reputation management and africa · media relations strategy (traditional & digital)...
TRANSCRIPT
REPUTATION MANAGEMENT – AND
AFRICA
October 2014
TODAY’S ROADMAP
• What is reputation and why do you have to manage it?
• Who is doing it well?
• How do you build reputation?
• What impacts reputation in Africa?
• A few last thoughts …
Corporate purpose is not created in response to crisis, it needs to be in place before crisis hits
TRUST IS LOW “There is more need than ever for companies to explain why they are here, why they are doing things, and explain the rationale and context” (Statoil) IMD/B-M Corporate Purpose Study, 2013
Corporate purpose is not created in response to crisis, it needs to be in place before crisis hits. “Corporate purpose gave us a story to tell” (Ford) IMD\B-M Corporate Purpose Study, 2013
WHAT IS REPUTATION?
REPUTATION IS …
• How positively, or negatively, an
organisation is perceived by its key stakeholders
• REPUTATION SPRINGS FROM FEELINGS BASED ON PERCEPTIONS
THE KEY DRIVERS OF REPUTATION
BECAUSE IT DRIVES SUPPORT AND BUSINESS RESULTS
• Customers buying your products
• Policy makers and regulators granting you licences to operate
• Financial community investing in you
• Media writing supportive articles about you
• Employees delivering on your strategy
WHY DO COMPANIES NEED TO MANAGE REPUTATION?
HOW POWERFUL ARE PERCEPTIONS?
PRODUCT Perceptions of high quality products and innovation drive only 40% of people’s willingness to buy product
ENTERPRISE Perceptions of company (leadership, citizenship, governance, financial performance, employment) drives 60% of people’s willingness to buy product
40%
I would buy or recommend the
product
I would say something
positive about the company
I would trust them to do the
right thing
I would welcome them into the
local community
I would work for them
I would invest in them
IT IS A CUSHION AGAINST CRISES
SO WHY DOES REPUTATION MATTER?
Could Malaysia Airlines survive the missing MH370 fiasco? And then came
MH17 …
RANKING COMPANY
NO 1
NO 2
NO 5
NO 6
NO 7
NO 8
NO 9
NO 10
TO
P 1
0 2
014
WHO IS DOING IT WELL?
Vodacom 74.17
Old Mutual 69.94
Pick 'n Pay 69.38
Sasol 69.05
MTN 68.93
Sanlam 68.89
Standard Bank 68.50
ABSA 66.22
Nedbank 65.42
Shoprite 64.01
SABMiller 59.97
Bidvest 59.38
Barloworld 53.55
Imperial Holdings 53.02
Anglo American 51.90
AngloGold Ashanti 50.41
BHP Billiton 49.90
British American Tobacco 48.98
Massmart 48.29
Goldfields 48.18
Innovation is increasingly
important
Financial and telecommunications rated higher than their global counterparts
Governance is key in mining
WHO IS DOING IT WELL?
HOW DO YOU GO ABOUT BUILDING AND MANAGING REPUTATION?
The corporate brand is
front and centre of
corporate strategy as a
major differentiator and
asset
OUR APPROACH TO REPUTATION MANAGEMENT
Corporate Reputation
Corporate Brand Strategy
Internal Communications Strategy
External Communications Strategy
Stakeholder Engagement Strategy
Media Relations Strategy (Traditional & Digital)
Activation, Event Management & Sponsorship
IT MUST BE HOLISTIC
OUR APPROACH TO REPUTATION MANAGEMENT
Manage
(influence)
internal and
external
perceptions of
the
organisation’s
brand
Understand
the
implications of
the
increasingly
global outlook
of
stakeholders
Monitor and
address
increasing
governance
pressures and
ensure
compliance
Build internal
and external
trust and faith
in the brand
and its
sustainable
future
Protect the
organisation’s
reputation
from damage
PROTECT
REPUTATION
MONITOR
PRESSURES
STAKEHOLDER
OUTLOOK
BUILD
TRUST&FAITH MANAGE
PERCEPTIONS
OUR APPROACH TO REPUTATION MANAGEMENT
STAKEHOLDER
PERCEPTIONS
STAKEHOLDER
RESEARCH
ASSESS
REPUTATION RISK
STAKEHOLDER
ENGAGEMENT
ISSUE
MANAGEMENT
Survey stakeholder
audiences to understand
current reputation which
will influence
engagement and brand
communications strategy
Compare stakeholder
perceptions with actual
outputs. This will assist
strategy planning and
identify reputation gaps
Assess reputation risks
linked to major policy
changes,
projects/initiatives to be
mitigated/eliminated
prior
to implementation
Stakeholder
engagement strategy
based on mutual
benefit
. Issues of direct
relevance to the
organisation’s
reputation need to be
proactively planned for
and monitored
HOW WE DO IT
WHAT IMPACTS
REPUTATION IN AFRICA?
RATE OF INVESTMENT IS HIGHER IN AFRICA THAN IN ANY OTHER
DEVELOPING REGION
1 BETTER GOVERNANCE &
REGULATORY ENVIRONMENT
2 POLITICAL STABILITY
3 DEMAND FOR RESOURCES
4 EXPANDING LABOUR FORCE 5 URBANISATION
6 EMERGING MIDDLE CLASS – NEW CONSUMER
BASE
BETTER GOVERNANCE & REGULATORY ENVIRONMENTS
POLITICAL STABILITY
DEMAND FOR RESOURCES
EXPANDING LABOUR FORCE
URBANISATION
McKinsey forecasts a 35% rise in African consumer spending power through to 2015.
AN EMERGING MIDDLE CLASS
The mobile phone is changing lives in Africa dramatically new mobile phone subscribers in the past decade – more than the total US population
316 MILLION
By 2014, 56% of all Africans will own a mobile phone - more than 600 million people By 2014, Africa will have one of the highest mobile phone usage rates in the world
SURVIVING THE MEDIA
THE POWER OF PARTNERSHIPS
I CANNOT HELP TO BE IMPRESSED BY THE CONTINENT’S RESILIENCE … IN THE FACE OF THE MOST SERIOUS
DISTURBANCES SEEN BY THE WORLD’S ECONOMY SINCE THE GREAT DEPRESSION.
Christine Lagarde, January 2013
A FEW LAST THOUGHTS …
75% of companies are not equipped to manage an unfamiliar crisis. Taking the worst scenario,
95% are unprepared. Burson-Marsteller Global Survey 2009
“It t akes 20 years t o b u ild a
rep ut at ion and f ive m inut es
t o ru in it .”
Warren Buf f et t
You get the reputation you deserve. If you don’t manage your reputation, others will do it for you.
To find out more about Burson-Marsteller’s training programmes, please contact Robyn de Villiers on:
Tel: +27 11 480 8557
Email: [email protected]