps appear in Australian cities: Brisbane Perth Adelaide -11.2 -8.2 -5.5 Which have a worse reputation than Australia. 50
  • A Place Needs a Balanced Reputation Profile Effective Government 80 Switzerland Sweden Canada 60 Egypt Haiti 40 Countries with a strong reputation present a balanced reputation profile 20 0 Appealing Environment Copyright © Reputation Institute. All rights reserved. Greece Countries with a poor reputation have a more uneven profile Advanced Economy 51
  • A Place Needs a Balanced Reputation Profile #1 Stockholm Effective Government Zurich Sydney Munich 70 Baghdad Cairo 50 Cities with a strong reputation present a balanced reputation profile Tehran 30 Cities with a poor reputation have a more uneven profile 10 Appealing Environment #1 Rome Copyright © Reputation Institute. All rights reserved. Advanced Economy #1 New York 52
  • Country & City RepTrak® Model: the Emotional Halo Emotional Reputation (Country/City RepTrak® Pulse) Measures the admiration, esteem, trust and good feeling generated by one city relative to others. Rational Reputation (Country/City RepTrak® Index) Obtained by the sum of the scores for each attribute multiplied by the weight. RepTrak® Pulse > RepTrak® Index Positive emotional halo RepTrak® Pulse < RepTrak® Index Negative emotional halo Very poor Copyright © Reputation Institute. All rights reserved. 53
  • Gap between Emotional & Rational Reputation Counties with a large positive emotional halo 1 2 3 4 5 Jamaica +3.7 Haiti +3.5 New Zealand +2.7 Peru +2.7 Australia +2.7 Countries with a large negative emotional halo 1 2 3 4 5 China -7.3 USA -7.3 South Korea -6.1 Russia -4.9 Japan -4.7 *Emotional gap is the difference between rational and emotional reputation. Very poor Copyright © Reputation Institute. All rights reserved. 54
  • Gap between Emotional & Rational Reputation Cities with a large positive emotional halo 1 2 3 4 5 Cities with a large negative emotional halo Athens +10.9 Venice +9.8 Florence +6.9 Port-au-Prince +6.2 Lisbon +5.9 1 2 3 4 5 Los Angeles -5.4 Moscow -5.2 Las Vegas -4.8 Chicago -4.5 Seoul -4.1 *Emotional gap is the difference between rational and emotional reputation. Very poor Copyright © Reputation Institute. All rights reserved. 55
  • Place Reputation & Value Creation
  • Value Creation: Reputation & Declared Intentions Visit 0.72 Invest 0.70 Live 0.75 Work 0.74 Buy 0.75 Visit 0.71 Invest 0.74 Live 0.77 Work 0.76 Buy 0.76 Study 0.75 Copyright © Reputation Institute. All rights reserved. 57
  • Key Drivers for Influencing Stakeholder Behaviors Copyright © Reputation Institute. All rights reserved. 58
  • Supportive Behaviors towards Countries – Top 10 Invest Visit Switzerland Italy Canada Australia Sweden Norway Austria Spain Denmark New Zealand Switzerland Canada Australia Sweden Germany Norway Denmark New Zealand Japan Austria 80,8 80,8 80,3 80,1 78,7 77,9 77,4 77,3 77,1 76,5 71,7 68,3 67,9 67,5 66,6 64,8 64,6 63,5 63,4 63,1 Live Canada Australia Switzerland Sweden New Zealand Norway Denmark Austria the Netherlands Germany Copyright © Reputation Institute. All rights reserved. 73,1 72,7 72,4 70,8 68,7 68,7 68,6 66,8 66,4 64,9 59
  • Supportive Behaviors towards Countries – Top 10 Buy Work Switzerland Canada Australia Sweden Norway Germany Denmark Austria New Zealand the Netherlands 74,5 73,6 Switzerland Germany Sweden Canada Japan Denmark Australia Italy Norway Finland 71,2 71,2 69,2 68,3 68,1 67,3 66,8 65,7 75,0 74,2 73,3 71,5 70,9 69,7 69,6 69,1 69,1 67,8 Study Switzerland Canada Australia Sweden the United Kingdom Germany Austria Norway Denmark United States of America Copyright © Reputation Institute. All rights reserved. 73,3 73,3 71,6 70,9 70,2 69,8 68,9 68,5 68,3 66,4 60
  • Supportive Behaviors towards Cities – Top 10 Invest Visit Venice New York Edinburgh Amsterdam Barcelona Sydney Florence Rome Vienna London New York Zurich Sydney Munich Adelaide Tokyo Toronto Frankfurt Osaka Geneva 86,5 84,8 84,1 83,6 83,1 83,1 82,9 82,7 82,7 82,5 70,6 69,8 69,7 68,0 67,3 66,9 66,8 66,4 66,4 66,2 Live Sydney Toronto Zurich Stockholm Edinburgh Vancouver Melbourne Florence Munich Vienna Copyright © Reputation Institute. All rights reserved. 74,7 74,5 71,5 70,9 70,7 70,5 70,5 69,7 69,4 69,2 61
  • Supportive Behaviors towards Cities – Top 10 Work Toronto Zurich Sydney Frankfurt Stockholm New York Munich London Edinburgh Vancouver Buy 73,6 73,4 73,1 71,5 71,3 71,3 71,1 70,5 69,7 69,5 Copyright © Reputation Institute. All rights reserved. New York Munich Tokyo Zurich Toronto Sydney Frankfurt Edinburgh London Stockholm 74,0 72,5 72,3 72,2 72,0 71,8 71,5 71,0 70,8 70,4 62
  • A Better Reputation Leads to Stronger Support… The good reputation of a city strongly correlates with an increase in the supportive behaviors shown towards the city, such as visiting the city, living or working in the city, or deciding to invest in the city. 100 90 Venice Amsterdam Sydney Intention to Visit 80 Las Vegas Zurich Osaka Istanbul 70 Houston Moscow 60 Montevideo Cairo Nairobi Port-au-Prince Tel Aviv 50 Karachi 40 Tehran 30 Baghdad 20 20 30 40 50 60 70 80 90 City RepTrak® Copyright © Reputation Institute. All rights reserved. 63
  • …which Generates an Economic Impact: Tourism According to the analysis carried out by Reputation Institute, there is a demonstrated correlation between the reputation of a country and the income received from tourism. Country Reputation Intention to Visit 0.7 Tourism ($) 0.6 *Based on World Bank data. *Pearson correlation. Copyright © Reputation Institute. All rights reserved. 64
  • …which Generates an Economic Impact: Risk Premium Countries with a good reputation have maintained a stable risk premium since the beginning of the financial crisis, while countries with poor reputations have seen the risk premiums they pay rise by up to 1000%. 1100 Country Risk Premium 900 700 500 300 100 -100 01/09 04/09 07/09 10/09 01/10 04/10 07/10 10/10 01/11 04/11 07/11 10/11 01/12 04/12 07/12 10/12 01/13 04/13 Time (date) *Based on World Bank data. Set of countries with weaker reputations (China, India, USA, Poland & Greece) Set of counties with stronger reputations (Canada, Sweden , Norway, Switzerland & Australia) Copyright © Reputation Institute. All rights reserved. 65
  • …which Generates an Economic Impact: Risk Premium Countries with a good reputation have maintained a stable risk premium since the beginning of the financial crisis, while countries with poor reputations have seen the risk premiums they pay rise by up to 300%. 1100 Country Risk Premium 900 700 500 300 100 -100 01/09 04/09 07/09 10/09 01/10 04/10 07/10 10/10 01/11 04/11 07/11 10/11 01/12 04/12 07/12 10/12 01/13 04/13 Time (date) *Based on World Bank data. Set of countries with weaker reputations (China, India, USA & Poland) Set of counties with stronger reputations (Canada, Sweden , Norway, Switzerland & Australia) Copyright © Reputation Institute. All rights reserved. 66
  • Case Studies
  • Differences in the Construction of a Country Reputation: The Success of Peru 80 2010 2011 2012 2013 70 60 50 40 30 20 +0.8 +3.2 +1.5 10 0 Effective Government Peru’s reputation improvement areas in 2013: 60 40 Peru Brasil Colombia - Progressive social & economic policies Effective government Favorable environment for doing business Well-known brands 20 Appealing Environment Copyright © Reputation Institute. All rights reserved. Advanced Economy In G8 countries Peru is more similar to Brazil, especially in Effective Government. 68
  • Peru & Colombia: a Reality not so Different Area Population Nominal GDP 192,376,496 US$ 2,421,637 mil. 8,514,877 km² 3.1% 5.7% 2051 30,475,144 US$ 200,292 mil. 1,285,216 km² 6.1% 2.7% 2258 US$ 378 ,713 mil. 1,141,748 km² 4.1% 2.8% 2634 47,121,089 Growth Rate Inflation GPI* *Global Peace Index Score Copyright © Reputation Institute. All rights reserved. 69
  • Key Success Factors of Peru • Definition of a positioning strategy for "place branding" (released in 2011) with three clear targets for improvement: tourism, exports and investment. • Commitment and support of public institutions (Promperú). • Integrated management (internal and external), with a high degree of involvement from society as brand ambassadors. • Good timing, coinciding with a process of renewal and growth. • A successful and well-defined communication plan (at the national and international level). Copyright © Reputation Institute. All rights reserved. 70
  • The Most Prominent Initiatives Copyright © Reputation Institute. All rights reserved. 71
  • The Reputation of the Candidate Cities Madrid Tokyo 71.0 70.0 Istanbul 57.1 Copyright © Reputation Institute. All rights reserved. 72
  • Different Reputation Profiles & Emotional Halos Emotional halo Effective Government Madrid Adequate infrastructure 9. Tokyo 75,1 44. Madrid 67,6 73. Istanbul 55,5 75 +5.3 Tokyo 80 -3.1 Istanbul +1.1 Istanbul 70 Madrid 65 Tokyo 60 55 50 Financially stable & future growth 5. Tokyo 73,6 67. Madrid 56,5 71. Istanbul 55,8 Appealing Enviroment Advanced Economy Beautiful city 15. Madrid 79,1 41. Istanbul 73,2 42. Tokyo 73,0 Copyright © Reputation Institute. All rights reserved. 73
  • Key Factors of Tokyo’s Victory - Demonstrated experience having held the Olympic Games previously in 1964. - The link between the city and the country, which has a good reputation: • Solid finances: $4.5 billion kept in a fund dedicated to covering the costs of the Olympics. • Security: One of the safest cities (and countries) in the world, having known how to solve (effectively communicate and present) the issue of the Fukushima nuclear plant. Madrid Economic crisis Copyright © Reputation Institute. All rights reserved. ”Congratulations to the city of Tokyo on its election as host of the 2020 Olympic Games” said IOC President Jacques Rogge, whose 12-year term in office comes to an end on 10 September. “Tokyo presented a very strong technical bid from the outset – and it needed to in competition with two such high-calibre bids from Istanbul and Madrid. All three cities were capable of staging excellent Games in 2020, but in the end it was Tokyo’s bid that resonated the most with the IOC membership, inviting us to ‘discover tomorrow’ by delivering a well-organised and safe Games that will reinforce the Olympic values while demonstrating the benefits of sport to a new generation.” Istanbul Internal unrest and instability 74
  • Make Managing your Reputation a Priority
  • Place Reputation & Brand Management: Best Practices • Understand perceptions and drivers among your stakeholders • Identify your competitive strengths and points of difference • Define brand & reputation strategy • Align activities with your strategy and stakeholder expectations • Build KPIs to ensure accountability • Monitor success on an ongoing basis Copyright © Reputation Institute. All rights reserved. 76
  • Thank you! Fernando Prado Managing Partner - Reputation Institute @fpradoRI - @Reputation_Inst The World’s Most Reputable Companies: A Globalfprado@reputationinstitute.com Study of Consumers in 41 Countries Copyright © 2011 Reputation Institute. All rights reserved. www.reputationinstitute.com