Fall 2012

Reputation: Meeting Expectations

New

More 

"You add to that the reputational damage from a public FCPA investigation, shareholder lawsuits, whistleblower risks and the possibility of jail time for your employees, and you've got an easy business case to make to a board member or CEO."



Matteson Ellis, Attorney
Quoted: Wall Street Journal 2 Oct 12

 

Unethical behavior by a handful of employees may trigger institutional reputational value crises. Individuals are guided by both personal morality and institutional culture. When the latter does not compensate for deficiencies in the former, and their is no residual goodwill with the market (e.g., financial institutions), then the market will punish with a broad brush.

Barclays CEO Diamond’s failure to distinguish between individual morality and institutional culture cost him personally. His downfall was precipitated by a scandal involving fourteen employees at Barclays, along with a handful of employees at other banks, who fiddled with a reference standard called LIBOR that underpins $360 trillion of global securities. After brewing for months, in late June 2012 when Barclays was fined a record 290 million pounds ($453.4 million), the alleged improprieties became widespread public knowledge.

Days later, Diamond and the bank’s COO stepped down. In the first week, the reputational crisis also wiped $5 billion in market capitalization from the bank ranked second in the UK by assets. “Clearly there was behavior that was reprehensible,” Diamond acknowledged in testimony to Parliament. As this volume goes to press, Barclays is conducting an internal review into what it called 'flawed' business practices while the Serious Fraud Office is investigating the prospect of criminal charges.

And yes, the personal costs mounted. In addition to losing his job, Diamond agreed to forgo up to £20m in bonuses and shares. And although he walked away with around £2 million in salary and pension payments, the hearings before Parliament cast a shadow. “The comments made at today’s hearing have had a terribly unfair impact upon my reputation, which is of paramount concern to me,” Diamond said.


Listen Up

Programming calendar for the Mission Intangible Monthly Briefings

This free series of moderated conversations are fabulous educational events. We have a terrific line up with leading authorities addressing core issues on a broad range of intangible asset drivers of value. See the program list for 10H00 ET on the ~first Friday of each month below.

Our program moderator is the global brand strategist, Jonathan Salem Baskin.

Jonathan is President of Baskin Associates, Inc.,  a marketing decisions consultancy. He is the author of four books on branding and marketing ("Tell the Truth" will be published in April, 2012), a columnist on marketing leadership for Advertising Age, and blogs at Dim Bulb and Histories of Social Media. He has 29 years of experience working with leading global brand names and is headquartered in Chicago, Illinois. You can read more about Jonathan here.

For those wishing to follow the Briefings with written materials, slides are available for download on the Society's events page in advance of each program, and we strongly encourage audience-sourced questions before and during the event. There is no cost to the slides or to participate in the broadcast, but we do ask attendees to register. Register now for the next Mission Intangible Monthly Briefing.

In addition, if you should miss an event, or if you would like to review an event, an archival set comprising the slide presentations and audio recordings are available for each of the prior events through the Society's store. Society members receive a substantial discount.  Learn More - Monthly Briefing

Briefing Friday 8 June at 10h00 ET

Program: Sex and the CEO

Men and women; men and women and more men; and still more men. This past year, Best Buy and HP -- to name just two S&P500 companies -- had C-suite turnovers precipitated by relationships between the CEO and an employee. Highmark dismissed its CEO for cause after he fought with his mistress’ husband. And across the pond, Lord Browne stepped down a few years ago from BP after a relationship was exposed by the press following years of denial. Is there any good in all this? Are these evens fortuitous or do certain firms experience a carnal discount? In our next program, we ask our experts how all this impacts a firm's stakeholders and its reputation.


Joining us on 8 June at 10h00 are William Hernandez, Member of the Executive Committee and Chair of the Restructuring & Executive Compensation Committee (Eastman Kodak Company); also Albemarle, Black Box, and USG Corp; and Jonathan Low, Partner and Co-Founder of Predictiv, LLC, a metric driven provider of strategic and performance enhancement services. Jonathan Salem Baskin, global brand strategist, speaker, and author, moderates. Learn more.

Briefing Friday 13 July at 10h00 ET

Program: Total Patent War

Intellectual property rights and the implicit economic rewards are enshrined in the constitution. Those rewards can be extraordinary, while the process of realizing the economic potential, can be a cut throat, bloody cage match where only one company may emerge alive. We ask our experts if this is a consequence of our knowledge economy, or an updated remake of a movie classic.

Joining our conversation on 13 July are Kimberly Klein Cauthorn, Director, RPX Corporation (NASD:RPXC) that helps companies manage their exposure to patent litigation; and Oliver S. Schmidt, a principal of C4CS that specializes in strategic communication and crisis management. Jonathan Salem Baskin, global brand strategist, speaker, and author, moderates. Learn more.

Briefing Friday 12 October at 10h00 ET

Program: Intellectual Property Worth Fighting For

Before we went on summer holiday, the guests of our prior program titled "Total Patent War" explored the rough and tumble world of IP litigation. In our program 12 October at 10h00 ET, we look at the process through which valuable IP is first created. The IP value chain begins with a pool of ideas that are winnowed down to a few that are further developed, reduced to practice, protected, marketed, and monetized. What are the the best practices such that process produces value worthy of a good battle on a regular, reliable, and repeatable basis?

Joining our conversation and bringing clarity to the issue are two authorities on operations and communications. Dr Jackie Maguire is founder and Chief Executive Officer of Coller IP, which provides a full range of Intellectual Property services. Bruce Berman is a principal at Brody Berman Associates, a consulting firm advising IP holders about conveying the value of their rights and reputation. Jonathan Salem Baskin, global brand strategist, speaker, and author, moderates. Learn more.

Briefing Friday 16 November at 10h00 ET

Program: Trademark, Brand, Reputation, and Value: Blind men with elephants reprise?

Finishing up our IP sweep and transitioning into our periodic philosophical forays, our program 16 November at 10h00 ET looks at the concept of value proposition. Trademarks are supposed to indicate origin; brands convey a promise; reputation reflect an expectation, and value, well, it is in the eye of the beholder. Are these four sides of the same beast or is there benefit in making a distinction?

On our program are two guests ready to wrestle this elephant to the ground. David Orozco is Assistant Professor of Legal Studies in Business, Florida State University. Jonathan Salem Baskin is a global brand strategist, speaker, and author, most recently of Tell the Truth. Nir Kossovsky, Executive Secretary of the Society, CEO, Steel City Re, and author, Reputation, Stock Price and You, moderates. Learn more.

Briefing Friday 18 January at 10h00 ET

Organizational Resilience: Taking a licking and keep on ticking

In Resilient Enterprise Paradigm, a white paper the U.S. Department of Commerce commissioned from the Council on Competitiveness, the Council noted that, as the economy becomes more globalized and knowledge-based, and as distant perils have both local and global impact, resilience - the ability to anticipate, prevent, mitigate, and recover quickly from, disruption-is not merely important, rather, it is a business necessity. Yet in a knowledge economy where 70% of the average company comprises intangible assets, guidance for fostering intangible asset resilience is sparse.

Joining our conversation are Dr. Marc H. Siegel, a senior security professional who is Commissioner of the ASIS International Global Standards Initiative and Michael D. Greenberg, a senior research analyst with RAND, Director of RAND’s Center for Corporate Ethics and Governance, and a member of the Society's Reputation Leadership Council.

Jonathan Salem Baskin, global brand strategist, speaker, and author, moderates. Learn more.

By the Numbers

Reputation is embedded in stock price. Reputation metrics exist to provide an independent measure. The Steel City Re Reputational Value Metrics is one such family of measures, and RepuStars® Variety was created several years ago to demonstrate both the independence of the metric and its value as a leading indicator. Values are updated weekly and posted on the Mission Intangible blog every Monday. Since 1 November 2011, the RepuStars® Variety Corporate Reputation Index has been calculated in real time by S&P/Dow Jones Indexes with quotes available on several popular financial websites. Click here for real time quotes.

The Word

MISSION:INTANGIBLE, the Blog

In addition to the weekly financial metrics, the blog of the Society offers critical comments on intangible asset management, reputation, and finance matters appearing in today's headlines. This past quarter, themes addressed included innovation, executive compensation, creative accounting, supply chain hazards, risk communications, labor ethics, trust, and much more.

Companies and other institutions recently reviewed include Boeing, Dole, Yum!, Dell, Moody's, S&P, HSBC, UBS, Walmart, Target, McDonald's and many more.  Learn More - Mission:Intangible



Recent IAM Magazine Articles from the Society

 

 

Intellectual Asset Management (IAM) magazine, a Globe White Page Ltd publication, is the media partner of the Society. IAM magazine publishes in each issue a contribution from the Society on a noteworthy intangible asset finance matter. And since the January 2010 issue, we also added case studies on reputation management. Recent publications have covered developing a corporate culture of intangible asset protection, best practices for reputation crisis management, socially responsible investing, the art of regionally branding, advanced concepts in IP and venture capital, surveys of perceived intangible asset risk, and using insurances to manage patent risks. Learn More - IAM.

List Your Book With Us

The Society is pleased to call attention to books by our members; last year, we announced the first book from the Society titled (what else?), Mission: Intangible. Managing risk and reputation to create enterprise value.

If you are a Society Member and would like to list your book at no charge with the Society and feature it both on our website and in our store, including links to your preferred sales channel, please contact our publications Chair by clicking here. We take no commission on sales, so value this offer as yet one more intangible benefit of Society membership.

Ongoing IAFS Membership Drive

Reputation, intangible assets, intellectual capital, ESG, CRM, CSR, whatever. To the extent that anyone is talking about any of these, it is like the weather. Talk. No action. Unless they, like you, are a member of the Society. You're not, you say? Here's why you should be.

Through our community activities, educational programming, and outreach, members of the Intangible Asset Finance Society (IAFS) understand the implications and differences among reputation, intangible asset and intellectual capital and are preparing to do something about them. Here’s why: 

1. Thought Leadership on Financial Metrics. The IAFS is the only interdisciplinary Society of professionals in diverse fields such as communications, risk management, intellectual asset management, operations, and finance committed to the financial exploitation of intangible assets. Superior exploitation translates into enhanced pricing power; lower operating and credit costs; and higher net incomes and earnings multiples.

2. Risk Management and Value Preservation. A lost reputation can destroy a firm overnight. IAFS can keep you up to date with enterprise risk management strategies for ethics, innovation, quality, safety, environmental sustainability, and security, all bundled in the stakeholder friendly wrapper of "reputation" management.

3. Preferential Pricing. Society members receive preferential rates for IAFS products at our new store and discounted registration to various professional meetings. Visit the Society's current News page for conferences where you can monetize your relationship capital with IAFS.

To renew your membership through our on-line store, click here. To apply for membership, click here

Questions? Contact the Membership Chairman, David Gould, or the Executive Secretary, Nir Kossovsky. For contact information, click here.

Faced with such a cornucopia of value, how could you do anything but click here for a membership application form?

The IAFS Store

We have more than three years of action-packed Mission Intangible(R) Monthly Briefings available for sale and download at extraordinarily reasonable prices for Society members. Each Monthly Briefing package, comprising an audio file and slides, represents the work of leading edge practitioners in the emerging field of intangible asset financial management. We also offer books, including the Society's own publication, Mission: Intangible. Visit our store.

Linked-In IAFS Interest Group

Subtly signal to your colleagues that you know what it takes to create value in those assets that represent the bulk of a company's value today. Linked-In, the business networking website, hosts the IAFS icon that Society Members may wish to affix to their on-line bios. Like nearly 600 other forward-thinking executives, affirm your commitment to superior intangible asset financial stewardship by (click on the following phrase) joining the Linked-In group, Intangible Asset Finance Society - IAFS.