How Do I Manage My Reputation? - ri.reptrak.com Chicago 2018/How... · Jan '2006 Jan '2007 Jan '2008 Jan '2009 Jan '2010 Jan '2011 Jan '2012 Jan '2013 Jan '2014 Jan '2015 Jan '2016

How Do I Manage My Reputation?A Best Practice BluePrint for Building a Reputation Management

Capability in Your Organization

24 July 2018

The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed without

the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.

Focus For Today

2

• Strategic Importance of Reputation

• Business Case for Reputation

• Process for Business Integration

• Cross-Functional Collaboration and Stakeholders

• Implementation: Knowledge and Internal Ambassadors



report that reputation has become a strategic imperative for their business– increased every year the past 4 years

67% report that reputation is a high priority for the CEO and Board of Directors – increased every year the past 4 years

75%

72% of companies believe reputation is a critical KPI for the firm

(Executives tell us) reputation continues to grow in strategic importance



Lack internal knowledge, training and engagement with key internal stakeholders

73% lack a structured process to integrate reputation into the business

43%

52% Lack cross functional collaboration and buy in on reputation

And yet………



Who has done this? And how?

• How do you build a business case for reputation management?

• How do you build a reputation capability internally?

• How do you engage the business to work with/on corporate reputation?

• How do you build and deliver achievable short and long term strategic KPIs?

• Do I understand what my reputation risks are?

• What roles can employees play?

• What role should I play?



Prove reputation matters, and specifically link to the business

45% need to make the business case for reputation management, including ROI of reputation initiatives

Problem 1



The Macro-economic discussion

Relationship capital matters more than ever

Intangible assets are increasingly critical to the value of businesses today.

Evolution of market value,1975-2009

Source: International Integrated Reporting Council



Reputation positively impacts financial performance

FACT:

The most reputable companies outperform the financial markets

HigherStock Price

2.5Xbetter stock market performance for the RT10 companies as compared to the S&P 500 Index since 2006.

A 1-point increase in reputation score yields a

2.6% increase in market cap – for a typical S&P 500 company translates into

$1.3bnper reputation point

“Reputation has a profound influence on our financial metrics.

11% of the variation can be explained by Reputation.

Increasing Telefonica’s Reputation with our clients by 1% increased our financial indicators by 7%”

Alberto Andreu PinillosManaging Director, Telefonica

44.1

17.9

0

50

100

150

200

250

300

350

400

450

500

Jan '2006 Jan '2007 Jan '2008 Jan '2009 Jan '2010 Jan '2011 Jan '2012 Jan '2013 Jan '2014 Jan '2015 Jan '2016

Top 10 Most Highly Reputed Companies S&P INDEX

Jan’2017

8



…and protects value during risk scenarios

FACT:

Reputable companies are able to

better manage and recover from crises

MoreCrisis Proof

Stakeholder give reputable companies more benefit of the doubt in a crisis.

More than 80% of

the general public support companies with an excellent reputation

MoreResilient

Most companies take a similar hit in stock price after a crisis:

8% on averageBut companies of higher repute bounce back faster.

Crisis strikes

0%

20%

40%

60%

80%

100%

120%

140%

160%

1 5 9 13 17 21

25

29

33

37

41

45

49

53

57

61

65

69

73 77

81

85

89

93

97

101

105

109

113

117

121

125

129

133

137

141

145

149

153

157

161

165

169

173

177

181

185

189

193

197

20

1

20

5

20

9

213

217

22

1

22

5

22

9

23

3

23

7

24

1

24

5

24

9

Higher reputation companies Lower reputation companies

65.5 48.5

64.1 43.4

78.5 70.0

-17.0(-25%)

-10.3(-13%)

-20.7(-31%)

-8.5(-11%)

75.0 64.7

9

The presentation is confidential and contains proprietary information and intellectual property of Reputation Institute, whic h may not be reproduced or disclosed withoutthe express written permission of Reputation Institute. RepTrak ® is a registered trademark of Reputation Institute. © 2017 Reputation Institute, all rights reserved.

Micro discussion: Reputation links directly to stakeholder support

Companies with Excellent or Strong Reputations receive exponentially more support


the express written permission of Reputation Institute. RepTrak® is a registered trademark of Reputation Institute. © 2018 Re putation Institute, all rights reserved.11

Aware

Consideration

Shop/Compare/Price

Purchase

Reputation Impact

Reputation impact

...and impacts the selection cycle



But you MUST link it to your key corporate indicators to get buy in

AT&T Reputation Impact Analysis:1 point ncrease in RI reputation value (pulse score):

o 7,800 Digital TV gross adds per montho $93m Lifetime Value per year @ $1000 per adds

Positive movement of the RepTrak Pulse has a significant positive impact SAP commercial activity.

Across 12 observed countries, Reputation improvement (pulse) influences marketing qualified leads (“MQL”) and qualified sales lead (“SQL”) volume as follows:

• On average, in each country and each quarter, a 1 point Pulse increase results in 10.6% increase in marketing pipeline, with a confidence level of 95%.

• In average, in each country and each quarter, a 1 Pulse Point increase results in a 5.98% increase in qualified sales leads , with a confidence level of 95%

Purchase: Reputation Impact on Specific Product Sales

Consideration: Reputation Impact on Sales Pipeline



Build an internal reputation management capability

48% lack a structured process to integrate reputation into the business

Problem 2



Define what gets measured, who manages, and who matters

Set Specific Data driven reputation

measurement capabilityClearly defined team,

responsibilities and goalsDefine key stakeholders

Responsibilities (1-3 FTE)• Multi-Stakeholder research & analysis• Internal Stakeholder Education• Proactive Communication and Reporting• Specific Recommendations and Advice• Strategy Input

Internal

External

Goals• Provide overall reputation vision• Lead achievement of reputation goals • Use quantitative data to drive reputation

improvement across stakeholders• Link reputation to corporate value/KPIs• Engage employees in our reputation strategy



Engage, inform and advise your internal stakeholders

52% lack cross functional collaboration and buy in on reputation

Problem 3



Clearly define scope and focus of internal stakeholder communication

Responsibilities (1-3 FTE)• Multi-Stakeholder research & analysis• Internal Stakeholder Education• Proactive Communication and Reporting• Specific Recommendations and Advice• Strategy Input

Reputation Team

CEO/Board of Directors Executive Leadership

Reputation Leadership Team

Inform Inform, Advise

Inform, Advise, Engage, Ideate

FinanceRiskLegalCustomer ExperienceHuman Resources

ProductSalesMarketingStrategy Corporate Comms

Internal Comms

Media Relations

Citizenship, Philanthropy

Public Affairs

CEO Comms

Employee Eng’ment

Business Unit

Business Unit

Business Unit

Corporate Comms

Inform, Advise, Engage, Ideate, Implement



62% Have not developed a cross-stakeholder strategy

Problem 4

Identify, prioritize and build stakeholder specific strategies



Stakeholder Examples

Consumers

Non Consumers

Opinion Elites

Investors

Customers

RegulatorsEmployees

Policy Makers

STAKEHOLDER MAPPING: UNDER CONSIDERATION

Discuss and develop a list of

prioritized Stakeholders

Community Leaders

Media

Understand and prioritize your (external) stakeholders

Importance in Driving

Reputation

Importance in Driving Enterprise Value

NonConsumers

Media

Opinion Elites

Investors

Consumers

Regulators

Employees

Policy Makers

Customers

CommunityLeaders

Stakeholder Priorities



Set specific annual and multi-year goals, communicate and report often

53% lack knowledge, engagement and specific reputation goals

Problem 5



Identify key KPIs

Prioritize and determine the specific KPI’s unique to your firm

123

Select attributes with the largest reputational impact, map closely to your strategy, and you can control

Examine performance over time of the company and peers on those key attributes



Link KPIs to specific business goals of specific stakeholders

4CEO OFFICEB

2016-10-04

ACTION PLAN PROPOSAL – DIMENSION XXXXCorporate Reputation Survey

# Attribute Stakeholder Countries Priority Details

1

2

3

▪ Key findings to be addressed

▪ Proposed action plan# Key

findings

Perimeter Content Pilot Support Planning Budget

1&2

2



Simply, proactively and frequently report

Multi Stakeholder Analysis Stakeholder Deep DivesCore Reputation Dashboard

Quarter at a Glance

Dimensions Pulse Score BehaviorsCognitive Considerations Emotional Connection Reputation Outcomes

Product 78.6 61% Recommend Company

Innovation 67.7 58% Say Positive

Workplace 69.1 75.4 42% Benefit Of Doubt

Governance 71.3 50% Trust To Do Right Thing

Citizenship 68.2 68% Buy

Leadership 72.1 Chg QoQ 35% Invest

Performance 73.8 +0.3 37% Work For

Oct-17 Nov-17 Dec-17

73.6 76.0 76.4

Benchmark 1Benchmark 2Benchmark 3

71.9 78.8 75.4

Chg QoQ Chg QoQ Chg QoQ

(1.7) (1.7) +0.3

Dimension

Dimensions + Fencesitters

Weight BIC Fencesitters = Uncertain + Not Sure

Q3 Chg QoQ

Product 21% 78.6 50% +6% 47% 3%

Innovation 14% 67.7 66% +7% 59% 7%

Workplace 11% 69.1 86% +6% 49% 37%

Governance 15% 71.3 81% +3% 49% 32%

Citizenship 14% 68.2 81% +7% 61% 19%

Leadership 13% 72.1 73% +5% 54% 19%

Performance 12% 73.8 65% +5% 51% 15%

Dimension per Benchmarks

Weight BIC Schick Sharpie GilletteQ3 Chg QoQ Q3 Chg QoQ Q3 Chg QoQ Q3 Chg QoQ

Product 21% 78.6 (0.1) 74.2 (1.6) 81.0 (1.4) 77.0 (2.1)

Innovation 14% 67.7 (1.5) 67.0 (2.1) 71.4 (2.1) 70.4 (3.9)

Workplace 11% 69.1 (1.5) 66.7 (3.3) 70.1 (1.3) 67.3 (3.8)

Governance 15% 71.3 (0.4) 69.0 (1.4) 72.4 (0.7) 68.6 (4.1)

Citizenship 14% 68.2 (0.8) 67.4 (1.0) 70.1 (1.5) 65.7 (5.4)

Leadership 13% 72.1 (0.4) 70.1 (1.8) 72.2 (1.8) 70.3 (3.7)

Performance 12% 73.8 (0.7) 71.9 (2.4) 74.8 (1.5) 72.4 (4.8)



36% are ready to proactively manage reputation risk

Problem 6

Identify, assess, prioritize and track reputation risks



Identify, assess, prioritize and track Reputation Risks

Identify and Map the set of reputational risks to the company

Assessment of reputational risks – internally evaluate the likelihood

of each risk, externally measure the impact of each risk

Prioritization of reputational risks – analyze priority risks

Mitigation plan – define action plans to mitigate priority

risks and develop internal governance for managing

reputational risks

Continuous tracking of reputational risks over time for

ongoing assessment, prioritization and mitigation planning

2

34

5

1

Reputation Risk Management

Process



Identify, assess, prioritize and track Reputation Risks



23% have implemented an employee engagement program to support the firm’s reputation

Problem 7

Engage your employees in your reputation strategy



The most reputable companies who have successfully mobilized employees to become reputation and brand ambassadors share the following best practices:

They engage employees and promote reputation enhancement as mutually beneficial to both.

They have a mission that rallies employees around a common cause.

They connect causes they support to their business strategy.

Key Components of EE Programs from most reputable firms

1

2

3



What do Ambassadors do? Client Examples:

1) Protect and promote a positive image of the firm2) Champion firm and its products and services to customers and other

stakeholders 3) Refer firm to family and friends4) Propose ideas to grow and/or maintain reputation5) Model best behavior to other employees6) Understand/promote current products and help develop new products and

services7) Volunteer in the community on behalf of company8) Recruit other ambassadors



Is there a reputation and financial return on employee engagement?

Engaged Employees1. Rate the firms reputation much higher

2. Are more willing to believe in and support the company vision, and say positive things about the firm

3. Are far more willing to refer potential employees and clients, and recommend the products and services

4. Have significantly higher retention rates

5. Score higher/perform better in annual reviews

Documents

How Do I Manage My Reputation? - ri.reptrak.com Chicago 2018/How... · Jan '2006 Jan '2007 Jan '2008 Jan '2009 Jan '2010 Jan '2011 Jan '2012 Jan '2013 Jan '2014 Jan '2015 Jan '2016