BRAND AND REPUTATION MANAGEMENT AS A STRATEGIC DRIVER TO ACHIEVE BUSINESS EXCELLENCE.

Transcription

1 BRAND AND REPUTATION MANAGEMENT AS A STRATEGIC DRIVER TO ACHIEVE BUSINESS EXCELLENCE. London, October 9th, 2013 Ana Varela professor at the Marketing Department ESADE Business School 1

2 Traditional Brand Management teachers in the early 80 s used to compare the value of companies such as Coca Cola and GM to stand out the superior value of the intangibles represented by a strong brand against the limited value of machinery or factories. Today, in a continuously changing and even more mature and competitive world, there is no discussion about the value of having a strong brand, the potential options offered by it in terms of loyal consumers, brand extensions or premium pricing. It is also well accepted that marketing communications have strong impact on brand health on consumer attitudes, and even on behavior. Maybe we do not know exactly how and advances in Neuroscience are giving some light on that black box that still is the human brain. There are also interesting research studies trying to better understand and explain how to measure the effect of marketing communications basically on new digital media, and on the combination of different types of media. Efficiency and Effectiveness are main worries in most marketing departments. But most of these concerns are centered on commercial brands, and on final consumers. Are brands just marketing tools? In this brave new world we re in, it seems things are changing. Even traditional houses of brands such as P&G are using their corporate brands in consumer communication such as during the London Olympics. It also seems companies are starting to worry about other stakeholders apart from consumers: personnel, investors, public in general, neighbors, since they re realizing it is not enough to sell, to attract buyers they also need to attract resources from investors and talent to sustain the future of the organization. But in most organizations all these brand management & communication efforts are not coordinated at all, and rely on different isolated departments or silos. In a world were technologies have destroyed the isolation of individuals through social networks, facilitating the immediate share of information, attitudes, ideas, recommendations organizations need to understand the potential of one of their most valuable assets, learn how to manage it, decide who should lead it, and be able to measure the results. In this session, we ll analyze the potential of a strong corporate brand when it gets out from the marketing department and is able to work as the inspiration and strategic asset for the whole organization. The organizational implications, the change in culture needed, the new roles demanded.., and even the potential incorporation of corporate brand metrics in the Score Card of the organization together with traditional financial indicators. Majoring in intangibles management is a great opportunity for all those professionals who want to contribute to the development of leading companies able to compete on global markets. The session will cover concepts such as Corporate Communications Officer, Intangible asset management, Corporate Branding, Corporate Communications, Trust, Reputation, Metrics and non-financial Indicators, 2

3 IS IT JUST WATER? 1l= 0, l= 0,22 1l= 0,43 1l= 0,85 1l= 5 1l= l=?????? 3

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5 BRAND VS PRODUCT the new competition is not between what companies produce in their factories but between what they add to their factory output in form of the packaging, services, advertising, customer advice, financing, delivery arrangements, warehousing, and other things that people value. Theodor Levitt ( ):

6 BRAND VS PRODUCT Economy based on tangible assets is history today: To be successful, it is not enough to offer excellent products or services These must be better than their competitors... And be preferred by consumers!

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9 WAVES OF COMMUNICATION Marketing Communications Communication to stakeholders Communication with stakeholders Based on Hatch & Schultz 2008

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12 EXPERIENCE & COMUNICATIONS What you do Consistency How you are perceived What you say Ch. Fombrun, C. V. Riel: Fame & Fortune 12 12

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14 THE REPUTATION ECONOMY Today we all operate in a Reputation Economy; a marketplace where stakeholder support is now based more on perceptions of your company than perceptions of your products or services. Who you are matters more than what you produce. Stakeholder perceptions of company behavior are now the lead driver of enterprise value. Studies show that companies with high reputations are worth as much as 150% more than those with low reputations. 14

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16 Crisis & Technology are accelerating the new system: The "Economy of intangible assets and Reputation" 16

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18 THE ORIGIN WAS FINANCIAL Origin of the crisis Abandonment of principles (transparency, integrity, prudence) Focus on short-term Impaired regulation / supervision Lack of capital... With a big impact on the global economy

19 IMPACT ON TRUST

20 THE EDELMAN TRUST BAROMETER

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26 MAIN REASONS FOR DISTRUST 26

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28 FINANCIAL SERVICES & BANKS THE LEAST TRUSTED 28

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31 Who do we Trust?

32 TRUST IN NGO S 32

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40 TRUST IN MEDIA 40

41 REPETITION HELPS TRUST 41

42 It seems that trust really matters! 42

43 McDonald s: Getting Britain lovin it once again Gold, IPA Effectiveness Awards 2012 am I? 43

44 BACKGROUND: , THE WILDERNESS YEARS 44

45 A CONTINUOUS TREND IN BRAND EROSION MCDONALD'S "MOST HATED" BRAND IN UK McDonald's, the first food restaurant chain, is the most "hated" brand among British consumers, according to a survey by FreshMinds, and Marketing Magazine. The survey found that: 46% of participants "hated" McDonald's, while 36% professed to "love" the brand, and 18% did not have a strong opinion either way. KFC and Burger King received a positive rating from 43% and 37% of respondents respectively, figures that read 38% and 39% in turn with regard to negative perceptions. 45

46 AND SALES!! The business went through a period of rigorous self and customer analysis. Much of the insight boiled down to a simple truth: although lots of consumers still went to McDonald's, they didn't feel as good about it 46

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48 RE-BALANCING THE COMMUNICATIONS SPEND 48

49 IMPACT ON BRAND ADVOCACY 49

50 IMPACT 50

51 IMPACT ON BRAND IMAGE: TRUST 51

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62 GOOD BRANDS OUTPERFORM THE MARKET 62

63 THE 100 MOST VALUABLE GLOBAL BRANDS WITHSTOOD THE CRISIS IN

64 THE LACK OF AN INTEGRATED VISION Impact of communication fragmentation on the brand and corporate reputation Institutional PR>> Governments Procurement>> Suppliers Communication>> Influencers Marketing >> Clients Legal>> Regulators BLACK BOX RSC >> Society? RR. HH. >> Personnel InvestorsRelations>> Shareholders

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68 THE THREE WAVES OF CORPORATE COMMUNICATIONS Stake- holder Stakeholder Stakeholder Stakeholder Consumer Marketing Customer Stakeholder Stakeholder Stakeholder Separate functions Stakeholder Corporate Brand Stakeholder Stakeholder Stakeholder Stakeholder Marketing Communications Communication to stakeholders Integrated Corporate Communication Adaptado de Hatch & Schultz 2008

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71 INTEGRATED VISION IS A MUST! An integrated approach to brand positioning, communication and reputation Polititians Regultors Risks arising from the absence of strategy VISION & VALUES Organization OBJECTIVES & STRATEGIES POSITIONING STRATEGY Institutional Business Social Copinion Leaders Analysts/ Markets Shareholders Clients/ Consumers Staff Activists/ Society Suppliers/ Partners REPUTATION Organization POSITIONING 3 < 1 Different organizational and management realities, communicated without coordination and / or with low intensity, could create a partial view that may not reflect the intangible created and / or destroy value 71

72 From Identity to Image and to Reputation Being Doing and Communicating Perceiving Recognizing Who, What and How are we? What we do? What we say? For what we are and do. For what we say. Being chosen because of what we are & say IDENTITY POSITIONING IMAGE REPUTATION Mission Vision Corporate Communication Clients Suppliers Shareholders Values Personnel identifying with this identity Local community Administration Media Value Culture Products & Services Lobbyst Company/Brand Audiences Adaptado de Nicholas Ind (Living the Brand) y BBVA

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77 CORPORATE BRAND ALIGNMENT Strategic Vision Strategic Vision Organisational identity Based M.J Hatch, on Hatch M. & Schultz, 2008 Taking Brand Initiative. How Companies Can Align Strategy, Culture, and Identity through Corporate Branding

78 Ask Yourself! Does your company practice the values it promotes? Does your vision inspire all your subcultures? Strategic Vision Do you know what your stakeholders want? Are corporate vision and values attractive to stakeholders? Brand identity Based on Hatch & Schultz 2008 How do your employees and stakeholders interact? Do employees care what customers think about the company?

79 ACT FIRST, TALK LATER Need to influence "reality" and mitigate reputational risk COMMUNICATION good bad RISK good OPPORTUNITY bad Communication actions are needed to capitalize on the "good reality REALITY

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88 IMPORTANCE OF CORPORATE REPUTATION An increasing number of presidents and CEOs believe that protecting corporate reputation is critical and one of their most important strategic objectives. The goal of creating, maintaining and protecting the reputation of a company is one of the central tasks of the communication directors.

89 MANAGEMENT MODEL OF CORPORATE REPUTATION Promote & ensure agreement of Managers regarding The meaning & reason why of investing in Corporate Reputation Build a common framework on the business and its stakeholders Identify and map the dimensions used by stakeholders to Evaluate Corporate Reputation Determine Organisation s priorities and use of: Develop policies Guide + Director Management+ employee behaviour Measure stakeholder perceptions Determine stakeholder communication strategy Source: Building and Managing Corporate Reputation: A Framework To Guide Directors Nicola Kleyn, Russell Abratt y Chantel Reddiar, 2011

90 OBJECTIVE: TO GENERATE BUSINESS Business results Favorable Activity for the company Strategic Objectives Organizationa l preceptions (Reputation) Corporate initiatives Buy products Investing Applying for work Speaking positively Admiration Respect Confidence

91 REPUTATION MANAGEMENT Management model used by large companies worldwide LEADERSHIP ETHICS PRODUCTS & SERVICES FINANCE INNOVATION TEADERSHIP LABOR RATIONAL EMOTONAL ESTEEM IMPRESSION ADMIRATION RepTrak, a measurement model of Reputation Institute's reputation developed in collaboration with Corporate Excellence CONFIDENCE

92 REPUTATION KEY INDICATORS MEASURING THE COMPANY S REPUTATION Source: Van Riel & RI, 2009.Excellence in global corporate communication in the banking industry conducted for BBVA Group. 92

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94 STAKEHOLDER PERCEPTIONS DRIVE BEHAVIORS & RESULTS Perception Impact Behavioral Impact Performance Impact % Respondents who Would Recommend Improve reputation score by 1% and increase recommendations by 1% U.S. Pulse Score Adj-R 2 =

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96 Stakeholder Perceptions Drive Behaviors & Results 96

97 REPUTATION, BRAND AND COMMUNICATION SCORECARD Behaviour Perceptions Attitudes Business Communication 2011 R&D Project Corporate Excellence Centre for Reputation Leadership 97

98 REPUTATION, BRAND AND COMMUNICATION SCORECARD Experience Perceptions Attitudes Business Communication Brand Reputation Experience Net Promoter Score NPSrecommendation Consideration Buying intention Other indicators New clients Churn Loyalty Fees Value Customer distribution by value segments Other relevant business indicators 2011 R&D Project Corporate Excellence Centre for Reputation Leadership 98

99 REPUTATION, BRAND AND COMMUNICATION SCORECARD Main Objectives: 1. Create: brand KPI, reputation KPI, experience KPI, attitudes indicators/proxys with business. 2. Demonstrate : - Impact of these indicators on (1) attitudes and (2) business (consequences) - Impact of Communication activities and Behaviour on perceptions (causes) - Better allocation of resources in Communication actitivies and in Behavioural activities Employees Processes Experience Products Paid Media KPIs Brand Reputation Experience Attitudes Business Earn Media Communications All Stakeholders Causes 2011 R&D Project Corporate Excellence Centre for Reputation Leadership Consequences 99

100 Institutional Presentation Corporate Excellence Centre for Reputation Leadership

101 1. Who we are A new think tank created by companies to professionalize management of intangible assets and contribute to the development of strong corporate brands with good reputation and able to compete into the global market. 58% Ibex countries employees 101

102 2. What we do 1. Facilitate business competitiveness through the management of their reputation, brand, communications, public affairs, metrics and training. 2. Demonstrate the economic and financial profitability of intangible assets. 3. Promote cooperation between public and private business and institutions for contributing to trust recovery. 102

103 3. How we do 103 Reputation Cross management model of corporate reputation. Reputational risks. Reputation of Spain. Brand Organizational alignment. Corporate brands. International expansion. Communication New advocacy model. Content Innovation. Social Media. Chief Communications Officer Role (CCO). Metrics Value of intangible assets. Non-financial indicators. Balanced scorecards. Causal models between intangible assets and business. Public Affairs Identification and anticipation of global challenges. Mutual interests. Alliances between public and private sectors. Training The Global CCO Program. Executive Program on Intangible assets Management. Corporate Reputation Management (Webinar.)

104 Reputation AREAS OF ACTIVITIES Reputation Brand Communication Metrics Public Affairs Training Reputation rankings maps Global relevant rankings and ratings map for corporate reputation. It includes reputation (corporations, employees, cities, countries ) social responsibility, brand, ethic and human resources. Reputational Risk Practical guide and management model Best practices and management models of reputational risks identification following the COSO methodology. It includes major risks of the online environment. Reputation of Spain Annual study report of Spain reputation in the world, its risks and opportunities for Spanish organizations. Spain as a corporate brand for every Spanish institution and its abroad presence.

105 AREAS OF ACTIVITIES Reputation Brand Communication Metrics Public Affairs Training Brand Long Term Value Creation KPI s Academic research on performance indicators -related to brand management- important for the decision making process. Valuable Product and Services Brand Observatory Participation along with ESADE Brand Institute in the Valuable Brand Observatory in the Spanish market in order to know perceptions on consumer brands. AENOR Standard for Brand Valuation Revision of the Spanish AENOR standard on brand valuations in organizations. 105

106 AREAS OF ACTIVITIES Reputation Brand Communication Metrics Public Affairs Training Communication Chief Communications Officer Role (CCO) A study research carried out together with the Erasmus University on the role of Chief Communications Officer. Analysis of Online Comments (BEO) Together with Llorente & Cuenca, development of a tool that monitors online comments of brands and companies in Google, Facebook, YouTube and Twitter. New Communciation Model Building Belief Academic contrast of the new communication model Building Belief: A New Model For Activating Corporate Character And Authentic Advocacy developed by the The Arthur W. Page Society. 106

107 AREAS OF ACTIVITIES Reputation Brand Metrics Brand and reputation balanced scorecard Tool that measures the causal relation between corporate actions and corporate reputation, as well as its impact on business indicators. Employees Causes Impact Communication Processes BEHAVIOUR Perceptions Attitudes Behaviors Metrics Public Affairs Training Products Ads & Sponsors Experience: Reputation Brand Recommend Consider Engage Purchase Invest Work Networking COMMUNICATIONS Media Alliance: Conento / Prof. Carreras (Universidad CEU-San Pablo) 107

108 AREAS OF ACTIVITIES Reputation Brand Communication Metrics Public Affairs Training Public Affairs Conceptual Framework and Management Model. Global Issues Observatory Research with the University of Comillas which analyzes the major global issues that affect society. State Board of CSR - CERSE Participation in the State Council of CSR for more than three years. Currently, CE holds the secretariat of the civil society group along with IE. Business & Ethics Participation in the XXI Conference EBEN Spain - Business Ethic at institutional level. The conference brings together leading practitioner and academic institutions. Internal Control Guide for Boards of Directors We have been invited by the Institute of Internal Auditors (IAI) to join the Working Group to strengthen internal control systems. It has been added to the documents of this working group the Practical Guide on reputational risk management

109 AREAS OF ACTIVITIES Reputation Brand Communication Metrics Public Affairs Training Training The Global CCO The Global CCO is a senior management program focused on the most critical topics to improve the knowledge and the skills of the Global Chief Communications Officer (Global CCO) responsible of communication and intangible assets management in global companies and institutions. First edition info: 14 students from 9 different companies 7 directors, 1 deputy director and 6 managers. From different departments: 8 from communication, 3 from brand, 1 from strategy planning and 1 from projects. Leadership November 2013 Leadership and communication. Skills and abilities to advise the CEO. Communication Management January 2014 Communication, Brand and Reputation management. Innovation and metrics.. Geopolitics June 2014 Geopolitics. Role of the company. Strategy and Communication.

110 Training AREAS OF ACTIVITIES Reputation Executive Program on Intangible Assets Analysis and Management for Brand and Reputation Program designed to help professionals that want to evolve in the intangible assets management, mainly in global companies. Brand Communication Metrics Public Affairs Training Address: Escuela de Organización Industrial EOI Business School Avda. Gregorio del Amo , Madrid. Time: Thursday, 19:00 h. to 22:00 h. Friday, 17:00 to 22:00 h. Duration: November 2013 / Abril 2014

111 Training AREAS OF ACTIVITIES Reputation Corporate Reputation Management (webinar) Training program on Corporate Reputation management, developed by IE Business School and Reputation Institute. It provides the needed knowledge and tools for a better understanding and management of reputation. Brand Communication Metrics Public Affairs Training Address: Online by IE Business School Time: Thursday, 17:30 h. to 19:30 h. Duration: October 2013 / December 2014

112 Training AREAS OF ACTIVITIES Reputation Brand Communication Metrics Public Affairs Training Executive Workshops Workshops on the management trends. Participation of highly professional experts in the fields. 16 workshops have been conducted in 2012: 3 Workshops of reputation. 5 Workshops of brand. 3 Workshops of communication. 3 Workshops of public affairs 2 Workshops of metric. They have gathered about 140 traders within CE member companies.

113 4. The way we do it Generating content Knowledge sharing 113

114 THE WAY WE DO IT Knowledge generation Shared Knowledge Knowledge generation Technical Documents Elaborated by Corporate Excellence in Spanish and English on reputation, brand, communication, public affairs and metrics management from an innovation management perspective. Networking Find all the documents in: 114

115 THE WAY WE DO IT Knowledge generation Shared Knowledge Networking Knowledge generation Videos Elaborated by Corporate Excellence in Spanish and English on reputation, brand, communication, public affairs and metrics management from an innovation management perspective. Find every video in: rporateexcellence?feature=watc h 115

116 THE WAY WE DO IT Knowledge generation Shared Knowledge Networking Knowledge generation CE Library Collection of the most relevant books on corporate reputation. About Corporate Excellence Library: Alinear para ganar 1st book of the library. Author: Cees B.M. van Riel Prologue: Luis Abril Launch: April 15, Scope: Spain, Mexico, Argentina, Columbia, USA, and others. 38 analyzed companies: 18% (7) are CE associated companies. Availabel in Ebook. Find out more: g/ Second book of the library will be available in

117 Shared Knowledge Meeting THE WAY WE DO IT Knowledge generation Shared Knowledge Networking Best Practices Meetings Technical meetings among professionals from associated companies in order to discuss, clarify and help on a particular topic that affects their area of activity. Meetings with the Advisory Board Meeting with members from the Advisory Board and professionals from associated companies in order to discuss, clarify and help on a particular topic that affects their area of activity. 117

118 THE WAY WE DO IT Shared Knowledge APP Corporate Excellence CE Knowledge access trough and app for smartphones and tablets. Knowledge generation Shared Knowledge Networking 118

119 THE WAY WE DO IT Shared Knowledge Intelligence Online Platform More than 3000 documents and other content for CE members. Knowledge generation Shared Knowledge Networking Access to Intelligence Online Platform: 119

120 THE WAY WE DO IT Knowledge generation Shared Knowledge Networking Networking Practitioner and academic meetings. Meetings between professional of global companies and academia of the same area of activity. Find out more: rences-events/annual-globalconference Find out more: 120

121 THE WAY WE DO IT Knowledge generation Networking Alliance Program We encourage collaboration among companies, academics and networks to create new opportunities for professional contact that facilitate mutual learning and the quality of the business. Shared Knowledge Networking 121

122 THE WAY WE DO IT Knowledge generation Shared Knowledge Networking Networking Advisory Board D. Juan José Almagro, Consejero de Mapfre Dña. Ana Luisa Almeida, Director Gerente de Reputation Institute en Brasil D. Jorge Cachinero, Profesor de Asuntos Públicos de IE Business School D. Joan Costa Catedrático en la Universidad Iberoamericana de México. D. Gary Davies, Director del área de Reputación y Marca de la Manchester Business School D. Juan Díez Nicolás, Catedrático de Sociología. Universidad Complutense de Madrid D. Charles Fombrun, CEO de Reputation Insitute D. Eduardo García Matilla, Profesor de IE Business School D. Mariano Gómez, Director Programa Ejecutivo en Gestión de Intangibles. D. Nigel Hollis, Executive Vice President y Chief Global Analyst de Millward Brown D. Nicholas Ind, Profesor de Erasmus University Rotterdam, Stockholm University and Copenhagen Business School D. Antonio López, Presidente de Honor de la Asociación de Directivos de Comunicación DIRCOM D. Xavier Oliver, Profesor del IESE y Ex Presidente de Tiempo BBDO D. Josep Maria Oroval, Director de ESADE Brand Institute D. Javier Robles, Presidente de Danone Dña. Majken Shultz, Profesora de Comunicación en la Copenhagen Business School D. Terry Tyrrell, Co fundador de The Brand Union D. Cees Van Riel, Director del Reputation Forum Netherlands y Profesor de RSM Erasmus University Rotterdam 122

123 Networking Alumni.CE4reputation Activities Professionals and alumni of CE training activities. THE WAY WE DO IT Knowledge generation Shared Knowledge Networking 4th Edition of the Executive program on Intangible Assets Management and Analysis. 123

124 THE WAY WE DO IT Networking Institutional Relation Professional Associations We are in contact with the main Spanish and international professional associations. Knowledge generation Shared Knowledge Networking 124

125 @CE4reputation 125