Contents are proprietary and confidential.

Managing Corporate Reputation

Kingston MBA Seminar

Dr Sam Knowles

10am-1pm, 13 July 2013

Today’s agenda

10.00-10.15 Introductions

10.15-11.00 What is corporate reputation?

11.00-11.30 Coffee break

11.30-12.20 Team exercise

12.20-12.50 Team presentations

12.50-13.00 Learnings and takeaways

2 Contents are proprietary and confidential.

What’s your name, where

are you from?

Where do you work and what’s your company’s

reputation?

What are you looking to get out of today?

Our Mission

5 Contents are proprietary and confidential.

Our Fuel

6 Contents are proprietary and confidential.

What is corporate reputation?

Contents are proprietary and confidential.

8 Contents are proprietary and confidential.

The tweet that started it

9 Contents are proprietary and confidential.

Defining reputation

10 Contents are proprietary and confidential.

• The symbols and nomenclature an organisation uses to identify itself to people

• For example, corporate name, logo, advertising slogan, livery, etc.

What? | Corporate Identity

Images and associations

12 Contents are proprietary and confidential.

•The evaluation (comprised of a set of beliefs & feelings) a person has about an organisation

•For example, is the organisation authentic? is it honest? is it responsible? does it have integrity?

What? | Corporate Image

Shaping perceptions ofauthenticity at Unilever

14 Contents are proprietary and confidential.

•The trust, confidence and support that flows from stakeholders’ image of and trust in an organisation

•For example, confidently expecting a service from a company, accepting an organisation’s expertise, giving support to an organisation

What? | Corporate Reputation

Barclays’ reputation in the firing line

16 Contents are proprietary and confidential.

Does a bad reputation matter to a bank?

17 Contents are proprietary and confidential.

Rebuilding corporate reputation

18 Contents are proprietary and confidential.

Key factors determining corporate reputation

19 Contents are proprietary and confidential.• Contents are proprietary and confidential.

Corporate culture

Internal Controls

Critical Self Analysis

Quality of Management

Disclosure & Transparency

Organizational Agility

Corporate Culture – the way we do things around here

Internal Controls – the rules that govern employee behaviors

Critical Self Analysis – asking Why? not just How? When?

Quality of Management – do we really have the best leaders for the job?

Disclosure & Transparency – do we tell our stakeholders what we are doing?

Organizational Agility – are we nimble enough to stay ahead of the curve?

Why does reputation matter?

Recruit & retain talent Productivity Innovation

Enhanced

Charge a premium price Investment potential Higher NPD acceptance

Sustained investor support Supply chain relationships Market confidence

Diminished

Attract & keep customers Cost of winning new business Third-party partnerships

Internal

External

Business Value Increase Decrease

Tesco | What a difference a decade makes

Circa 1992 Circa 2002

From this To this

Tesco | A decade of change

1992 19971993 1995 1996 2000 2004

Tesco | Reputation has real value

0

125

250

375

500

Year

Sha

re v

alue

£

Tesco share price FTSE 100 Av.

And Tesco today?

24 Contents are proprietary and confidential.

1/1/

2010

3/1/

2010

5/1/

2010

7/1/

2010

9/1/

2010

11/1

/201

0

1/1/

2011

3/1/

2011

5/1/

2011

7/1/

2011

9/1/

2011

11/1

/201

1

1/1/

2012

3/1/

2012

5/1/

2012

7/1/

2012

9/1/

2012

11/1

/201

2

1/1/

2013

3/1/

2013

5/1/

2013

7/1/

2013

0

50

100

150

200

250

300

350

400

450

500

Tesco share price, 2010-2013

Who cares about corporate reputation?

• PR/Comms – communicating news, strategy

• IR – convincing the city, securing finance

• Public Affairs – dealing with Government, regulators

• Marketing – selling to customers and consumers

• Social media – engaging with the world

• Internal comms – retaining and inspiring employees

• C-suite – increasingly common KPI

• Everyone in the company – the corporate glue

26 Contents are proprietary and confidential.

Contents are proprietary and confidential.

27

Measurement =/ management

Contents are proprietary and confidential.

Contents are proprietary and confidential.

Reputation in an always-on world

• Media landscape increasingly diverse and chaotic

• Brand management no longer owned by brand custodians – if it ever was

• Connected/influential consumers, customers and stakeholders can break corporate, brand reputation

• Always-on consumer and stakeholder groups require new ways of working

• Wall of big data provides wealth of new information to drive strategy

31 Contents are proprietary and confidential.

<50 Drive Conversation Share for Most Brands

32 Contents are proprietary and confidential.

Thousands of key

phrases.

Millions of webpages.

100+ Metrics.

Hundreds of Outlets.

200 Top Influencers.

Have complete clarity intowho influences your world, and how to engage them with your people, ideas and content.

Understanding the Chain of Influence

33 Contents are proprietary and confidential.

Tablet Smartphone Laptop Ultrabook

Dana Wollman [2]www.engadget.com

51.7, #58

Donald Melanson [1]www.engadget.com

52.5, #55

Josh Smith [2]notebooks.com

64.5, #28

Chippy [1]umpcportal.com

50.7, #66

Joanna Stern [11][ www.engadget.com ]

The Verge68.0, #18

Nilay Patel [7][ www.engadget.com ]

47.8, #81

Tim Stevens [7]www.engadget.com

53.8, #47

Thomas Ricker [6][ www.engadget.com ]

The Verge60.7, #33

Brad Linder #2 liliputing.com

160/1188 258/88372

Web 2.0 and corporate reputation management

• Shift from broadcast to engagement

• Change in style, content, tempo and language

• Measurement in real time

• Evidence-based marketing communications

• Test and learn

• Openness and transparency

• Live up to your promises

• No more siloes any more

34 Contents are proprietary and confidential.

Corporate reputation

• Based on perceptions and understanding of financial performance, business ethics, value as employer etc.

• Collective folk memory of the words and deeds of the organisation

• Beliefs or opinions generally held about brand + history

• A company’s most valuable, intangible asset

• Hard to measure meaningfully (we’ll come back to that)

• And a real opportunity for you to make your mark

35 Contents are proprietary and confidential.

Contents are proprietary and confidential.

Welcome back

Contents are proprietary and confidential.

Team exercise

Boeing hits turbulence after 787 Dreamliner fire at Heathrow

Google is required to pay corporation tax on all UK revenue

Tesco lasagne is found to contain 100% horsemeat

38 Contents are proprietary and confidential.

39

40 Contents are proprietary and confidential.

Team exercise | What do you do?

• Today

• Tomorrow

• Within a month

• Within 6 months

• Set KPIs for what success looks like at every step

• You may use the internet

• You have 50 minutes42 Contents are proprietary and confidential.

Exercise | Learnings

1.Manage crises with finesse, honestly, frankly- But would Tylenol approach work today?

2.Fix it right the first time- Don’t behave like the BBC over Saville

3.Never underestimate the public’s cynicism- Beyond Petroleum, Bill Gates Foundation

4.Being defensive is offensive- “United breaks guitars”

5. If all else fails, change your name- Altria, Accenture, Consignia

43 Contents are proprietary and confidential.

Any questions?

44 Contents are proprietary and confidential.

Contents are proprietary and confidential.