Managing Professional Services Communications: Reputation, Brand and Leadership December 6, 2007 AMCF Global Consulting Leaders Symposium Peter Verrengia, President and Senior Partner Communications Consulting Worldwide

1 Challenge: Grow Value Everywhere...

2 Against a background of global complexity...

3 Priorities? Visibility for the firm –Global –National –Regional –Local Credibility for the practices and partners Lead generation Recruitment and retention –Lateral, direct entry –Summer associates, associates

4 Questions and Complexity How should we be known, what should we say? Why do our competitors get more attention—does it matter? Should we focus on practices, geographies or at the firm level? How do we convert our experience into demand? Does criticism or a link to negative issues hurt our revenue now? Will it hurt in the future?

5 More questions… Can we increase productivity and quality if employees understand our strategy better? Are we trusted, seen as innovative, expected to succeed? Is that view the same in every country and every service segment. Should our leaders be visible, should they be thought leaders? Is the time and personal exposure worthwhile? Shouldn’t our results speak for themselves?

6 Challenges of Business Development Communications in Professional Services Firms Shared –Disintermediation of editorial function, decline of endorsed expertise –Speed, fragmentation of information sources—shift away from control –Desire for linearity in a non-linear decision-making environment –Scope and scale of global business –Lack of confidence in large organizations, personal credibility as a substitute

7 Challenges of Business Development Communications in Professional Services Firms Unique –Partner time –Partner expectations (Unlike clients, partners are never wrong) –Can’t easily use clients as examples in public communications –Expertise versus personalities –Lead generation in a relationship context –Business strategy vs. marketing strategy vs. partner priorities, reactions

8 Variety Of Effective Tools Most programs involve the same tactics Segmentation by practice, vertical industry, and geography ControlledUncontrolled Advertising Direct Custom Publishing Books, by- lined Articles Speeches, events, seminars Media relations Interactive engagement VISIBILITYCREDIBILITY Integrated Communications Program Content Dependent

9 Objective? Conflict? Personality dependent Super Fully Integrated Strategic Communications Super Tactical, High Volume Splashy Buzz Communications If I could just get into the room… Chaos?

10 Organizations Must Tackle Communications Alignment and Integration Issues Organization: How does it connect inside? Effectiveness, Efficiency: How well are reputation and brand projected and protected? Alignment: How well does the organization support its own professionals and their objectives? Benchmarks: Scope and spending on communications activities and how does this compare to best in class? Coordination Functional, Independent, Parallel Collaboration Together, Better, Faster Integration New, Innovative, Strategic Near-Term Initiative Long-Term Opportunity

11 Reputation and brand Brand: what we say about ourselves or our products –in the context of a buyer/seller relationship –Most often through controlled communications Reputation: What others say about the company –In the context of its own actions and statements –Statements of competitors, and the issues and concerns that create the economic, public policy, and social trends environment –Wherever the company operates or plans to operate in the future. –Most often through uncontrolled communications Brand Visibility Reputation Credibility Credibility = Experience + Expectation In professional services, brand and reputation are very closely aligned

12 Managing Reputation & Brand Value Opportunity Platform Safety Net Value Controlled Communications Uncontrolled Communications Performance Reputation and Brand Partners Firm

13 Brand, Reputation and Thought Leadership The firm’s reputation is a composite and reflection of its partners’ reputations—and potentially more –Institutional qualities, attributes Communications from the firm requires the personal participation of the partners –Especially at the level of thought leadership –“Live the brand”??? LEADERSHIP Positioning DIFFERENTIATION CREDIBILITY VISIBILITY same at any scale: partner, practice geography, or firm

14 Reputation and Branding Priorities LEADERSHIP Positioning DIFFERENTIATION CREDIBILITY VISIBILITY For the Firm For the Partner PERSONAL CREDIBILITY TIME FOR VISIBILITY TIME FOR THOUGHT LEADERSHIP High Effort, High return

15 Two rules Thought Leadership: Need a thought Need to lead

16 Essential Ingredients New solutions, expanding opportunities, call to action Not Just about the firm Comment on current issues and events Developments about the firm, office or practice NEWSEXPERTISE THOUGHT LEADERSHIP Content is king in professional services communications

17 How do we know what matters? In an increasingly complex world, attributes of our reputation, and what issues, are important? Do we have, in our reputation, a sustainable competitive advantage? –What attributes to emphasize? –What attributes to protect? How do we create and maintain visibility and credibility –Program messages, tactics, duration –Spending levels What are the metrics we should use?

18 Practical Considerations Motivate partner participation Respond to partner priorities and desires (demands?) Justify budgets

19 Practical Considerations Motivate partner participation Respond to partner priorities and desires (demands?) Justify budgets ACCURATE COMMUNICATIONS ECOLOGY ANALYSIS TRANSPARENT PRIORITIES, BUDGET & RESPONSIBILITY MEASUREMENT TIED TO BUSINESS OUTCOMES CONSISTENT MESSAGE PLATFORM

20 MESSAGE & POSITIONING DEVELOPMENT Program strategy & tactics LEADERSHIP REPUTATION GROWTH AND DEFENSE REPUTATION VALUE MEASUREMENT ORGANIZATIONAL DESIGN & PERFORMANCE BD Comms. Management This is the easy part

21 Create Reputation Value Model What outcomes matter most to you as a business? What is the value of reputation overall? What metric should be used over time to measure progress or threats? Which reputation attributes or messages contribute most to your reputation, sales volume, other outcomes? Which should be emphasized more? Which reputation attributes or messages about the company should your protect?

22 Management Strength Corp. Culture and CEO Messaging Employee Relations Brand Data Stakeholder Survey Inputs (Customer, Employee, Other) CSR Data Media Relations Data Innovation Possible Data Points: Inputs IntermediariesOutputs Sales Volume/ Growth Potential Business Outcomes: Customer Retention Market Share Revenue Components Strategy Execution Product/Service Quality Awards, Patents, Ratings Publicly Available Financial Data Marketing Data Reputation Financial Position Possible Message Themes:Possible Elements: CCW’s Approach to Measurement An approach using multivariate statistics and econometric modeling A model using causal equations to link intangible drivers to an overall score that links to corporate performance Reputation Index – Communications, Brand, Image, Other

23 Leadership Defense Understand the environment and risks –Cross-border political and economic issues –Relevance –Competitor initiatives –Timing—24 hours a day –Appropriate response Sometimes no response is correct Create just enough leeway for initiative Focus and repeat (consultants get bored easily) Measure Involve knowledge owners Always seek communications annuity programs and develop franchises