The Agenda

• Importance of corporate reputation for realization of business strategy

• The role of CEO

• Conclusions and Q&A

“In today’s world, where ideas are increasingly displacing the physical in the production of economic value, competition for REPUTATION becomes a significant driving force, propelling our economy forward.”

Alan Greenspan, former chairman, Federal Reserve

WHY DOES IT MATTER?

BUILDING AND SAFEGUARDINGCORPORATE REPUTATION

• 60% OF MARKET VALUE ATTRIBUTABLE TO REPUTATION (Weber Shandwick, 2006)

• 1% REPUTATION INCREASE RESULTS IN 3% INCREASE OF MARKET VALUE (Weber Shandwick, 2006)

• INVESTORS ARE PREPARED TO PAY A 12-30% PRICE PREMIUM TO A GOOD GOVERNANCE (McKinsey, 2002)

• COMPANY CAN LOSE IN EXCESS OF 30% OF ITS SHARE VALUE AS A RESULT OF A HIGHLY PUBLICIZED CRISIS (Weber Shandwick, 2007)

• 73% OF SURVEYED MBA STUDENTS SAID THAT CORPORATE REPUTATION IS EITHER AN "EXTREMELY" OR "VERY" IMPORTANT FACTOR WHEN DECIDING WHERE THEY WILL WORK (Hill and Knowlton, 2007)

WHAT IS IT ALL ABOUT?C R

COMMUNICATE WHAT

YOU STAND FOR, TO

ALL OF YOUR

STAKEHOLDERS!

IT’S ABOUT BRINGINGYOUR VALUES TO LIFE

COMMUNICATION TO REPUTATION

RANKING OF COMPANIES CORPORATE COMMUNICATION SPENDING (US$ million)

TOP 100 $32

Second 100 $23

Third 100 $13

Fourth 100 $5

Bottom 76 $4

* Fortune 500 ‘Most Admired Companies’ listing

IT MEANS MANAGING…

… PERCEPTIONS

• How do we want to be seen?• How do we aim to be positioned in the mind of

our stakeholders?• Do they even know we exist?

IT MEANS MANAGING…

… UNDERSTANDING

• Are we being clear?• Do they understand

our values?

IT MEANS MANAGING…

… RELATIONS

• How do they relate to our values?• Does it work for them?• What kind of behavior we seek for?

BENEFITSOF A GOOD REPUTATION

• Increased CUSTOMER/CONSUMER/CLIENT preference and loyalty

• Enhanced EMPLOYEES` satisfaction and productivity

• Increased INVESTORS` interest and willingness to invest

• Improved understanding and support among OPINION LEADERS

• Faster recovery from business CRISES

CORPORATE COMMUNICATIONIS A PROCESS…

IDENTITY

OBJECTIVE, STATIC CATEGORY

Defined specific features of a corporation and external symbol (visual and material tools) reflecting it and communicating with publics

• Slogan

• Logo

• Graphic standards

• Print production

• Website

• Code of conduct

• Publication of corporate data

• Office space

• Corporate film

CORPORATE COMMUNICATIONIS A PROCESS…

IDENTITY IMAGE

OBJECTIVE, STATIC CATEGORY

Defined specific features of a corporation and external symbol (visual and material tools) reflecting it and communicating with publics

SUBJECTIVE, DYNAMIC CATEGORY

Impression of the public on a corporation, established upon a perception of corporate identity

COMMUNICATION

CORPORATE IMAGE

HONEST

FAIR-PLAY

RELIABLE

COMPETENT

LOCALLY IMPORTANT AND

ACCESSIBLE

TRUST

DEDICATED TO COMMUNITY

IMPORTANT SPONSORS

PARTNERS AND SUPPORT

ENVIRONMENTFRIENDLY

CARE

QUALITY

INNNOVATIVE

EXCELLENCE

GOOD EXAMPLE

LEADERSHIP

HOW DO WE DESIRE TO BE SEEN?

CORPORATE COMMUNICATIONIS A PROCESS…

… OF TRANSFORMING THE IDENTITY INTO IMAGE AND REPUTATION

IDENTITY IMAGE REPUTATION

OBJECTIVE, STATIC CATEGORY

Defined specific features of a corporation and external symbol (visual and material tools) reflecting it and communicating with publics

SUBJECTIVE, DYNAMIC CATEGORY

Impression of the public on a corporation, established upon a perception of corporate identity

JUDGMENT

Set of values attributed to company by its stakeholders, based on their interpretation and validation of the corporate identity and image

COMMUNICATION

EXPERIENCE

COMMUNICATION

IMAGE AND REPUTATION

IMAGE MEANS CREATION OF A PROMISE.

REPUTATION MEANS LETTING EVERYONE UNDERSTAND YOU`RE DELIVERING ON THAT PROMISE.

“The way to gain a good

reputation is to endeavor to

be what you desire to

appear”

Socrates

MOST IMPORTANTREPUTATION DRIVERS

• EXCELLENCE OF PRODUCTS AND SERVICES

• SOCIALLY RESPONSIBLE CONDUCT

• FINANCIAL PERFORMANCE

• WORKING ENVIRONMENT

• EMOTIONAL APPEAL

• MANAGEMENT LEADERSHIP AND EXPERTISE

THE ROLE OF CEO IN BUILDING,

MAINTAINING AND RECOVERING REPUTATION

CEO REPUTATION

“CEO reputation represents 65%of corporate reputation.”

CEO Capital Research

“...navigating the chaotic yet exciting time whena new CEO begins...”

McKinsey & Company

CHANGE MANAGEMENT

Structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state. The current definition of Change Management includes both organizational change management processes and individual change management models,which together are used to manage the people side of change.

http://en.wikipedia.org/wiki/Change_management

CHANGETHE ONLYCERTAIN THINGTODAY

WHAT DOES CHANGE MEAN?

DANGER

ResistanceFear

OPPORTUNITYFresh ideasInterest

GRAB THE OPPORTUNITY!

“About 60% of all management problems are due to poor or faulty communication.”

Peter Drucker

THE STAGES OFCEO SUCCESION

COUNTDOWN

FIRST 100 DAYS

FIRST YEAR

TURNING POINT

REVISIONAND REINVENTIONCEO Capital, A Guide to Building CEO Reputation and Company Success, Dr. Leslie Gaines-Ross, John Wiley & Sons, Inc.

THE COUNTDOWN• Quiet period

• CEO plans the future

• Learns about country, people, programs and activities

• Sets the stage

FIRST 100 DAYS• Opportunity – interest in new CEO

• Delicate balance of action and listening

• Listens and learns to gain the support

• Proactive in completing unfinished

END OF THE FIRST YEAR

• People, programs and actions in place

• Everything may not have been resolved or changed

• Stakeholders see progress and feel the CEO is leading the company in the right direction

TURNING POINT• CEO has prepared the organization for the future

• Now it is time to produce!

• Everyone coldly evaluates CEO's vision and actions

• CEO has generated personal and professional capital

REVISION AND REINVENTION

• CEO is comfortable in his role

• He is living the company's vision

• Complete team is collaborating on developing new strategies and executing new tactics

“40% of my time I communicate our company’s credo”

Jim Burke, Johnson&Johnson CEO

CEO ROLE

CEO sets vision, direction and plan of actions. But it’s communication that fans the flames for enthusiasm, support and commitment.

Who gives details???Employees = BRAND AMBASSADORS

BRAND AMBASSADORS

Contact with target audiences:• PR and marketing• Information desk• Bank clerks• Call center• Advisors• Security

Surveys suggest that 9% of customers

are lured away by competitors, but as

many as 68% are lost by employees’

indifference.

Journal of Marketing

WHAT KEEPS LEADERSAWAKE AT NIGHT?

• Performance

• Reputation

• Innovations

• Satisfaction

• Crisis

• ...

FOR A PEACEFUL SLEEP

Listening

Measuring

Feedback

Adjustment

BARCLAY’S CASE

“Financial performance is vital, of course, and easy measurable. But financials alone are not enough to measure either performance or health. Soft-side strategies are the foundation stones of hard-side-strategy success. They are additive, not alternative.“

John S. Varley, CEO of Barclay’s Bank (2005)

AT THE END...

• Far too much communication effort is externally focused

• Get your employees to understand and believe in the brand

START AT HOME

HOW TO APPROACH EMPLOYEES?• Proactive and on time

• Provide info

• What do you think?

• Kill rumours!

• Formal – circulars, corporate events, newsletter, ...

• Informal – MBWA – push method - Open Door Day – pull method

TIPS• Use social occasions to breakdown barriers

• Deliberately work around selected “unimportant” employees and listen to their opinions – get back to them

• After you have instructed someone with a task, check their understanding

• You cannot beat the “personal touch”

Q&A

THANK YOU FOR YOUR ATTENTION