Corporate reputation management is a 21st century business imperative.
Reputational value is an outcome of stakeholder expectations of operational performance. The measure of that value is best evidenced by the financial consequences of stakeholder actions. Stakeholders reveal their expectations with the way that use their wallets to buy, lend, regulate, or otherwise do business.
We give company leadership first-time, actionable visibility into the financial drivers that build reputational value, and help guard against its loss. Our metrics and services are based on more than 13 years of big data on more than 7000 public companies that underlie reputational assurance solutions, reputation insurance policies and products, reputation-linked bonds, hedge fund investment strategies, and are used by S&P CME/Dow Jones Indices to compile a reputation-based composite equity index that has outperformed the S&P500 Index by an average of 9.4% annually.*
Reputation isn’t the product of popularity polls, and it can’t be merely managed online. A “better” reputation comes from better operations and better communications, and it empowers a company to deliver better results, in both good times and bad. It’s a core, systemic asset that needs to be benchmarked and controlled in order to be protected.
Better metrics mean better control.
Each week, our metrics score reputational value from a proprietary array of forward-looking financial sources, bringing together heretofore disparate data points into an aggregate measure of stakeholder expectations. We scour decision (or prediction) markets, reported company filings and performance, balance sheets, and then correlate the information with various maths to normalize values, so we can deliver algorithmically timely and operationally useful measures that can be compared within industry sectors, across sectors, and tracked week-over-week.
Building on the core direct measures of reputation value and its volatility, our two basic benchmark measures — ReputationPremium™ identification of value relative to competitors, and ValueRisk™ tracking of the change in unanimity of those expectations — provide clients with the reliable basis for tracking reputational value, measuring the impact of business decisions and communications efforts, and forecast future issues and opportunities.
Consensiv Controls 2.0, our basic governance, control and risk management product, is a 17-page reputation value and risk report, which presents the direct and benchmark measures providing actionable governance, operations, and communications intelligence to decision makers responsible for protecting corporate reputation value.
Each weekly report answers four basic questions:
- The probability of material impending stakeholder realignment
- The long-term materiality of a major equity movement
- The end-of-quarter materiality of a minor equity movement, and
- The relative reputational state of key benchmark firms.
The reputation value controls in the report follow a six sigma DMAI (Define, Measure, Analyze, Improve) framework that can help companies both expose value opportunities and protect against balance sheet volatility and loss of market capitalization.
Our advisory enables more effective governance.
In addition to supporting real-time decision making with our reports, our objective metrics of reputational value allow for a number of critical governance, risk management and control review activities that have never before been possible, and which deliver on the promise of systemic reputation management, or “SRM.”
Our time-series data enable both internal and competitive analyses of the true drivers of stakeholder decisions by correlating investments, expenditures and public-facing activities with our scoring. The findings can enable more efficient resource allocation and testing of likely improvements, allowing for the exploration of such questions as “Did stakeholders appreciate and value a new product or service, and maintain that consensus over time?” and “What’s really happening to reputation during a crisis?” Further, by correlating our data with other measures of value, such as ROE, we can greatly enhance and deepen management insight into the long-term financial effects of reputational value.
Our metrics and advisory services give our clients actionable visibility into the financial drivers that build reputational value, and guard against its loss. Consensiv brings corporate reputation to the KPI table in the language business executives best understand, and empowers our clients to make smarter decisions based thereupon. We provide established methodologies and advisory services to enable those actions.