Focus on Stakeholder Mapping - ri.reptrak.com PDFs/RLN... · 5 purpose and stakeholder alignment:...

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Focus on Stakeholder Mapping

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Who is your most important stakeholder?

• The stakeholder ecosystem is complex• There are often institutional biases• Legacy inertia related to “we’ve always done that”• No empirical proof for weight of stakeholder importance• Relationships between stakeholders are inter-dependent• Stakeholder dynamics are different by industry• Strategic misnomer of “let’s engage all stakeholders”

KEY QUESTION FOR ALL CORPORATE COMMUNICATION LEADERS

Need for an organizing principle

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“Great brands focus on people who matter the most.”

Stakeholder Mapping

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Which Stakeholders Should The Company Focus On?

Purpose

STAKEHOLDER MAPPING: STARTING POINT

Why we exist?

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PURPOSE AND STAKEHOLDER ALIGNMENT: IT DEFINES WHY A COMPANY EXISTS

“Why people love you””“Your Strategic North Star”

“Your moral compass”“Your heart and soul”

“It shapes your reputation”

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Purpose

STAKEHOLDER MAPPING: EXAMPLE

We exist to make everyday living affordably better

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Understand the Stakeholder Alignment With Your Core Purpose

PerceptionPurpose

??

?

?

?

?

?

?

STAKEHOLDER MAPPING: SECOND STEP

Brainstorm the Stakeholders under

consideration

We exist to make everyday living affordably better

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Stakeholders That Matter Most: Examples

PerceptionPurpose

Consumers

Non Consumers

Opinion Elites

Investors

Customers

RegulatorsEmployees

Policy Makers

STAKEHOLDER MAPPING: UNDER CONSIDERATION

Discuss and develop a list of

Stakeholders under consideration

Community Leaders

Media

We exist to make everyday living affordably better

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Key Basis For Mapping Stakeholder Importance:

50%

Stakeholder

Good will

Good business

50%

STAKEHOLDER MAPPING: BASIS FOR DECISION MAKING

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Evaluate the Relative Importance of Each Stakeholder:

STAKEHOLDER MAPPING: TWO KEY QUESTIONS

Questions to Ask:

Who is most important in driving reputation?

Who is most critical to driving enterprise value?

Score for each stakeholder group (0-5):

Consumers Non Consumers

Opinion Elites Investors

CustomersRegulatorsEmployeesPolicy

Makers

Community Leaders

Media

Good will

Good business

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Numerically Assess How Each Stakeholder is Rated: Score 0-5

STAKEHOLDER MAPPING: SCORE CARD

Corporate Brand Non Consumers Consumers Employees Investors Opinion

Elites Media Customers Policymakers Community Leaders Regulators

Importance in driving reputation

Critical to driving enterprise value

Total

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Numerically Assess How Each Stakeholder is Rated: Demonstrative

STAKEHOLDER MAPPING: SCORE CARD

Corporate Brand Non Consumers Consumers Employees Investors Opinion

Elites Media Customers Policymakers Community Leaders Regulators

Importance in driving reputation4 5 4 2 4 3 3 1 3 2

Critical to driving enterprise value4 5 5 3 3 2 3 2 1 1

Total 8 10 9 5 7 5 6 3 4 3

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5

5

0

0

High PriorityMedium Priority

Medium PriorityLow Priority

Use a Framework for Understanding How and Where Stakeholders Fit:

STAKEHOLDER MAPPING: PRIORITIZATION

Importance in Driving Reputation:

Importance in Driving Enterprise Value:

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5

5

0

0

Plotting the Stakeholder Score Card Data on the Framework:

STAKEHOLDER MAPPING: GETTING TO CLARITY

Importance in Driving Reputation:

Importance in Driving Enterprise Value:

NonConsumers

Media

Opinion Elites

Investors

Consumers

Regulators

Employees

Policy Makers

Customers

CommunityLeaders

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Reputation dimensions: Understanding what’s important

Q305: Please consider the following statements and select a number from “1” to “7” where “1” means “I strongly disagree” and “7” means “I strongly agree.“ RepTrak® Pulse score measures stakeholder’s Trust, Admiration and Respect, Good Feeling and Overall Esteem, on a 0-100 scale.Q310: Using the same 1 to 7 scale, please rate [Company1] on the following dimensions:Poor

WeakAverageStrongExcellent 80+

70-7960-6950-59<50

Normative Scale

2016 U.S. RepTrak® Dimensions: Retail Industry

18.8%

13.5%

13.4%

13.9%

14.3%

13.0%

13.2%

67.9

54.660.0

65.566.2

60.0

69.3

68.2

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Key Questions to Explore:

STAKEHOLDER MAPPING: CREATING FURTHER CONTEXT AND UNDERSTANDING

Consumers

Employees

Non Consumers

• How do these key Stakeholder view the corporate brand?

• Are these Stakeholders completely aligned with the corporate brand purpose?

• What are the issues and expectations for each of the Stakeholders?

• How does the company compare to competitive corporate brands and aspirational benchmarks?

2016 U.S. RepTrak® Dimensions:

Retail Industry

18.8%

13.5%

13.4%

13.9%

14.3%

13.0%

13.2%

67.9

54.660.0

65.566.2

60.0

69.3

68.2

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Investors?

Mexico

Argentina

US

66.9

65.6 60.7

Canada

66.8

China

51.9 Germany

69.6

Consumers

Poor/ Lowest TierWeak/ VulnerableAvg./ ModerateStrong/ RobustExcellent/ Top Tier 85

+76-8466-7556-65<56

Normative Scale for Employees:

India

Canada

Belgium

Russia

Vietnam

Mexico

Argentina

Bolivia

The Netherlands

France

South Korea

64.775.6 71.3

US

91.7

80.2

84.1

76.9

Employees

81.1

Brazil

81.9

50.9China

79.5

89.0

87.484.790.0

73.6Ukraine

US

63.7

Brazil

China

Regulators

Mexico

46.7

69.8

62.6

62.667.3

US Brazil

Opinion Elites

Example Stakeholder Ecosystem: Multi-National

Poor/ Lowest Tier

Weak/ Vulnerable

Avg./ Moderate

Strong/ Robust

Excellent/ Top Tier 80+

70-79

60-69

40-59

<40

Normative Scale for Other Stakeholders:

82.5

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The Movers and Shakers of Reputation

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Questions:What is the inter-relationship between stakeholders?How does content sharing occur between stakeholders?How does that impact the diffusion of reputation?

Understanding The Stakeholder Ecosystem: The Inter-relationship

Consumers Non Consumers

Opinion Elites Investors

CustomersRegulatorsEmployeesPolicy

Makers

Community Leaders

Media ?

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“The critical point in a situation, process, or system beyond which a significant and often unstoppable effect or change takes place.”

Understanding The Stakeholder Ecosystem: The Inter-relationship

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Applying Tipping Point Theory To Reputation

Understanding The Stakeholder Ecosystem: The Inter-relationship

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Applying Tipping Point: Reputation Diffusion Framework

CONNECTOR MAVEN

SALESPERSON

Understanding The Stakeholder Ecosystem: Application

Connects people through sharing knowledge

Uses knowledge to engage and persuade

Connects people to each other

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Applying Tipping Point: Reputation Diffusion Framework

CONNECTOR MAVEN

SALESPERSON

Understanding The Stakeholder Ecosystem: Application

Connects people through sharing knowledge

Uses knowledge to engage and persuade

Connects people to each other

Tipping Point

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Applying Tipping Point: Reputation Diffusion Framework

CONNECTOR MAVEN

SALESPERSON

Understanding The Stakeholder Ecosystem: Application

Connects people through sharing knowledge

Uses knowledge to engage and persuade

Connects people to each other

Where would you put each stakeholder?

Consumers Non Consumers

Opinion Elites Investors

CustomersRegulatorsEmployeesPolicy

Makers

Community Leaders

Media

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Applying Tipping Point: Reputation Diffusion Framework

CONNECTOR MAVEN

SALESPERSON

Connects people through sharing knowledge

Uses knowledge to engage and persuade

Connects people to each other

Opinion Elites

Policymakers

Non Consumers Consumers

Opinion Elites

Investors

Customers

Regulators

Employees

Policy Makers

Community Leaders

Media

Understanding The Stakeholder Ecosystem: Application

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The “Movers and Shakers” of Reputation

Opinion ElitesOpinion Elites

Community Leaders

Tipping Point

But who are they?

Understanding The Stakeholder Ecosystem: Application

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Opinion ElitesOpinion Elites

Community Leaders

Tipping Point

An algorithmic definition that includes:• Political volunteer• Write letter to member of congress • Primary voters• On the PTO• Bloggers• Social Media Actives• Follow Current Affairs• Own and trade shares• Well educated (but not always wealthy)• Category advocate• Community volunteer• Business Owners

10% of general public

How to Identify Opinion Elites

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Opinion ElitesOpinion Elites

Community Leaders

Tipping Point

Where To Find Opinion Elites

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Hypothesis: Opinion Elites are Highly Influential

OpinionElites

Higher Potential Impact

Purpose

Corporate Brand

Are Opinion Elites the Biggest Promoters or Detractors?

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Opinion Elites Relative To Other Stakeholders: 2015

Opinion Influencers vs. Consumers

Opinion ElitesConsumer

PoorWeakAverageStrongExcellent 80+

70-7960-6950-59<50

Normative Scale

Leading Indicator 67.366.9

Hypothesis: Opinion Elites as a Leading Indicator of Reputation

Predict increasein reputation

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Opinion Elites Relative To Other Stakeholders: 2015

Opinion Influencers vs. Consumers vs. Regulators

Opinion ElitesConsumer Regulators

PoorWeakAverageStrongExcellent 80+

70-7960-6950-59<50

Normative Scale

Third Party Endorsement

Leading Indicator 67.3 46.766.9

Hypothesis: Opinion Elites as a an Endorser of Reputation

Mitigate againstreputation risk

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How important are they to the reputation of your business?

Opinion Elites

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Discussion about Millennials

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Defining Millennials:

Source: US Census Bureau

• 18 and 34 years old• Largest generational cohort• Surpassed Baby Boomers• 75.4 Million as of April 2016

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Things you should know about Millennials and reputation

9

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The Millennial cohort is influenced by unique circumstances

1

37

Transparency Privacy

Diversity Social Responsibility

Values

Reputational Macro-Trends That Shape Millennials

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Companies who identify with Millennials have a better reputation

2

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The Top 10 Companies In The US Have An Even Better Reputation Among Millennials

MILENNIALS AND COMPANIES OF HIGH REPUTE

MILLENNIALS NON-MILLENNIALS

84.1 82.0-2.1

Millennials = 18-35Non-millennials = 36-64

THE TOP 10 COMPANIES HAVE A BETTER SCORE AMONG MILLENNIALS IN ALL OF THE ENTERPRISE DIMENSIONS (WORKPLACE, GOVERNANCE, CITIZENSHIP, LEADERSHIP AND PERFORMANCE. )

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Millennials strongly identify with consumer oriented companies

3

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2016 U.S. Industry Ranking: Millennials Only

•Reputation matters more than ever before across all industries for Millennials

•Consumer, Information / Media and Retail are the top 3 Industries for Millennials

•Most industries maintained their level of reputation in relation to 2015, except for Consumer and Information which improved, and the Financial Industry which decreased slightly

Rank Millennials

1 Consumer

2 Information

3 Retail

4 Healthcare

5 Services

6 Industrial

7 Technology

8 Energy

9 Hospitality

10 Financial

75.4

74.6

73.7

73.0

72.1

71.1

70.9

70.3

70.1

68.6

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Millennials view of companies is driven by products and CSR

4

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2016 Overall US Driver Weights: Millennials

Millennials

• Perceptions linked to Products / Services and Corporate Social Responsibility drive a Millennial’s view of companies – especially Citizenship and Governance

• The CSR Dimensions: Citizenship, Governance and Workplace, account for 42% of the reputation for this group

16.7%

13.3%

13.6%

14.1%

14.8%

13.7%

13.8%

Factor Adjusted RegressionN = 9,786

Adj-R² = 0.694

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What’s important to Millennials often differs by industry

5

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2016 Technology Industry Driver Weights: Millennial vs. Non-Millennials

Millennials Non-Millennials

• Aside from Products & Services, Millennial reputation in the Technology Industry is driven by Leadership and Workplace

• This makes sense considering companies like Google and Hubspot, where appealing work environment and disruptive leaders have become a differentiator within the Tech Industry

16.4%

15.8%

14.0%

13.2%

13.6%

13.5%

13.5%

Factor Adjusted RegressionN = 826

Adj-R² = 0.681

18.1%

13.8%

13.1%

12.5%

15.0%

12.8%

14.8%

Factor Adjusted RegressionN = 2,006

Adj-R² = 0.702

MILLENNIALS OFTEN HAVE DIFFERENT EXPECTATIONS WITHIN INDUSTRIES

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For Millennials, perceptions of the company are highly important

6

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A View of the Enterprise Drives Millennial Buy-In Of A Company

>ENTERPRISE

63%

PRODUCT

37%

SUPPORTIVE BEHAVIORSRECOMMEND COMPANY ● SAY SOMETHING POSITIVE ● GIVE THE BENEFIT OF DOUBT ● TRUST TO DO THE RIGHT THING ● BUY PRODUCTS ●

INVEST ● WORK FOR COMPANY ● WELCOME TO THE NEIGHBOURHOOD ● RECOMMEND PRODUCTS ● RECOMMEND AS AN INVESTMENT

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Millennials are more likely to exhibit supportive behavior

7

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2016 Overall US Supportive Behaviors: Millennials vs. Non-Millennials

46% 44% 44% 45%

53% 51% 49% 50%

39% 38% 38%41%

49% 48% 46% 48%

0%

20%

40%

60%

Work For Recommend AsInvestment

Invest Benefit OfDoubt

Say Positive RecommendCompany

Trust To Do TheRight Thing

Buy

Millennials Non-Millennials

50

Millennials are more acutely open to fostering participation

8

51

4%

5%

12%

8%

8%

8%

8%

7%

8%

13%

13%

14%

13%

9%

10%

11%

12%

12%

13%

14%

14%

16%

17%

19%

20%

21%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Program or event sponsored by Company you attendedCompany’s customer support service

Traditional print news source (e.g. newspaper or magazine)Online only news sources

Email from CompanyRadio advertisements from Company

Outdoor media from CompanyFrom other people posting about Company in social media

From social media postings by CompanyTV news source or associated website

Company’s websiteFamily members, friends, or colleagues and topic experts

Internet advertisements from Company

% of US general public who selected "Yes" to having contact with rated company through touchpoint in the last 12 months

Millennial Non-Millennial

Overall US Touchpoints: Millennial vs. Non-Millennials

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But not all Millennials are created equally

9

53

Overall US Supportive Behaviors: Young Millennial vs. Older Millennials

48% 47% 46% 46% 44%41% 40%

38%

55% 54% 54% 53% 51%49% 49% 48%

0%

20%

40%

60%

Say Positive Welcome ToNeighbourhood

RecommendCompany

Buy Trust To Do TheRight Thing

Work For Benefit OfDoubt

Invest

Young (18 - 24) Older (25 - 34)

YOUNGER MILLENNIALS ARE LESS SUPPORTIVE OF COMPANIES

68.7

Younger Millennial

73.0

Older Millennial

54

Discussion about Mary KayMillennials