“Reputation is a fundamental asset for the health of the business”

“The leader must place reputation and brand in the organization's strategy and then promote the organization's key attributes in practice. If this is not the case, there will not be bridges built with each of the audiences. Reputation does not happen by what you say; It is only sustainable, in the long term, if it is delivered daily.”

To talk about how a sector as sensitive to public perception as finance manages reputation and reputational risks, the Reputation Feed decided to listen to César Bochi, CEO of Sicredi Cooperative Bank. And, in this case, it still made a profit, as it also brought the topic of reputation and trust to another relevant segment: the cooperative.

With 120 years of history, Sicredi is present in all Brazilian states and the Federal District, has 2,700 branches and 8 million members (in the cooperative system there are no customers, but members) and more than 44,000 employees. In the first quarter, the institution recorded R$ 340 billion in total assets and net worth of R$ 38 billion.

“Nothing survives without a positive reputation”, says César. According to him, the responsibility towards each member is great and, therefore, vigilance is constant. “We are related to the positive impact we generate, whether for the associate or for the community where we operate”, adds the executive, an enthusiast of brand and reputation management, strengthening the organization's culture and careful relationships with all stakeholders.

Considering that trust is essential for the operation of a financial institution and that trust and reputation are inseparable, what is the role of reputation in Sicredi's strategy?

Reputation is born from strategy, goes through values, shapes culture, has an initial layer focused on the issue of communication brand, but goes beyond it to all stakeholders, who feel Sicredi for what it is, not for what it wants to be. Sicredi has a different model from a traditional financial institution, it is neither better nor worse, it is different.

We were born in Rio Grande do Sul, more than 120 years ago, and we are a pioneering credit cooperative, which operates in all states, we have 8 million members. So, we need to be recognized for how we positively affect, in this cooperative model, employees, associates and the community. This goes through our value attributes – such as relationships created by a human company, which is good for society –, which reinforce our reputation.

In practice, what are the levers of a good reputation in the cooperative?

Financial education is a very strong pillar. The objective is to show that the products delivered to the member will increase their financial well-being, which often does not represent the granting of credit. Thus, in relationships with their business manager, with their agency, the member realizes that the cooperative's greatest interest is their well-being, and this generates a positive reputation. Therefore, Sicredi almost doubles in size every three years.

Assets grow from 20% to 30% per year. Our NPS, the difference between promoters and detractors, is 75. When asked, around 80% of members would recommend Sicredi for someone to join. We also grow through the referral of associates. The cooperative operates very closely with its members and, due to its business model, is transparent in its relationships and is accountable.

“Would you recommend something to someone if you didn’t trust them? When you indicate, you are taking your reputation with you, you believe so much in that professional person or company that you are endorsing that you are putting your reputation with it. (Reputation) It's very important for us. It has to be true. It cannot be sustained if it is just a speech.”

Can the cooperative model survive without reputation? In this model, how do you earn a good reputation?

Nothing survives without a positive reputation. We are related to the positive impact we generate, whether for the associate or for the community where we operate. Sicredi has 2,700 branches and, this year, we will open another 250. We strongly believe in physical proximity as a means of strengthening human relationships and mobilizing a cooperative network. To be close, you need reputation and trust, because trust is the sum of promise and delivery. This serves as a local relationship for each person, for each of Sicredi’s 45 thousand employees.

From this, we were able to organize a value chain. At the end of the day, what do we want to generate? Our purpose is to build a more prosperous society together. We want the community to develop. Therefore, Sicredi stands out in relation to the traditional market in bad times, such as during the pandemic and during the climate crisis, in May, in Rio Grande do Sul (see, at the end of the interview, the institution's initiatives to support those affected by the flood).

What role does organizational culture play in the reputation of an institution like Sicredi and what is the strategy to keep it cohesive in a system with such complexity, in which each member also owns the institution?

It is no surprise that culture is part of the strategy, it is our main competitive differentiator. In a world where everything is the same, technology, products and services, culture highlights the elements, the value attributes that differentiate us in the market. In our case, they are very connected with our values, which are human and close service, 'you can count on me', action in local development. These behaviors must be practiced by employees, who are evaluated based on the definition of skills, a development plan and feedback, based on these values.

“To be close, you need reputation and trust. And trust is the sum of promise and delivery.”

What is the leader’s role in disseminating culture and reputation?

The leader has to be an example of the company's reputation that wants to be perceived by all its stakeholders. It is necessary to identify how to deliver the attributes that generate reputation for each audience. In addition to being an example, the leader must place reputation and brand in the organization's strategy. From there, define the organization's key attributes and promote them in practice. If this is not the case, there will not be bridges built with each public. And reputation doesn't happen by what you say; It is only sustainable, in the long term, if it is delivered daily.

“To build a leader’s reputation, communication skills and the mobilization of different stakeholders are essential, based on the definition of priority themes, different channels and formats to interact with each one.”

You built your entire career within Sicredi itself. Along this journey, what were the elements you considered to build your reputation as a leader?

My story is mixed with that of Sicredi, which is directly related to my identification with the business model that aims to generate prosperity for communities. My leadership journey was not planned, but I always sought to do the best in the role I was working in at the time. My first leadership role came because of my technical skills, but from then on, what set me apart was my desire to build new solutions.

In order to build a leader's reputation, I consider that characteristics that include mainly the ability to communicate and mobilize different stakeholders are fundamental, based on the definition of priority themes, channels and different formats to interact with each one. Furthermore, it is essential to build scenarios with clear objectives and the ability to make and communicate decisions in a clear and transparent way.