Boards' New Approach to Reputation Impact

Strategic forums begin to address the topic in a more explicit and systematic way By Andiara Petterle

Advice that integrates reputation management contributes to the success of companies – Photo: Shutterstock

Faced with changes in society, politics and technology, boards of directors are experiencing an inflection point in how they approach corporate reputation management. Research from the Blue Rubicon Institute shows that these strategic forums are moving from an implicit, one-off approach to an explicit, systematic approach to reputation.

This change translates into a search for more detailed and accurate information about the reputation of their companies. Thus, a new generation of reputation-driven business intelligence is emerging, providing insights built from an analysis of the specific impact of reputation on business value.

One of the most significant facets of the inflection point facing boards and leadership teams is the integration of reputation management into all aspects of the organization. McKinsey consultancy highlights that “external engagement cannot be separated from everyday business; it must be an integral part of it.” In this movement, boards have also begun to challenge and help executive teams apply a reputation perspective to the process of defining strategic options, making decisions, and allocating resources.

"(Advices) are examining reputational risks that could limit strategy execution or compromise critical business dependencies, implementing rigorous mitigation measures.

They are also analyzing opportunities for reputation to build and sustain long-term competitive advantages, aligning reputation strategy with corporate strategy and providing a framework and narrative for plans at the divisional, regional and business unit levels. Additionally, they are examining reputational risks that could limit strategy execution or compromise critical business dependencies, implementing rigorous mitigation measures. Underlying all of this is the need to ensure that the company identifies and establishes the correct indicators to monitor and review performance and reputational impacts.

By strengthening reputation understanding, improving analytics and metrics, enhancing board expertise and capabilities, and integrating reputation management across all areas of the organization, boards significantly contribute to the success and sustainable growth of their organizations. companies.

Andiara Petterle is an Administration advisor and specialist in digital transformation

The signed articles reflect the opinion of the authors


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