As reputation is most often considered a collection of perceptions and opinions, past and present, about an organization which resides in the consciousness of its stakeholders‘, it appears absolutely necessary to get a better grasp of the main drivers.
Managing that reputation is becoming increasingly important, according to Charles Fombrun, professor of management at New York University‘s Stern School of Business. He says that reputation is becoming central in the language of strategy and competition, rather than in the old language of public relations.
He states that a strong reputation can help a company: attract resources (e.g., new employees, customers, and investors); improve employee loyalty and morale; secure customer retention and loyalty; develop a competitive advantage; and increase sales and income. Executives around the world overwhelmingly agree that, when several companies‘ products or services are similar in quality and price, corporate image often determines which company customers do business with ―The majority of executives also agree that companies with strong reputations can charge more for their products and services.
Here are some key questions to ask about managing reputation in your organisation:
- What kinds of proactive steps should companies take to augment their reputations?
- What aspects of reputation risk are unmanageable?
- Who are the key players in managing a company’s reputation? (The need for a systemic approach)
- How should a company’s organization reflect its interest in preserving and enhancing its position? What level of risk assessment is expected and how should companies approach this task?
- How can a company identify key risks, analyze their root causes, and take proactive steps to preserve the corporate reputation?
- How can a company’s regular risk assessment process help to point out particularly critical areas that could affect reputation?
If reputation risk is any action, event or circumstance that could adversely or beneficially impact on an organization‘s reputation‘, the drivers of reputation, and sources of potential risk, need to be identified, analysed and managed.
To learn how to do this attend one of our training seminars.