The Challenge of Managing your Company s Reputation

Transcription

1 The Challenge of Managing your Company s Reputation Evaluation of Corporate Reputation TNS approach to Reputation Management Presentation at Reputation Capital Top Forum Kiev, April 12, 2007 * Göran Celander TNS-Gallup, Sweden

2 world leading market information group providing more than 110 countries with: market measurement analysis insight advice The Global TRI*M Centre Page 2

3 To be recognised as the global leader in delivering value added information and insights that help our clients to make more effective decisions Client orientation Expertise and innovation Service excellence and cost efficiency People development The Global TRI*M Centre Page 3

4 TRI*M Stakeholder Management System Over studies by more than companies in 90 countries. More than 40% of the Fortune 100 companies have used TRI*M (various stakeholder relationships) at least once within the last three years. TRI*M is used by more than 1/3rd of the 100 biggest companies in Western Europe. In Europe, TRI*M has become a standard tool for the financial services telecommunications and industry. In Germany also in the technology sector. The Global TRI*M Centre Page 4

5 TRI*M Corporate Reputation Manager Nearly 10% of Fortune 100 companies have done a TRI*M Corporate Reputation project Projects done for 160 different clients: 150 individual projects from 50 countries 45 multinational studies (fieldwork in two or more countries) The Global TRI*M Centre Corporate Reputation Database contains (annually updated): 1470 Corporate Reputation Indices Overall interviews From different 400 companies Page 5 5

6 The Challenge of Managing your Company s Reputation TRI*M Corporate Reputation Manager

7 Corporate Reputation Corporations on the Watch With high-profile corporate scandals dominating news headlines, many stakeholders have been becoming increasingly cynical & demanding towards corporations and holding them accountable for their behavior and actions. In the past, Companies often cared about their Reputation first when they faced a crisis... Reputation: You only know what it is worth when it lies in tatters Alison Maitland, The Financial Times A lot of people hate Big Business Ian Davis, CEO McKinsey The Global TRI*M Centre Page 7

8 Importance of Reputation for the Financial Community If you lose dollars for the firm by bad decisions, I will be understanding. If you lose reputation for the firm, I will be ruthless. Warren Buffett, Oracle of Omaha,, World s s greatest stock market investor Over 90% of analysts agree that if a company fails to look after reputational aspects of ist performance it will ultimately suffer financially too. Source: Hill & Knowlton / MORI: Return on Reputation, March 2006 The Global TRI*M Centre Page 8

9 It takes years to repair a damaged reputation hence it s advisable to protect it in advance Burson Marsteller (PR firm) US-survey in 2003: The expected length of time to repair a damaged reputation according to CEOs other senior executives 3,8 Wall Street analysts/institutional investors 3,9 Business media officials 3,0 3,5 years Source: Ronald J. Alsop, The 18 Immutable Laws of Corporate Reputation The Global TRI*M Centre Page 9

10 The Challenge of Managing your Company s Reputation Measurement, Management and Monitoring of Corporate Reputation

11 TRI*M Corporate Reputation Manager Underlying concept TRI*M Corporate Reputation Manager meets the needs of: CEOs / COOs/ CIOs PR-, Corporate Communication and Corporate Branding Departments, Investor Relations PR, Communication & Consulting Agencies TRI*M offers an easy to use tool not only to measure but also to manage reputation efficiently. TRI*M Corporate Reputation helps to manage Reputation by Identifying the critical drivers of reputation Looking at all relevant stakeholder groups Developing targeted communication/pr- activities The Global TRI*M Centre Page 11

12 TRI*M Corporate Reputation Manager Four primary tools for addressing the needs of fact based reputation management Measure and benchmark the company`s reputation (KPI) TRI*M Reputation Index Level of excellence in reputation Understand the foundation of the company s reputation TRI*M Reputation Radar Stakeholder analysis Diagnosis and management of the company s reputation Compare to relevant competitors Understand relative strengths and build USPs TRI*M Grid Reputation / CSR driver analysis TRI*M Competitive Analysis Strengths & weaknesses The Global TRI*M Centre Page 12

13 TRI*M Corporate Reputation Manager Overview of Analysis Tools / Deliverables Management Tailored Transformation of Survey Data TRI*M Index (CRI) Corporate Reputation Index Key Performance Indicator for the perceived level of Reputation in different Stakeholder groups TRI*M Reputation Radar Overview of the Reputation in different Stakeholder Groups Financial Investors 78 TRI*M Grid Driver Analysis for deriving, evaluation and prioritisation of reputation building measures Excellent Reputation Clients Employees 30 Poor Reputation Overall Country 1Country 2Country 3 Suppliers Journalists The Global TRI*M Centre Page 13

14 The Case of the Multinational Oil Company TV and major newspapers reports with negative content, prime time CEO and PR-dept heavy pressure for interviews Share value prices shaky on stock exchange Employees starting to wonder what s happening The Global TRI*M Centre Page 14

15 The TRI*M Corporate Reputation Index The One Number Tool for Management Overall Reputation Competence Outstanding Product & Service Quality Financial/ Economic Success TRI*M Corporate Reputation Index Excellent Poor" Reputation Emotional Appeal Favourability/ Sympathy Trust The Global TRI*M Centre Page 15

16 TRI*M Reputation Index for Oil Company allows benchmarking against relevant groups Stakeholder: B2B Customers Excellent Corporate Reputation Poor Corporate Reputation 10 Oil Company Competitor 1 Competitor 2 General Benchmark Base The Global TRI*M Centre Page 16

17 TRI*M Index Benchmark: Europe B2B Customers Poor Corporate Reputation Excellent Corporate Reputation Bottom10% Bottom33% Mean Top33% Top10% Oil Company Oil Company is among the Average of all European companies in the database in the stakeholder group Business-to-Business Customers The Global TRI*M Centre Page 17

18 Validity of the TRI*M Index Benchmarking: Results from Dow Jones 30 Examples from reputation driver validation study wave 3, 2003 Disney 105 Coca Cola 91 Intel 86 Microsoft 73 McDonalds 67 Phillip Morris Target Group: Business Managers Page 18 18

19 Benchmarking Study Global Reputation Study: Overview Your country as business location Health service in your country Political parties in your country Your most used supermarket Your most important bank Your most important telephone provider Your most important mail provider Global Base: 36,859 Interviews Page 19 19

20 Reputation of Primary Banks in country Regions Global Americas Asia Pacific Europe G7* G20** * G7: Canada, France, Germany, Italy, Japan, GB, USA ** G20: Argentina, Australia, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Africa, Turkey, GB, USA (not all countries of G20 covered) Page 20 20

21 Reputation of Primary Banks in country Top-33% countries Rank Page Denmark USA South Africa Norway Estonia Germany Singapore Canada New Zealand Finland Malaysia Netherlands Ireland Global Base: 36,859 Interviews

22 Reputation of Primary Banks in country Bottom-33% countries Rank Vietnam Taiwan Portugal Indonesia Romania Turkey Italy Poland Israel Philippines China Argentina Japan Global Base: 36,859 Interviews Page 22 22

23 Financial Services Industry Europe Case Study 2003: Reputation has an impact on the affinity to buy or to invest The higher the reputation index, the more likely the company is the preferred choice for customers and investors Preferred Choice (Top 2 Boxes = Relevant Set) poor < Reputation Index Base: corporate decision makers of Top 700, institutional investors, analysts and journalists worldwide excellent The Global TRI*M Centre Page 23

24 TRI*M Corporate Reputation Radar Overview of Reputation in different Stakeholder Groups General Public 91 Reputational Gap! Overall = 79 Potential Clients Potential Employees Investors Journalists The Global TRI*M Centre Page 24

25 TRI*M Corporate Reputation Radar Oil company widespread perception among stakeholder groups B2B Customers Education / Science B2C Customers Business Managers 48 Journalists General Public Page 25 25

26 TRI*M Corporate Reputation Multinational Food Company Political Parties (Parliament) Total Unions Politicians (Executive) NGOs Politicians (Legislative) Science Community Journalists Purchasers Business Community Page 26 26

27 TRI*M Reputation Radar Financial institution Har tjenestepensjon Befolkningen Har ikke tjenestepensjon Reputation Gap! Pensjonister Kommune/Fylkeskommune Ordførere 71 Rådmenn 75 Personalsjef 74 Økonomisjef 67 Stortingspolitikere/Rådgivere/Byråkrat er Helseforetak Ansatte i SelskapX Kunder av SelskapX (off virkso Kommunerepresentanter Ikke-kunder av SelskapX (off virksomheter) Page 27 27

28 Results from TRI*M Corporate Reputation Radar Case Study: The shape of three Telecom companies reputation Company B Company A: The most balanced reputation. Company A Performs Best in the Business World (A)+(D) -> Best Economic Perspective? Company A A. Business Decision Makers Company C Company B: Suppliers Favourite D. Financial Community B. Potential Employees Company C: Decision Makers and Pot. Emp. hesitant C. Suppliers The Global TRI*M Centre Page 28

29 Corporate Reputation Radar for a big European bank Case Study 2003: Radar identifies problem among institutional investors Corporate Decision Makers Opinion Leaders 51 Institutional Investors Base: corporate decision makers of Top 700, institutional investors, analysts and journalists worldwide Page 29 29

30 TRI*M Grid - Understanding the Reputation Drivers Examples for possible reputation drivers Well-established organization Symbol of leadership in business Strong future ahead Standing behind its products/services Providing a good work environment for its employees Investment in research and development Providing quality products and services Reliability Demonstration of ethical business practices Emotional connection with its customers and the public Focus on caring for its customers Commitment to the communities in which it operates Major global player Innovativeness Social responsibility Good communication Responsiveness Investment in employees Transparency (of activities) Good Information Strong management Has a true leader as CEO and so on Page 30 30

31 The TRI*M Grid Grid analysis identifies the levers of Reputation Management 1. What aspects do stakeholders talk about (Communication Importance)? 2. What aspects really drive your reputation (Impact on Reputation)? 3. What is your company s performance (Symbols)? low high Communication Importance Performance Hygienics?/Potential low Innovative Global Ethical far above average above average Market Leadership Future Prospects Social Responsibility average below average far below average Motivators Quality Customer Focus Management Financial Perfomance Trust/ Reliability Impact on Reputation Workplace Emotional Appeal Hidden Opportunities high Page 31 31

32 TRI*M Grid Oil Company Overall Emotional attractiveness A01 Gives a symphathetic impression A02 An enterprise I admire and respect A03 Keep their promises Base 1000 Base 1001 (weighted) Low Stated Importance High Hygienics Performance Average Far above average Below average Above The average Challenge of Managing Far below your Company s average Reputation Page 32 TRI*M Index 57 A01 Motivators A03 A02 Potentials?/Savers? Hidden Opportunities Low Impact on Corporate Reputation High 32

33 TRI*M Grid Oil Company Products and services B01 Engaged in innovation and technological development B03 Has products and services with good value for money Base 1000 Base 1001 (weighted) Low Stated Importance High Hygienics Performance Average Far above average Below average Above The average Challenge of Managing Far below your Company s average Reputation Page 33 B03 B01 TRI*M Index 57 Motivators Potentials?/Savers? Hidden Opportunities Low Impact on Corporate Reputation High 33

34 TRI*M Grid Oil Company Visionary leadership C01 Has a highly competent leadership C02 Thinks and acts in a longer term perspective C03 Manage to see and exploit opportunities in the market C04 Is inventive and future oriented Base 1000 Base 1001 (weighted) Low Stated Importance High Hygienics C04 Performance Average Far above average Below average Above The average Challenge of Managing Far below your Company s average Reputation Page 34 C03 C02 TRI*M Index 57 C01 Motivators Potentials?/Savers? Hidden Opportunities Low Impact on Corporate Reputation High 34

35 TRI*M Grid Oil Company TRI*M Grid - Wave 1 Overall Working environment D01 Present themselves as a good working place D02 Appears as an enterprise with competent employees Base 1000 Base 1001 (weighted) Low Stated Importance High Hygienics D02 Performance Average Far above average Below average Above The average Challenge of Managing Far below your Company s average Reputation Page 35 D01 TRI*M Index 57 Motivators Potentials?/Savers? Hidden Opportunities Low Impact on Corporate Reputation High 35

36 TRI*M Grid Oil Company TRI*M Grid - Wave 1 Overall Social and environmental responsibility E01 Support charities E02 Puts an affort to avoid doing things harmful to people E03 Puts an effort to avoid doing things harmful to the environment E04 Operates at a high moral an ethical level E05 Is an important part of the country's social economy E06 Gives a positive contribution to society at large Base 1000 Base 1001 (weighted) Low Stated Importance High Hygienics E01 E03 Performance Average Far above average Below average Above The average Challenge of Managing Far below your Company s average Reputation Page 36 E02 E05 TRI*M Index 57 Cartels? E06 E04 Motivators Bribes? Are you hiding something from us? Potentials?/Savers? Hidden Opportunities Low Impact on Corporate Reputation High 36

37 TRI*M Grid Oil Company Economic performance F01 Has a strong position within its business areas F02 Does well in competition with other companies F03 Is a domestic enterprise with international success Base 1000 Base 1001 (weighted) Low Stated Importance High Hygienics Performance Average Far above average Below average Above The average Challenge of Managing Far below your Company s average Reputation Page 37 F02 F03 F01 TRI*M Index 57 Motivators Potentials?/Savers? Hidden Opportunities Low Impact on Corporate Reputation High 37

38 TRI*M Grid Oil Company Advertising information G03 Presents credible information in the media Base 1000 Base 1001 (weighted) Low Stated Importance High Low Hygienics Performance Average Far above average Below average Above The average Challenge of Managing Far below your Company s average Reputation Page 38 TRI*M Index 57 G03 Motivators Potentials?/Savers? Hidden Opportunities Low Impact on Corporate Reputation High 38

39 Conclusions Oil Company TRI*M Index Oil Company reaches an average reputation index overall. Strong position in the academic and scientific community. Weak position among business managers, journalists and general public. Clear warning but no crisis yet! Actions must be taken! Reputation drivers and improvement areas Results clearly show that last year s incidents have created a lower trust in the company. Most important drivers are the emotional attributes keeping promises, giving a symphathetic impression, and operating at a high moral an ethical level together with presenting credible information in media. Most important improvement areas should focus on showing that the company operates on high moral and ethical levels, keep their promises and is thrustworthy. Strengths to maintain mainly relate to the economic performance of the company together with quality of core products and being a good employer. Page 39 39

40 Manage your Corporate Reputation by Closing the loop 4. Implement change 1. Listen to your most important stakeholders Monitor the results of your efforts - Media appearance and analysis - Follow up routines 3. Define and plan actions Turning information into action It takes years to build a good reputation But it can be ruined in minutes The case of Skandia 2. Analyze the data Focus your (PR) activities on topics that make the difference Explore your specific reputation drivers. Compare to relevant benchmarks Identify risks in important stakeholder groups at an early stage The Global TRI*M Centre Page 40

41