brand management activities. Market conditions, CEO performance, and employee churn are all examples of variables that affect corporate reputation.
With that in mind, it’s fair to say that the reputation of a brand reflects a broad and fluid set of perceptions, beliefs, and expectations held by all of an organization’s stakeholders. It is the sum of their opinions, based largely on what they see, read, hear, and experience.
Reputation Strategy: The Proof of a Successful Brand Management Program
Until fairly recently, the downside risk of confusing brand and reputation, or not understanding how the mechanics of brand management and Reputation Strategy differ, was relatively minor. However, the Internet, broadband networks, and handheld mobile devices have changed all of that. Now, the risks are higher and the downsides are considerably steeper.
Before the era of 24/7 media, reputational damage could be managed and mitigated by skillful public relations teams or corporate communications executives. In the rapidly evolving global information landscape, however, stakeholders have greater access to information and can easily uncover actions, behaviors, decisions, or values that are incongruous with communications of the organization. Today, news travels faster and farther than ever before and communications professionals need the support of additional capabilities and tools to be effective.
The complexity of managing this “always on” environment can cause one to lose perspective, focusing on the deluge of big data while losing sight of the larger story that the data tells. But Reputation Strategy becomes the tangible proof of how well the brand is doing and the beacon lighting the way by detecting the big ideas in the data details.
A Delicate Balance of Multiple Inputs
Reputation is an outcome of organizational behavior, values, decisions, and actions. Unlike traditional tangible assets, it is both multidimensional and fluid. Although intangible, reputation management can be integrated into business planning and operationally embedded into organizational approaches across business units and geographies to positively affect a company’s valuation, sales, employee morale, performance, partnerships, and a host of other critical areas.
Reputation can be leveraged for strategic advantage through insights gained from the scientific application of real-time big data analytics and multidisciplinary approaches.
Building reputation is not an entirely new idea. But the application of scientific methods incorporating advanced analytics brings new capabilities for prediction and optimization, which reveal new opportunities and genuine advantages.
More than just a technique for managing reputation, Reputation Strategy is derived from a carefully orchestrated set of scientific processes that create and sustain competitive advantage in a turbulent world.
Reputation is not monolithic. It is assembled from thousands of data points across stakeholder groups and markets. Thus, reputation is complex and cannot be simplified to a single score or index. A forward-thinking organization will take deliberate steps to monitor and analyze data that might affect its reputation. More important, it will take proactive steps to build its reputation on a solid foundation, one brick at a time.
I believe that data is the key to successful Reputation Strategy at virtually every level. Our ability to ingest and integrate multiple data sets from a wide variety of sources is changing the practice of communications. Organizations that are using data and data science to support communications in these ways will be more competitive and the insights generated will inform a more effective strategy.
New Tools for Extracting Value from Streams of Data
The rise of big data and data science has given us new tools and techniques for extracting value from information, revealing hidden patterns, and uncovering fresh insights. New database technologies and advanced analytics solutions enable us to blend knowledge and expertise from multiple industries and markets, improving business outcomes and driving faster cycles of innovation in hyper-competitive markets.
In today’s communications environment, big data acts like an accelerant. Issues that took years or months to unfold now spin wildly out of control in hours or minutes. Clipping newspaper articles, holding focus groups, commissioning surveys, hiring mystery shoppers, or trying to embargo stories – those kinds of tactics worked fine in an age when there were only three major television networks and essentially one national telephone company.
Events happen much more quickly now; news travels much faster. As a result, opinions are formed more quickly, and reputations can be damaged or destroyed within days or hours.
Given the dynamics of today’s interconnected global culture, Reputation Strategy requires a blend of business intelligence, big data analytics, predictive modeling, and forecasting capabilities. Traditional reputation management tools and approaches are often inadequate for dealing with modern day challenges.
Reputation Strategy is a combination of business acumen and scientific expertise. It should be used as an ongoing strategy to propel and protect business objectives, but it cannot be conjured up or improvised at the last moment or in the face of a crisis. It must be staffed and fully functioning before the crisis. Waiting until the emergency arises virtually guarantees a bad outcome.
Reputation Exists in a Complex Communications Ecosystem
Reputation cannot be judged, described, or distinguished at a glance. Multiple streams of data from multiple sources must be collected, integrated, analyzed, evaluated, and harvested for insight that can be used to develop meaningful responses to changes or shifts in reputation. Since reputation is built from an aggregate of many components, different approaches are required for different companies and different markets.
Reputation Strategy is composed of multiple action steps and processes based on environmental factors as well as factors within an organization’s sphere of influence (Figure I.1). Through the application of Reputation Strategy, scalable, repeatable, reliable, and predictable actions can be taken.
Figure I.1 Stakeholder Perceptions and Expectations
Every organization has a unique set of attributes that can be classified into those that could affect existing value or those that could generate new value. This allows organizations to address risks and issues as well as proactively identify and address opportunities.
For example, reputation can be leveraged to create business advantages in supply chain relationships, executive talent recruiting, sales, sourcing, finance, and other functional areas of the modern enterprise.
In a recent engagement with a global firm, we integrated multiple types of data into a single model, making it possible for our client to recognize how each issue contributed to its reputation and how those issues affected the firm’s reputation across its ecosystem of stakeholders.
Based on our analysis, we identified activities that should be created, sustained, or eliminated to better support reputation goals. With a comprehensive understanding of the factors or “drivers” underlying the company’s reputation, we helped them devise a workable strategy for influencing it.
Prediction Is Key to Better Outcomes
Big data and real-time analytics create essential capabilities for modeling, comparing, and predicting outcomes of reputational issues. I recently led an engagement in which an interdisciplinary team of experts
