by reputation institute 2006 1 nicolas trad, managing partner, reputation institute reykjavik 2006

By Reputation Institute 2006 1

Nicolas Trad,

Managing Partner, Reputation Institute

Reykjavik 2006


• Reputation Institute concepts

• Global reputation results: RepTrak Pulse


• Reputation Institute concepts



RI – A thought leader with global authority

• Books • Quarterly magazine• Membership network• Research


RI – a leading reputation consulting group


Purpose of Reputation Consulting:To focus all communications & initiatives

CEO

VP, Mkg VP, Comm.

Ad

Mkg. Con

PR

CM

MC

Dir. Mkg

Before RCBefore RC After RCAfter RCCEO

CRO

VP, Mkg VP, Comm.

RM Strategy

Ad

Dir. Mkg Mkg. Con

PR CM

VP HR.

VP HR

By Reputation Institute 2006

Good Good

BadBad

Bad Bad GoodGood

Perceptions

Reality

RISKS

OPPORTUNITIES

Action is required to capitalize on good

reality and overcome poor perceptions.

Change is required to alter ‘reality’ and

minimize reputational risk.

Reputation: Comes from both Reality & Perceptions

Reputation Management isn’t about SPIN… You need to balance perception and reality.


Strategic Strategic InitiativesInitiatives

PerformancePerformance

Good reputations create economic valueGood reputations create economic value

Strategic ObjectivesStrategic Objectives


Stakeholder Support Stakeholder Support for the Companyfor the Company

Reputation of a companyReputation of a company

– Buy product/service

– Recommend

– Trust

– Invest

– Verbal support

Strategic Strategic InitiativesInitiatives

PerformancePerformance

Good reputations create economic valueGood reputations create economic value

Strategic ObjectivesStrategic Objectives

-Innovation

-Offerings

-Workplace

-Performance

-Citizenship

-Governance

-Leadership


You can’t manage what you don’t measure…

RepTrak™ Model


Reputation is built on 7 dimensions

RepTrak™ Model RepTrak Pulse


Crises affect Lower Reputation Companies more Significantly

Index of AdjustedMarketReturns %

Higher Reputation Companies

Lower Reputation Companies

CrisisStrikes

A Study that Compared 17 Crises Demonstrates that Significant Financial Value is Lost for all Firms, but Hits Lower Reputation Companies more Significantly

Source: D. Petty, Corporate Reputation Review,2001


• Reputation Institute



Over 95,000 Consumers Ratings in 25 Countries

The Global RepTrak™ Pulse 2006 measured over 700 corporate reputations in 25 of the World’s largest countries


Global Industry Reputations

73,7

71,0

70,6

69,4

69,3

67,6

67,4

65,1

64,7

64,5

64,0

64,0

62,5

61,2

61,0

60,9

60,6

60,2

58,0

57,7

55,2

Electronics

Beverage

Food

Retail

Aerospace & Defense

Computers

Automotive

Conglomerate

Travel

Transport/ Logistics

Media

Industrial

Chemicals/ Pharma

Insurance

Banking - Commercial

Natural Resources

Consumer Products

Services

Diversified Financial

Technology

Telecomunications Services

Industry reputation differ

Telecommunications - worst reputation in the world

Electronics -the best reputation in the world


Top Managers are very important in creating a strong reputations

Q: Top managers have a strong effect on the reputations of their companiesTop 2 box ratings (6,7)

86,483,1

81,076,0 74,1 73,8 73,6 73,3 71,7 71,6 71,5 71,4 70,2 69,4 68,8

65,1 63,9 63,2 63,0 62,4 60,7 59,5 57,6 56,2 55,9

0

10

20

30

40

50

60

70

80

90

100

South

Afr

ica

Chin

a

Fin

land

Mexic

o

Denm

ark

Chile

Bra

zil

Pola

nd

South

Kore

a

India

Aust

ralia

Russ

ia

US

Canada

Sw

itze

rland

Germ

any

Arg

enti

na

Italy

Norw

ay

Sw

eden

Fra

nce

Japan

Neth

erl

ands

Unit

ed K

ingdom

Spain


Unethical behavior impacts buying behavior

Q: In the past I have refused to buy the products of a company whose top managers had behaved unethicallyTop 2 box ratings (6,7)

27.0

30.3

30.9

31.7

33.6

38.5

40.4

40.9

41.2

42.8

43.8

45.7

46.2

46.5

47.9

48.4

48.8

49.8

50.3

51.8

52.1

55.7

56.1

57.2

60.5

Russia

Netherlands

South Africa

J apan

United Kingdom

Germany

Sweden

Argentina

South Korea

India

Spain

Mexico

Australia

Denmark

Poland

China

Canada

Switzerland

Chile

France

United States of America

Norway

Finland

Italy

Brazil

Lack of ethical leadership heavily influences supportive behaviors and performance

Ethical behavior is a risk and an opportunity


Leadership is a driver in attracting employees

Q: I would prefer to work for a company with a strong and appealing leaderTop 2 box ratings (6,7)

39.1

45.0

47.3

51.0

52.0

52.5

54.2

60.2

60.6

61.4

61.8

65.6

66.6

66.7

68.4

70.4

71.5

73.0

73.7

77.5

78.4

82.5

83.7

86.9

89.5

Spain

Netherlands

J apan

Germany

United Kingdom

Italy

Argentina

Switzerland

Finland

Poland

Mexico

Sweden

Chile

Australia

France

Denmark


Russia

Norway

India

Canada

Brazil

South Korea

China

South Africa

Strong and appealing leaders can be used as a competitive advantage in attracting new employees

The role of the leader varies around the world


Leaders are not trusted by the general public around the world

Q: Most companies are run by respected leadersTop 2 box ratings (6,7)

9.8

9.9

11.4

13.2

13.3

13.4

14.7

14.7

15.3

15.9

17.0

18.6

18.7

19.3

20.6

22.9

28.3

30.2

31.9

32.0

35.2

35.4

35.6

36.7

53.5

Italy

J apan

Poland

Russia

Germany

United Kingdom

Netherlands

Australia

France

Argentina

Sweden

Norway


Switzerland

Spain

Canada

South Korea

Chile

Denmark

Finland

China

Brazil

Mexico

India

South Africa

Leaders are not to be trusted

Developing countries have the highest trust

A major opportunity since trust is low


RepTrak™ Pulse in DENMARK

A.P. Møller - MærskArla FoodsCarlsbergDaniscoDanish CrownDanske BankEgmontISSJYSKLEGOLundbeckTDCVestas

RepTrak™ Pulse in FINLAND

FortumKesko GroupKoneMetsoM-realNokiaOutokumpuSampoStora EnsoUPM-Kymmene

RepTrak™ Pulse in NORWAY

AkerCoopDnB NorHydroNorske skogOrklaRema 1000StatoilStorebrandTelenorVeidekke

RepTrak™ Pulse in SWEDEN

CoopElectroluxEricssonHennes & MauritzICAIKEANordeaSCASEBSkandiaSkanskaSony EricssonTeliaSoneraVattenfallVolvo Personvagnar

Scandinavian Companies included in the Global RepTrak Pulse 2006


RepTrak™ Pulse in DENMARK

RepTrak™ Pulse in FINLAND

RepTrak™ Pulse in NORWAY

RepTrak™ Pulse in SWEDEN

And the winners are…


• Reputation IS important for driving supportive behaviors of your stakeholders

• You HAVE to create balance between perception and reality

• Top management reputation is very important in creating a strong reputations

• Currently there is LITTLE trust in top management• Its important to work with repuation consulting to

secure that all parts of the organisation work in the same direction

Take aways…


RI’S NEXT INTERNATIONAL CONFERENCE

OSLO, NORWAY – MAY 2007

WWW.REPUTATIONINSTITUTE.COM

by reputation institute 2006 1 nicolas trad, managing partner, reputation institute reykjavik 2006

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