Corporate Reputation Management

Corporate reputation is a valuable asset. As the 2007 Aon Global Risk Management Survey noted, reputation is also one of the most difficult of assets to protect; it takes years to build but can be destroyed overnight.

Increased focus on corporate governance and risk management, including reputation management, have placed increased pressure upon directors to discharge their duty to ensure that management has identified potential risks to reputation and taken reasonable steps to minimise or mitigate them. Moreover, globalisation and an explosion in communication channels make this duty more challenging.

Corporate crises often arise through stakeholder dissatisfaction which results in a complaint being taken outside the company’s dispute resolution process, eg to the media, regulatory authorities, NGOs, unions or through the courts. Even the best run companies have had to contend with litigation, prosecutions or investigations by ASIC, the ACCC, WorkCover, the EPA, Today Tonight and A Current Affair. Even if the company is later exonerated, some mud may stick.

A company’s dilemma in such circumstances is how to reconcile potentially conflicting advice from different quarters and come up with an integrated solution to the problem, rather than piecemeal measures developed in separate silos.

2007 in review

As we enter the New Year we at Daemon Group would like to take this opportunity to send you our best wishes for 2008 and also to reflect on our growth and achievements during 2007.

Thanks to our people, clients and partners around the world, 2007 was a very successful one for the business, with three completed acquisitions complementing awards for creativity and business achievement as well as a range of successful campaigns launched on behalf of clients across three continents.

Starting in early February, Daemon Group began to implement our strategy of continued growth through select strategic acquisitions with the purchase of 2iC Integrated Communications, a Sydney based PR agency. This deal was followed in May and July with the acquisitions of Spinner, a London based design agency and the Australian research agency MRA. All three businesses have been fully integrated into Daemon Group and continue to add value to staff and clients as part of the wider Group.

During October we were listed at number 35 in the BRW Fast 100, an increase of 29 places on our position the year previous, our first year of eligibility. In addition, the creative executions for the Jones Lang LaSalle employment brand campaign won three gold awards in the International Summit Creative Awards and the FEMA Award for best art direction.

2007 also saw the introduction of our new corporate identity, brand and web presence at www.daemongroup.com Throughout this year we will continue to share thoughts and ideas through www.thinkcourageously.com our platform for discussing issues of interest to our industry.

Last but by no means least, 2007 also saw the relocation to our new Head Office in The Rocks in Sydney.

2008 looks like being another exciting year for Daemon Group and we look forward to working with you and continuing to add value to your organisation.

Harnessing the Brand to Find Future Talent

As the struggle to attract and retain talent continues, it is recognized that a well structured graduate program will contribute to providing an organization with strong talent for the future. However, this alone will not guarantee a successful graduate strategy. Companies must be able to harness all the strengths of their employment brand to attract talent, perhaps the most cynical group in the market.

For many years, the concept of 'Employment Branding' hovered in the realm of recruitment marketing and advertising where a promise, innovative attraction campaign and slick creative was enough to secure great talent. This is no longer the case. Companies who succeed in engaging talent at a functional, emotional and cognitive level will have the competitive advantage.

However, this is only 1 aspect of a multi-dimensional discipline. Success will also be determined by the effectiveness in which organizations harnesses their corporate brand and manage the propositions that integrate employment, customers and shareholders. The brand needs to live within the organization and Marketing, HR and the board need to align it to the business strategy.

Generation Y is astute and it has a conscience. They, more than any other single market segment will be seeking to understand the essence of the brand and how it aligns to their set of values, beliefs and expectations. Convincing them of the benefits of joining an organization will be based on a complex mix of perceptions, articulated benefits, social and political agendas and feelings. Managing a brand proposition that appeals to them at an employment level will require courage, tenacity and humility. When we look back in 10 years it will be the companies that put people ahead of profit, and really made changes based on key drivers who will be the winners. They will have the best leaders, a culture that is unique and core to their competitive advantage, a sustainable future and a profitable organization where people are engaged, excited and productive.