The qualities that signal strong performance and business success are universally understood – strong financial results, market share, revenue growth, and brand preference or recognition through awards and accolades. Yet the contributing factors that create and uphold an organisation’s reputation are less black and white.
There is no assurance that financial success automatically translates into good reputation. In fact Hay Group research has shown that financial performance is threshold requirement – it is not considered sufficient to garner respect, even in today’s volatile environment.
Being reputable company is more than just ‘nice to have’. It is increasingly important for creating the conditions for success; clear differentiator of financial performance and strong predictor of future organisational performance. It helps to attract and keep the talented leaders who play crucial role in steering the company’s performance.
Hay Group conducts research on corporate reputation, globally with Fortune Magazine, in Australia with AFR BOSS Magazine, and in New Zealand with NZ Management magazine. Through this research over the past 15 years, we have identified the key drivers of corporate reputation.
At its essence, reputation is borne out of authenticity and honesty across the range of an organisation’s activities. We have all seen, through traditional and social media, organisations struggle with crisis, and whether this crisis stems from external circumstances or internal actions of the organisation, these one-off events can affect the organisation’s reputation.
However, an organisation’s reputation is built over time by range of factors. It is essential to build strong enduring reputation by ‘doing the right things’ – not just saying the right things or projecting certain image – in all of an organisation’s activities.
Hay Group’s research has shown there are some key ingredients that are common across organisations with great reputations.
Clear direction Organisations must have clear and compelling strategy, and clear line of sight as to how that strategy will be achieved. Leaders are accountable for communicating and delivering that strategy both within the organisation and with the organisation’s stakeholders, and in reputable organisations they do this better than others.
Strong leadership Having effective leadership is critical. Hay Group research shows the most reputable organisations have credible leadership, and also have active strategies and plans to select the right leaders, grow leadership capability, develop effective reward strategies for leaders and create the right environments for leaders to thrive.
Enabling culture Hay Group has also found that companies with great reputations create the best culture for their people to deliver on the strategy. By concentrating on enabling their people to deliver to customers through an ongoing focus on refining their operating model, and through effective engagement measurement and programmes, reputable companies have highly motivated workforce that is much more likely to give the discretionary effort that is so important for an organisation’s success.
Maintaining reputation, means consistently doing these things well. M
The next Hay Group/NZ Management survey to find NZ’s Most Reputable Organisations launches in May. If you would like to participate in this survey please send your email address to [email protected] quoting MRO in the subject field.
