Last week we gathered a group of our most forward thinking communications heads from some of the largest and smartest European companies to have a discussion around challenges facing the function.
One of the debates that really caught my attention was about company reputation. Communications heads are feeling increasingly uncomfortable with their ability to both manage and measure reputation at the very time when it is high on the corporate agenda.
Reputation is a key focus area
There were four top reasons that came out for Communications caring about reputation right now:
1) Feeling exposed. As consumers (of both products and information) have more power and ability to share their views they are quick to hit companies for doing something they disagree with. There was a feeling that the volatility in the business environment had meant that “the winds have shifted” sentiment against corporate and that feels uncomfortable, and personal, for CEOs.
2) Focus on Growth in new markets. As developed economies face slow growth many companies are looking at new markets (geographies/products) to support their growth. Company reputation can help or hinder our success in these new markets.
3) CEO focus. There are only so many scandals that Time magazine can cover before the topic of company reputation starts to feel very personal to even the most hardy senior execs. The AON Global Risk Management survey 2011 has ‘damage to reputation/brand’ as the 4th biggest risk to companies (after economic slowdown, regulatory changes and increased competition).
4) Employee sensitivity. An employee’s personal reputation is intrinsically tied to the company they work for. With many employees sharing their work details on social media sites they are increasingly open to peer questioning.
>>> Access CEC support: 1) reputation risk management) 2) corporate brand management) 3) influencing stakeholders in a networked environment
Measurement is not up to scratch
Everyone was looking for a silver bullet that both tied communications activities to reputation and demonstrated the impact of reputation on business outcomes. Most telling was that not one person was satisfied with their current measurement strategy and it’s ability to do either (and stand up to cross-examination from the CFO.)
The challenges we heard were:
- Measurement efforts are silod – “we measure media tone and coverage, company reputation, monitor issues and social media but they are all done independently – it must be better to integrate”
- Comprehensive measurement is cost-prohibitive – “the cost of measuring reputation means that we can only cover a couple of core markets so we can’t get the full picture. In an environment where news and information has no boundaries that is a worry”
- Reputation measures are too high level - “the data we get it too high level to really influence our decision making; it rarely turns up anything we didn’t know already”
- Limited value for forward planning – “with the fast changing stakeholder environment a view looking back at what people thought isn’t always the best for helping us decide what we should do going forward”
So, why do we do it? the answer is that currently most companies feel it’s their only option to put a demonstrable numbers to what we do.
What is the right way forward? Read More »









