The boundaries between internal and external communication are blurring. All stakeholders are now able to have conversations through a wide range of social technology platforms. So how can you ensure that the reputation of your business is portrayed positively in what is fast becoming a 24/7 business environment?

1. Aligning internal & external
communications for reputational
and competitive advantage
Reputation Management Conference
Sydney, 31 August 2011
Clayton Ford
Senior Manager, Centre for Corporate Public Affairs

2. What is a good reputation worth?
§ Command premium prices for products
§ Pay lower prices for purchases
§ Entice top recruits to apply for positions
§ Experience greater loyalty from consumers and employees
§ Have more stable revenues
§ Face fewer risks of crisis
§ Given greater latitude to act by their constituents
Source: Fombrun, 2008
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3. The value of good reputation
“Companies with good corporate reputations do better
over time. Their reputational capital can be 55% to 85%
of a corporation’s market value.”
Source: Fombrun, 2006
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4. Reputation or legitimacy gap
The size (and impact) of the legitimacy gap between perceived
organisational values, activities and performance and stakeholder
and community expectations is referred to frequently in Australia
and Europe as the ‘reputation gap’
Organisational
Legitimacy Stakeholder /
performance /
Gap community
activities / practices
expectations
(perceived or real)
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5. Comcast asleep on the job…
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6. Target make themselves a target…
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7. Domino’s falling over…
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8. Habitat making a hash of it…
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9. United tuning out…
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10. Common factor?
Internal / employee behaviour
§ Not triggered by external forces
(events, NGOs etc.)
§ Companies’ own employees
shooting them in the foot
§ Not solved simply by a social
media guide or code of conduct
§ Gaps between internal and
external perceptions of the brand
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11. Attributes of a good reputation
Credible Reliable
Corporate Reputation
Trustworthy Responsible
Source: Fombrun, 2008

12. Seven dimensions of corporate reputation
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13. Employees an essential element
Employees ARE your brand
• One of the most trusted
information sources about an
organization
• Main contact point between
internal & external environments
• Communicate real company
values through their behaviour
• Boundaries between employees
& consumers is blurring
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14. Informal corporate identity
§ Corporation identity rarely emerges solely through
planned communications
§ Corporate identity is communicated informally &
unconsciously through daily routines & behaviours
- Unplanned behaviour as compelling in communicating identity
§ As stakeholders become more sophisticated, less likely
to rely on planned communications as a means of
interpreting a firm’s business activities
- A conscious choice to judge unconscious behaviours
- Amplified via social media
Source: Otubnajo, Amujo, Cornelius (2010)
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15. Putting the corporate into corporate branding
§ Globalisation driving companies to differentiate by positioning the
corporation, not just products
§ Exposes entire organisation to scrutiny of everyday behaviours
- Transparency amplified via social media
§ Whole organisation focus requires whole organisation response
- Not sole preserve of marketing or communications departments
- C-suite, HR, Finance, IT, Sales all involved
§ Three key elements
- Vision, Culture, Image
§ Most successful corporate brand connects strategic vision &
(real) organisational culture
Source: Hatch & Schulz ( 2001)
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16. The six Cs of corporate marketing
CHARACTER
(Corporate identity)
“What we indubitably are”
CULTURE COMMUNICATION
(Organisational identity) (Corporate communication)
“What we feel we are” “What we say we are”
CONSTITUENCIES
CONCEPTUALISATIONS (Marketing & stakeholder
(Corporate reputation) management)
“What we are seen to be” “Whom we seek to serve”
COVENANT
(Corporate brand management)
Source: Balmer (2006)
“What is promised and expected”
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17. Corporate marketing as a philosophy
“…we regard corporate marketing as more of a
philosophy rather than a function.
…the mix of elements should be seen as informing
an organisational-wide philosophy rather than as
encompassing a mix of elements to be orchestrated
by a department of corporate marketing.
In essence, the philosophy of corporate-level
marketing should permeate how people in the
organisation think and behave on its behalf.”
Source: Balmer & Greyser (2006)
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18. Coordinating corporate communications
“Projecting a firm’s image is not the exclusive
responsibility of the public relations or advertising
practitioners…everyone who comes into contact,
directly or indirectly, with any of a firm’s publics
contribute pieces to a mosaic.
Whether or not the pieces form a comprehensible
total picture depends upon the degree to which the
firm’s corporate communications are coordinated.”
Source: Bernstein, 1994
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19. Case study – Southwest Airlines
Sources /
modes of
msgs Employee’s Outcomes
Psyche
INTERNAL Brand
Formal position
- HR / PR Knowledge
Desired Employee
Mission & Informal of desired Turnover
brand brand
Values - Culture brand image
image image
- Leaders Satisfation
EXTERNAL Loyalty
Formal Covenant /
- Advertising contract Reputation
Informal
- Feedback
Feedback
Source: Miles & Mangold, 2005
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20. Case study – Singapore Airlines
§ Core promise is in-flight experience, embodied by ‘Singapore Girl’
§ Aligned internal & external branding achieved via:
- Internal communication
- Led by ‘People Networks’ Department
- Based on mission & key corporate values
- Print, online, mass & tailored
- High number of face-to-face channels, with senior leaders
- Infusing corporate values
- Relentless focus,
- 4 different touchpoints – induction, training, corporate events, communication channels
- Evaluation & performance management
- Cabin Crew the crucial touchpoint
- Very selective recruitment
- 4 months intensive training, then ongoing
- Role play other roles (eg pilots, ground staff)
Source: Chong (2007)
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21. 6 steps to strategically aligned behaviour
1. Provide clarity about the behaviour expected
2. Integrated focused change process, starting at top management
levels, showing commitment to clear vision
3. Consistency is key across management role modeling behaviour
and corporate communication (internal & external)
4. Execution takes employees’ needs seriously, such as capabilities
and flexibility to deliver, evaluation, feedback
5. Measure and track alignment or gaps systematically
6. Combine internal motivation programs with external campaigns
using same corporate story – stimulate internal audiences to
provide proof points in daily behaviour
Source: Riel ( 2008)
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22. Living the brand
“…up to 40% of the marketing investment is said to
be lost when employees do not deliver on the
organisation’s promises to clients.
…when employees understand and accept that the
values are genuine, they align their attitudes and
behaviours to the brand values, which results in
greater satisfaction for both customer preference
and loyalty.”
- Gapp & Merrilees (2006)
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23. Competitive benefit
“When brand expectations and culture clash, the
effects can devastate a business.
When brand and culture match, the effects can
devastate the competition.”
- John R. Childress
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24. Do You Have
Questions?
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