What it takes to Build a World Class Reputation System
Nicolas Georges TRAD
Global Executive Partner, Reputation Institute...
Copyright 2013. Reputation Institute. All Rights Reserved.
What it takes to Build a World Class Reputation System
Nicolas ...
Copyright 2013. Reputation Institute. All Rights Reserved.
The Purpose of Today…
Is to clarify the Business Case of
Reputa...
Copyright 2013. Reputation Institute. All Rights Reserved.
New expectations on Corporate
Communications Professionals …
4
...
Copyright 2013. Reputation Institute. All Rights Reserved.
On the role of Corporate Reputation
Management …
5
“Increasingl...
Copyright 2013. Reputation Institute. All Rights Reserved.
Reputation Attracts Senior Management Attention
6
52% say it is...
Copyright 2013. Reputation Institute. All Rights Reserved.
Changing Marketplace with Two Factors at Play –
What Matters th...
Copyright 2013. Reputation Institute. All Rights Reserved.
Business Case for Reputation Management
8
For them to support
y...
Copyright 2013. Reputation Institute. All Rights Reserved. 9
If you deliver on these 7 dimensions
you will be in a situati...
Copyright 2013. Reputation Institute. All Rights Reserved.
Because they impact stakeholder support
10
Products
Customer
Se...
Copyright 2013. Reputation Institute. All Rights Reserved.
Reputation Drives Stakeholder Support
11
Would buy the
products...
Copyright 2013. Reputation Institute. All Rights Reserved.
Support Across your Value Chain
12
Partners/
Suppliers
Employee...
Copyright 2013. Reputation Institute. All Rights Reserved.
Good Reputations = Better Financial Results
13
37%
Better finan...
Copyright 2013. Reputation Institute. All Rights Reserved.
The Biggest Reputation Leadership Challenges
14
# 1
We don’t ha...
Copyright 2013. Reputation Institute. All Rights Reserved.
Key Elements
World Class Reputation System?
15
Copyright 2013. Reputation Institute. All Rights Reserved.
Using Corporate Reputation to Drive Business Value
16
Business
...
Copyright 2013. Reputation Institute. All Rights Reserved.
Copyright 2013. Reputation Institute. All Rights Reserved.
Current State of Reputation Management
18
Source: 2013 Reputati...
Copyright 2013. Reputation Institute. All Rights Reserved.
Case: Using Reputation to Drive Value
19
Comparison with
financ...
Copyright 2013. Reputation Institute. All Rights Reserved.
Case: Use Reputation to Leverage Insight
20
1. Assessment of ef...
Copyright 2013. Reputation Institute. All Rights Reserved.
Case: Use Reputation to Leverage Insight
21
vs.
Likelihood
Impo...
Copyright 2013. Reputation Institute. All Rights Reserved.
Case: Use Reputation to Leverage Insight
22
“…everything we do ...
Copyright 2013. Reputation Institute. All Rights Reserved.
Case: Use Reputation to Integrate Corporate
23
Copyright 2013. Reputation Institute. All Rights Reserved.
Know your Stakeholders Expectations
- to Act in Ignorance is to...
Copyright 2013. Reputation Institute. All Rights Reserved.
Bring your stakeholders into the room
when you make decisions
2...
Copyright 2013. Reputation Institute. All Rights Reserved.
Thank You
26
Australia • Belgium • Bolivia • Brazil • Canada • ...
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2. Uluslararasi İtibar Yonetimi Konferansi-What it takes to Build a World Class Reputation System / Nicolas Georges TRAD

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2. Uluslararasi İtibar Yonetimi Konferansi-What it takes to Build a World Class Reputation System / Nicolas Georges TRAD

  1. 1. What it takes to Build a World Class Reputation System Nicolas Georges TRAD Global Executive Partner, Reputation Institute 2.Uluslararası İtibar Yönetimi Konferansı 3-4 Ekim 2013, İstanbul
  2. 2. Copyright 2013. Reputation Institute. All Rights Reserved. What it takes to Build a World Class Reputation System Nicolas Georges Trad Global Executive Partner, Reputation Institute October, 2013 Istanbul
  3. 3. Copyright 2013. Reputation Institute. All Rights Reserved. The Purpose of Today… Is to clarify the Business Case of Reputation and Outline how to work systematically with Reputation Management 3
  4. 4. Copyright 2013. Reputation Institute. All Rights Reserved. New expectations on Corporate Communications Professionals … 4 From… an ex-journalist whose job was to make sure the company (often CEO) received favorable coverage in the media To… managing communications with a variety of internal and external stakeholders, on a global 24-7 basis… Acting in a broad range of stakeholder groups, being a bit like a minister of foreign affairs for the firm…
  5. 5. Copyright 2013. Reputation Institute. All Rights Reserved. On the role of Corporate Reputation Management … 5 “Increasingly CEOs and boards expect their CCOs to be more than functional experts. Rather they need CCOs who are multidimensional strategists and advisors, collaborative leaders who can develop, integrate, and align, as well as execute both offensive and defensive strategies.” The Korn/Ferry Institute “Increasingly CEOs and boards expect their CCOs to be more than functional experts. Rather they need CCOs who are multidimensional strategists and advisors, collaborative leaders who can develop, integrate, and align, as well as execute both offensive and defensive strategies.” The Korn/Ferry Institute CEO View of Communications Arthur W. Page Society ‘The Authentic Enterprise’ “Chief Communications Executives’ role is more valuable than ever and likely to increase in value in the future, BUT they need to be business- savvy executives who can show business relevance in what they do “
  6. 6. Copyright 2013. Reputation Institute. All Rights Reserved. Reputation Attracts Senior Management Attention 6 52% say it is a HIGHER priority than last year 56%Say that reputation is a HIGH priority to Executive Management and Board of Directors and 63%Expect Reputation Management to be a HIGHER PRIORITY for their company in the next 2-3 years Source: Reputation Institute, Reputation Leaders Study, 2013
  7. 7. Copyright 2013. Reputation Institute. All Rights Reserved. Changing Marketplace with Two Factors at Play – What Matters the Most? 7 Enterprise Product Recommend Buy 40 %60 % Work for Invest in
  8. 8. Copyright 2013. Reputation Institute. All Rights Reserved. Business Case for Reputation Management 8 For them to support you they need to trust you. Trust you as a company that will deliver on its promises. A company who has a good reputation Your success as a company relies on people supporting you… • Buying your products… • License to operate… • Investing in you… • Reporting on your point of view… • Delivering on our strategy…
  9. 9. Copyright 2013. Reputation Institute. All Rights Reserved. 9 If you deliver on these 7 dimensions you will be in a situation where each stakeholder will be willing to support you. How do they see you? For your stakeholder to trust you, you need to deliver on their expectations… They expect you to be leading within 7 key dimensions: 1. Products / Services 2. Innovation 3. Workplace 4. Governance 5. Citizenship 6. Leadership 7. Financial Performance
  10. 10. Copyright 2013. Reputation Institute. All Rights Reserved. Because they impact stakeholder support 10 Products Customer Service Investments Employment Direct Experiences Branding Public Relations Marketing Social Responsibility What You Say Media Key Opinion Leaders Topic Experts Friends/Family What Others Say Perceptions Support Business Results
  11. 11. Copyright 2013. Reputation Institute. All Rights Reserved. Reputation Drives Stakeholder Support 11 Would buy the products Reputation Score 16% Would recommend the products Would work for Would invest in Would welcome into local community 31% 41% 55% 64% 13% 28% 38% 50% 59% 16% 30% 37% 42% 47% 13% 25% 31% 33% 35% 16% 30 39% 47% 50% 0-39 40-59 60-69 70-79 80+ Above 80 Excellent/Top Tier 70-79 Strong/Robust 60-69 Average/Moderate 40-59 Weak/Vulnerable Below 40 Poor/Bottom Tier Products Customer Service Investments Employment Direct Experiences Branding Public Relations Marketing Social Responsibility What You Say Media Key Opinion Leaders Topic Experts Friends/Family What Others Say Perceptions Support Business Results
  12. 12. Copyright 2013. Reputation Institute. All Rights Reserved. Support Across your Value Chain 12 Partners/ Suppliers Employees & Target Employees Media & Social Media Customers & Prospects Support Invest/ Recommend Investors Government, Regulators, Opinion Leaders Products Customer Service Investments Employment Direct Experiences Branding Public Relations Marketing Social Responsibility What You Say Media Key Opinion Leaders Topic Experts Friends/Family What Others Say Perceptions Support Business Results
  13. 13. Copyright 2013. Reputation Institute. All Rights Reserved. Good Reputations = Better Financial Results 13 37% Better financial performance (RoE; RoA) 27% Better market performance (P/E; Market/Book; EV/EBITDA) Source: Reputation Institute, 2011; quantitative analysis based on 2011 RepTrak™ Pulse, 2010 Financial Data, Large Cap U.S. Companies, N=274 High Reputation Low Reputation S&P 500 0 20 40 60 80 100 120 140 160 180 January-06 July-06 January-07 July-07 January-08 July-08 January-09 July-09 January-10 July-10 January-11 July-11 Top 10 Bottom 10 S&P High Reputation Low Reputation S&P 500 Companies with High reputation outperform Low reputation firms AND S&P 500 Products Customer Service Investments Employment Direct Experiences Branding Public Relations Marketing Social Responsibility What You Say Media Key Opinion Leaders Topic Experts Friends/Family What Others Say Perceptions Support Business Results
  14. 14. Copyright 2013. Reputation Institute. All Rights Reserved. The Biggest Reputation Leadership Challenges 14 # 1 We don’t have a structured process for implementing reputation management into our business planning # 2 We are not leveraging the knowledge we have to be relevant to each stakeholder # 3 Internal silos prevent cross-functional collaboration Business planning around reputation is the biggest challenge faced by companies
  15. 15. Copyright 2013. Reputation Institute. All Rights Reserved. Key Elements World Class Reputation System? 15
  16. 16. Copyright 2013. Reputation Institute. All Rights Reserved. Using Corporate Reputation to Drive Business Value 16 Business Rationale Intelligence & Strategy Management & Accountability Integration The 4 core elements of a world-class reputation management system
  17. 17. Copyright 2013. Reputation Institute. All Rights Reserved.
  18. 18. Copyright 2013. Reputation Institute. All Rights Reserved. Current State of Reputation Management 18 Source: 2013 Reputation Institute, Reputation Leader Study (Based on responses from 313 leaders at 284 of the world’s largest and most influential companies)
  19. 19. Copyright 2013. Reputation Institute. All Rights Reserved. Case: Using Reputation to Drive Value 19 Comparison with financial metrics (Telefonica) ● Reputation and other Customer Metrics compared with a range of Financial Indicators ● Reputation of Telefonica + Primary Competitor was found to be responsible for 17% of ARPU, 29% of churn and 11% of Financial Metrics Average globally 5% 4%
  20. 20. Copyright 2013. Reputation Institute. All Rights Reserved. Case: Use Reputation to Leverage Insight 20 1. Assessment of efficiency of activities in addressing key stakeholder issues 2. Evaluation of the ROI from activities and contribution in creating reputation/support 3. Input for change in programs and overall story to tell
  21. 21. Copyright 2013. Reputation Institute. All Rights Reserved. Case: Use Reputation to Leverage Insight 21 vs. Likelihood Importance toStakeholder Likelihood ReputationImpact 1 23 456 78 9 10 11 12 Risk Prioritization • Risks are events with a negative reputational impact which prevent value creation or erode existing value. • By systematically identifying, assessing reputation risks, you stay in control, pre-empt risks and ensure a coordinated response to potentially emerging risks. You protect the value of your company.
  22. 22. Copyright 2013. Reputation Institute. All Rights Reserved. Case: Use Reputation to Leverage Insight 22 “…everything we do affects our reputation, and our reputation affects everything we do – this is why we need to manage and protect it.” - Dennis Jönsson, President and CEO, Tetra Pak Grou Customers Competitors Retailers Governments & Regulators Media General public NGOs / special interest groups Consumers Opinion leaders Brand consultants
  23. 23. Copyright 2013. Reputation Institute. All Rights Reserved. Case: Use Reputation to Integrate Corporate 23
  24. 24. Copyright 2013. Reputation Institute. All Rights Reserved. Know your Stakeholders Expectations - to Act in Ignorance is to take a Huge Risk 24 “We missed the issue of obesity and the value of healthy and nutritional food. We were behind, while Nestlé was riding that wave. Not being in tune with society, with the benefit of hindsight, can cost you dearly.” - Paul Polman, CEO of Unilever Source: McKinsey & Company: March 2013
  25. 25. Copyright 2013. Reputation Institute. All Rights Reserved. Bring your stakeholders into the room when you make decisions 25 “Stakeholder interests, risks, and opportunities are deeply integrated in every business decision that we take. Every single project or investment decision comes with reflections, risk maps, and mitigation actions around the particular topic that we’re discussing.” - Helge Lund, CEO Statoil
  26. 26. Copyright 2013. Reputation Institute. All Rights Reserved. Thank You 26 Australia • Belgium • Bolivia • Brazil • Canada • Chile • China • Colombia • Denmark • Finland• France • Germany • Greece • India • Ireland • Italy • Japan • Malaysia • Netherlands • Norway • Peru • Portugal • Russia • South Africa • Spain Sweden • Switzerland • Turkey • Ukraine • United Arab Emirates • United Kingdom • United States About Reputation Institute Reputation Institute is the world’s leading reputation consulting firm. As a pioneer in the field of brand and reputation management, Reputation Institute enables companies to make decision that protects their reputation capital and improve their competitive advantage With a presence in 30 countries, Reputation Institute is dedicated to advancing knowledge about reputation and sharing best practices and current research through client engagement, memberships, seminars, conferences, and publications such as Corporate Reputation Review and Reputation Intelligence. Visit ReputationInstitute.com to learn how you can start making reputation based decisions Questions or Comments Please post your questions or comments and continue the discussion in our LinkedIn Group Reputation Institute To find your local office please visit our website www.reputationinstitute.com/contact/
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