Building [NPO Reputation] to last Trust – Cooperation – Passion… Inspiring the Change!

EACD Regional Debate Lisbon, 29th May 2008

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The Main Issue

REPUTATION & BRAND DIFFERENTIATION IS A TOUGH, COMPLEX TASK

WITH NONPROFIT ORGANIZATIONS

GOAL

M Create a trustworthy type of corporate brand by creating an inspiring kind of

nonprofit organization

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The Global Nonprofit Sector

Source The Johns Hopkins Comparative Nonprofit Sector Project, 2006 www.jhu.edu/ccss

GLOBAL (40 COUNTRIES) PORTUGAL

$1.9 trillion in operating expenditures 48.4 million full time equivalent jobs 4.6% of economically active population 53% fees as source of Revenue (35% government, 12% phil.)

$5.4 billion in operating expenditures = 4.2% GDP 227 thousand full time equivalent Jobs 4.2% of economically active Population 48% fees as source of Revenue (40% government, 12% philan.)

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The Global Nonprofit Sector

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The Global Nonprofit Sector

Source The Johns Hopkins Comparative Nonprofit Sector Project, 2006 www.jhu.edu/ccss

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Nonprofit Organizational Effectiveness

Source “Nonprofit Organizational Effectiveness: contrasts between especially effective and less effective organizations”, Herman & Renz, 1998, Nonprofit Management and Leadership

Aligning Stakeholders judgments with NPO’s goals and objectives

(Multiple Constituency Model) More effective boards

Do things right

Use more practicioner-identified

correct management procedures

Use more change management strategies

Have board with social prestige only moderately related

WHAT differentiates an especially effective NPO?

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Building Trust

Develop Trusting

Relationships =

Source of Competitive Advantage

Barney&Hansen

1994

SOURCE CREDIBILITY

Ethos → character & integrity

Logos → expertise & competence

Pathos → charisma

REPUTATION OF BEING TRUSTED by making deposits of good works into the “trust

bank”

TRANSPARENCY & HONESTY on telling the story through mediated channels to create and

sustain mutually-beneficial relationships

Trust is a central construct in the framming and dynamics of managerial relationships (Credd & Miles, 1996). Developing and maintaining trust is seen

especially important to managerial and organizational effectiveness (Davis et al, 2000)

A R I S T O T L E

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NPOs as Trust Leaders

Source www.edelman.co.uk/trustbarometer

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Action Towards Trusting Co.

Source www.edelman.co.uk/trustbarometer

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Most Credible Sources

46% 49%

55% 48%

46%

55%

31%

37%

39% 27%

23%

30%

19% 19%

20%

Source www.edelman.co.uk/trustbarometer

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From Trust to Trustworthy

“Without Trust, organizations are bogged down by suspicion, anger, cynicism and disappointment” (Golin, 2004)

BENEFITS → POSITIVE OUTCOMES

Higher job satisfaction, productivity and higher commitment to the organization (Flaherty & Pappas, 2000)

Higher sales and profits, lower emplyee turnover (Davis et al, 2000)

Enabling cooperative behaviour (Gambetta, 1988)

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Social Marketing (R)evolution

CAMPAIGNS BENEFITS KEYS to SUCCESS

SOCIAL MARKETING use of MKT principles & techniques to influence a target audience to voluntarily change behaviour for the benefit of others: improving public health, safety, environement or community well-being

Educational & Awareness building → Persuasive communications → Promoting behaviours!

Source “Corporate Social Responsability”, Kotler & Lee (2005)

HEALTH • drug use prevention, breast cancer, physical activity, teen pregnancy, eating disorders, HIV/Aids INJURY PREVENTION • traffic safety, suicide preven- tion, emergency preparedness ENVIRONMENT • water conservation, air pol- lution, wildlife habitats COMM. INVOLVEMENT • volunteering, voting, organ donation, crime prevent

Supports brand positioning Creates brand preference Builds traffic

Increase sales Improve profitability Attract credible partners Makes a real social impact

Focus on an issue aligned with core business or strenght Select an initiative that will leverage corporate citizenship Build partnerships with knowledgeable organizations (with common goals and interests) to increase positive outcomes Ensure that local participants are given a clear role, training and resources

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Social Marketing (R)evolution

Source www.coneinc.com/files/2007ConeSurveyReport.pdf

CAUSE BRANDING AND SOCIALLY ALIGNED BUSINESS INITIATIVES

92% have a more positive image of a company that suports a

cause they care about

87% are likely to switch one product to another (same price and quality)

if it is associated with a cause

84% of women and 75% of men considers a company commitment

to social issues when deciding what or where to buy

86% want to see companies with social commitment doing business

in my community 77% where to work and

65% invest in stocks or mutual funds

72% want their employers to do more to support a social cause

93% to provide them with opportunities to become involved 89% feel a strong sense of loyalty

The top 4 issues to be addressed 80% health

77% education 77% environment

77% economic development

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BENEFITS TO THE CAUSE BENEFITS TO THE COMPANY

Enhance public perception and concern for the cause through communication efforts Encourages clients and communities to sponsor/financial givings Increase participation and engagement on related activities Supports change behaviour with positive social impact Raise number of volunteers and related experiences, ideas, knowledge...

Increase corporate reputation and strenghts brand positioning Increase appeal to investors and financial analysts Increase ability to atract, motivate, retain employees Decrease operative costs by adopting effective business practices Create strong relationships with community Support MKT activities that generate traffic, increase Sales & market share, atract new customers...

Doing Good... Doing Great!

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Inspiring the Change...!

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Who are we?

Nonprofit organization and Public interest association specialized on:

Risk behaviour prevention & health education Community development Drug Treatment &

Social Inclusion

Drugs and Drug Abuse National Agency, Social Security National Agency

Emplyoment and Training National Agency

CO

NV

EN

TIO

NS

Partner of Public and Private organizations

Social newtwork Agent on health & social care

Social and Solidary Economy agent

Membre Dianova network (Special Consultant Status at ONU

for education, youth and drug abuse)

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Our People

Total Staff

56

Therapeutic 70%

Management 30%

Sex

Male 50%

Female 50%

Age (mean)

37 y.o.

Low Turnover Rate

11,4%

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What do we do? Mission: develop actions & programs that proactively contribute

to the individual autonomy and social progress Values: Commitment • Solidarity • Tolerance • Internationatlity

Inspiring and helping people to change behaviour!

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How are we perceived?

Government • Legislators • Regulators • Politicians • Central & Local Officials • Project Analysts • International Agencies

Organization • Leaders • Employees • Volunteers • Associates • Supplyers • Partners

Community • Community Leaders • Financial community • Investors & Sponsors • Public • Legislators • Regulators • Academics

Market • Recommenders • Prescribers • Social & Health professionals • Public & Private buyers • End users • Industry analysts • Opinion leaders

• Job security? • Good place to

work?

• Agenda? • Trustworthy?

• Service quality? • Relationships?

• Good corporate citizen?

• Follow through on commitments?

• Add value? • Innovative?

Dianova needs to address issues in a differentiated way

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Managing Reputation

BENEFITS Impact on organization’s performance by enhancing

the support of stakehloders towards the org.:

create competitive advantage

atract and retains best talent

enhance effectiveness on obtaining resources

atract investors and influentials

increase access to new markets

increase loyalty of customers

…

Reputation

how an organization

is perceived by key

stakeholders

Source (MacMillan et al 2005), “Reputation in relationships: measuring experiences, emotions and behaviors”, Corporate Reputation Review

REPUTATION FOR WHAT? • Determine what is important for each group of stakehloders

REPUTATION TO WHOM? • Good will will be drawn through stakehloders’ relationships

REPUTATION TO WHAT END? • Generate good will is the ultimate goal on developing and maintain reputation

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Managing Relationships

Model of Business Relationships

Perceptions and experiences of stakeholders

Commitment and trust of stakeholders

Desired behaviour of stakeholders

• Material and imaterial benefits • Power of persuasion • Costs • Sharing values • Trade equity • Communication • Past behaviours related with trust

• Trust • Commitment

Source (MacMillan et al. (2000), “Successful business relationships”, Journal of General Management

Stakeholder relationships as KEY for

Managing CR

Perceptions depend upon stakeholder experiences of a

business

• Creative cooperation • Loyalty • Agreement • Other behaviours related with trust

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How the Master Brand Works

Key equities that live in the master brand and do these things

Explain who we are and what we

do

Lead employees where we need them to go

Pave the way credibly for

services/innovation

Help us maximize our social impact as drug abuse interventions

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Dianova Master Brand Essence

Function • New, better services to treat drug abuse • Demonstrating growth and social impact • Good place to work • Sound ethical and scientific foundation • Striving for innovation through R&D leadership

“Managing fundamentals exquisitely”

Differentiation • A learning and teaching organization • Managing and leveraging success • New ways to look at old problems • Thinking creatively; continually striving

“Pipeline of ideas”

Image/Personality • Sincerity: honest, real, original, friendly • Competent: reliable, hard-working, intelligent,

confident, leader, secure • Exciting: daring, spirited, imaginative, unique

“Pathfinder”

Source of Authority • “Fit” of partners demonstrates expertise and good

practices • Separate track records of success • List of successes in services and social beneficiaries • Solid management team

“Meant for each other”

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Toward a Long Term Positioning

Owning the gap strategy to tell a unique story

Distinctive from other organizations because of our approach: • We are building on the success of our social impact • Each day we are making the right decisions for our future • We are challenging old notions about how health & social nonp organizations do “business”

Demonstrate ability to do it better than anyone as

critical factor in success

We continually strive to solve tough health and social problems by thinking outside the box… … we learn from and teach each other, by managing knowledge and sharing best practices worldwide, which… … drives us toward stronger innovation and integrated Solutions!

KNOWLEDGE • DIFFERENCTIATION • RELEVANCE • ESTEEM

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Messages

Corporate Communications

“You can do it” Creative Concept

Corporate Brand Management

Corporate Social Marketing

Health/Professional Communications

Public Affairs

Media Relations

DIANOVA

How do we Communicate?

Corporate brand informs and adds depth to traditional corporate communications

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Living Brand Inside…

ORGANIZATIONAL DEVELOPMENT

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QUALITY, INNOVATION, COOPERATION

… Out!...

Unique Therapeutical Community with

Quality Certification in PT

Special Consultant Status at UN/ECOSOC

Youth, Edu., Drug Prev.

Corporate Governance Best Practice Implementation

Balanced Scorecard

Trust Bank Deposit

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… Out!...

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AWARENESS & EDUCATION CAMPAIGNS

… Out!…

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… Out!...

Spot Vídeo “Looking at drugs with other eyes”

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… Out!…

“Maze of Passions”: Rapidly everything can be transformed into nothing... Life is beatiful... Take care of You and of Others!

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SHARING BEST PRACTICES

… Out!…

Trust Bank Deposit

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… Out!...

Trust Bank Deposit

Empowering Teachers & Other Professionals on Drug Prevention

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MANAGING ISSUES OF PUBLIC INTEREST

… Out!…

Government Relations Organizations/Influentials: 6.137

Positive Feedbaks: 49

Participation on Forum Beyond 2008 Drug Policy

Budapest, Jan’08

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TRADITIONAL & NEW MEDIA

… Out!…

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... Out!...

Spot Vídeo “Moments of confusion”

Spot Radio “Community Centre”

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… Out!…

website

blogging

foruns

web comm

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Measurement & Evaluation

OUTPUT IMPACT OUTCOMES

How effectively we disseminate our message

Quality and quantity of message delivered

What effect our communication has on target

Quality and quantity of message delivered

Sales/Admissions

What change we see in key business metrics

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Impact Communication

Positive Media Reputation = Competitive Advantage

Influencing Public

Opinion ↓

Shaping Perceptions, Beliefs

Attitudes & Behaviours

15 Press releases

6 Featured Articles

7 Interviews (Press&Radio)

QUALITATIVE • Positive coverage (0 neg news) • Creative & Reader-focused Headlines and content

QUANTITATIVE • 110 news published

38% Internet 45% General/Regional Press 13% Specialized Press 3% Radio 1% TV

• 5.638 million Readers • ROI €117.872

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Impact Communication

Website Dianova 2007

0

2000

4000

6000

8000

10000

12000

14000

16000

Jane

iro

Fevere

iro

Março

Abril

MaioJu

nho

Julho

Agosto

Setembro

Outubro

Novembro

Dezembro

Visitas ùnicas

www.dianova.pt Total Visits: 125.987 Total Hits: 2.195.221 Monthly Visits average: 10.499

Traffic Increase: 14% Online requests admission: 56

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Impact Communication

“... Thank you for the Postcards collection. We consider of major relevance the prevention and cooperation between all organizations in a global strategy...”

José Braz, former Director DCITE/PJ

“... Thanks for the SOLIS Report 2006 very useful and of special interest to our students”

Prof. Carlos Poiares, Director Psychology D., Lusófona University

“The GD congratulates Dianova for the quality and effectiveness of its services, regarding the Quality Certification ISO 9001:2000”

José Cid Proença, General-Director of Direcção-Geral Acção Social

“It was a surprise for me that Mothers-employees at Viveiros Dianova having offer this gift on Mother’s Day (plant), a good example for people with difficulties to access the labour market”

“Congratulations and all the best to achieve the goals of SOLIS project till 2009... And for sharing information that will improve our knwoledge”

Mário Pinto Coelho, Vice-President of Irmandade São Roque

“Thank you so much for the latest issue of your newsletter EXIT, an important asset of empowering and knowledge”

Luis Filipe, Social Affairs Deputy, Aveiro City Hall

“Congratulations for the health education initiative. I’d like to invite you to present these results at our Master”

Paulo-Kuteev Moreira, Prof of Health Strategy at Public

Health National School

Maria João Rebelo, Vice-President of Social Labour Market/IEFP

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Impact Communication

Measuring Satisfaction of Newsletter EXIT

SURVEY Based upon Davies methodoly 3.000 Questionaries Multi-Stakeholders April-June

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Delivering the Promise!

Prevention & Education 356

Drug Treatment 70

Social Inclusion 34

Community Development 653

1.113 People

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Evaluate Reputation on NPOs

CORPORATE PERSONALITY SCALE

Davies et al., 2003

Instruments or tools: surveys, focus groups, before-and-after polls, ethnographic studies, multivariate analysis projects, model building

REPUTATION QUOTIENT

Fombrun, 1996

SPIRIT Stakeholder Performance Indicator, Relationship Improvement

Tool MacMillan et al., 2004

THE ORGANIZATIONAL TRUST INDEX

Schoklev-Zalabak et al, 2003

MEDIA REPUTATION Deephouse, 2000

BRAND TRUST SCALE Delgado-Ballester et al, 2003

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In Conclusion

Managing Corporate Reputation is to be found in stakeholder relationships, their experiences and

intended future behaviours

NPOrganizations should aim to produce evidence of the strength of these relationships as a routine

in their internal & external reporting

NPOrganizations need to develop an awareness that evaluation allows them to act now to improve their governance, both enhancing their reputation

and demonstrate their responsability

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rui.martins@dianova.pt

TM +351 919 923 752

www.linkedin.com/in/ruipmartins