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Reputation - Not the communicator’s toy. If you lose money for the firm, I will be understanding. If you lose reputation for the firm, I will be ruthless. Warren Buffett, 1991. Learn from the winners. Top 5 most attractive companies to work for, to do business with, to invest in: Shell
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If you lose money for the firm, I will be understanding. If you lose reputation for the firm, I will be ruthless. Warren Buffett, 1991
Learn from the winners • Top 5 most attractive companies to work for, to do business with, to invest in: • Shell • ING Group • Philips • Rabobank • ABN AMRO • Top 5 companies with the best reputation: • Ikea • TomTom • Heineken • Philips • Triodos Bank Source: Incompany500 – May 2006
What does it tell us? • Visibility is key to earning reputation • Once you are visible, you need to make a clear promise… • ….and stick to it! • Ikea – “quality, design, low price” • TomTom – “most innovative mobile navigation” • Heineken – “premium beer, nothing else” • Philips – “sense and simplicity” • Triodos Bank – “earning money the responsible way”
Visibility? • Communications and… • Street exposure • On-the-shelf exposure • National presence • Public listing • Brand equity
Promise? • TomTom • Innovative: 7.9 • Leading: 8.0 • Modern: 8.1 • Successful: 8.3 • Dynamic: 7.7 “What we do is a-typical for Holland: the speed at which we grow, launch new products and expand internationally. Yeah, that’ll be it, especially the growth” Harold Goddijn, CEO TomTom, on why his company’s reputation is so strong
Promise, and stick to it! • Ikea • Trustworthy: 7.4 • Innovative: 7.3 • Leading: 7.6 • Modern: 7.7 • Solid: 7.5 • Successful: 8.2 • Dynamic: 7.4 • Sympathetic: 7.5 “At Ikea we are very cost conscious. In stead of wasting money on glitter and glamour, we decrease our prices every year” Carel Maasland, member of the board, Ikea NL
And if you don’t? • Oracle -42% • Dell -40% • Accenture -38% • Fujitsu Siemens -38% • Getronics PinkRoccade -32% • Capgemini -30% • SAP -26% • Ordina -22% • IBM -19% • Microsoft -18% • Hewlett-Packard -18% • Centric -18% • Atos Origin -14% • LogicaCMG -1% Decrease in number of votes as best workplace, businesspartner, investmentSource: Incompany500 – May 2006
How to manage reputation? • Manage authenticity! • 2006: bridging the gap between promise/claim and reality • while depending on your company’s/board’s agenda, preferences, thoughts, intentions, performance • 2010: gatekeeper of the gap • With the explicit endorsement of CEO/board • With the power to ‘veto’ any activities that could harm the company’s reputation
The Customer Agenda Source: H&K Reputation Watch, 2004 What do you believe are the top three factors that your customers consider before deciding to buy from your company? (% respondents)
The Investor Agenda Source: H&K Reputation Watch, 2004 What do you believe are the top three factors before non-financial factors that investors investing in your company consider? (% respondents)