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

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

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

The Purpose of Today…
Is to clarify the Business Case of
Reputation
and
Outline how to work systematically with
Reputation Management
3

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…

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 “

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

Changing Marketplace with Two Factors at Play –
What Matters the Most?
7
Enterprise
Product
Recommend
Buy
40 %60 %
Work for
Invest in

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…

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

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

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
Results

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
Results

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
Results

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

Key Elements
World Class Reputation System?
15

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

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)

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%

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
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
“…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

Case: Use Reputation to Integrate Corporate
23

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

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

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/

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

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

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