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Reputational opportunities
How charities can maximise their potential
ICSA, 28 July 2011
Jane Hobson
Head of Policy
Charity Commission
Spencer Gammond
Head of Communications
RNLI
Managing Reputation
What is the RNLI?
„Ordinary people doing extraordinary things‟
„With courage,
everything is
possible‟
Sir William Hillary
Founder
RNLI
Reputation is taken very seriously
•Complaints - a board issue
•Risk management
•Regular reporting and assessment
•Policies and procedures
•Strong communications team
•Consistency - Loud & Clear
Reputation is taken very seriously
•Complaints - a board issue
•Risk management
•Regular reporting and assessment
•Policies and procedures
•Strong communications team
•Consistency - Loud & Clear
Look after your supporters
STAFF
VOLUNTEERS
PUBLICSUPPORTERS
Youth engagement
Continuous improvement
•IIP
•IIV (volunteers
•EFQM ( 5 stars)
•ISO 9001
•ISO 14001
•ISOQAR
•Lean
Flood Rescue
Teams
Guyana 2005
Flood Rescue Teams
Cockermouth 2009
Maintaining awareness
•Promote the image of the RNLI and its volunteer crews to the general public through third party TV & Film productions
Actions speak louder than words
Just a car in the water….
But over 2 million hits in 48 hrs…
Always work with animals…
How some supporters see lifeguards…
How we wanted lifeguards to be seen as part of the RNLI
How things often really are
When it goes wrong…
When things really go wrong…
Without the public nothing is possible.
Chris Simpkins
Director General
The Royal British Legion
The Royal British Legion
Our Mission and Purpose
Our Mission:
We are the No.1 provider of welfare,
comradeship, representation and
Remembrance for the Armed Forces
community.
Our Purpose:
We stand shoulder to shoulder with
all who Serve
A Strong, Trusted Brand
Although the 26th charity in revenue, we are the second in terms of brand reputation, behind only the RNLI
The Legion is rebranding itself as a contemporary Armed Forces charity through traditional, new and social media
We enjoy celebrity engagement from sport, music, film and television; plus individuals as varied as Stephen Fry, David Tennant, Stuart Broad, Jimmy Carr, and Martin Johnson
Challenges to Reputation
• Changing nature of beneficiaries
- Responding to the needs of the
Iraq and Afghanistan generations
• Government cutbacks
- Responding to increased pressure
on our products and services
• Social media
- Responding to new challenges
Importance of Reputation
• Fundraising & welfare
organisation
• Members, staff and volunteers
• Political campaigning
• Authoritative voice in sector
Maximising reputational
opportunities
• Remembrance
• Public relations and branding
• Corporate partnerships
• In-service engagement
• Engaging and supporting other military charities
• Royal Charter
Seven Dimensions to Reputation
Products and Services
• Our interventions answered 160,000 calls for help last year
• Income + expenditure is greater than £230million per annum
• £1.4million per week on welfare
• Directly helped 16,000 veterans of Iraq and Afghanistan and their families
Performance and Innovation
• Culture of continual improvement
• Corporate strategies and objectives
• Responding to cutbacks and the Afghan generation
• Defence Recovery Capability and Battle Back
Workplace and Governance
• Solid and trusted corporate
structure
• Best practice Human Resources
• Act within the law and within the
objectives of the Royal Charter
Citizenship and Leadership
• Responsibility to our beneficiaries
• Betterment of our community
• Decisions that define community expectations
• Leaders in our sector
The Royal British Legion
Spencer Fox
UK Managing Director
Reputation Institute
Copyright © 2011 Reputation Institute. All rights reserved.
UK’s Most Reputable Companies: Part of the World’s Largest Study on Corporate Reputation
Reputation Institute’s UK RepTrak™ Pulse 2011
Who’s got the best reputation?
50
Global Reputation Knowledge and Advice
Knowledge Center
Conferences
Publications
Networks
Insight
Strategy
Alignment
Advice Group
50
51
Welcome to the Reputation Economy
52
Navigating the Reputation Economy
■ Multiple influencers have an opinion on your organisation
■ Demands for more transparency and consistency in the way charities operate and communicate
■ Higher expectations from the public, politicians, volunteers & employees, NGO‟s, media who all impact each to a larger extent…
■ New means of communication have made the world smaller – stakeholders are interconnected like never before.
53
An emotional bond… … that ensures
• The public recommends you
• Your partners support you
• Policy makers and regulators give you the benefit of the doubt
• The media looks for your point of view
• Your volutneers/employees are engaged and deliver on your strategy
Defining Corporate Reputation
54
Reputation is built on 7 dimensions – RepTrak™
55
What is your reputation with key stakeholders?
■ The General Public?
■ Major corporate donators?
■ Government/Regulators?
■ Media?
■ Volunteers/Employees?
■ Partners?
■ Opinion Leaders?
56
Fundraisers
Customer Service
Donations
Employment
Direct Experiences
Branding
Public Relations
Marketing
SocialResponsibility
What You Say
Media
Key Opinion Leaders
Topic Experts
Friends/Family
What Others Say
Perceptions Behaviour Financial Results
Where do people get their perceptions?
57
Reputation drives results
Your
organisation’s
results
Strategic
goals
Actions
Perception
Supportive
Behavior
toward
charity
● Recommend
● Invest in/contribute to
● Support
● Talk positively about
● Products/Services
● Innovation
● Workplace
● Governance
● Citizenship
● Leadership
● Performance
58
Direct benefits from investing in reputation
1. More recommendation from the public
• Improve reputation with 5 points and recommendation will go up by 6.7%. Strong direct link to Net Promoter Score.
2. Attracting the best talent
• A good corporate reputation is a top 5 driver for people when they consider which company they would like to work for/give their time to.
3. More benefit of the doubt in a crisis
• 54% would give organisations with higher reputations the benefit of the doubt in a crisis compared to only 20% for lower reputation companies
4. Better media coverage
• Higher reputation companies see a more balanced media coverage. The media is more likely to seek your point of view.
59
Reputation Increases Support in the UK
Recommend
Most Reputable Companies
(Top 10)4.0% 2.3%
Least Reputable Companies
(Bottom 10)32.1% 5.2%
Say Something Positive
Most Reputable Companies
(Top 10)3.6% 1.7%
Least Reputable Companies
(Bottom 10)31.3% 4.9%
Benefit of Doubt
Most Reputable Companies
(Top 10)3.9% 6.0%
Least Reputable Companies
(Bottom 10)30.2% 6.6%
Q: I would recommend ‘Company’ to others
Q: I say something positive about ‘Company’
Q: I would give benefit of doubt to ‘Company’ if company was facing a crisis
Negative (1-2) Neutral (3-5) Positive (6-7) Not sure
Negative (1-2) Neutral (3-5) Positive (6-7) Not sure
31.8%
44.8%
61.9%
17.9%
Negative (1-2) Neutral (3-5) Positive (6-7) Not sure
34.1%
46.4%
60.6%
17.4%
39.8%
47.6%
50.3%
15.6%
Which dimensions are most important to impact
support?
60
Conclusions ■ Future success will depend on your
reputation with key stakeholders.
Do they trust you?
Will they support you?
■ You can manage reputation and drive results
■ 5 steps to improve business results:
1. Take on the role of reputation champion in
your organisation
2. Define stakeholder expectations
3. Outline your own specific reputation model to
guide action
4. Develop a reputation strategy
5. Improve competitive positioning through
reputation management
Copyright © 2011 Reputation Institute. All rights reserved.
UK’s Most Reputable Companies: Part of the World’s Largest Study on Corporate Reputation
Reputation Institute’s
UK RepTrak™ Pulse 2011
62
UK Respondent Profile & Methodology
U.K. Respondent Profile
■ A total of 34,897 ratings of the 300 selected companies were obtained from a sample of 10,525
■ All companies were rated by at least 100 respondents.
■ Ratings are statistically significant at a 95% confidence level with a margin of error +/- 0.5.
■ Respondents distribution was balanced to the UK adult population on age and gender.
To be included in Reputation Institute‟s 'UK's 200 Most Reputable Companies' list, all companies had to meet
at least two of the following criteria:
■ All companies were listed in the FTSE 100 or FTSE 250 as being among the largest in market
capitalization and revenues generated in the UK.
■ All companies had high visibility among the general public in the UK.
■ Companies which were unlisted but were of comparable size and visibility to the public companies were
then included in UK‟s study list.
■ All companies had annual revenues of at least £0,5 billion.
Powered by SSI
Special thanks to SSI for providing access to their panels of online respondents in United Kingdom
63
We measured the largest companies in the UK:
64
Consumer Products
Food - Manufacturing
Retail - General
Retail - Food
Beverage
Computer
Information & Media
Industrial Products
Pharmaceuticals
Automotive
Financial - Diversif ied
Airlines & Aerospace
Transport & Logistics
Financial - Insurance
Services
Telecommunications
Construction & Engineering
Financial - Bank
Raw Materials
Energy
Utilities
77.99
76.29
73.99
73.17
72.79
72.45
71.18
69.89
69.50
69.11
68.83
67.59
67.20
66.62
65.65
65.45
65.38
64.98
64.97
62.57
61.50
59.53
Industry Reputations in UK 2011
Excellent/Top Tier Above 80
Strong/Robust 70-79
Average/Moderate 60-69
Weak/Vulnerable 40-59
Poor/Bottom Tier Below 40
All Global Pulse scores that differ by more than +/-0.5 are significantly different at the
95% confidence level.
Pulse scores are based on questions measuring Trust, Admiration & Respect, Good
Feeling and Overall Esteem (captured in the Pulse score on a 0-100 scale).
Change
f rom 2010
+1.19
-2.33
-1.91
+3.59
+5.13
-
-0.86
-1.70
-3.93
-
+ 0.62
-3.19
-1.27
-0.45
-8.19
-0.40
-1.60
+3.06
-5.36
-3.78
-0.05
Charities
Government
65
1
2
3
4
5
6
7
8
9
10
UK Top 10 Companies 2011
86.89
80.62
79.70
80.96
79.68
82.25
83.72
80.79
84.40
79.78
66
UK Top Risers 2011
2011 Score Change
1 65.89 + 12.99
2 62.85 + 10.60
3 84.40 + 10.41
4 64.45 + 10.22
5 69.97 + 10.18
6 79.70 + 9.75
7 68.80 + 9.56
8 80.96 + 9.25
9 78.89 + 8.57
10 63.58 + 8.00
"2010 has been a year of significant investment in the Phones 4u business, in our people, our customers, our stores and our reputation.
It's been a strong performing 12 months for Phones 4u, and it's a testament to our investment and our people that we have achieved a 20% uplift in sales that has been mirrored by a 20% increase in our RepTrak™ reputation score.“
Tim Whiting, Phones 4u CEO
67
Who we measured in 2011
68
Special Focus - UK Charities 2011
1 94.77
2 90.11
3 89.94
4 89.66
5 89.20
6 88.87
7 88.62
8 88.13
9 87.89
10 86.71
69
Charities comparison with public sector other NFP in UK
The Royal British Legion 90.11
RNIB 89.94
British Heart Foundation 89.66
Scope 89.20
British Red Cross 88.87
RSPCA 88.62
Children in Need 88.13
Cancer Research UK 87.89
Barnardo’s 86.71
NSPCC 85.80
The National Trust 85.74
UNICEF UK 83.71
Age UK 83.20
Oxfam 78.23
Christian Aid 77.87
Wellcome Trust 72.90
HM Coastguard 95.27
The local ambulance and paramedic crews operating in your area
94.41
Air Ambulances 93.09
Mountain Rescue 92.74
Your Fire Brigade 91.38
Armed Forces 86.18
Your Local GP 81.96
Your Local Police Force 72.99
Local hospital/trust 71.15
NHS (National Health Service) 70.47
OFCOM 67.57
UK Border Agency 66.98
Press Complaints Commission 66.28
City of London 64.98
Her Majesty's Revenue and Customs Service (HMRC)
57.70
Local government 39.71
Central Government 36.10
70
What Drives Reputation in UK 2011?
Product/Services: 'Company' offers high quality products and services -- it offers excellent products and reliable services
Innovation: 'Company' is an innovative company -- it makes or sells innovative products or innovates in the way it does business
Workplace: 'Company' is an appealing place to work -- it treats its employees well
Governance: 'Company' is a responsibly-run company -- it behaves ethically and is open & transparent in its business dealings
Citizenship: 'Company' is a good corporate citizen -- it supports good causes & protects the environment
Leadership: 'Company' is a company with strong leadership -- it has visible leaders & is managed effectively
Performance: 'Company' is a high-performance company -- it delivers good financial results
n = 28,756
Adj R2 = 0.707
F acto r A djusted R egressio n
13.5%
15.2%
18.6%
13.3%
13.4%
12.9%
13.1%
71
Charity industry scores in UK 2011
Product/Services: 'Company' offers high quality products and services -- it offers excellent products and reliable services
Innovation: 'Company' is an innovative company -- it makes or sells innovative products or innovates in the way it does business
Workplace: 'Company' is an appealing place to work -- it treats its employees well
Governance: 'Company' is a responsibly-run company -- it behaves ethically and is open & transparent in its business dealings
Citizenship: 'Company' is a good corporate citizen -- it supports good causes & protects the environment
Leadership: 'Company' is a company with strong leadership -- it has visible leaders & is managed effectively
Performance: 'Company' is a high-performance company -- it delivers good financial results
78.07
71.76
77.32
85.72
82.39
76.16
72.98
72
Royal National Lifeboat Institution Scope
The Royal British Legion Children in Need
British Heart Foundation British Heart Foundation
Scope Cancer Research UK
RNIB Royal National Lifeboat Institution
RSPCA The Royal British Legion
Children in Need British Red Cross
The National Trust RNIB
British Red Cross RSPCA
Cancer Research UK Wellcome Trust
Products Innovation
90.70
83.57
82.91
82.54
82.08
81.32
80.50
80.48
79.75
77.59
77.24
76.94
76.68
73.07
73.07
72.49
71.76
71.35
71.28
71.13
Top Performers in UK in the service dimensions
Products & Innovation
73
Royal National Lifeboat Institution Royal National Lifeboat Institution Royal National Lifeboat Institution
RSPCA Children in Need Children in Need
Scope British Red Cross Scope
The Royal British Legion The Royal British Legion The National Trust
RNIB RNIB British Heart Foundation
British Red Cross Scope British Red Cross
The National Trust British Heart Foundation RSPCA
British Heart Foundation The National Trust The Royal British Legion
Cancer Research UK RSPCA Cancer Research UK
Children in Need Barnardo‟s RNIB
Workplace Governance Citizenship
87.14
82.71
82.65
81.16
80.51
80.10
79.69
77.74
77.58
77.24
88.70
86.36
85.69
85.68
85.58
85.02
84.26
83.91
82.98
82.75
92.30
91.32
90.03
89.13
88.87
88.34
88.03
87.44
86.55
86.01
Top Performers in UK in the societal dimensions
Workplace, Governance and Citizenship
74
Royal National Lifeboat Institution Children in Need
Scope Scope
British Heart Foundation British Heart Foundation
Children in Need British Red Cross
The Royal British Legion Cancer Research UK
RSPCA The Royal British Legion
British Red Cross Royal National Lifeboat Institution
The National Trust Barnardo‟s
NSPCC RSPCA
Barnardo‟s NSPCC
Leadership Performance
89.40
81.85
81.10
79.86
79.27
79.17
78.81
75.99
75.87
75.34
82.88
81.03
76.51
76.16
75.31
75.08
74.09
72.22
71.24
71.12
Top Performers in UK in the corporate dimensions
Leadership and Performance
75
I would say something positive about [charity]
Say something positive
[Sorted by Positive]
Royal National Lifeboat Institution 0.0% 3.2%
RSPCA 3.8% 0.0%
Cancer Research UK 4.1% 1.1%
The Royal British Legion 2.7% 3.7%
British Red Cross 1.9% 0.9%
Scope – the charity focusing on people with cerebral palsy1.0% 2.6%
British Heart Foundation 2.0% 3.0%
Children in Need 2.0% 1.8%
Barnardo’s 2.1% 4.1%
The National Trust 1.1% 3.7%
NSPCC 5.7% 2.0%
RNIB 2.9% 3.6%
Age UK 0.9% 4.5%
Oxfam 5.7% 1.8%
Christian Aid 5.9% 5.6%
Wellcome Trust 4.6% 6.7%
Negative (1-2) Neutral (3-5) Positive (6-7) Not sure
16.3%
21.5%
22.1%
21.3%
25.9%
26.5%
28.6%
30.1%
30.5%
34.0%
32.2%
34.1%
36.2%
40.2%
40.4%
49.6%
80.6%
74.8%
72.7%
72.3%
71.3%
69.9%
66.4%
66.2%
63.4%
61.2%
60.1%
59.3%
58.4%
52.3%
48.2%
39.2%
76
I would recommend [charity]Recommend
[Sorted by Positive]
Royal National Lifeboat Institution 0.0% 6.0%
The Royal British Legion 2.7% 2.8%
RSPCA 3.8% 0.0%
Scope 1.8% 2.8%
Cancer Research UK 5.0% 2.1%
British Red Cross 1.9% 0.9%
Children in Need 2.0% 4.6%
British Heart Foundation 2.9% 5.2%
Barnardo’s 2.1% 8.3%
The National Trust 2.1% 4.8%
RNIB 0.9% 8.2%
NSPCC 5.7% 6.8%
Age UK 0.9% 2.7%
Oxfam 5.7% 1.8%
Christian Aid 7.8% 4.6%
Wellcome Trust 2.7% 6.8%
Negative (1-2) Neutral (3-5) Positive (6-7) Not sure
17.0%
23.0%
25.6%
26.6%
24.3%
29.1%
27.5%
27.5%
30.4%
33.9%
32.5%
32.5%
42.1%
42.2%
43.1%
52.8%
77.0%
71.5%
70.6%
68.8%
68.6%
68.1%
65.9%
64.4%
59.2%
59.2%
58.4%
55.0%
54.3%
50.3%
44.5%
37.7%
77
Hear people say positive things
[Sorted by Positive]
Royal National Lifeboat Institution 0.0% 4.1%
Children in Need 3.0% 4.7%
The Royal British Legion 2.7% 3.6%
RSPCA 3.8% 0.9%
Cancer Research UK 3.1% 3.0%
British Heart Foundation 3.1% 4.8%
British Red Cross 1.9% 0.0%
The National Trust 1.1% 3.7%
Scope – the charity focusing on people with cerebral palsy0.8% 6.1%
NSPCC 4.7% 5.9%
RNIB 4.0% 6.3%
Barnardo’s 3.0% 7.3%
Oxfam 6.6% 3.0%
Age UK 1.9% 5.0%
Christian Aid 6.7% 4.7%
Wellcome Trust 7.4% 5.5%
Negative (1-2) Neutral (3-5) Positive (6-7) Not sure
19.0%
20.6%
24.0%
26.4%
26.2%
24.5%
31.0%
30.8%
30.8%
32.0%
35.9%
37.4%
39.0%
43.9%
44.6%
48.3%
76.9%
71.7%
69.7%
68.9%
67.8%
67.7%
67.2%
64.3%
62.2%
57.4%
53.9%
52.3%
51.3%
49.1%
44.0%
38.7%
78
Reputation and Support goes hand in hand
Recommend
Most Reputable Companies
(Top 10)4.0% 2.3%
Least Reputable Companies
(Bottom 10)32.1% 5.2%
Say Something Positive
Most Reputable Companies
(Top 10)3.6% 1.7%
Least Reputable Companies
(Bottom 10)31.3% 4.9%
Benefit of Doubt
Most Reputable Companies
(Top 10)3.9% 6.0%
Least Reputable Companies
(Bottom 10)30.2% 6.6%
Q: I would recommend ‘Company’ to others
Q: I say something positive about ‘Company’
Q: I would give benefit of doubt to ‘Company’ if company was facing a crisis
Negative (1-2) Neutral (3-5) Positive (6-7) Not sure
Negative (1-2) Neutral (3-5) Positive (6-7) Not sure
31.8%
44.8%
61.9%
17.9%
Negative (1-2) Neutral (3-5) Positive (6-7) Not sure
34.1%
46.4%
60.6%
17.4%
39.8%
47.6%
50.3%
15.6%
79
Strong Relationship Between Reputation and Support in UK 2011
Improve Reputation by 5 Points and Increase Recommendation by 6.7%
Excellent/Top Tier Above 80
Strong/Robust 70-79
Average/Moderate 60-69
Weak/Vulnerable 40-59
Poor/Bottom Tier Below 40
All Global Pulse scores that differ by more than +/-0.5 are significantly different at the
95% confidence level.
Pulse scores are based on questions measuring Trust, Admiration & Respect, Good
Feeling and Overall Esteem (captured in the Pulse score on a 0-100 scale).
Q: I would recommend 'Company' to others.
Adj-R2 = 0.823U.K. RepTrak™ Pulse Score
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
40.00 50.00 60.00 70.00 80.00 90.00 100.00
Top 2
% R
espondents
who W
ould
Recom
mend
80
Key themes from UK RepTrak™ Pulse 2011
Fact: Reputations have not imploded! Trust in charities is higher than ever.
Trend: Year over year, average reputations among the largest UK charities have improved.
Action: Seize the opportunity! Charities are trusted to pick up the slack form Government cuts
and „Big Society‟ initiatives.
1
Fact: Stakeholders are savy - it is not enough to rely on high awareness or strong
results
Trend: Products & Services and Governance continue to be the biggest drivers of reputation.
However, in 2011 other reputation dimensions are increasingly more important.
Action: Develop a Reputation Platform with 3 core pillars:
Deliver high quality innovative products and services
Practice transparent and ethical business, treat employees well and engage with
society
Articulate a clear vision for the future and deliver on expectations
2
Fact: Strong Relationship Between “Reputation” and “Recommendation” - If you improve
reputation by 5 points, support goes up 6.5%..
Trend: Across industries and stakeholders, there is an increasing link between reputation,
behavior and value
Action: Activate stakeholder insight and engage business functions to help them drive growth,
sales, customer loyalty and other business objectives.
3
Copyright © 2011 Reputation Institute. All rights reserved.
The World’s Most Reputable Companies: A Global Study of Consumers in 41 Countries
Where to from here?
82
What‟s going on…
…in progress…
1. Results released to key media – general business and sector
2. Boiler plate press release available for you
3. Quotes available for company releases
4. Briefings of executives if requested
5. 15th International Reputation Conference in New Orleans, USA – May
6. Global RepTrak™ Pulse – the best 100 reputations in the world – June
…future…
1. Reputation Training programme
2. Ethics and reputation risk event
3. Charities round table
83
How can Reputation Institute help?
1.Building the reputation business case with a
customised Pulse report
2.Outlining the Reputation Landscape
3.Develop the Reputation System
Copyright © 2011 Reputation Institute. All rights reserved.
The World’s Most Reputable Companies: A Global Study of Consumers in 41 Countries
Q&A
Reputational opportunities
How charities can maximise their potential
ICSA, 28 July 2011