measuring corporate
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MEASURING CORPORATE. REPUTATION:. Why and How. John Gilfeather Executive VP, TNS. Stakeholder Management. Marketing Research Council New York April 17, 2009. Today’s Agenda. Corporate Reputation: The Basics The Seven Steps of Reputation Measurement (and How Not to Slip on Them) - PowerPoint PPT PresentationTRANSCRIPT
MEASURING CORPORATE REPUTATION:Why and How
John GilfeatherExecutive VP, TNSMarketing Research CouncilNew YorkApril 17, 2009
Stakeholder
Management
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Today’s AgendaCorporate Reputation: The Basics
The Seven Steps of Reputation Measurement(and How Not to Slip on Them)
Case Histories
Closing Thoughts
The BasicsThe Basics
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4
or
You decide!
Bomb
1. A good reputation is better than a poor reputation
Copious research tells us that companieswith good reputations reap more rewards
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2. Reputation vs. Brand
Definitions
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Brand Equity
Deals with: One Constituency: Customers/Prospects
One Behavior: BUY
But good products are not enough -- e.g. Nike
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And in a crisis:
The Brand does not respond
The Corporation does
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3. Corporate Reputation
Deals with:Multiple Constituencies
Multiple Behaviors
A+!
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CorporationCorporation
Work ForceWork Force
GovernmentGovernment InfluencersInfluencers
InvestorsInvestors
GeneralGeneralPublicPublic
MediaMedia
BusinessBusinessCommunityCommunity
CustomersCustomers
Corporate Reputation Involves Multiple Constituencies
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4. Reputation is multi-dimensional
KNOWLEDGE
• Awareness
• Familiarity
• Identity
EVALUATIONS
• Overall Impressions
• Strengths/Weaknesses
• Characteristics
• Personality traits
BEHAVIOR
• Buy Stock
• Buy Products/Services
• Believe Story
• Recommend Employment
• Recommend Joint Venture
• Trusted Sources of Info
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5. When Corporate Reputation Is Important
Companies need to think about corporate reputation all the time, but especially when:
Corporate performance is not strong
Media coverage is increasing and not favorable
There is substantial merger and acquisition activity
There is management instability
Industry issues become the focus of political rhetoric – doubly so in election years
The Seven Steps of Reputation Measurement
(and How Not to Slip on Them)
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2
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1. Clearly define objectives
Measure all components of reputation
Consistent metrics across all stakeholder groups
Provide communications guidance
Establish benchmarks
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2. Clearly define constituencies
Definable Universe
Reachable
Replicable/Trackable
Findable
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2. Clearly define constituencies
CorporationCorporation
Work ForceWork Force
GovernmentGovernment InfluencersInfluencers
InvestorsInvestors
GeneralGeneralPublicPublic
MediaMedia
BusinessBusinessCommunityCommunity
CustomersCustomers
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Citizens
Social networks
Affluent Citizens
Ethnic Groups
Host/Plant Communities
2. Clearly define constituencies
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Securities Analysts
Portfolio Managers
Retail Brokers
Individual Shareholders
Individual Investors
2. Clearly define constituencies
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Institutional Investor Communications
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Individual Investor Communications
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2. Clearly define constituencies
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Distributors
Suppliers
Business Peers
2. Clearly define constituencies
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Legislators
• International
• Federal
• State
• Local
Regulators
• International
• Federal
• State
• Local
2. Clearly define constituencies
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Activists
Bloggers
Industry Consultants
2. Clearly define constituencies
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Employees
Prospective Employees
Academia
Retirees
2. Clearly define constituencies
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Business Media
Industry Media
General Media
2. Clearly define constituencies
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Measuring1 Personal Success
Being 100% accurate
Increasing knowledge and awareness of your readers about things you think important
Getting the story written on time
Getting through to the right people
Righting a wrong
Exposing wrong doing
Getting a raise/promotion
Having a by-line on the front page
Receiving rewards from your peers
Being really and truly feared by those in authority
1Based on a 10-point scale where 10 means 'an extremely important measure of success' and 1 means 'not an important measure.This question (“How do you measure your own personal success?”) was created by Katie Paine for The Measurement Standard.
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Financial community not monolithic
Sometimes surrogates can be used for:Customers/Prospects
Government
“Opinion Leaders”
Employees
CEOs
2. Clearly define constituencies
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Logic
Do not overtax respondents
Fit interview mode Personal Telephone Mail Online
3. Clear questionnaires
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3. Clear questionnaires
Rate 5 brands of oven
cleaners on 59 attributes, rotated to
avoid position bias
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3. Clear questionnaires
No Games!
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Questionnaire Logic
KNOWLEDGE
• Awareness
• Familiarity
• Identity
EVALUATIONS
• Overall Impressions
• Strengths/Weaknesses
• Characteristics
• Personality traits
BEHAVIOR
• Buy Stock
• Buy Products/Services
• Believe Story
• Recommend Employment
• Recommend Joint Venture
• Trusted Sources of Info
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4. The right interviewers
Not all respondents are created equal
Not all interviewers are created equal
Matching respondents to interviewers is critical
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5. Clear analysis
Tell a story
Bottom line: what should company do differently based on results?
The logic of the questionnaire creates the logic of the report/presentation
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6. Clear reporting
Don’t pull punches
Don’t rub nose in bad news
Sometimes euphemisms are necessary
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6. Clear reporting
ab+cd
xy= 73 x mn-op
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6. Clear reporting
13 Of course, heteroskedasticity is a matter of degree.
My favorite footnote...
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7. Tracking
How often?
Continuous tracking?
When to put tracking studies to sleep?
Case Histories
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Favorability (overall impression)
Low High
High Falling Stars Blue Chips
LowUnknown & Unloved Meteors or Cults
Familiarity
A Good Reputation = High Scores on all Dimensions
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Favorability (overall impression)
Low High
High Ford Chrysler
GM
DisneyMicrosoft
J&J
LowPharma,Financial Services
USAA
Familiarity
A Good Reputation = High Scores on all Dimensions
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Case Histories
Pharmaceutical Company: A Case of Over-investing
Financial Services Company: The Power of Executive Communications
Conglomerate: High Awareness/Low Familiarity = Volatility
A Troubled Company: Keeping the Channels Open
CPG Company: The Power of a Name
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Closing Closing ThoughtThoughtss
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Closing Thoughts
Corporate Reputation Matters
It leads to behaviors that will help you achieve your strategic goals
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Closing Thoughts
To be managed, Corporate Reputation must be measured
Most CEOs agree that Corporate Reputation is critical
Few actually measure Corporate Reputation
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Closing Thoughts
Winning Companies have the corporate will to:
Communicate
Use multiple channels
Measure
Adjust
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Closing Thoughts
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QuestionsQuestions
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