Reputations On the LineReputations On the LineCanadian Public Relations Society Conference

Vancouver, BC, CanadaTuesday, June 9, 2009

Your ModeratorYour Moderator

Perry GoldsmithPerry GoldsmithPresident

Contemporary Communications Ltd.

Reputations On the Line – CPRS Conference Vancouver 2009

“It takes 20 years to build a reputation and five minutes to ruin itand five minutes to ruin it.

If you think about that, you’ll dohi diff l ”things differently.”

‐Warren Buffet

Reputations On the Line – CPRS Conference Vancouver 2009

Your PanelYour Panel

• Kyle BraidKyle BraidVice‐President, Ipsos Reid Public Affairs

• Shawn Hall• Shawn HallSenior Communications Manager, TELUS

• Scott McCloyCommunications Director, WorkSafeBC

Reputations On the Line – CPRS Conference Vancouver 2009

Kyle Braid

Vice PresidentVice‐President

Ipsos Reid Public Affairs

Reputations On the Line – CPRS Conference Vancouver 2009

Reputation Management for p gBusiness Success

Reputations On the Line – CPRS Conference Vancouver 2009

Why Focus on Reputation?Why Focus on Reputation?

• Managing reputation is a core part of the business.Managing reputation is a core part of the business.– Consumers’ desire to do business with you.

– Employees’ pride in working for you.

– Investors’ confidence to put their money with you.

– Legislators’ inclination to help or hinder you.

– Journalists’ disposition to report positively or negatively about you.

NGOs’ propensity to work with or against you– NGOs  propensity to work with or against you.

Reputations On the Line – CPRS Conference Vancouver 2009

Changing Definition of ReputationChanging Definition of Reputation• Traditionally, reputation has been driven by perceptions of:

– What your organization does– How and how well you do it

• Stakeholders are increasingly basing their perceptions on:– The values your organization stands for– How well your organizations’ actions support those values– Your organizations’ position on issues that affect the broader community

Opportunities forEnvironment Health Privacy Diversity Opportunities for the underserved

Reputations On the Line – CPRS Conference Vancouver 2009

Shift in FocusShift in Focus• Traditional view of reputation as vague concept of ambiguous 

valuevalue.– Primary value is as a hedge against potential negative attention.– Relevant to companies in heavily regulated industries (e.g. natural 

resources)resources).

• But relevance and importance of reputation to core business h h dhas changed.

• Offers tangible, short‐term benefits to the bottom line:g ,– Increasing the effectiveness and lowering the costs of marketing– Increasing customers’ preference for your products

Reputations On the Line – CPRS Conference Vancouver 2009

Traditional View of Reputation

Future value oriented: building equity for future crises

Extractive industries

future crises

MonopoliesGov’t supported

Backward looking (tracking & comparing)p g)Elite targets: gov’t, media, biz/finance

Corporate Reputation PracticePresent Value of Reputation

Reputation isn’t just something that you store

Reputation can help you improve your marketing efficiency and thereforeaway for a rainy day. efficiency and therefore sell products/services more efficiently.

We take a much more sophisticated approach toWe take a much more sophisticated approach to Reputation and Risk than our competitors.

Moving from DefenceMoving from Defence

To OffenceTo OffenceTo OffenceTo Offence

A Model of ReputationAdvocates endorse your reputation and help to pull others up the reputation pyramid

Trust is built by consistently delivering on

In general, familiarity breeds favorability

y y gyour promises

Familiarity is the bedrock of reputation

g , y y

Without awareness there is no reputation

p

Building a strong reputation helps an organization perform more effectively in the present AND builds a

reservoir of goodwill to draw upon in future crisesreservoir of goodwill to draw upon in future crises

Reputations On the Line – CPRS Conference Vancouver 2009

Reputation Drives Marketing Effi iEfficiency

Ad

MARKETINGEFFICIENCY

ββ = 0.413= 0.413

ββ = 0.186= 0.186

Advocacy

ββ 0 860 86

ββ = 0.11= 0.11 Individuals who trustIndividuals who trustan organizationan organization

Individuals who trustIndividuals who trustan organizationan organizationan organization an organization

are more likely to…are more likely to…an organization an organization

are more likely to…are more likely to…

Believe marketing

communications

Feel good aboutusing it

Pay more for a company’s

products/servicescommunications

Reputations On the Line – CPRS Conference Vancouver 2009

Marketing Efficiency Proportion of Marketing Efficiency

Explained by Reputation

Explained Variance (R2) of Marketing Efficiency

Reputations On the Line – CPRS Conference Vancouver 2009

Building Reputation Creates a Vi t C lVirtuous Cycle

Advertising

Trust encourages consumers to Advertising

builds trust and drives consumption

consumers to buy products and believe advertising

Product useProduct use builds trust and willingness to try other brands

Reputations On the Line – CPRS Conference Vancouver 2009

Trust Impact Changes the Messagep g gReputational messages (corporate social responsibility) can be used to increase brand equity AND to improve financial performance

VSVS

Traditional CSR

Reputations On the Line – CPRS Conference Vancouver 2009

Trust Impact Changes the MessageCSR works better than traditional messaging in all countries to improve equity flow and brand preference

CSR is more effective in Developed countriesCS s o e e ect e e e oped cou t es

Increase Brand EquityAverage Change in Equity Flow

Improve Financial PerformanceIncrease in Preference

Source: ESOMAR case study written by Ipsos and Coca-Cola

Our comprehensive model tells you how to getOur comprehensive model tells you how to get to where you want to be, not just where you are

Current image – performance on standard image metrics (Favorability

Your foundation (where you are): Your foundation (where you are):

Marketing efficiency – modeling reputation’s effect on the credibility

Add to it with (where you are going):Add to it with (where you are going):

standard image metrics (Favorability, Trust, etc)

Drivers of image – what matters to your image

reputation s effect on the credibility and appeal of your messages, products or services

Social context – regulatory

Relative measures – trend over time and relative to competitors

environment, social trends, news cycle, etc

Values and policy context –stakeholder perceptions preferencesstakeholder perceptions, preferences and values

Communications – how to improve your reputation through effective messages and message placement

Reputations On the Line – CPRS Conference Vancouver 2009

Clients Benefiting From the Approach

Reputations On the Line – CPRS Conference Vancouver 2009

Ipsos ProductsIpsos Products

Global @dvisor (22 countries)I-Rep American Public and I-Rep Canada

Reputation Pyramid

BenchmarkA l i

Image MetricsReputational Marketing EfficiencyOmnibus PossibilitiesAnalysis Omnibus Possibilities

Custom ResearchReputation, Messaging, and Crisis ManagementCrisis ManagementStakeholdersConsumersOver 40 Countries

Reputations On the Line – CPRS Conference Vancouver 2009

Key FindingsPresent Value of Reputation:

I t Important Work Increase Trust LeverageInvest NowMakes the

Important New PartIs an important new

Work SmarterA company which lacks

Increase Trust

The end goal of reputation

Leverage ReputationReputation orientedcase for

investing in, and

i

important new part of the answer to “why should

which lacks a good reputation will have to

reputation management remains the same – help

oriented messaging can be more effective thanusing,

reputation NOW.

why should we invest in reputation?”

will have to work harder to get its point across.

same help companies and organizations to improve their

effective than traditional product/service p p

level of Trust. messaging

Reputations On the Line – CPRS Conference Vancouver 2009

Reputations On the Line – CPRS Conference Vancouver 2009

Shawn Hall

Senior Communications Manager

TELUS

Reputations On the Line – CPRS Conference Vancouver 2009

ReputationReputation

• Influences how people buy in a commoditizedInfluences how people buy in a commoditized market

• Is based primarily on an individual’s• Is based primarily on an individual s perception of the quality of service and productsproducts

• Is unique to an organization

• Can only be understood if measured, and uncoloured by Kool‐Aid

Reputations On the Line – CPRS Conference Vancouver 2009

Public relations practitioners cannot directly affect the quality of service 

and productsp

We do play three key roles, however:

• Responding to stakeholders and media

• Forming relationships with media who impactForming relationships with media who impact our reputation

• Influencing the organization’s decisions• Influencing the organization s decisions

Reputations On the Line – CPRS Conference Vancouver 2009

Scott McCloy

Communications Director

WorkSafeBCWorkSafeBC

Reputations On the Line – CPRS Conference Vancouver 2009

Reputations On the Line – CPRS Conference Vancouver 2009

Who we areWho we are

• WorkSafeBC is an independent provincial statutoryWorkSafeBC is an independent provincial statutory agency

• We serve 2.3 million workers and more than 200,000 registered employersg p y

• We are the regulator and promoter of workplace health and safety and the sole provider of workers’ compensation coverage in BC

Reputations On the Line – CPRS Conference Vancouver 2009

What we doWhat we do

• Promote the prevention of workplace injury, illness, p p j yand disease 

• Rehabilitate those who are injured and provide safe• Rehabilitate those who are injured and provide safe, timely return to work 

• Provide fair compensation to replace workers' loss of wages while recovering from injuries

• Ensure sound financial management for a viable workers' compensation systemp y

Reputations On the Line – CPRS Conference Vancouver 2009

Where we were

90%

60%

70%

80%

40%

50%

60%

20%

30%

0%

10%

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

WorkSafeBC Reputation Index

Reputations On the Line – CPRS Conference Vancouver 2009

Where we are

90% 85%

60%70%80%

2009 Target =83%

40%50%60%

10%20%30%

0%10%

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Q1 200

9

WorkSafeBC Reputation Index

Reputations On the Line – CPRS Conference Vancouver 2009

Where we wereWhere we were

80%90%

60%70%80%

40%50% Positive

BalancedNegative

10%20%30%

0%10%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

WorkSafeBC Media Relations Outputs

Reputations On the Line – CPRS Conference Vancouver 2009

Where we areWhere we are

80%90%

60%70%80%

i i

30%40%50%

Positive

Balanced

Negative

10%20%30%

0%199

5199

6199

7199

8199

9200

0200

1200

2200

3200

4200

5200

6200

7200

8

WorkSafeBC Media Relations Outputs

Reputations On the Line – CPRS Conference Vancouver 2009

How did we get here?

On the down side…

• Attitudinal Survey 1996– few perceptions of core mandate(s)– described as bureaucratic, inefficient, fiscally irresponsible, lacking in leadershipleadership

– most perceptions from perceived status as a government monopoly vs. actual experience

Reputations On the Line – CPRS Conference Vancouver 2009

How did we get here?

On the up side…

– viewed as having an important role as insurance id d k l d / f

• Attitudinal Survey 1996

provider and workplace educator/enforcer

– emphasis should be on prevention 

b l h h f f ff ff– believe that sponsorship of safety efforts effects positive change

support to take on higher profile role in safety– support to take on higher profile role in safety

Reputations On the Line – CPRS Conference Vancouver 2009

How did we get here?

Strategy…• 1996

– Change attitudes in the workplace making unsafe work practices unacceptable

• 2006• 2006– Societal and cultural change is essential in creating a culture 

of health and safety in the workplace and WorkSafeBC plays a principal role in effecting this change

– as champion of workplace health and safety, WorkSafeBC must and will be the catalyst to change societal attitudes so that injuries are no longer regarded as an acceptable part of the cost of production in any industry  p y y

Reputations On the Line – CPRS Conference Vancouver 2009

ReputationReputation

Positive reputation results when our Positive reputation results when our 

institutional values and behaviours are institutional values and behaviours are 

closely aligned with, and seen to be closely aligned with, and seen to be y gy g

closely aligned with, our publics’ closely aligned with, our publics’ 

values and expectationsvalues and expectationsvalues and expectationsvalues and expectations

Reputations On the Line – CPRS Conference Vancouver 2009

What is reputation based on?What is reputation based on?

Corporate ReputationCorporate ReputationCorporate ReputationCorporate ReputationCorporate ReputationCorporate ReputationCorporate ReputationCorporate Reputation

ValuesValuesValuesValues BeliefsBeliefsBeliefsBeliefsValuesValuesValuesValues BeliefsBeliefsBeliefsBeliefs

Reputations On the Line – CPRS Conference Vancouver 2009

Public’s core valuesPublic s core values

H lth d f t• Health and safety

• Preservation of property values

• Community pride

• Peace of mind• Peace of mind

• Economic security

• Absence of conflict

Reputations On the Line – CPRS Conference Vancouver 2009

What reputation means to usWhat reputation means to us

• Reputation = Public ConfidenceReputation = Public Confidence

• Increased public confidence enables us to:D li h lth d f t– Deliver our health and safety message more effectively

Build lasting partnerships with our stakeholders– Build lasting partnerships with our stakeholders

– Lower the injury rate in BC

Reputations On the Line – CPRS Conference Vancouver 2009

Reputation and valuesReputation and values

• Reputation linked to corporate values – statedReputation linked to corporate values  stated and demonstrated every day  

• “What is the right thing to do?”• What is the right thing to do?

• Our values:– Open, transparent, accountable

– Honest, ethical, respectful, compassionate

– Work to make a difference one human being at a time

Reputations On the Line – CPRS Conference Vancouver 2009

Case study: h i iChanging a reputation

• Our reputation impacts our ability to change behavioursbehaviours

• An example:• An example:

– Pay Before You Pump, February 2008

Reputations On the Line – CPRS Conference Vancouver 2009

Media coverage resultsMedia coverage results

Grant's Law Media Coverage Summary 2008 WorkSafeBC

Tone of Coverage

Balanced

Posit ive

Tot al # St or ies

0 20 40 60 80 100 120 140 160 180 200

Negat ive

Balanced

N umbe r of S t or i e s

Reputations On the Line – CPRS Conference Vancouver 2009

What made the differenceWhat made the difference

REPUTATIONREPUTATION

PUBLIC CONFIDENCE

ADDRESS OUR PUBLICS’ CORE VALUESCORE VALUES

Reputations On the Line – CPRS Conference Vancouver 2009

Where we are

90% 85%

60%70%80%

2009 Target =83%

40%50%60%

10%20%30%

0%10%

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Q1 200

9

WorkSafeBC Reputation Index

Reputations On the Line – CPRS Conference Vancouver 2009

How do we stay here?WorkSafeBC

BrandWorkSafeBCReputation

Social Marketing

Media Relations &

I M tMarketing Issues Mgmt.

Focused, honest, ethical respectful

Commitment to

ethical, respectful, compassionate

Commitment toopenness, transparency,

accountability, trustworthinessWorkSafeBC Values

Working to Make a Difference CommunicationsOperations

Questions?Questions?

Reputations On the Line – CPRS Conference Vancouver 2009

Thank you!Thank you!

Reputations On the Line – CPRS Conference Vancouver 2009