measuring corporate

MEASURING CORPORATE REPUTATION:Why and How

John GilfeatherExecutive VP, TNSMarketing Research CouncilNew YorkApril 17, 2009

Stakeholder

Management

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Today’s AgendaCorporate Reputation: The Basics

The Seven Steps of Reputation Measurement(and How Not to Slip on Them)

Case Histories

Closing Thoughts

The BasicsThe Basics

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4

or

You decide!

Bomb

1. A good reputation is better than a poor reputation

Copious research tells us that companieswith good reputations reap more rewards

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2. Reputation vs. Brand

Definitions

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Brand Equity

Deals with: One Constituency: Customers/Prospects

One Behavior: BUY

But good products are not enough -- e.g. Nike

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And in a crisis:

The Brand does not respond

The Corporation does

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3. Corporate Reputation

Deals with:Multiple Constituencies

Multiple Behaviors

A+!

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CorporationCorporation

Work ForceWork Force

GovernmentGovernment InfluencersInfluencers

InvestorsInvestors

GeneralGeneralPublicPublic

MediaMedia

BusinessBusinessCommunityCommunity

CustomersCustomers

Corporate Reputation Involves Multiple Constituencies

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4. Reputation is multi-dimensional

KNOWLEDGE

• Awareness

• Familiarity

• Identity

EVALUATIONS

• Overall Impressions

• Strengths/Weaknesses

• Characteristics

• Personality traits

BEHAVIOR

• Buy Stock

• Buy Products/Services

• Believe Story

• Recommend Employment

• Recommend Joint Venture

• Trusted Sources of Info

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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

The Seven Steps of Reputation Measurement

(and How Not to Slip on Them)

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1. Clearly define objectives

Measure all components of reputation

Consistent metrics across all stakeholder groups

Provide communications guidance

Establish benchmarks

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2. Clearly define constituencies

Definable Universe

Reachable

Replicable/Trackable

Findable

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2. Clearly define constituencies

CorporationCorporation

Work ForceWork Force

GovernmentGovernment InfluencersInfluencers

InvestorsInvestors

GeneralGeneralPublicPublic

MediaMedia

BusinessBusinessCommunityCommunity

CustomersCustomers

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Citizens

Social networks

Affluent Citizens

Ethnic Groups

Host/Plant Communities

2. Clearly define constituencies

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Securities Analysts

Portfolio Managers

Retail Brokers

Individual Shareholders

Individual Investors

2. Clearly define constituencies

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Institutional Investor Communications

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Individual Investor Communications

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2. Clearly define constituencies

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Distributors

Suppliers

Business Peers

2. Clearly define constituencies

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Legislators

• International

• Federal

• State

• Local

Regulators

• International

• Federal

• State

• Local

2. Clearly define constituencies

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Activists

Bloggers

Industry Consultants

2. Clearly define constituencies

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Employees

Prospective Employees

Academia

Retirees

2. Clearly define constituencies

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Business Media

Industry Media

General Media

2. Clearly define constituencies

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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.

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Financial community not monolithic

Sometimes surrogates can be used for:Customers/Prospects

Government

“Opinion Leaders”

Employees

CEOs

2. Clearly define constituencies

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Logic

Do not overtax respondents

Fit interview mode Personal Telephone Mail Online

3. Clear questionnaires

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3. Clear questionnaires

Rate 5 brands of oven

cleaners on 59 attributes, rotated to

avoid position bias

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3. Clear questionnaires

No Games!

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Questionnaire Logic

KNOWLEDGE

• Awareness

• Familiarity

• Identity

EVALUATIONS

• Overall Impressions

• Strengths/Weaknesses

• Characteristics

• Personality traits

BEHAVIOR

• Buy Stock

• Buy Products/Services

• Believe Story

• Recommend Employment

• Recommend Joint Venture

• Trusted Sources of Info

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4. The right interviewers

Not all respondents are created equal

Not all interviewers are created equal

Matching respondents to interviewers is critical

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5. Clear analysis

Tell a story

Bottom line: what should company do differently based on results?

The logic of the questionnaire creates the logic of the report/presentation

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6. Clear reporting

Don’t pull punches

Don’t rub nose in bad news

Sometimes euphemisms are necessary

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6. Clear reporting

ab+cd

xy= 73 x mn-op

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6. Clear reporting

13 Of course, heteroskedasticity is a matter of degree.

My favorite footnote...

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7. Tracking

How often?

Continuous tracking?

When to put tracking studies to sleep?

Case Histories

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Favorability (overall impression)

Low High

High Falling Stars Blue Chips

LowUnknown & Unloved Meteors or Cults

Familiarity

A Good Reputation = High Scores on all Dimensions

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Favorability (overall impression)

Low High

High Ford Chrysler

GM

DisneyMicrosoft

J&J

LowPharma,Financial Services

USAA

Familiarity

A Good Reputation = High Scores on all Dimensions

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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

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Closing Closing ThoughtThoughtss

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Closing Thoughts

Corporate Reputation Matters

It leads to behaviors that will help you achieve your strategic goals

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Closing Thoughts

To be managed, Corporate Reputation must be measured

Most CEOs agree that Corporate Reputation is critical

Few actually measure Corporate Reputation

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Closing Thoughts

Winning Companies have the corporate will to:

Communicate

Use multiple channels

Measure

Adjust

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Closing Thoughts

Thank You.

John Gilfeather

John.Gilfeather@TNS-Global.com

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QuestionsQuestions

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