Re-thinking Reputation for businesses in Singapore, and achieving ‘surplus'

Reputation in a business context can be defined as: "the perception that people have about what an organisation is like". Such reputation can be said to be earned / established based on past events, and reputation either sits on a ‘surplus’ (positive) or ‘deficit’ (negative).

So why does a ‘Reputation surplus’ matter:
(i) It shields in crises. The ideal situation for any organisation is to have a sizable count of loyalists / advocates who speak up for the organisation. These loyalists / advocates can cushion any initial negative chatter that may surround the organisation in times of crises, and will be less inclined to brand-switching.

Singapore Airlines is a brand that enjoys such ‘shielding’. Separate reported incidences of its aircraft colliding with aerobridges leading to delays, had netizens defending the airline and refuting blame that others were lobbing onto SIA’s staff.

(ii) It facilitates growth. Having a good Reputation instils confidence and trust in stakeholders ranging from shareholders, business partners and customers.

For instance, CEO of local interior design firm Weiken.com advocates for a strong brand reputation in order to “ensure a consistent customer stream”. Local bank DBS also goes big on industry accreditation to boost its reputation, bagging multiple ‘World’s Best Bank’ awards in the past two years.

(iii) It attracts talent. Needless to say, a good reputation also spurs attracting and retaining talent within the organisation. The importance of people at the heart of the business cannot be under-emphasised.

Tech company Grab’s reputation of being a ‘unicorn’ is such an example where it enjoys attracting top talent, and it also won Influential Brands’ The Top Employer Brand Award (Technology) in 2018.

Now how should organisations evaluate Reputation?
(i) Listen to everybody. Conduct research not on just what people think about you, but also what people say about you in order to get an accurate reflection of your organisation’s reputation. The former encompasses claimed responses at specific points in time from market research, the latter taps into ongoing organic social media discussions.

(ii) Evaluate robustly. A suggested framework is to look at three core dimensions on what influences an organisation’s reputation:

(a) Strategy – with top level executives / shareholders / other businesses as the main stakeholders. This is all about top-level company direction, leadership, and being seen as a frontrunner in the industry.

(b) Culture – staff, the public in general, and to some extent customers will be the main stakeholders. This is how the business is seen as caring for people / society in the broad sense.

(c) Delivery – customers are the main stakeholders here. This is all about the perceived value and standards of quality customers get from the organisation’s products and services.

(iii) Measure regularly. With the ubiquity of social media, crises can erupt and spiral out of control within half a day. It is recommended to measure reputation in short term time frames to account for incidental occurrences and allow for quick tactical correction where needed, coupled with long term time frames that is a more stable reflection of perceived reputation that feeds into the organisation’s overall communications strategy.
In conclusion, reputation is important, and organisations should increasingly look into their current standing and act on driving it up. As outlined, there are also achievable steps that organisations can embark on to ensure a comprehensive evaluation of their reputation.