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)
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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) • Case Histories • Closing Thoughts
3 The Basics
Bomb 1. A good reputation is better than a poor reputation Copious research tells us that companieswith good reputations reap more rewards or You decide!
2. Reputation vs. Brand Definitions
Brand Equity • Deals with: • One Constituency: Customers/Prospects • One Behavior: BUY But good products are not enough -- e.g. Nike
And in a crisis: • The Brand does not respond The Corporation does
3. Corporate Reputation • Deals with: • Multiple Constituencies • Multiple Behaviors A+!
Corporate Reputation Involves Multiple Constituencies Influencers Government Work Force Investors Corporation Media General Public BusinessCommunity Customers
4. Reputation is multi-dimensional KNOWLEDGE EVALUATIONS BEHAVIOR • Overall Impressions • Strengths/Weaknesses • Characteristics • Personality traits • Buy Stock • Buy Products/Services • Believe Story • Recommend Employment • Recommend Joint Venture • Trusted Sources of Info • Awareness • Familiarity • Identity
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
6 5 7 4 1 3 2 The Seven Steps of Reputation Measurement (and How Not to Slip on Them)
1. Clearly define objectives • Measure all components of reputation • Consistent metrics across all stakeholder groups • Provide communications guidance • Establish benchmarks
2. Clearly define constituencies • Definable Universe Findable Reachable Replicable/Trackable
2. Clearly define constituencies Influencers Government Work Force Investors Corporation Media General Public BusinessCommunity Customers
2. Clearly define constituencies General Public Citizens Social networks Affluent Citizens Ethnic Groups Host/Plant Communities
2. Clearly define constituencies Investors Securities Analysts Portfolio Managers Retail Brokers Individual Shareholders Individual Investors
2. Clearly define constituencies Customers/Prospects
2. Clearly define constituencies Business Community Distributors Suppliers Business Peers
2. Clearly define constituencies Government Legislators • International • Federal • State • Local Regulators • International • Federal • State • Local
2. Clearly define constituencies Influencers Activists Bloggers Industry Consultants
2. Clearly define constituencies Work Force Employees Prospective Employees Academia Retirees
2. Clearly define constituencies Media Business Media Industry Media General Media
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.
2. Clearly define constituencies • Financial community not monolithic • Sometimes surrogates can be used for: • Customers/Prospects • Government • “Opinion Leaders” • Employees • CEOs
3. Clear questionnaires • Logic • Do not overtax respondents • Fit interview mode • Personal • Telephone • Mail • Online
3. Clear questionnaires Rate 5 brands of oven cleaners on 59 attributes, rotated to avoid position bias
3. Clear questionnaires • No Games!
Questionnaire Logic KNOWLEDGE EVALUATIONS BEHAVIOR • Overall Impressions • Strengths/Weaknesses • Characteristics • Personality traits • Buy Stock • Buy Products/Services • Believe Story • Recommend Employment • Recommend Joint Venture • Trusted Sources of Info • Awareness • Familiarity • Identity
4. The right interviewers • Not all respondents are created equal • Not all interviewers are created equal • Matching respondents to interviewers is critical
5. Clear analysis • Tell a story The logic of the questionnaire creates the logic of the report/presentation Bottom line: what should company do differently based on results?
6. Clear reporting • Don’t pull punches • Don’t rub nose in bad news • Sometimes euphemisms are necessary
ab+cd = 73 x mn-op xy 6. Clear reporting
6. Clear reporting • 13 Of course, heteroskedasticity is a matter of degree. My favorite footnote...
7. Tracking • How often? Continuous tracking? When to put tracking studies to sleep?
A Good Reputation = High Scores on all Dimensions Favorability (overall impression) Low High Falling Stars Blue Chips High Familiarity Unknown & Unloved Low Meteors or Cults
A Good Reputation = High Scores on all Dimensions Favorability (overall impression) Low High Ford Chrysler GM Disney Microsoft J&J High Familiarity Pharma, Financial Services Low USAA
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
Closing Thoughts • Corporate Reputation Matters • It leads to behaviors that will help you achieve your strategic goals
Closing Thoughts • To be managed, Corporate Reputation must be measured • Most CEOs agree that Corporate Reputation is critical • Few actually measure Corporate Reputation
Closing Thoughts • Winning Companies have the corporate will to: • Communicate • Use multiple channels • Measure • Adjust
Thank You. John Gilfeather John.Gilfeather@TNS-Global.com