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Does online reputation exist three answers and more questions d+i ll&c


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Does online reputation exist? Can it be measured? And managed? This article attempts to provide answers to these questions and clarify some issues related to the presence of organizations in the digital space.

In this context, and in order to understand how the Internet affects reputation of companies, Corporate Excellence – Centre for Reputation Leadership, jointly with LLORENTE & CUENCA, developed Analysis of Online Comments (Balance de Expresiones Online, BEO).

The study attempts to analyse numerous opinions and spontaneous comments made by stakeholders about a brand and relate them to the dimensions of corporate reputation in accordance with the RepTrak™ model of the Reputation Institute, one of the leading global standards for measuring corporate reputation developed in conjunction with the Forum for Corporate Reputation (fRC).

The article sets out the methodology basis of the Analysis of Online Comments and brings together contributions of Jorge Cachinero, Corporate Director for Innovation and Corporate Development at LLORENTE & CUENCA, Ivan Pino, Director for Online Communication at LLORENTE & CUENCA, and Ángel Alloza, CEO of Corporate Excellence – Centre for Reputation Leadership, who approach understanding of the Internet as a tool of social research and source of comments that impact corporate reputation.

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Does online reputation exist three answers and more questions d+i ll&c

  1. 1.                             ARTICLE                   Does online reputation exist?     Three answers and more questions                       Madrid, April 17, 2012                                            
  2. 2. HOW TO MEASURE REPUTATION ONLINE? THREE ANSWERS AND MORE QUESTIONS       1. HOW TO EVALUATE THE           1. HOW TO EVALUATE THE IMPACT OF ONLINE COMMENTS IMPACT TO OFLINE COMMENTS Over the last five years, Llorente & Cuenca has been conducting an 2. IS THERE “ONLINE ambitious research project aiming to understand the impact of online REPUTATION”? communication on the reputation of companies. 3. CAN REPUTATION ON THE INTERNET BE MEASURED? To this end, we closely cooperated with our clients and managed to 4. IS IT POSSIBLE TO MANAGE clarify some areas that often become an object of a heated debate in REPUTATION IN THE SOCIAL academic and research institutions: Is there “online” reputation? Can it be measured effectively? Can it be managed? These are some of the NETWORKS? questions that we can answer, with the answers serving as the basis for the BEO (Analysis of Online Comments, Balance de Expresiones DOCUMENT PREPARED BY Online) methodology. CORPORATE EXCELLENCE LLORENTE & CUENCA   Other questions remain unanswered and are currently investigated jointly by Corporate Excellence – Centre for Reputation Leadership and Llorente & Cuenca in order to make progress in the understanding of the Internet as a source of corporate reputation.   2
  3. 3. HOW TO MEASURE REPUTATION ONLINE? THREE ANSWERS AND MORE QUESTIONS 2. IS THERE “ONLINE” The problem is that it does not REPUTATION? explain the relationship between these elements, which leads to Expansion of the so-called Web the misunderstanding that there 2.0 has turned online media and is a separate “online” reputation, social networks into an important i.e. perceptions, evaluations and communication environment, expectations existing exclusively where millions of persons and in the web and independent from organisations interact every day. other factors. It seems obvious that the content and experiences shared in the First answer: The Circle of digital spaces such as Facebook, Reputation Sources Twitter or blogs should affect This conceptual confusion was perceptions, evaluation and one of the first challenges that expectations formed by the Llorente & Cuenca faced in our stakeholders of companies. research. Our answer is in the “Circle of Reputation Sources”. But what does it mean? Should we consider these factors The graph attempts to explain separately? Are there two kinds that the company’s reputation of reputation: online and offline? does not exist on the Internet. Instead, it exists in the minds of The term “online reputation” has the people who are the become an object of discussion company’s stakeholders. and commercial interest in the Reputation is the combination of last few years. The term clearly perceptions, the basis of expresses two key elements that expectations and attitudes. worry and interest professionals: Corporate Excellence – Centre for “reputation” and “the Internet”. Reputation Leadership defines 3
  4. 4. HOW TO MEASURE REPUTATION ONLINE? THREE ANSWERS AND MORE QUESTIONS corporate reputation as the Besides, the “Circle of combination of collective Reputation Sources” attempts to evaluations developed by a contribute to the research aiming stakeholder about a company, to solve the main issue: first, to that drive value-generating overcome the increasingly virtual behaviours. boundaries between the “on” and “off” in the analysis of The same graph explains that comments; and secondly, identify what we see on the Internet are the environment or spaces most comments about a company commonly used for posting shared by its stakeholders on the comments on the Internet. In this web, and that they may affect sense, we singled out four kinds the perceptions of this company. of important comments: In other words, in the term “online reputation”, “online” is • Observation: largely visual the cause or the source, and messages that may generate “reputation” is the effect or the essentially emotional result. perceptions that may be “corporate managed by means of design The graph also clearly expresses and advertising in the reputation as the the central phenomenon in the traditional channels of combination of process of building reputation: communication; or by meanscollective evaluations of sequential or wall posts in • On the one hand, the multimedia networks developed by a experiences of the persons (Youtube, Pinterest, etc.). stakeholder about a who constitute stakeholder groups during their direct Information: informative company, that drive interaction with the • comments on actions that value-generating company; they represent the may generate simple behaviours.” most influential source of cognitive perceptions and comments for the may be managed with the perceptions and evaluations help of journalistic of the stakeholders. techniques in the conventional channels of • On the other hand, the communication, or by means reality of the company itself of real-time social networks (the result of its identity, (such as Twitter). activity and culture) are at the heart of everything and • Conversation: comments determine the experiences made in the dialogues, and comments of the mostly the ones expressing stakeholders. an opinion, that may affect motivational perceptions. These usually may be managed with the help of events, promotions and public relations activities; now they are also managed through social networks such as Facebook. 4
  5. 5. HOW TO MEASURE REPUTATION ONLINE? THREE ANSWERS AND MORE QUESTIONS • Documentation: and Llorente & Cuenca in the interpretational and medium run: informative comments that may develop complex • What is the relationship cognitive perceptions. These between comments and are traditionally managed perceptions? In practical through publication of terms, what is the articles and now, also, relationship between the through hypertextual web BEO results and the formats (websites, media Reptrak™ model developed resources, blogs, forums,…), by the Reputation Institute that use Google as the main together with the Forum for mediator. Corporate Reputation. “Growing interest Thus, our response to the in online reputation question “Is there online 3.CAN REPUTATION ON has generated a reputation?” served as the basis THE INTERNET BEdemand for solutions for the methodology applied in the Analysis of Online Comments MEASURED? that would allow (BEO), in its two key points: Growing interest in online to measure and reputation has generated a The analysis unit is a evaluate it.” • comment published on the demand for solutions that would allow to measure and evaluate it. Internet that refers to the corporate brand of a studied In order to meet this demand, company new monitoring tools sprouted up on the market that include IT- • The analysis sample is based analysis of the reputation drawn from the most with the help of semantic filters representative environments and sophisticated algorithms that or platforms based on the follow all comments made about four main types of companies on the Internet, comments found on the interpret the meaning of these Internet: opinions and even estimate the degree of influence that ○ Observation characterisers their authors. (multimedia): Youtube ○ Information (real time): If we consider these Twitter developments, the answer to the ○ Conversation (social): question will be obvious: “The Facebook reputation on the Internet can be ○ Documentation measured”. However, we do not (hypertextual): Google believe that this question may be answered in this way, or at least This analysis led us to new in such a categorical manner. interesting questions that we are still exploring. One of them As experts on search engines and became part of a further programming languages well research that is undertaken know, computers have serious jointly by Corporate Excellence – limitations that cannot be Centre for Reputation Leadership resolved automatically when it 5
  6. 6. HOW TO MEASURE REPUTATION ONLINE? THREE ANSWERS AND MORE QUESTIONS comes to evaluation of comments • Select a sample of the most made by people with regard to relevant comments on the reputation. We single out at companies found by search least three important limitations: engines of the main social meeting places online: • Monitoring capacity: no Google, Twitter, Facebook search engine, not even and Youtube. Google, is capable of capturing the infinite • Apply transparent influence number of messages that metrics offered by circulate on the web. applications open for public access and by the • Disclosure of the metrics: communication platforms the most reliable indicators themselves: number of of influence are not followers, links, transparent, and are visualisation, number of measured with the analytical references, etc. tools developed privately. Those metrics that are open • Study the comments of the “LLORENTE & CUENCA to public access (such as sample, using the techniques Klout or Alexa) cannot be of content analysis. Based on is cooperating with the applied to all stakeholders this analysis our researchers within the frames of of a company. will determine the the European dimensions and attributes of • Interpretation of the the communicatedinnovations programme language: machines are still reputation, the profile of LIMOSINE, aiming to unable to understand all the stakeholders who meanings or feelings implied produce these messages as enhance the capacity by a statement made by a well as the meaning andfor information analysis human. feelings denoted or of online comments” connoted by these messages. Second response: However, we keep looking for qualitative research new and better measurement solutions. Llorente & Cuenca is Given these limitations, we cooperating with the Universities believe that research on of Amsterdam, Glasgow, Trento, reputation manifested on the UNED and the Barcelona Media Internet cannot be based on Research of Yahoo, within the quantitative, statistical or frames of the European mechanical criteria. In this case innovations programme LIMOSINE qualitative methodologies should (Linguistically Motivated be applied with non-probabilistic Semantic Aggregation Engines), samples and analysis done by aiming to enhance the capacity people. for information analysis of online Thus our response to the comments during this five-years’ limitations that characterise research. measurements of the online reputation for the Analysis of The results of this process will be Online Comments is the reinforced by expert opinions following: provided by the members of 6
  7. 7. HOW TO MEASURE REPUTATION ONLINE? THREE ANSWERS AND MORE QUESTIONS Corporate Excellence – Centre for Third answer: the matrix Reputation Leadership. of awareness/recognition 4. IS IT POSSIBLE TO In line with the concept of online MANAGE REPUTATION IN reputation that we are THE SOCIAL NETWORKS? advocating here, we believe that the environment that can be reached and influenced at the The drive to understand and moment rests in what is estimate the implications of the commonly referred to as Internet on corporate reputation “comments”. It is possible to is closely linked to the manage the variables that increase the quantity and quality “It is possible companies’ desire to manage of the comments published in the these implications in connection to manage the with the business objectives. networks about a certain variables that corporate brand, and the ones that affect perceptions andincrease the quantity Every day we observe new evaluations (assessment) of a debates and solutions related to and quality of the ROI of communication in the company by the stakeholders. comments published mass media and social networks, We understand and apply the attempting to pinpoint the in the networks variables that may be used as variables used for the Analysis of about a certain levers for increasing the return Online Comments in the same way: corporate brand” on investment. This issue is similar to the • By figuring out the number questions raised by the concept of comments, we are trying of reputation, when we study the to describe the “Awareness” elements that generate variable, which captures the intangible value and the way it cognitive component of the affects income or capital reputation and is defined as dynamics in a company. “presence” or “reach” of relevant comments shared In this context, we can attempt about a company on the to answer whether it is possible Internet. How much it is to manage reputation in the mentioned or known. social networks. And again, we • In order to estimate the should do it with a lot of care quality of comments we and precision. suggest the “Recognition” variable that captures the value-related component of reputation and is defined through “authority” and “quality” of the opinions shared about a company on the Internet. How people think about a company and evaluate (assess) it. 7
  8. 8. HOW TO MEASURE REPUTATION ONLINE? THREE ANSWERS AND MORE QUESTIONS By combining the two variables Depending on the company’s and always taking into account position in the matrix, its how our object of study is dimensions, attributes, related and compared to other stakeholders and the digital objects, we can develop a space, we may provide positioning matrix that allows us recommendations with regard to to locate a company, its key aspects of managing online dimensions, attributes, comments for each particular stakeholders, and the platform case: where the comment was found in one of the following fields: • If deficiency of Awareness is detected, we know that we 1. Efficient (Nt +, Nb +): More need to improve the references and higher management of online evaluation than the average communication assets, for analysed sample. promoting more valuable 2. Sufficient (Nt-, Nb+): Fewer content among key references and higher stakeholders of the evaluation than the average company. for analysed sample. • If deficiency of Recognition 3. Insufficient (Nt-, Nb-): is detected, we know that Fewer references and lower we need to improve the evaluation than the average management of participation for analysed sample. in online communication, 4. Deficient (Nt+, Nb-): More establishing more valuable references and lower relations with the company’s evaluation than the average key stakeholders. for analysed sample. • If deficiency of both variables is detected, the management of both content and relations has to be improved. Such is our response to the question that we posed earlier. The experience of its application shows that it is a useful management tool. However, we keep refining the tool thanks to everyday cooperation with our clients and the intellectual debate initiated by Corporate Excellence – Centre for Reputation Leadership. New solutions should be developed in order to address additional questions that emerged in the course of the study. 8
  9. 9. HOW TO MEASURE REPUTATION ONLINE? THREE ANSWERS AND MORE QUESTIONS Autors Ángel Alloza holds a BA degree in Psychology from the Complutense University in Madrid and a PCD title from IESE. He started his professional career as a Technical Manager for Quantitative and Qualitative Market Research in Alef, Strategic Planning Manager at J.Walter Thompson and Managing Partner at Millward Brown International in Spain and Portugal. In 1998, Ángel Alloza joined the Strategic Analysis Unit of Argentaria’s Presidency and Risks Area aiming to define and implement the new strategy and brand positioning. In January 2000, he joined the Communication and Image Department of BBVA (now Communication and Brand Department) and was responsible for different areas (corporate advertising, image, social activities, brand, identity, reputation and metrics). Ángel worked at BBVA until 2011 as the Director for Strategy and Evaluation in the global area of Communication and Brand. Ángel’s responsibilities in this function included global management of the brand, the reputation and the metrics. In April 2011, Ángel became the CEO of Corporate Excellence – Centre for Reputation Leadership. Jorge Cachinero has an MBA from the IE Business School in Madrid and is a graduate in History from the Complutense University of Madrid. He took postgraduate studies in Political Science at St. Antonys College, Oxford University.From 1999 until his appointment at LLORENTE & CUENCA, Jorge held the position of Director of Corporate and Communication Affairs for Iberia at JT Internacional. Before that he was General Manager for the Public Affairs Practice and a member of the management team for Europe at Burson-Marsteller, Public and Government Affairs Manager for Spain and Portugal at Ford España and Communication and Management Consulting Director at Holmes & Marchant. Iván Pino has 15 years’ experience of management and consulting in the area of corporate reputation. Iván started his professional career in the CHF association, and later on established the department of communication in this company. For four years he worked as the head of the press service at the Ports of Ferrol and San Cibrao. Then Iván became the director of Imagen, the leading communication agency in Galicia, Octo, and worked there for nine years. In November 2010, he joined the online communication team of LLORENTE& CUENCA as the Director for Spain. 9
  10. 10. HOW TO MEASURE REPUTATION ONLINE? THREE ANSWERS AND MORE QUESTIONSNew Think Tank for Corporate Brand and ReputationThe major Spanish Corporations have joined together to launch a centre of excellence named “Corporate Excellence -Centre for Reputation Leadership”, a think tank to promote corporate brand and reputation management as a strategicdriver for business excellence.Our Trustees (BBVA, La Caixa, Iberdrola, Repsol, Santander and Telefónica) represent 65% of the IBEX-35 (250 millionof euros in stock market capitalization). Also, relevant public and private corporations have joined this initiativeincluding Adif, Agbar, Bankinter, Correos, Danone, El Corte Inglés, Gas Natural Fenosa, Meliá Hotels International andRenfe. This group of companies has more than 750.000 employees in 82 countries.Our visionThe Centre aims to become an international technical and ethical point of reference to help companies achieveexcellence and to lead the defense and strengthening of the integrated management of intangible assets through sixareas: reputation, brand, communication, public affairs, metrics and training.Our Goals ● To consolidate brand and reputation management as a strategic driver to achieve business excellence. ● To show the financial return on the companys intangible assets. ● Creation of strategic alliances in order to support the relevance of reputation, as an essential element of business management.Ten years of experienceCorporate Excellence- Centre for reputation Leadership, is the result of experience obtained over the last decade bythe “Foro de Reputación Corporativa” (founded in 2002) and the “Instituto de Análisis de Intangibles” (founded in2004), both now part of this new think tank.www.corporateexcellence.orgblog.corporateexcellence.orgTel.: +34 91 445 18 18info@corporateexcellence.orgSagasta, 27, 3º izq. B28004 Madrid –España– 10
  11. 11. HOW TO MEASURE REPUTATION ONLINE? THREE ANSWERS AND MORE QUESTIONSConsultoría de Comunicación líder en España y América LatinaLLORENTE & CUENCA is the leading communications consultancy firm in Spain and Latin America. It has twelve partnersand 300 professionals whoprovide strategic consultancy services to companies in all sectors, with operations aimed at the Spanish- and Portuguese-speaking world.The firm currently has its own offices in Argentina , Brazil, Colombia, China, Ecuador, Spain, Mexico, Panama,Peru, Portugal and the DominicanRepublic. It also offers its services through affiliate companies in the United States, Chile, Bolivia, Uruguay and Venezuela.Its progress on the international front led the firm to become one of the fifty most important communication companies in the world in 2010 and 2011,as reflected in the global ranking published by The Holmes Report.OrganizaciónDIRECCIÓN CORPORATIVA AMÉRICA LATINA QuitoJosé Antonio Llorente Alejandro Romero Gonzalo PonceSocio Fundador y Presidente Partner, Latin America CEO and General Partner and Manager Mexico aromero@llorenteycuenca.comEnrique González Avda. 12 de Octubre 1830 y Cordero.Socio y CFO José Luis Di Girolamo Edificio World Trade Center, Torre B, Partner and CFO Latin America piso 11. Oficinas 1104-1105 Distrito Metropolitano de Quito (Ecuador)Jorge Cachinero Tel: +593 2 2565820Senior Director Antonio Regional Director of Human Resources Río de Janeiro Germán ParienteESPAÑA Bogotá Partner and CEO gpariente@llorenteycuenca.comMadrid Claudia Esguerra General Manager Rua da Assembleia, 10 – sala 1801Arturo Pinedo Rio de Janeiro – RJ (Brasil)Partner and Senior Tel: +55 21 3797 Carrera 14, nº 94-44. Torre B – Oficina 501 Bogotá (Colombia) Santo DomingoJuan Rivera Tel: +57 1 7438000Partner and Senior Alexander Buenos Aires General Manager abarrios@llorenteycuenca.comAdolfo Corujo Pablo AbiadPartner and Senior General Manager Avda. Abraham Lincoln. Torre Sonora, planta 7 Santo Domingo (República Dominicana)Joan Navarro Enrique Morad Tel: +1 8096161975Vice-Pesidente and Senior Council President forDirector of Public the Southern ASIAAmalio Moratalla Av. Corrientes 222, piso 8 BeijingDirector Senior C1043AAP Ciudad de Buenos (Argentina) Sergi Torrents Tel: +54 11 5556 0700 General ManagerJuan Castillero storrents@grupo-11.comFinantial Director 2009 Tower A, Ocean Express Luisa García N2 Dong san Huan Bei Road, ChaoyangHermanos Bécquer, 4 Partner, COO and CEO Latin America Peru District. Beijing (China)28006 Madrid (España) Tel: +86 10 5286 0338Tel: +34 91 563 77 22 Av. Andrés Reyes, 420, piso 7Barcelona San Isidro, Lima (Perú) PRESENCIA EN LA RED Tel: +51 1 2229491María Cura Corporate websiteManaging Director Barcelona México Alejandro Romero Corporative blogMuntaner, 240-242, 1º-1ª Partner, CEO and General Manager www.elblogdellorenteycuenca.com08021 Barcelona (España) Latin AmericaTel: +34 93 217 22 17 Facebook Bosque de Radiatas, 22 – PH7PORTUGAL Col. Bosques las Lomas. Cuajimalpa de Twitter Morelos. C.P. 05120 (México) Tel: +52 55 52571084Lisboa LinkedIn Panamá MartinsFounding Member d=144360 Javier General Manager YouTube MatosFounding Member Avda. Samuel Lewis. Edificio Omega, piso 6, Oficina 6ª. Panamá (Panamá) Tel: +507 263 9899Rua do Fetal, 182714-504 S. Pedro de Sintra - Portugal Slideshare 11Tel: + 351 21 923 97 00
  12. 12. HOW TO MEASURE REPUTATION ONLINE? THREE ANSWERS AND MORE QUESTIONS d + i is the center of Ideas, Analysis and Trends of LLORENTE & CUENCA. Because we are witnessing a new macroeconomic scenario; and social. And communication is not back. Moving. d + i is a comprehensive mix of relationship and exchange of knowledge that identifies, focuses and transmits the new paradigms of communication from an independent positioning. d + i is a constant stream of ideas that advances new age of information and business management. Because reality is not black or white there d + i Llorente & Cuenca. 12