Prologue Playbooks: Measuring the Reputation Dividend
CEOs and operating colleagues often are skeptical of what they can't see on a spreadsheet. How can you help them intuitively understand the material value of building a stronger reputation?
We think of it as a "reputation dividend" that manifests across a company's performance.
Try this thought experiment: Imagine your business's reputation becomes 10 percent stronger. What would that imply in terms of public policy outcomes, crisis resilience, employee engagement, or investor enthusiasm?
Public Trust: The public is 10% more likely to assume the company is doing the right thing, for the right reasons. Stakeholders are 10% more confident in the company, its performance and values. This means it takes 10% less effort to explain actions and strategies and those communications have 10% greater effectiveness.
Policymaker Support: Policymakers are 10% more likely to support the policy goals of the company, and 10% more likely to give it a hearing. The company has 10% more relationships which are 10% stronger. These means public policy decisions are more likely to be made in favor of the company.
Employee Attraction: Employees are 10% more attracted to the company which drives 10% more applications from people who are 10% higher quality. Employee performance is 10% stronger and they are 10% less likely to leave.
Crisis Resolution: Crises resolve 10% faster, with 10% less damage to the brand, because the company gets 10% greater benefit of the doubt.
Partner & Supplier Trust: Partners and suppliers are 10% more eager to work with the company, on 10% more favorable terms.
Community Trust: Communities are 10% more likely to embrace company operations. Permits & permissions are 10% easier to obtain, and with 10% better incentives such as tax breaks or subsidies.
Investor Confidence: Investors have a 10% higher opinion of company leadership, its strategy and ability to execute. Borrowing costs are 10% lower, and the stock price is 10% higher.
It's hard to put a precise value on the benefit of reputation. But intuitively, we can understand and appreciate how the resilience and confidence that accrues from a higher reputation just makes everything better.
download and use the attached slide as you make the case inside your own organization. And sign up here if you'd like to see more playbooks from Prologue.