ThinkingRepuTATion · Despite the tough times facing the industry, Matt Knight finds that environmental impact continues to be the most talked about issue among specialist motoring

TH INKING REPUTAT ION I P SOS MOR I

THE NEWSLETTER FROM IPSOS MORI’S REPUTATION CENTREApril 2013ThinkingRepuTATion

Delivering the gooDs: intervieW With ABhinAv KUMAr, tCs

repUtAtion CoUnCil: CreAting A sense of AUthentiCity

After 2012: A lAsting olyMpiC legACy?

A green fUtUre? expert JoUrnAlists’ vieWs of the Motoring inDUstry


neXTPAGE 2

Welcome to Thinking Reputation – including news, views and updates on our latest research findings, from Ipsos MORI’s Reputation Centre.

In this edition: Abhinav Kumar, Chief Communications and Marketing Officer at Tata Consultancy Services in Europe, talks to Milorad Ajder, Managing Director of the Reputation Centre, about the importance of delivering on your promises, the challenges of increasing complexity, and the future of the communicator’s role.

Now that the news stories on Great Britain’s glorious 2012 have died down, Annie Lund looks at what kind of legacy remains in the minds of Britain’s international spectators, and asks what this means for the country’s reputation overseas.

Jenny Dawkins reviews the findings from our seventh session of the Reputation Council, a group of senior corporate communication experts in leading companies around the world, including their thoughts on how a company can demonstrate authenticity, and getting the most out of reputation research.

Despite the tough times facing the industry, Matt Knight finds that environmental impact continues to be the most talked about issue among specialist motoring industry journalists in the UK.

Jenny Dawkins Research Director

Delivering the gooDs: intervieW With ABhinAv

KUMAr, tCs

repUtAtion CoUnCil: CreAting A sense of

AUthentiCity

After 2012: A lAsting olyMpiC

legACy?

A green fUtUre? expert JoUrnAlists’ vieWs

of the Motoring inDUstry

Do contact us for further information, and give us your feedback on what you would like us to cover in future

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Delivering the gooDs: intervieW With ABhinAv KUMAr, tCs

Can you tell me about your role within Tata Consultancy Services? I head up a team that is the custodian for the company’s brand and its reputation across our 21 country operation in Europe, which is the second largest market for the company worldwide. The team operates in three divisions: Marketing, supporting the sales organisation and managing our brand; Communications, which is essentially media relations and other stakeholder relations; and Public Affairs which is our engagement with national governments, the European Union Institutions and other bodies like the World Economic Forum. Our brand is considered a Big 4 brand in its industry and was valued at US$ 4 billion by Brand Finance in 2012. We are rated as one of the world’s most reputable companies on many platforms for our group’s 144 year focus on doing business ethically and giving back to society. My team’s job is to protect and enhance that brand value and reputation in Europe.

So what does TCS stand for? What is it that differentiates the company?Our core positioning statement is ‘Experience Certainty’. It looks to explain, in two simple words, what the services we provide stand for in terms of value to our customers. Any customer who works with us is assured that the results of the work which we do for them would be the best they can get in the industry - in terms of quality, being on budget and being on time. So we deliver on D Day what we promised on Day Zero of the project – that is one aspect of it. The second aspect is partnership, which is paramount in this business. We look at each client not as a transaction, not just another project, but as a relationship which has a life-cycle of potentially decades. And the third aspect is the value which we bring in terms of leadership, helping clients lead in their industries by using technology to transform their businesses and create a winning business model for themselves in the age of global competition. In short, if you ask a client of ours – “How is TCS different from Company X?” the most likely answer will be that with TCS we can rest assured that what we hear is what we get.

So how far do you think the brand has an impact on your customers?This is a very competitive industry. Every client works with multiple partners, the larger companies work with two to four big

ABhinAv KUMAr, Chief CoMMUniCAtions AnD MArKeting

offiCer At tAtA ConsUltAnCy serviCes in eUrope, tAlKs to MilorAD

AJDer, MAnAging DireCtor of the repUtAtion Centre, ABoUt the

iMportAnCe of Delivering on yoUr proMises, the ChAllenge of

inCreAsing CoMplexity, AnD the fUtUre of the CoMMUniCAtor’s role.


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global partners, and each one of the IT companies wants to be one of those partners. The differentiator then becomes critically important – why pick this company? The material part of the conversation potential customers have with us is focused on the value we bring through the solutions provided, or our expertise or methodology – that is the key part of the buying decision. But so is the brand of the company – the word of mouth reputation is still very, very important in the business to business sector. If I am the Chief Information Officer for a large company and I am changing my portfolio of suppliers and considering TCS, probably what I would do before I make a €100m decision is call up my friend who is a CIO at another company that TCS works with or to an Industry analyst he knows and say, “Hey, what is your experience with them?” And whatever the other person has to say could have a material impact on that decision. 99% of our business every year is from retained clients and it is a consequence of investing in partnerships. So we are fortunate to be in a position where we’d encourage any prospective client to go and talk to any of our existing customers – that really helps us.

How do you measure the impact your team is having for the business?In every management position I have held, it has been a priority initiative for me to really get down and strengthen our data capture and our metrics to demonstrate the value that we bring to the organisation. Across the various activities which we do, be it events, campaigns, media relations, or our brand, we measure close to 100 different metrics! Broadly they get segmented into three categories. The first category is an input metric, which just shows the level and volume of activities which are taking place. So if you look at events as an example, the input metric would be how many events we are doing in each country. The second segment is the output, so if we did an event in France the output might be that we generated 12 leads or sales conversations which had the potential of growing into business. And the third pillar is the most important – it is the impact pillar. So for each element of activity we do, we are looking to measure the business value. If there are leads created from our events, sales cycles can take about 12 to 18 years in this business, so down the line what was the Euro value of business which was created from that? Ultimately, the 100 metrics get simplified into 4-5 key business impact ones which are easily understood by anyone in the company and convey the aggregate health of our

“it hAs Been A priority

for Me to strengthen oUr MetriCs AnD DeMonstrAte

the vAlUe We Bring ”


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function. So if I can say the team helped sales generate x million in businesses last year, y million in media coverage value and increased our brand value by z million that is what makes sense to our business and management team.

What challenges do you face in your role?Interestingly a unique challenge which comes with a large group like ours is that there are so many businesses in the group. The group has 100 companies operating across sectors as diverse as steel and chemicals to automotive and IT. It is a great strength overall, because all the good things the various companies do add up to a stronger Tata reputation, but at the same time there is a need for each company to build its brand in its own industrial area. In many markets, I introduce myself and say I am from Tata Consultancy Services, and people say, “Oh yes, you guys make the cars, right?” That is a good thing, in that it shows there is awareness of Tata and it gives us a solid platform. But it also means that we need to modify that perception and enhance it, so that people are also aware that we are one of the largest companies in the IT sector and have a lot of value to provide on that front.

The other challenge for everyone in our field of communications is the sheer proliferation of channels with the advent of digital and social media, and the rapidly changing landscape in media. Many publications are shutting down, or transforming their models, all publications are working with smaller editorial teams, implying less time to hear your stories or write about them. And from the reader’s point of view, they are getting inundated with various channels and they are changing the way they are consuming news or information about the business, which makes it harder to be certain if we are reaching our target audience.

So managing this complexity is a key challenge on the communications side, and the complexity keeps increasing in rapid acceleration. This company is global with operations all over the world, so at any point in time some operation is up even if you are sleeping – you have to be able to manage those 24hr news cycles. It is also more complex in terms of managing the issues in the whole digital landscape. Historically, if there was a small issue in Australia, it would stay in Australia and you could deal with it in Australia. But right now it could become a big issue elsewhere and you will find customers are asking you questions

“MAnAging the

CoMplexity is A Key ChAllenge on the

CoMMUniCAtions siDe, AnD the CoMplexity Keeps inCreAsing ”


neXTPAGE 6

in France or in Brazil because they heard that in Australia you had some problem. This requires communications teams to be faster than ever before, more knowledgeable than ever before and work more globally than ever before.

And what other challenges do you face internally within the business? We have more than 260,000 employees worldwide. The majority of them are in touch with customers on a daily basis, since it is a business to business set up. So every second our brand is getting made or destroyed in each conversation that someone in the company is having with some customer or stakeholder. It is not just about the communication team channelling out the company message and keeping it coherent, but actually it is engaging the rest of the organisation so that all of these thousands or millions of conversations that take place are also in line with that. Keeping employees informed of major developments is very critical to us, and explaining the company’s brand and what it stands for is an important part of what we do.

And this is a moving task, since this is a rapidly growing company. When I joined at the start of the millennium we were 14,000 employees, now it is 260,000+ – that is 18-fold growth in 12 years or so, and we are continuing on that growth path. Last year we recruited close to 60,000 people worldwide, so there is the sheer task of getting those people aligned and on board with the company. This makes the Human Resources team an immutable partner for our team. In the induction of every new employee there is a session on what the company’s brand is, what its values are, what it stands for. But then that needs to be reinforced, probably across the whole year, for them to assimilate the messages. It is a continuing effort that we need to keep working on and investing time in.

How are you trying to address those internal communications challenges?We have been developing the standard newsletters, mailers and so forth to ensure that employees in the company are well informed of all developments and successes, but we have also been developing a lot of internal portals and creating enhanced collaboration within the company. There has been a major initiative underway for the last couple of years in helping create internal collaborative tools and social media in the company. We

“every seConD

oUr BrAnD is getting MADe or

DestroyeD in eACh ConversAtion thAt

soMeone in the CoMpAny is hAving With soMe

CUstoMer or stAKeholDer ”


neXTPAGE 7

have a portal where if somebody is struggling with something they can ask a question and they have the brainpower of 260,000 people available to them to answer that problem. That has proved very useful for people from time to time, particularly with technical challenges, so it really adds up well, pooling the knowledge. There is also a portal for ideas, where any employee in the company can put an idea onto the portal, any of the rest of the 259,999 can vote on it, and if it reaches a certain critical threshold that idea automatically goes to the stakeholder who needs to deal with it. They then take a decision on it and communicate that back. The synergies for communications of an engaged and networked workforce are immense. Today, if the company has a success to announce, our employees are our best communicators who tweet, comment and push out the news to their internal and external networks very effectively.

How do you see the communications function changing in the future?Milorad, unfortunately I have not splurged on a crystal ball yet! What is clear is that increasingly there will be an important role for the communications function to play in some of the core aspects of the company, where it may not have been present historically. The insights which we are getting from customers and others on social media would be immensely valuable in product development, and that is not an area to which communication has traditionally contributed. I certainly see there being more of a role in giving inputs back into the company – if there is very accurate and negative feedback on social media then that is great input for your future, for fixing a problem early before it becomes a massive one.

The communications role has already become more strategic and more important to the company’s management team. I think the Chief Communicator in many companies has already become (or soon will become) the “consigliere” of the CEO, advising him or her on almost every front. There is more pressure on CEOs today than there has ever been historically, to run the company in a difficult environment, enhance and protect its reputation, and at the same time there is pressure on them to become much more visible. They need someone looking after their interests, which is a role that naturally fits the communications function. From advising them of the colour of their ties when they interview on CNN to how to tackle a tricky

“if the CoMpAny hAs A sUCCess to AnnoUnCe

oUr eMployees

Are oUr Best

CoMMUni-CAtors”


neXTPAGE 8

“Ceos Will CoMe inCreAsingly to the Chief

CoMMUniCAtion offiCers

for ADviCe”

union situation or shareholder revolt, CEOs will come increasingly to the Chief Communication Officers for advice. I think this function also has a stronger role to play in corporate strategy development for the company, because by its nature it has to profoundly understand the business of the company, it is very well connected and knows what the competition is doing and what is happening in the market. We are very well aware of the risks which the business faces, and all these capabilities put this role in a good position to help contribute to evolving the company’s larger strategy.


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After 2012: A lAsting olyMpiC legACy?

Considering the portrayal of the Olympics as a national success story in the British press, it may not seem surprising that a large majority of the British population was still positive about the impact the Olympics had on the way the rest of world views the UK, even several months after the event. Indeed there have been no signs that the post-Olympic glow is dimming in British minds – those stating they thought the Olympics had a positive impact on perceptions of the UK did not drop between the height of the Olympics buzz in August and November (78% and 81%, respectively). Only a year earlier, we were more pessimistic about the potential of the Games to create a positive impression of the UK, with only 63% thinking it would do so.

greAt BritAin’s glorioUs 2012 is over. noW thAt the CongrAtUlAtory neWs

stories AnD generAl AstonishMent At the nAtion’s sUCCess hAve DieD DoWn,

Attention hAs tUrneD to the reAlity of post-olyMpiCs BritAin in 2013 AnD

BeyonD. inDeeD, AlMost As soon As the pArAlyMpiCs finisheD lAst sUMMer,

priMe Minister DAviD CAMeron fleW to BrAzil to proMote the UK’s trADe linKs

With the eMerging eConoMiC giAnt – AnD next host of the gAMes. lorD Coe’s reMit As legACy AMBAssADor

MAKes it CleAr thAt his JoB is to seCUre A signifiCAnt eConoMiC Benefit for

the UK. BUt Before We Are ABle to ConsiDer the long-terM iMpACt, JUst A feW Months on froM the Big event,

oUr gloBAl @Dvisor reseArCh for the British CoUnCil ACross 12 CoUntries

looKs first At WhAt KinD of legACy reMAins in the MinDs of BritAin’s

internAtionAl speCtAtors, AnD AsKs WhAt this MeAns for the CoUntry’s

repUtAtion overseAs.

% Positive % Negative

Source: Ipsos MORI

Effect of 2012 Olympics on the way UK is viewed by the rest of the world

Q. As you may know, Britain will host/has been hosting the 2012 Olympics. What effect, if any, do you think the 2012 Olympics will have/has had on the way UK is viewed by the rest of the world?

Base: Nov ‘11 (2320), Aug ‘12 (1015), Nov ‘12 (1000).

Fieldwork dates: 30 November – 6 December2011, 10-13 August 2012, 5 – 19 November 2012

AUG - 2012

5

78

NOV - 2012

81

2 NOV - 2011

63

8


neXTPAGE 10

Looking further afield, overseas attitudes are also upbeat. Among the online public in 12 markets worldwide, three in five (59%) say the Olympics had a positive impact on their view of the UK, and levels of negative sentiment are very low both at home and abroad, just 1% and 2% respectively.

International respondents are also very ready to agree that the UK did a good job at organising the Olympics (64% say we got it right). In addition to the delivery of the Games themselves, there is also positivity among international audiences about the attitudes and characteristics of the British and the perceived impact the Games has had on showcasing these. Over half (56%) agree that the Olympics and Paralympics have had a positive effect on their perception of how UK people view disability, and a similar proportion say that the Olympics has shown the UK to be a confident, multi-ethnic society (55%). Further, half of all international respondents identify the Games as having a positive effect on their views of how friendly people in the UK are (52%).

There is some reassurance for the typically self-deprecating British too, and an indication that we can perhaps afford to be a little more positive about our global standing. Around half (48%) of international respondents think that people from the UK have a good understanding of international issues compared to a slightly lower figure among the British themselves (43%). Similarly, 50% of international respondents say people from the UK generally give a good impression of the UK when they travel abroad, while only 31% of British residents agree with this. When asked to consider the impact of the Olympics on the UK’s influence over world affairs, 45% of international respondents think it has improved the UK’s influence at least to some extent, while only 34% of British residents consider this to be the case.

59% of the pUBliC ACross 12

MArKets sAy the olyMpiCs hAD A

positive iMpACt on their vieW of the UK


neXTPAGE 11

Considering potential for future engagement and trade with the UK, a third of overseas respondents say the Olympics has made the UK more attractive as a place to study or do business (35%). A similar proportion say that the Olympics has made them more likely to visit the UK (36%). Of course, these results remain statements of intent rather than money already spent, but they paint a positive picture nevertheless.

This is all good news for the UK, and reinforces the generally held opinion that the events of 2012 have contributed to an improvement in the UK’s reputation overseas and created additional interest in Britain as a place to visit, study and do business. But does the UK really stand out to international audiences? There is some evidence from our polling that Britain is distinctive from other western nations in a way that

Source: Ipsos MORI

Views on the Olympics

81

70

61

60

57

56

50

64

55

36

56

45

53

35

4

9

12

8

16

12

6

9

7

18

7

10

7

18

THE UK DID A GOOD JOB ATORGANISING THE OLYMPICS

THE OLYMPICS HAVE SHOWN THE UKTO BE A CONFIDENT, MULTI-ETHNIC SOCIETY

THE OLYMPICS HAVE MADE ME/PEOPLEMORE LIKELY TO VISIT THE UK

THE OLYMPICS OPENING CEREMONY REFLECTEDTHE BEST OF A TRADITIONAL AND MODERN UK

THE UK SHOULD BE MORE CONFIDENTABOUT ITS GLOBAL STANDING IN THE FUTURE

THE OLYMPICS WILL LEAVE A LASTINGPOSITIVE IMPACT ON UK SOCIETY

THE OLYMPICS HAVE MADE THE UK MORE ATTRACTIVE TO ME/PEOPLE AS A PLACE TO STUDY OR DO BUSINESS

% Great Britain Agree % Non-GB Agree % Great Britain Disagree % Non-GB Disagree

Base: All respondents (9003), Great Britain (1000), Non-Great Britain (8003)

Fieldwork dates: 5 – 19 November 2012


neXTPAGE 12

could be good news for the UK if it is harnessed in the right way. For example, other research for the British Council finds that, in several markets, people from the UK are more trusted than, say, those from Germany and those from the USA. And across a whole range of topics, we find people around the world see Britain in a pretty positive light, with a majority seeing us as a country strongly committed to culture and the arts (54%), with strong democratic values and institutions (56%) and with a good standard of living (59%). The power of the English language is clearly a positive, and cultural activities have a beneficial impact on views of Britain.

As is always the case though, there are some caveats. Much of the research we have conducted over the last twelve months suggests that the further away you travel from Britain, the better Britain looks. Our European neighbours and trading partners tend to take a rather less positive view of the UK than more distant countries. Perhaps we should not be too surprised that Europeans give us a cool reception – along with the ‘in/out’ EU debates, they are perhaps hardly hearing and seeing British confidence, something Boris Johnson pointed out at the CBI annual conference towards the end of 2012.

Also, there is no getting away from the relatively poor self-assessment the British people give the country. This cannot be entirely put down to charming self-deprecation. Is this a good place to invest, for instance? Only 24% of us think so. Looking at Britain from outside, however, the figure rises to 42%. The same poll found that only 13% of Brits feel we have a strong economy, whilst globally 48% feel Britain’s economy is strong. And one of the more striking Global @dvisor poll findings from 2012 is that Germans were four times more likely to be positive about their economy’s prospects than the British were about theirs.

Our research suggests that the Olympics have helped to give the UK a positive reputation boost, and one that seems to be holding up for the time being. While at home we may still be feeling some of the Olympic spirit, perhaps our opinions of the country as a whole could benefit from a little more of the optimism and self-confidence that our athletes displayed last summer in their record-breaking achievements.

For more information, please contact [email protected]

ACross A Whole rAnge of topiCs,

people AroUnD the

WorlD see BritAin in A positive

light

http://www.slideshare.net/IpsosMORI/trust-pays-how-much-does-cultural-exchange-matter

mailto:annie.lund%40ipsos.com?subject=


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this seventh sitting of ipsos Mori’s repUtAtion CoUnCil inClUDes ContriBUtions froM inDUstry experts froM ACross eUrope, lAtin AMeriCA, rUssiA AnD the UsA. rUssiA AnD the UsA Are AreAs of expAnsion for the CoUnCil AnD, for the MoMent, finDings reMAin inDiCAtive of opinions froM those regions. nevertheless, the CoUnCil hAs A BroADer reACh thAn ever Before, proviDing A gloBAl perspeCtive on Key repUtAtionAl issUes of the DAy. this WAve of reseArCh foCUses on hoW A CoMpAny CAn DeMonstrAte AUthentiCity, AnD getting the Most oUt of repUtAtion reseArCh.

CreAting A sense of AUthentiCityCorporate values can help differentiate one company from another, engage employees and communicate the strategy and principles an organisation is working towards. However, in a world where stakeholder and consumer opinion changes rapidly, bridging the gap between values and reality is difficult to achieve. Creating a sense of authenticity among customers and stakeholders is paramount to maintaining credibility and a solid reputation. This means that reality needs to match expectations, and values need to be more than a well-meaning sound bite.

To achieve authenticity in values, a key challenge is to make sure they are genuine and clearly demonstrated. Employees are at the heart of organisational values and it is by their actions and behaviour that a company is judged. As such, it is important that employees understand and live by the values an organisation communicates. Nearly all Council members believe that their corporate values are understood internally and a similarly large proportion feel that employees live up to these values. Opinion is particularly intense among members in Latin America, whereas in Russia a minority of members give low scores or are unsure.

repUtAtion CoUnCil finDings, WAve seven

set Up By ipsos Mori’s repUtAtion Centre in 2009, the repUtAtion CoUnCil

is CoMposeD of soMe of the Most senior CorporAte CoMMUniCAtors

internAtionAlly. its regUlAr feeDBACK sessions proviDe riCh insights into the theory AnD AppliCAtion of repUtAtion MAnAgeMent, AnD oUr reports Are the Definitive gUiDe to the lAtest thinKing

AnD prACtiCe in the CorporAte CoMMUniCAtions WorlD – soMe of

the highlights froM this WAve Are sUMMAriseD here.


neXTPAGE 14

%

Source: Ipsos MORI

Base: All Reputation Council members, 2012 (Total: 103 – Europe: 53, Latin America: 24, Russia 14*, USA: 10*, Others: 2*)*Caution – very small base size. Please exercise caution when interpreting data.

Using a scale of 0 to 10 where 10 means ‘entirely’ and 0 means ‘not at all’, to what extent do you feel that … your company’s values are understood internally?

Using a scale of 0 to 10 where 10 means ‘entirely’ and 0 means ‘not at all’, to what extent do you feel that … your people live up to these values?

Using a scale of 0 to 10 where 10 means ‘entirely’ and 0 means ‘not at all’, to what extent do you feel that … your company’s values are understood internally?

Using a scale of 0 to 10 where 10 means ‘entirely’ and 0 means ‘not at all’, to what extent do you feel that … your people live up to these values? %

Using a scale of 0 to 10 where 10 means ‘entirely’ and 0 means ‘not at all’, to what extent do you feel that … your people live up to these values?

People entirely live up to the company's values (scores 8-10)

Some do and some don't (scores 5-7)

People do not live up to the company's values at all (scores 0-4)

Don’t knowCompany's values are understood internally (scores 8-10)

Some company values are understood internally (scores 5-7)

Company's values are not understood internally (scores 0-4)

Don’t know

People live up to the company's values (scores 8-10)

Some do and some don't (scores 5-7)

People do not live up to the company's values (scores 0-4)

Don’t know

MEAN SCORE

FOR EACH MARKET

ALL LATIN AM

ERICA USA

EUR

OPE

RUSSI

A 7.2%

7.96% 7.5%

6

.92%

7

.00%

MEAN SCORE

FOR EACH MARKET

ALL LATIN AM

ERICA USA

EUR

OPE

RUSSI

A 7.20 7.46 7.25

7.30

7.00

All

Europe

USA

LatinAmerica

Russia

49 45 6 1

42 51 8

40 60

63 38

50 29 14 7

All

Russia

USA

Europe

LatinAmerica

46

54

49 3 2

46

4343

40

43

60

51

14

6


neXTPAGE 15

For many members, reputation management and a consideration of corporate values lie at the very centre of most business activities. Indeed, several Council members refer to these values as a corporate ‘DNA’, guiding how they do business. Corporate values are authentic when they are an integral part of the business process, rather than something that is ‘bolted-on’ for show.

Members suggest that companies create authenticity by:

• Keeping things simple – inconsistency, irrelevance and complexity can be major barriers to implementation of corporate values and can detract from the good intentions behind them.

• Ongoing evaluation – for example, employee surveys are often used to understand the extent to which values drive workplace behaviour and empower employees to ‘live the brand’.

• Hiring based on values – in many Council members’ organisations, values are embedded in recruitment, training and broader HR activities, so recruitment takes into account values resonance as well as skill sets.

• Rewarding employees on living up to values – in some cases an explicit connection is made between performance against values and compensation or reward structures, to underline the importance placed on such behaviours.

• Leadership from the top – some members highlight the importance of senior management driving the values agenda, which adds credibility and maintains focus. Other members, particularly in Latin America, feel that a more inclusive approach is appropriate, inviting staff to participate and empowering them to contribute.

While Council members are generally positive about how corporate values are expressed within their organisations, there are some doubts that they are recognised externally. Crucially this can act as a drag on the reputational benefit that can be derived from a coherent set of corporate values. Only about a third of Council members are convinced that their values are recognised by external stakeholders, suggesting

only ABoUt A thirD of

CoUnCil MeMBers

Are ConvinCeD thAt their vAlUes Are reCogniseD By

externAl stAKeholDers


neXTPAGE 16

that more work is needed to demonstrate that values are genuine. Confidence that external stakeholders recognise the corporate values is strongest among European members, while those in Latin America and the US are less convinced.

Obstacles in achieving external recognition for corporate values range from companies simply not talking enough about their values, to inconsistent ways of describing what they mean and to the absence of a clear-cut message. Demonstrating how values translate into specific tangible examples seems to be the biggest challenge for members:

“The barrier is not giving people clear examples. I look at my colleagues and because they are all bought into it they assume everyone else is – and that is dangerous if they are not!”

%

Source: Ipsos MORI


Company's values are understood externally (scores 8-10)

Some company values are entirely understood externally (scores 5-7)

Company's values are not understood externally (scores 0-4)

Don’t know

MEAN SCORE

FOR EACH MARKET

ALL EUROPE RUSSIA

L

ATIN

AM

ERIC

A

USA

5.41%

4.92% 5.57%

6.2

5%

5.33%

Using a scale of 0 to 10 where 10 means ‘entirely’ and 0 means ‘not at all’, to what extent do you feel that … your company’s values are recognised externally

All

Europe

USA

LatinAmerica

Russia

31 49 19

4742

50 21

3842

29

21

10 70 10 10

11

1


neXTPAGE 17

insights AnD eviDenCe – getting the Most oUt of repUtAtion reseArChCommunications professionals recognise the enormous value that intangible assets – such as trust, goodwill and reputation – bring to the brands they represent. Of course, the problem with intangibles is that they are just that. Stubbornly defying easy categorisation, getting a grip on these desirable but elusive qualities will always be a challenge. Deriving insights from opinion research requires sophisticated analysis and no small amount of shrewd judgement. Moreover, technological advances have led to a vast increase in the opportunities for gathering data, so anyone wishing to capitalise on the potential they represent will need to act smart to stay ahead.

Nearly all Council members are involved in some sort of opinion research, and it is often seen as a crucial component of an effective communications strategy. As one member says:

“It is critically important. The starting point for any reputation management, in my opinion, should be understanding the views of others. You can’t do that from within the four walls of your office, you have to get an expert to go out there and talk to people both qualitatively and quantitatively to genuinely understand people’s opinions about you.”

A large proportion of members already use opinion research to help formulate how best to manage their reputation. Just under half rely on opinion research a great deal to inform their reputation management strategy and around four-fifths use it at least a fair amount. Across all regions, the vast majority of members use opinion research at least a fair amount, with those in Latin America most likely to use it a great deal, and those in Russia least likely to do so.

84% rely on opinion

reseArChto inforM their repUtAtion

MAnAgeMent strAtegy A greAt DeAl/fAir AMoUnt


neXTPAGE 18

The majority of Council members tend to conduct opinion research at least once a year. There are some clear differences here by region; reputation research appears to be more frequently conducted in the US and Europe and less frequently in Latin America and Russia, although even here it tends to be conducted at least once a year. Frequency depends on the types of methods being used, with, for example, some members conducting large-scale consumer polling once a year, augmented with quarterly “dips” which focus on a particular target group or demographic. The variety of tools being used for conducting research of this kind is impressive, and the changes brought about by widespread internet and social media usage is evident. Some members are involved in online sentiment tracking on a monthly or even weekly basis.

All

Europe

USA

LatinAmerica

Russia

48 36 12 4

5050

25 8 4

17 236

63

45

29 50 7 14

1

%

Source: Ipsos MORI


A fair amount

A great deal

Not at all

Don’t know / No opinion

To what extent do you use opinion research to develop and inform your reputation management?

Not very much

A GREAT DEAL FAIR AMOUNT

83100888179

%


neXTPAGE 19

Obviously, these methods are more suited to some businesses than to others, and there are around a fifth of Council members who currently carry out only a limited amount of opinion research, feeling that it is not relevant to their business model, or basing their decision-making purely on consumer metrics and purchasing data. However, even among those who do little research into their reputation at a corporate level, most are using alternative techniques to help understand their market position and inform decision-making.

Among those who do use opinion research, many describe it as a “thermometer” to indicate where their business currently stands, or as a “benchmark” by which to compare their performance and the performance of competitors. For some, the greatest benefit of research is seen as its independent and external objectivity.

“Research gives you feedback from people you interact with which helps take off the blinders. It’s not just OUR world.”

Other advantages of using opinion research reported by members include:

• Better understanding of competitors, enabling a company to identify opportunities. Opinion research can open up tactical possibilities as well as providing a strategic overview;

• Impartial feedback, enabling a company to monitor the impact of campaigns over time and justify investments;

• Building up knowledge about challenging areas, to respond to stakeholder concerns and address perceived weaknesses;

• Identifying the priorities of key audiences and testing the messages which resonate most, allowing communications to be tailored for maximum impact.

MAny DesCriBe opinion

reseArCh As A ‘therMoMeter’ to

inDiCAte Where their BUsiness CUrrently

stAnDs


neXTPAGE 20

Several Council members emphasise that the findings of opinion research should go beyond the communications department, and a crucial component of any research programme is ensuring that the insight prompts action within the business. Of course, opinion research can also be extremely useful evidence internally of the communication function’s progress and the challenges it faces, contributing to KPIs and discussions on budgets and resourcing.

“The research also enables you to have the conversation internally about looking from the outside in. It creates an evidence-based discussion at senior management level, rather than down at department level. So it is important insight and evidence for senior management, to enable them to understand what the upsides could be as well as the downsides.”

“What we are trying to do is make sure that reputation is considered a grown up function within the business – HR or Finance or the Supply Chain, they have charts, they have numbers. We are saying at Group, ‘We have an operating model which is evidence based, we have got the research to back up why our strategy is what it is, and then we have very clear measurements in place.’ We play that back to the business and say, ‘Look, this is where we are, and this is the impact’.”

“It brings some independent rigour to understanding the world in which you’re operating as a company, and done consistently over a considerable amount of time, it’s very valuable. Valuable in terms of shaping your strategy, and using it as part of the business case to guide investment, and also being able to track your progress and set targets, and also watch out for potential issues that are arising.”

The full Reputation Council report is available here.


severAl CoUnCil MeMBers eMphAsise

thAt the finDings of opinion

reseArCh shoUlD

go BeyonD

the CoMMs DepArtMent

http://www.ipsos-mori.com/researchpublications/publications/1529/Ipsos-MORI-Reputation-Council-Insight-Ideas.aspx



neXTPAGE 21

The Ipsos MORI Motoring Press study has been running in the UK for 35 years. The UK’s most influential motoring journalists are consulted each year on their views on motoring manufacturers, their press departments, the wider motoring industry in general and the challenges that the industry faces moving forward. The survey is a key barometer for many of the largest motoring manufacturers in gauging the perceptions of journalists towards their brand and wider industry issues.

Perhaps surprisingly, when asked which issues they consider to be the most important for the industry, the environment and ways that manufacturers can reduce their impact on the environment continues to be the most talked about issue among these expert journalists, and this has been so consistently over the last five years.

A green fUtUre? expert JoUrnAlists’ vieWs of the Motoring inDUstrythe UK Motoring inDUstry is UnDoUBteDly fACing toUgh tiMes. BUt Despite high profile fACtory ClosUres AnD the ContinUing nArrAtive of the gloBAl reCession thAt hAve DoMinAteD CoMMentAry on the inDUstry for the lAst feW yeArs, it is its environMentAl iMpACt thAt is highlighteD onCe AgAin As the Key issUe fACing the Motoring inDUstry, ACCorDing to speCiAlist JoUrnAlists Writing on the seCtor.

Source: Ipsos MORI

Issues facing the motoring industry - trends

10

20

30

40

50

60

70

80

2008 2009 2010 2011 2012

% mentioned

Q. What do you think are the main issues facing the motoring industry in the next few years..?

Base: All Motoring Journalists answering each wave (68-88)

Environmental issues

Economic issues

Fuel economy/efficiency

Development of alternative fuel vehicles Car sales down/less demand


neXTPAGE 22

Of course, there is an element of overlap to the top mentioned issues; increasing fuel efficiency for example will likely lead to lower fuel costs for the consumer as well as having a positive impact on the environment. However, it is interesting that journalists continue to frame the main issue facing the industry as an environmental, rather than an economic one. Even Ford’s announcement in October 2012 of the decision to shed its vehicle production in the UK, which occurred at the very beginning of the fieldwork period for the study, did not lead to mentions of the economy outstripping the need for the industry to innovate and reduce its impact on the environment.

Clearly then, environmental factors, including the development of lighter and more fuel-efficient vehicles, achieving lower emissions and the emergence of alternative fuels, will continue to be important for motoring manufacturers looking to build a competitive advantage and a good reputation among both journalists and consumers. Many expert journalists on this year’s study identified these same issues as some of the major challenges facing the industry.

“Fuel efficiency, the cost of manufacturing and of course the other major issue is new technology such as electric cars, hybrid cars, fuel cells and biodiesel; whether that will ever catch on in the UK, whether CNG (Compressed Natural Gas) will make a comeback? Is there a viable alternative to the internal combustion engine as we know it?”

Indeed, there is evidence that real progress is being made by manufacturers in this area with many now producing vehicles that are lighter, more fuel-efficient, and with lower harmful emissions; some manufacturers even have their own fuel economy/alternative fuel sub-brands, such as Kia’s EcoDynamics and the BMW i. A further indication that the industry is moving forward in this area is the fact that in percentage terms, alternative fuels has seen the largest increase in use of any fuel type over the last year, up 15% in the UK, compared to 3% for fuel in general (although its use is still dwarfed in volume terms by that of diesel and petrol).

JoUrnAlists ContinUe to

frAMe the MAin issUe

fACing the inDUstry As An environMentAl rAther thAn

An eConoMiC one


neXTPAGE 23

So with the environment continuing to be seen as such an important issue by both manufacturers and journalists, which companies are viewed as the best by journalists? It is BMW that is clearly seen to be ahead in this area, with three-quarters of journalists considering it to be a leader on environmental responsibility. BMW, along with Toyota and Volkswagen, are seen to be a step ahead of other brands on this issue in the eyes of the UK’s motoring press.

Journalists clearly link environmental responsibility and manufacturers’ ability to innovate in new areas of technology. Only through lighter, more fuel-efficient vehicles will the motoring industry be able to significantly reduce its impact on the environment. As such, journalists identify the same brands that are considered best on the environment as also being ahead in the technology race. Again, BMW has a clear lead on technology in the eyes of the journalists surveyed, with half identifying them as industry leaders. As one journalist put it:

“[BMW] seem to have all the bases covered, launching a sub-brand to cater for the electric market, but also, at the same time, their diesel engines, and the way they have hammered down emissions for all manner of products,

Source: Ipsos MORI

Source: Ipsos MORI

10

20

30

40

50

60

70

80

2008 2009 2010 2011 2012

% mentioned

Q. What do you think are the main issues facing the motoring industry in the next few years?..

Base: All Motoring Journalists answering each wave (68-88)

Environmental issues

Economic issues

Development of alternative fuel vehiclesCar sales down/less demand

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Total Diesel Petrol

2011 2012

Adopting New Fuels

0

5,000

10,000

15,000

20,000

AFV

15.3%

1.5% 4.8%

3.3%

In the UK, the year-to-date growth is evident across all fuel types, notably alternatively-fuelled vehicles (AFV) on a percentage basis up 15.3%.

(Source: Society of Motor Manufacturers and Traders (SMMT) Aug 2012)


neXTPAGE 24

from 3 Series to 5 Series, is amazing. They are also developing Google maps and the SatNav and integration of iPhones and iPads.”

As the above quote illustrates, while it is the environmental aspects of technological advancement that tend to be the initial focus of journalists’ attention, there are many other areas of technology that manufacturers are focusing on in the industry at the moment. The increasingly tech savvy consumer is now more likely to look for built-in navigation and touchscreen technology in their cars. As such, 4G technology, voice recognition and full compatibility with smartphones and tablets are all areas that manufacturers are looking at, to improve the customer experience.

eConoMiC oUtlooK for the inDUstryPositively for the industry, journalists are now more inclined to forecast a positive economic outlook for the future than in 2011, with a quarter now saying that economic prospects will improve in the coming year, compared to only 5% who said so in 2011. Even so opinion is divided, with as many predicting economic conditions in the industry will get worse as saying they will get better.

opinion is DiviDeD,

With As MAny preDiCting eConoMiC ConDitions in the inDUstry Will get

Worse As sAying they Will get Better

Source: Ipsos MORI

Source: Ipsos MORI

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Total Diesel Petrol

2011 2012

Adopting New Fuels

0

5,000

10,000

15,000

20,000

AFV

15.3%

1.5%

1

63 3.3%

In the UK, the year-to-date growth is evident across all fuel types, notably alternatively-fuelled vehicles (AFV) on a percentage basis up 15.3%.

(Source: Society of Motor Manufacturers and Traders (SMMT) Aug 2012)

Views on the economic future of the industry are balanced this year.

Views on the economic future of the industry are balanced this year.

30

46

27 275

% Improve

% Don’t know

% Get worse

% Stay the same

Q. Do you think that the economic condition of the motor industry will improve, stay the same, or get worse over the next 12 months?

Base: All Motoring Journalists 2012 (74); 2011 (76)

27%IMPROVE

27%GET WORSE

2012 2011


neXTPAGE 25

So which brands are best positioned to take advantage of this potential upturn in fortune? Despite BMW, VW and Toyota being seen as leaders on environmental and technological excellence in the industry, they do not appear at the top when journalists are asked which brands are best placed to grow their market share in the next 2-3 years. More than half of the expert journalists identify Kia, and a third Hyundai as the best placed to grow their market share. This suggests that in the minds of journalists, while the environment is the most important top of mind issue facing the industry, it is still the more economical motoring brands from Asia that are, at least for the short term, best placed to grow their market share in the UK. These results are also an indicator of both Kia and Hyundai’s relatively small share of the marketplace and thus their potential for growth, compared to more established brands. This also suggests that, while the environment remains an important issue in the eyes of journalists, perhaps they think we have not yet reached the tipping point where this will translate into consumer purchasing decisions and lead to significant monetary gains for the manufacturers that lead in this area.

ConsUMer vieWs of the inDUstryWhile industry journalists are a little more positive this year about the prospects for the motoring sector, on balance British consumers are not confident about the strength of the UK motor industry. In research for the Design Council, the motor sector is considered the industry that is weakest in the UK compared to other countries, from the 12 industries measured.

on BAlAnCe, British ConsUMers Are not

ConfiDent ABoUt the

strength of the UK

Motor inDUstry

Source: Ipsos MORI

Views on the success of the Olympics

81

70

61

60

57

56

50

64

55

36

56

45

53

35

4

9

12

8

16

12

6

9

7

18

7

10

7

18

The UK did a good job atorganising the Olympics

The Olympics have shown the UKto be a confident, multi-ethnic society

The Olympics have made memore likely to visit the UK

The Olympics opening ceremony reflectedthe best of a traditional and modern UK

The UK should be more confidentabout its global standing in the future

The Olympics will leave a lastingpositive impact on UK society

The Olympics have made the UK moreattractive to me as a place to study or do business

% Great Britain Agree % Non-GB Agree % Great Britain Disagree % Non-GB Disagree

Base: 1.003 British adults, 25-31 May 2012Source: Ipsos MORI / Design Council

Fieldwork dates: 5 – 19 November 2012

Luxu

ry g

ood

s

Film

Con

stru

ctio

n

Tele

visi

on

Tour

ist

attr

actio

n

Fash

ion

Arc

hite

ctur

e

Ban

king

/fina

nce

Sp

ort

Pha

rmac

eutic

als

Ret

ail

25 23 12 9 8 8 7 3

-4 -5 -8 -22

BRITISH PUBLIC’S ASSESSMENT OF NET STRENGTH OFAREAS WHERE BRITAIN IS STRONGEST/WEAKEST

COMPARED WITH OTHER COUNTRIES.

Mot

or

ind

ustr

y


neXTPAGE 26

There are also worrying trends for the industry among younger consumers. In the UK, according to the Driving Standards Agency, almost 250,000 fewer 17-25 year olds took their driving tests in 2012 than in 2005, an 18% drop. Also, a 2011 Zipcar study in America found that 55% of Americans aged 18 – 34 agreed with the statement “I have consciously made an effort to reduce how much I drive, and instead take public transportation, bike/walk or carpool when possible”, citing the cost of car ownership, environmental concerns and the ease of connecting with friends online as reasons for reducing their driving.

The challenges facing the industry are summed up nicely by a quote from Toyota’s US President Jim Lentz, made at the Automotive News World Congress:

“We have to face the growing reality that today young people don’t seem to be as interested in cars as previous generations. Many young people care more about buying the latest smartphone or gaming console than getting their drivers licence”.

The industry clearly faces some difficult challenges in the coming years. As demonstrated by the views of expert journalists in the UK, key to addressing these challenges and recovering consumer confidence and spending will be the way in which manufacturers, through technological advancement and developments, approach environmental issues and create a product that has relevance to modern day consumer demands.


“MAny yoUng

people CAre More

ABoUt BUying the lAtest sMArtphone thAn getting

their Drivers liCenCe ”



neXTPAGE 27

Th inking RepuTAT ion I P SOS MOR I

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Documents

ThinkingRepuTATion · Despite the tough times facing the industry, Matt Knight finds that environmental impact continues to be the most talked about issue among specialist motoring