The document discusses the critical importance of corporate reputation in business strategy, highlighting that a significant portion of market value is derived from reputation and its impact on investor behavior, employee satisfaction, and overall business success. It emphasizes the CEO's role in building and managing corporate reputation through effective communication and relationship management while navigating organizational change. Key factors for maintaining a good reputation include product excellence, socially responsible conduct, and strong leadership.

2. The Agenda Importance of corporate reputation for realization of business strategy The role of CEO Conclusions and Q&A

3. “ In today’s world, where ideas are increasingly displacing the physical in the production of economic value, competition for REPUTATION becomes a significant driving force, propelling our economy forward.” Alan Greenspan, former chairman, Federal Reserve

4. WHY DOES IT MATTER?

5. BUILDING AND SAFEGUARDING CORPORATE REPUTATIO N 60% OF MARKET VALUE ATTRIBUTABLE TO REPUTATION (Weber Shandwick, 2006) 1% REPUTATION INCREASE RESULTS IN 3% INCREASE OF MARKET VALUE (Weber Shandwick, 2006) INVESTORS ARE PREPARED TO PAY A 12-30% PRICE PREMIUM TO A GOOD GOVERNANCE (McKinsey, 2002) COMPANY CAN LOSE IN EXCESS OF 30% OF ITS SHARE VALUE AS A RESULT OF A HIGHLY PUBLICIZED CRISIS (Weber Shandwick, 2007) 73% OF SURVEYED MBA STUDENTS SAID THAT CORPORATE REPUTATION IS EITHER AN "EXTREMELY" OR "VERY" IMPORTANT FACTOR WHEN DECIDING WHERE THEY WILL WORK (Hill and Knowlton, 2007)

6. WHAT IS IT ALL ABOUT? C R

7. IT’S ABOUT BRINGING YOUR VALUES TO LIFE COMMUNICATE WHAT YOU STAND FOR, TO ALL OF YOUR STAKEHOLDERS!

8. COMMUNICATION TO REPUTATION * Fortune 500 ‘Most Admired Companies’ listing RANKING OF COMPANIES CORPORATE COMMUNICATION SPENDING (US$ million) TOP 100 $32 Second 100 $23 Third 100 $13 Fourth 100 $5 Bottom 76 $4

9. IT MEANS MANAGING… … PERCEPTIONS How do we want to be seen? How do we aim to be positioned in the mind of our stakeholders? Do they even know we exist?

10. IT MEANS MANAGING… … UNDERSTANDING Are we being clear? Do they understand our values?

11. IT MEANS MANAGING… … RELATIONS How do they relate to our values? Does it work for them? What kind of behavior we seek for?

12. BENEFITS OF A GOOD REPUTATION Increased CUSTOMER/CONSUMER/CLIENT preference and loyalty Enhanced EMPLOYEES` satisfaction and productivity Increased INVESTORS` interest and willingness to invest Improved understanding and support among OPINION LEADERS Faster recovery from business CRISES

13. CORPORATE COMMUNICATION IS A PROCESS… IDENTITY OBJECTIVE, STATIC CATEGORY Defined specific features of a corporation and external symbol ( visual and material tools ) reflecting it and communicating with publics Slogan Logo Graphic standards Print production Website Code of conduct Publication of corporate data Office space Corporate film

14. CORPORATE COMMUNICATION IS A PROCESS… IDENTITY IMAGE OBJECTIVE, STATIC CATEGORY Defined specific features of a corporation and external symbol ( visual and material tools ) reflecting it and communicating with publics SUBJECTIVE, DYNAMIC CATEGORY Impression of the public on a corporation, established upon a perception of corporate identity COMMUNICATION

15. CORPORATE IMAGE HONEST FAIR-PLAY RELIABLE COMPETENT LOCALLY IMPORTANT AND ACCESSIBLE TRUST DEDICATED TO COMMUNITY IMPORTANT SPONSORS PARTNERS AND SUPPORT ENVIRONMENT FRIENDLY CARE QUALITY INNNOVATIVE EXCELLENCE GOOD EXAMPLE LEADERSHIP HOW DO WE DESIRE TO BE SEEN?

16. CORPORATE COMMUNICATION IS A PROCESS… … OF TRANSFORMING THE IDENTITY INTO IMAGE AND REPUTATION IDENTITY IMAGE REPUTATION OBJECTIVE, STATIC CATEGORY Defined specific features of a corporation and external symbol ( visual and material tools ) reflecting it and communicating with publics SUBJECTIVE, DYNAMIC CATEGORY Impression of the public on a corporation, established upon a perception of corporate identity JUDGMENT Set of values attributed to company by its stakeholders, based on their interpretation and validation of the corporate identity and image COMMUNICATION EXPERIENCE COMMUNICATION

17. IMAGE AND REPUTATION IMAGE MEANS CREATION OF A PROMISE . REPUTATION MEANS LETTING EVERYONE UNDERSTAND YOU`RE DELIVERING ON THAT PROMISE.

18. “ The way to gain a good reputation is to endeavor to be what you desire to appear ” Socrates

19. MOST IMPORTANT REPUTATION DRIVERS EXCELLENCE OF PRODUCTS AND SERVICES SOCIALLY RESPONSIBLE CONDUCT FINANCIAL PERFORMANCE WORKING ENVIRONMENT EMOTIONAL APPEAL MANAGEMENT LEADERSHIP AND EXPERTISE

20. THE ROLE OF CEO IN BUILDING, MAINTAININ G AND RECOVERING REPUTATION

21. CEO REPUTATION “ CEO reputation represents 65% of corporate reputation.” CEO Capital Research

22. “ ...n avigating the chaotic yet exciting time when a new CEO begins ...” McKinsey & Company

23. CHANGE MANAGEMENT Structured approach to transitioning individuals, teams, a nd organizations from a current state to a desired future state. The current definition of Change Management includes both organizational change management processes and individual change management models, which together are used to manage the people side of change. http://en.wikipedia.org/wiki/Change_management

24. CHANGE THE ONLY CERTAIN THING TODAY

25. WHAT DOES CHANGE MEAN ? DANGER Resistance Fear OPPORTUNITY Fresh ideas Interest GRAB THE OPPORTUNITY!

26. “ About 60% of all management problems are due to poor or faulty communication .” Peter Drucke r

27. THE STAGES OF CEO SUCCESION COUNTDOWN FIRST 100 DAYS FIRST YEAR TURNING POINT REVISION AND REINVENTION CEO Capital, A Guide to Building CEO Reputation and Company Success, Dr. Leslie Gaines-Ross, John Wiley & Sons, Inc.

28. THE COUNTDOWN Q uiet period CEO plans the future L earns about country, people, programs and activities S ets the stage

29. FIRST 100 DAYS Opportunity – interest in new CEO D elicate balance of action and listening L istens and learns to gain the support P roactive in completing unfinished

30. END OF THE FIRST YEAR P eople, programs and actions in place E verything may not have been resolved or changed S takeholders see progress and feel the CEO is leading the company in the right direction

31. TURNING POINT CEO has prepare d the organization for the future Now it is time to produce! Everyone coldly evaluate s CEO's vision and actions CEO has generated personal and professional capital

32. REVISION AND REINVENTION CEO is comfortable in his role He is living the company's vision C omplete team is collaborating on developing new strategies and executing new tactics

33. “ 40% of my time I communicate our company’s credo” Jim Burke, Johnson&Johnson CEO

34. CEO ROLE CEO sets vision, direction and plan of action s . But i t’s communication that fans the flames for enthusiasm, support and commitment. Who gives details??? Employees = BRAND AMBASSADORS

35. BRAND AMBASSADORS Contact with target audiences: PR and marketing Information desk Bank clerks Call center Advisors Security

36. Surveys suggest that 9% of customers are lured away by competitors, but as many as 68% are lost by employees’ indifference . Journal of Marketing

37. WHAT KEEPS LEADERS AWAKE AT NIGHT? Performance Reputation Innovations Satisfaction Crisis ...

38. FOR A PEACEFUL SLEEP Listening Measuring Feedback Adjustment

39. BARCLAY’S CASE “ Financial performance is vital, of course, and easy measurable. But financials alone are not enough to measure either performance or health. Soft-side strategies are the foundation stones of hard-side- strategy success. They are additive, not alternative.“ John S. Varley, CEO of Barclay’s Bank (2005)

40. AT THE END...

41. Far too much communication effort is externally focused Get your employees to understand and believe in the brand START AT HOME

42. HOW TO APPROACH EMPLOYEES? Proactive and on time Provide info What do you think? Kill rumours! Formal – circulars, corporate events, newsletter, ... Informal – MBWA – push method - Open Door Day – pull method

43. TIPS Use social occasions to breakdown barriers Deliberately work around select ed “unimportant” employees and listen to their opinions – get back to them After you have instructed someone with a task, check their understanding You cannot beat the “personal touch”

44. Q& A

45. THANK YOU FOR YOUR ATTENTION