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By Reputation Institute 2006 1
Nicolas Trad,
Managing Partner, Reputation Institute
Reykjavik 2006
By Reputation Institute 2006 2
• Reputation Institute concepts
• Global reputation results: RepTrak Pulse
By Reputation Institute 2006 3
• Reputation Institute concepts
• Global reputation results: RepTrak Pulse
By Reputation Institute 2006 4
RI – A thought leader with global authority
• Books • Quarterly magazine• Membership network• Research
By Reputation Institute 2006 5
RI – a leading reputation consulting group
By Reputation Institute 2006 6
Purpose of Reputation Consulting:To focus all communications & initiatives
CEO
VP, Mkg VP, Comm.
Ad
Mkg. Con
PR
CM
MC
Dir. Mkg
Before RCBefore RC After RCAfter RCCEO
CRO
VP, Mkg VP, Comm.
RM Strategy
Ad
Dir. Mkg Mkg. Con
PR CM
VP HR.
VP HR
By Reputation Institute 2006
Good Good
BadBad
Bad Bad GoodGood
Perceptions
Reality
RISKS
OPPORTUNITIES
Action is required to capitalize on good
reality and overcome poor perceptions.
Change is required to alter ‘reality’ and
minimize reputational risk.
Reputation: Comes from both Reality & Perceptions
Reputation Management isn’t about SPIN… You need to balance perception and reality.
By Reputation Institute 2006 8
Strategic Strategic InitiativesInitiatives
PerformancePerformance
Good reputations create economic valueGood reputations create economic value
Strategic ObjectivesStrategic Objectives
By Reputation Institute 2006 9
Stakeholder Support Stakeholder Support for the Companyfor the Company
Reputation of a companyReputation of a company
– Buy product/service
– Recommend
– Trust
– Invest
– Verbal support
Strategic Strategic InitiativesInitiatives
PerformancePerformance
Good reputations create economic valueGood reputations create economic value
Strategic ObjectivesStrategic Objectives
-Innovation
-Offerings
-Workplace
-Performance
-Citizenship
-Governance
-Leadership
By Reputation Institute 2006 10
You can’t manage what you don’t measure…
RepTrak™ Model
By Reputation Institute 2006 11
Reputation is built on 7 dimensions
RepTrak™ Model RepTrak Pulse
By Reputation Institute 2006 12
Crises affect Lower Reputation Companies more Significantly
Index of AdjustedMarketReturns %
Higher Reputation Companies
Lower Reputation Companies
CrisisStrikes
A Study that Compared 17 Crises Demonstrates that Significant Financial Value is Lost for all Firms, but Hits Lower Reputation Companies more Significantly
Source: D. Petty, Corporate Reputation Review,2001
By Reputation Institute 2006 13
• Reputation Institute
• Global reputation results: RepTrak Pulse
By Reputation Institute 2006 14
Over 95,000 Consumers Ratings in 25 Countries
The Global RepTrak™ Pulse 2006 measured over 700 corporate reputations in 25 of the World’s largest countries
By Reputation Institute 2006 15
Global Industry Reputations
73,7
71,0
70,6
69,4
69,3
67,6
67,4
65,1
64,7
64,5
64,0
64,0
62,5
61,2
61,0
60,9
60,6
60,2
58,0
57,7
55,2
Electronics
Beverage
Food
Retail
Aerospace & Defense
Computers
Automotive
Conglomerate
Travel
Transport/ Logistics
Media
Industrial
Chemicals/ Pharma
Insurance
Banking - Commercial
Natural Resources
Consumer Products
Services
Diversified Financial
Technology
Telecomunications Services
Industry reputation differ
Telecommunications - worst reputation in the world
Electronics -the best reputation in the world
By Reputation Institute 2006 16
Top Managers are very important in creating a strong reputations
Q: Top managers have a strong effect on the reputations of their companiesTop 2 box ratings (6,7)
86,483,1
81,076,0 74,1 73,8 73,6 73,3 71,7 71,6 71,5 71,4 70,2 69,4 68,8
65,1 63,9 63,2 63,0 62,4 60,7 59,5 57,6 56,2 55,9
0
10
20
30
40
50
60
70
80
90
100
South
Afr
ica
Chin
a
Fin
land
Mexic
o
Denm
ark
Chile
Bra
zil
Pola
nd
South
Kore
a
India
Aust
ralia
Russ
ia
US
Canada
Sw
itze
rland
Germ
any
Arg
enti
na
Italy
Norw
ay
Sw
eden
Fra
nce
Japan
Neth
erl
ands
Unit
ed K
ingdom
Spain
By Reputation Institute 2006 17
Unethical behavior impacts buying behavior
Q: In the past I have refused to buy the products of a company whose top managers had behaved unethicallyTop 2 box ratings (6,7)
27.0
30.3
30.9
31.7
33.6
38.5
40.4
40.9
41.2
42.8
43.8
45.7
46.2
46.5
47.9
48.4
48.8
49.8
50.3
51.8
52.1
55.7
56.1
57.2
60.5
Russia
Netherlands
South Africa
J apan
United Kingdom
Germany
Sweden
Argentina
South Korea
India
Spain
Mexico
Australia
Denmark
Poland
China
Canada
Switzerland
Chile
France
United States of America
Norway
Finland
Italy
Brazil
Lack of ethical leadership heavily influences supportive behaviors and performance
Ethical behavior is a risk and an opportunity
By Reputation Institute 2006 18
Leadership is a driver in attracting employees
Q: I would prefer to work for a company with a strong and appealing leaderTop 2 box ratings (6,7)
39.1
45.0
47.3
51.0
52.0
52.5
54.2
60.2
60.6
61.4
61.8
65.6
66.6
66.7
68.4
70.4
71.5
73.0
73.7
77.5
78.4
82.5
83.7
86.9
89.5
Spain
Netherlands
J apan
Germany
United Kingdom
Italy
Argentina
Switzerland
Finland
Poland
Mexico
Sweden
Chile
Australia
France
Denmark
United States of America
Russia
Norway
India
Canada
Brazil
South Korea
China
South Africa
Strong and appealing leaders can be used as a competitive advantage in attracting new employees
The role of the leader varies around the world
By Reputation Institute 2006 19
Leaders are not trusted by the general public around the world
Q: Most companies are run by respected leadersTop 2 box ratings (6,7)
9.8
9.9
11.4
13.2
13.3
13.4
14.7
14.7
15.3
15.9
17.0
18.6
18.7
19.3
20.6
22.9
28.3
30.2
31.9
32.0
35.2
35.4
35.6
36.7
53.5
Italy
J apan
Poland
Russia
Germany
United Kingdom
Netherlands
Australia
France
Argentina
Sweden
Norway
United States of America
Switzerland
Spain
Canada
South Korea
Chile
Denmark
Finland
China
Brazil
Mexico
India
South Africa
Leaders are not to be trusted
Developing countries have the highest trust
A major opportunity since trust is low
By Reputation Institute 2006 20
RepTrak™ Pulse in DENMARK
A.P. Møller - MærskArla FoodsCarlsbergDaniscoDanish CrownDanske BankEgmontISSJYSKLEGOLundbeckTDCVestas
RepTrak™ Pulse in FINLAND
FortumKesko GroupKoneMetsoM-realNokiaOutokumpuSampoStora EnsoUPM-Kymmene
RepTrak™ Pulse in NORWAY
AkerCoopDnB NorHydroNorske skogOrklaRema 1000StatoilStorebrandTelenorVeidekke
RepTrak™ Pulse in SWEDEN
CoopElectroluxEricssonHennes & MauritzICAIKEANordeaSCASEBSkandiaSkanskaSony EricssonTeliaSoneraVattenfallVolvo Personvagnar
Scandinavian Companies included in the Global RepTrak Pulse 2006
By Reputation Institute 2006 21
RepTrak™ Pulse in DENMARK
RepTrak™ Pulse in FINLAND
RepTrak™ Pulse in NORWAY
RepTrak™ Pulse in SWEDEN
And the winners are…
By Reputation Institute 2006 22
• Reputation IS important for driving supportive behaviors of your stakeholders
• You HAVE to create balance between perception and reality
• Top management reputation is very important in creating a strong reputations
• Currently there is LITTLE trust in top management• Its important to work with repuation consulting to
secure that all parts of the organisation work in the same direction
Take aways…
By Reputation Institute 2006 23
RI’S NEXT INTERNATIONAL CONFERENCE
OSLO, NORWAY – MAY 2007
WWW.REPUTATIONINSTITUTE.COM