Reputation management
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1 CORPORATE COMMUNICATION & BRAND STRATEGY Reputation management Koenraad van Hasselt
2 Definition of corporate reputation Corporate reputation is the observers collective judgments of a corporation based on the assessments of the financial, social and environmental impacts attributed to the corporation over time Barnett et al.
3 How do reputations build up (over time)? Personal experience (primary) References from friends and colleagues (secondary) What one hears and sees in the media (tertiary)
4 The value of a good reputation It represents financial value Companies with a good reputation are valuated15-20% higher on the stock market Acts as a magnet Attracts customers, investors and talent Functions as an airbag / insurance in incidents Thanks to positive and selective perception Works for internal motivation and bonding Pride, identification and alignment lead to better performance
5 Reputation makes communication accountable Because Reputation is a multifunctional construct, it is the best way to measure the total communication system of an organisation Fombrun and Van Riel.
6 The reputation triangle Performance Reputation Communication Context
7 What influences a reputation? Products and services Financial performance Corporate social responsibility Vision and leadership Workplace environment Emotional appeal
8 Six steps in developing a reputation management plan 1. Measure your reputation 2. Analyse your reputation 3. Set reputation targets 4. Translate these to communication targets 5. Develop corporate story 6. Develop reputation themes 7. Roll out themes like a political campaign
9 KPN is Holland s formerly state owned telecommunications company. The company has always been well known for its reliability and quality of service, less so for its sense of innovation. Its reputation has served its purpose in the old world, but poses a real challenge in a converging market in which the company positions itself as a multimedia company and an ICT services provider.
10 1. Measuring reputation RepTrak* * Developed by the Reputation Institute
11 4 questions, 7 dimensions and 23 attributes. Qualitative and quantitative research The RepTrak method Statistical analysis connects the RepTrak attributes with the supportive behaviours This identifies the reputation drivers and gives direction to reputation management Reputation dimensions Reputation (Pulse) Supportive behavior Products & Services Purchase Innovation Recommend Workplace Governance Citizenship Leadership Performance Crisis proof Verbal support Invest Work I
12 Reputation data
13 2. Reputation analysis based on all available intelligence Graphic chart based on actual ReTrak-scores 2005 Financial turnaround is acknowledged in the outside world Price-performance perception weakens support and reputation; customer focus needs more attention Attractiveness for young talent and employee engagement is priority KPN innovating itself, but not innovative enough Honest, but not open and transparant Market leader, but no inspirational leadership Impact is clear, CSR profile is not Performance Products Workplace Innovation Governance Leadership Citizenship
14 3. Reputation scores basis for target setting 85,00 80,00 75,00 70,00 65,00 60,00 55,00 50,00 45,00 KPN 2005 KPN 2008 KPN 2010 Best in class RepTrak Philips KLM Microsoft TNT Unilever Rabobank ABN AMRO Vendex KBB ING Group Aldi Shell Ahold Eneco KPN Essent Nuon Laurus NS Oxxio
15 4. Target setting for communications per reputation driver
16 5. Develop a corporate story Innovative Relevant, distinctive Inspiring, vitality The new KPN Trusted, reliable Authoritative, sympathetic Involved, committed
17 6. Break the story down in communication themes Executive communications Media relations Corporate Story Public Affairs Internal Communications Sponsoring/CSR Theme 1 Theme 2 Theme 3 Theme 4 Etc.
18 7. Roll them out like a political campaign Themes Exec. communications Media Relations Public Affairs Internal commun. CSR and Sponsoring Labour market comms. Communications Roadmap January February March CSR Campaign Annual figures Employer branding campaign Conference Living the Brand Sust. Report Business Comms. Marketing roadmap Marketing roadmap Marketing roadmap
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