A strategy to set your direction
AND A MAP TO SHOW YOU HOW TO GET THERE
Why build reputation proactively?
Over the past decade, the way we view reputation has dramatically changed. To approach reputation reactively in a crisis is to leave it too late. Business value is already being lost.
A proactive approach lets you understand the current perceptions of your people and customers, and how they shape your reputation.
It's the foundation of your company's sustainable competitive advantage.
Three factors make now the right time to focus on building your ideal reputation proactively.
HIGH RETURN ON INVESTMENT
Research over the last decade confirms the role of reputation in financial performance.
An early 2013 study showed a 5% improvement in reputation strength swa an average increase in profit of $US 600M across the S&P 500.
Our own experience confirms that improvements in reputation strength yield high returns.
From an additional 50% in reputational value 'redeemed' at sale, to an ROI of 9000%.
In total, we've helped create $AUD 420M+ in additional value for CEOs and business owners.
HIGH VALUE OF INTANGIBLES
The percentage of a company's market value attributable to its intangible assets continues to rise.
In 1975, 83% of asset value in the S&P 500 was from tangible assets such as buildings, equipment, and inventory.
In 2020, 90% of the value was derived from intangible assets such as goodwill, brand equity, data, and IP (collectively known as reputation capital).
For service firms, proactively building your reputation capital is a proven path to business growth.
MORE ACTIVE STAKHOLDERS
We now have an explosion of channels for stakeholder voice and activism.
Research by PwC in 2023 shows that 57% of leaders believe Boards don't understand their stakeholders' priorities or concerns. This presents a material risk to reputation.
To create and protect business value, CEOs and Boards need a new framework to guide decisions. One that brings the Voice of the Stakeholder to the table.
Our full PRB™ Journey provides this essential framework.
Proactive Reputation Building (PRB™) is a bespoke process to build reputational value (RV) in your service business. This value is redeemed in profit and performance as your organisation grows, as financial value in a sale, or as a 'benefit of the doubt' advantage if a crisis occurs.
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