professional reputation management: measurement - octavio islas
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3er Congreso Internacional de Comunicación Organizacional
Professional Reputation Management: Measurement and Management
Prof.dr Cees B.M. van RielManaging Director Reputation Institute, New York
Professor of Corporate Communication at RSM Erasmus University Rotterdam, The Netherlands
Bogotá, August 5, 2005
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Reputation Institute: history, goals and structure
The RI International Network:
RI Offices
Affiliates Associates
ClientsMembers
Started in 1997 by Dr. Charles J. Fombrun and Dr. Cees B.M. van Riel
MISSON: to advance knowledge about corporate reputation and to help companies create value from reputation management
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RI Affiliates
Europe
– Belgium: (Frank TFree U. of Bruss
– Denmark: CBS (Majken Sch
– Germany: U. of
– Italy: Bocconi
– Netherlands: Erasmus
– Norway: BI (Peggy
– Spain: Foro de Reputacion
– Sweden: Stock
– UK: Henley Management College (Kevin Money
Business Schoolartmouth
(William Pullen)
hevisen) els
ultz)
Hannover (Klaus-Peter Wiedmann)
(Davide Ravasi)
U. (Cees van Riel)
S. Brönn)
Corporativa
holm U. (Tony Apéria)
)
USA, Africa & Australia
- Australia: Dr. Grahame Dowling, AGSM
- South Africa: Dominik Heil, Wits- USA: Paul Argenti, Tuck School at D
South America
- Brazil: Ana Luisa Almeida
- Chile – Generacion Empreserial
The RI is building a global network of
An RI Affiliate can be an academic institution or
representatives & affiliates in order to generate knowledge about reputation
an organization dedicated to the field of ReputationAn RI Affiliate is our preferred partner in release of international RI research
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RI Associates & Research Partners
RI Research Partners
Media Analysis– Observer– Dentsu– Cubit
Market Research– IPSOS– AMR Interactive
Europe + Africa:
– Norway -Apeland– Spain –Kantya– Sweden – Nordic Brand Leadership– France -I&E– UK –Henley Management College– Germany – Hering Schuppener– Turkey – Orsa– South Africa –Mowana Media Inv.
Latin & South America– Chile - Feedback– Brazil – Troiano/IDEIA
Asia Pacific– Australia - Strategic Intelligence Group
RI Associates have exclusive rights to RI concepts, products and
RI relies on Associates for international pr
RI Associates are fully operating companies involved in reputation management
branding in their local markets.
ojects involving local markets.
, branding and corporate communication
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Agenda for today
Why do Reputations Matter?Measuring and Managing External Support Measuring and Managing Internal SupportMeasuring and Managing Expressive Communication Take Aways
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Why do Reputations Matter?
If you want to know why CORPORATE Reputations Matter, you have to think about why INDIVIDUALS have good or bad Reputations
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Antecedents & consequences of a positive reputation
CommunicationONLY one of the antecedents of a
positive reputation
CommunicationCommunicationONLY one of the antecedents of a
positive reputation
ReputationReputation
Actual performance and behaviour
Actual performance and behaviour
ContextContext
Makes Jobs More Attractive
& Motivating
Makes Jobs More Attractive
& Motivating
Generates Favorable Press & Public Support Generates Favorable
Press & Public Support
Encourages Repeat Purchases &
Builds Market Share
Encourages Repeat Purchases &
Builds Market Share
Lowers Capital Costs & Brings InvestmentLowers Capital Costs & Brings Investment
• There are various antecedents of reputation. Corporate Communication is one of them.
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RI’s Approach to Reputation Management
ReputationCommunication Expressiveness
Strategic Alignment
EcQ ®Research
RepTrack®CEQ ®
The RI can support organizations with three main clusters of tracking methods and the practical consequences of the outcomes of these studies in Result Driven Solutions: (1)
external e.g. RepTrack ®, (2) internal (e.g. EcQ ®) and (3) messaging ( e.g. expressiveness analyses, development of corporate stories, etc.)
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Corporate Reputations are Perceptions...
• Expectations by:
– Customers – Investors– Employees– Suppliers– Public – Analysts– Media– Regulators
About a company’s:
PerformanceProductsServicesActivitiesEmployeesOrganization
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Stakeholder Perceptions: The upside potential for reputation gains
Activists
Investors
Employees
Customers
Media
Regulators
Promise offAdvocacy
Promise ofFavorableCoverage
Promise ofLegal Action
Promise ofCommitment
Promise ofValue
Promise ofLoyalty
Partners
Promise ofCollaboration
CommunityPromise ofLegitimacy
OpportunityPlatform
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Stakeholder Perceptions:The downside risk of reputation loss
ReputationalRisk
Activists
Investors
Employees
Customers
Media
Regulators
Threat ofBoycott
Threat ofExposure
Threat ofLegal Action
Threat ofRogue Behavior
Threat toValue
Threat ofMisunderstanding
Partners
Threat ofDefection
CommunityThreat of
Illegitimacy
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Harris-Fombrun Reputation QuotientSM (RQ)
REPUTATIONREPUTATION
EmotionalAppeal
FinancialPerformance
WorkplaceEnvironment
Products &Services
Vision &Leadership
SocialResponsibility
ReputationReputation
Feel Good About Admire and Respect Trust
Market Opportunities Excellent Leadership Clear Vision for the Future
Rewards Employees Fairly Good Place to Work Good Employees
Outperforms Competitors Record of Profitability Low Risk Investment Growth Prospects
Supports Good Causes Environmental Responsibility Community Responsibility
High Quality Innovative Value for Money Stands Behind
7-pt scale7 = “Describes very well”1 = “Does not describe well”
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Top Rated Companies (2004)Using Standardized RQ Scores
Company RQ* (Z-score) CountryTine 1.74 Norway
Virgin Blue 1.64 Australia
Microsoft 1.59 Australia
L'Oreal 1.46 France
A.P. Møller-Mærsk 1.46 DK
IKEA 1.41 Sweden
Virgin Group 1.39 UK
Johnson & Johnson 1.27 USA
REMA 1000 1.26 Norway
Sony 1.25 UK
Porsche 1.23 Germany
ALDI 1.20 Germany
Nokia 1.20 Sweden
3M 1.19 USA
Danone 1.18 France
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Lowest Rated Companies (2004)Using Standardized RQ Scores
Company RQ* (Z-score) CountryAdelphia Communications -1.56 USA
SAS -1.71 Norway
Credit Lyonnais -1.72 France
AMP -1.72 Australia
Kmart -1.72 USA
NSB -1.75 Norway
NAB -1.75 Australia
Halliburton -1.81 USA
Skandia -2.02 Sweden
Vivendi -2.05 France
Deutsche Bahn -2.12 Germany
MCI -2.51 USA
Enron -4.01 USA
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A Typical RQ Analysis…
Products &Services
.56
FinancialPerformance
.15 Vision &Leadership
.04
WorkplaceEnvironment
.34
EmotionalAppeal
SocialResponsibility
.40
.64Note: Numbers are derived weights, range from 0 to 1, and indicate the relative impact of one variable on another.
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Recent Developments (2005)
Address Weaknesses of RQ Instrument– Weightings of Attributes– Additional Attributes
Address Weaknesses of Annual RQ Studies– Annual vs. Periodic vs. Continuous– Visible vs. non-Visible Companies
RepTrack®
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Calculating a Company’s RepTrack Score
• RepTrack® instrument was developed from qualitative research conducted in7 countries.
• RepTrack® is built on 22 attributes organized around 7 dimensions. An attribute score is made up by an average of respondent answers. Dimensions scores are made up by averages of 3-4 attributes each.
• The RepTrack® Score is a weighted index developed from the individual attribute scores. The attribute weights differ from country to country and are determined based on multivariate analyses conducted from RI’s national reputation studies.
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Professional steps to be taken in Reputation Management
External support: RepTrack®
Communication Expressiveness
Internal Support
ECQ CEQ
12 3
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Assessing Support for Shared Meaning
Aim various multi-business companies- Becoming an aligned group of companies (reinforce accountability,
more cooperation and synergy)
Implying:- Creating support for alignment in all parts of the organization
Method:- EcQ monitor; a method aimed at assessing the added value of
employee communication (both by managers and by the communication department) increasing support for the core strategic issues
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What is Strategic Alignment and Why is it Important?
• Strategic Alignment: Involves creating employee support the Strategic Initiatives that the company seeks
to achieve.
• Building Strategic Alignment is vital: Companies depend on employees to achieve strategic initiatives.
•Ultimately, strategic alignment leads to better organizational performance.
•Hence, organizations should create strategic alignment to facilitate their functioning.
Shared understanding of strategic prioritiesis crucial, implying:
Do employees understand and support the strategy?
Is the organization capable of implementing the strategy?
Does the organization unlock thefull potential of key people?
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How do you create Strategic Alignment?
This report shows that various globally active firms forge alignment in many ways –by breaking down silos, integrating systems. coordinating business unit activities to achieve strategic initiatives. Strongly aligned companies have a shared vision of what they want to achieve and why.
Getting there requires the unwavering support of top management and the sustained commitment of every stakeholder to the change effort.
Companies can apply hard and soft-wiredinitiatives to create an aligned company. Replacing executives, variable pay, performance contracts, etc. are examples of ‘hard’ tools. Soft tools are leadership development, empowerment, internal communication and storytellingSoft-wired initiatives work best
Source: The Conference Board 2003
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Key Question to Ask: Do employees live up to the Strategic Initiatives of the Firm?
The purple promise
“I will make every FedEx experience
outstanding”
What should be done to make this work?
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How to Create Strategic Alignment: Four Step Approach
Awareness
Understanding
Awareness
SupportiveBehavior
DevelopingCapabilities
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Tools used by winning firms to create Strategic Alignment
Awareness
Understanding
Awareness
SupportiveBehavior
DevelopingCapabilities
Channels like FXTVIntranet, magazinesSymbols
Open Book Management
Global Life Audio Conference
Core ValuesCascade TourTown Hall Meetings
Knowledge Management Corporate Universities
Group Decision Room
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Creating Strategic Alignment: monitoring progress with EcQ ®
Awareness
Understanding
Awareness
SupportiveBehavior
DevelopingCapabilitiesEcQ® Monitor
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What is and does the EcQ® Monitor
The EcQ® Monitor is a standardized instrument developed by Dr. Cees B.M. van Riel (Erasmus University & Reputation Institute).
The Objectives of the EcQ® Monitor are:
1. To assess the degree of employee support for a company’s strategic initiatives
2. To identify the drivers that create strategic alignment
3. To provide comparisons across divisions within the company and across companies.
4. To enable Organizations to optimize efforts in the area of employee communications and to set specific targets for improvement actions in this area.
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Drivers of Strategic Alignment
Indicators of Employee Support
Strategic Alignment
Indicators of Employee Communication
Understanding Strategic
Initiatives
Awareness of Strategic
Initiatives
EcQ®
Communication Climate
Management communication
Internal media
Cross-departmental
communication
Individual messaging
Corporate messaging
Supportive Behaviorfor
Strategic Initiatives
Capabilities for implementing
Strategic Initiatives
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The EcQ® Monitor: Employee Communication Attributes
Employee Communication
Quotient®
Employee Employee Communication Communication
Quotient®Quotient®
Management Communication
Corporate Messaging Individual Messaging
Internal MediaCross departmental communication
• Openness• Taken seriously• Involved in decision making
Information across departments and business units
• Useful• Accessible
Communication Climate
• Intensity of efforts• Increasing involvement with company
• Intensity of efforts• Upward communication• Motivates subordinates• Relevant topics are discussed
• Individual performance• Expectations of individual employee • Promotion opportunities, salaries
and work benefits
• Sufficient info about PS, FP,social programs
• Sufficient info about strategicinitiatives
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Example: Overall results of an EcQ® Survey
improve
maintain
Immediate action
Maintain (≥70)Improve (60-69)Immediate action (≤60)
61.6 64.961.5
71.2
64.058.6
52.0
0
20
40
60
80
100
EcQ® Cross-departmental
communication
Internal media Managementcommunication'
Individualmessaging
Corporatemessaging
Communicationclimate
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Benchmarking Employee Support Drivers
Total Div. 1 Div. 2 Div. 3 Div. 4 Div. 5 Div. 6
EcQ® 62.0 61.2 64.2 62.4 63.1 60.2 60.7
68.0
63.9
68.3
69.3
64.8
64.0
66.9
68.9
69.5
63.6
67.0
61.0
Awareness of Strategic Initiatives
65.6 61.1 62.8 65.3
Understanding of Strategic Initiatives
71.2 64.9 60.6 57.3
Capabilities for implementing Strategic
Initiatives
59.2 63.7 54.3 49.5
Supportive Behavior 68.6 65.0 67.3 58.6
Maintain (≥70)Improve (60-69)Immediate action (≤60)
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Driver Analysis
Indicators of Employee Support
Strategic Alignment
Indicators of Employee Communication
Understanding Strategic
Initiatives
Awareness Strategic
InitiativesCommunication Climate
Management communication
Internal media
Cross-departmental
communication
Individual messaging
Corporate messaging
Supportive Behavior for
Strategic Initiatives
Capabilities for implementing
Strategic Initiatives
Correlations &
multivariate analysis
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Key Benefits EcQ® Monitor• Strategic Alignment is crucial for all organizations; the higher the support for
strategic initiatives among employees, the higher the performance of an organization will be.
• Increasing support for strategic initiatives implies four pre-conditions: awareness, understanding, having appropriate capabilities and above all showing the desired type of behavior by employees.
• An up-to-date method to track systematically the degree of employee alignment, allowing companies to press the right buttons at the right time, is using RI’s EcQ ® Monitor, enabling a firm:
1. To assess the degree of employee support for a company’s strategic initiatives
2. To identify the drivers that create strategic alignment3. To provide comparisons across divisions within the company and
across companies.4. To enable a firm to optimize efforts in the area of employee
communications and to set specific targets for improvement actions in this area.
•
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Professional steps to be taken in Reputation Management
External support: RepTrack®
Communication Expressiveness
Internal Support
ECQ CEQ
12 3
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Consistent
Distinctive
Authentic
Visible Transparent
Improving Communication Expressiveness
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Principle #1: Reputation Comes from Visibility...
National Heritage
High Street Presence
MediaPresence
Strong brand(s)
Listed at StockExchange
Responsible Social Behavior
VISIBILITY
Dominant in Public Domain
Dominant in Market
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Highly Visible Firms
Visible atNational Level
Visible at Global Level
Best WorstBestWorst
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`̀CorePurpose
Values
ProjectionsImages
Reputation
Identity
Principle #3: Authenticity Comes from Inner Being
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Principle #4:Consistency & Alignment -Internal & External
Innovation To solve unsolved problems3M
To experience the emotion of competition, winning, and crushing competitors
Just Do It
To make people happyMaking Magic Disney
External Messaging
Internal Purpose
Consistency
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Professional steps to be taken in Reputation Management
External support RepTrack®
Communication Expressiveness
Internal support
ECQ CEQ
12 3
Finding the Galvanizing idea
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TAKE AWAYS
• BE AWARE OF Critical Success Factors in REPUTATION MANAGEMENT– Introduce clear KPI’s for external (RepTrack), internal (EcQ)
support plus stimulate expressiveness in messaging by applying the CEQ
• TAKE TRACKING SERIOUSLY – Tracking will probably show that some improvements need to
be made• DEVELOP AN APPEALING REPUTATION
MANAGEMENT STRATEGY– Improve your reputation by focusing on the six reputation
drivers and the five Communication Expressiveness drivers