Does organisational reputation matter?

‘Your brand name is only as good as your reputation’- Richard Branson

Why? Brand reputation is everything. In today’s world, brands thrive to cut through the noise and it’s increasingly becoming more important to nourish how a company is perceived.

According to a recent study by Harvard Business Review, companies with a strong and positive company culture experience a 65% lower turnover rate compared to those with a weaker culture. 

Furthermore, a company’s reputation directly drives sales and profitability. A solid reputation in the market is the best foundation for building a strong customer base, promising stellar sales revenues.

To retain loyal customers, gain trust, and attract partners, companies rely on having a strong reputation. However, reputation isn’t just a “nice-to-have”; it’s a strategic asset that, when managed well, can secure an organisation’s growth and resilience. At GMG, we emphasise stakeholder management to better understand what our stakeholders need from us and how we can foster a culture of strong relationship. For us, it’s a promise to our customers. A commitment to understanding the needs, not only of our team but our collaborators as well. We do this by ensuring that mutual respect is given and received. One of our missions is to always be the partner of choice. Any relationship with GMG, no matter which stakeholder or in which stage of the lifecycle process you’re in, all our services come with a GMG promise. This is a promise of quality, innovation and strength. We collaborate with all our partners to provide the best service possible, upholding our values but with everyone’s best interest.

 Therefore, we conduct regular surveys across all business units to understand awareness and perception. The findings will help us improve and understand the needs of our target audiences.

Personal relationships vs. organisational reputation: Is your company's image based on individuals?

Many companies heavily rely more on individual connections than on overall brand strength - But is that a negative?

Well, this model indicates a drive through personal relationships, where the organisation’s influence relies significantly on individual employees instead of an inherent, resilient reputation. This is not to say that there are no benefits to this. Individuals act as symbols of expertise and respect.

When a company’s reputation is dependent on individual brands, it is not self-sustaining, it leaves room for vulnerability: if these key personnel leave, the associated trust, goodwill, and business relationships could follow them, rather than remaining with the organisation. On the other hand, when employees with influential client relationships depart, they take that trust with them. This potentially may lead to an immediate loss in revenue and partnership. The organisation, without a strong reputation of its own, may struggle to independently sustain these relationships, impacting revenue and stability.

To mitigate this, organisations should focus on strengthening their brand identity and positioning themselves as trusted entities. By building a cohesive brand reputation, they can ensure that stakeholder relationships are grounded in confidence in the organisation as a whole—not just in the individuals. For further improvements to stakeholder management having an action plan can smoothly support brand reputation for a company, but can only work when everyone is committed to its implementation.

Siloed Perception: When external partners don’t see the whole picture

Stakeholders can often misunderstand a company’s structure – especially if a company has a diversified business portfolio and is known for its brands, seeing it as a collection of individual brands rather than a unified entity. When stakeholders only recognise a company through individual brands, they miss the larger value that the company offers as an integrated, multifaceted organisation. This siloes relationships and limits cross-brand collaborations. Such fragmentation not only dilutes the company’s overall reputation but restricts the organisation’s growth and market influence.

Partnerships that remain brand-specific without understanding the full company structure may lead to missed opportunities for cross-brand synergies and partnerships. This fractured image weakens the company’s standing in the market, limiting its competitiveness and positioning.

To overcome this, organisations should work on a branding strategy that communicates the full scale of their business to external stakeholders. Positioning the company as a whole, with distinct yet interconnected brands, will help create a unified brand perception, opening doors for broader partnerships and enhancing overall market presence.

Gaps in Collaboration and Responsiveness: Satisfied Yet Frustrated?

 While stakeholders may rate personal relationships highly, they may see weaker collaboration and responsiveness at an organisational level. This suggests that positive individual relationships don’t always translate to positive company-wide experiences.

The disparity between individual satisfaction and broader collaboration highlights a gap in internal processes. Stakeholders may experience delays, uncoordinated responses, and communication breakdowns that detract from their overall experience, signalling a lack of streamlined processes within the organisation.

Poor communication and response protocols damage credibility, weakening trust and loyalty. For organisations, this can mean lost business opportunities and a diminished reputation in the eyes of external partners and clients, which ultimately affects growth and revenue.

At GMG, building a resilient organisational reputation is not left to chance—it’s a deliberate strategic effort aligned with our organisational goals. To ensure consistency and impact, below are some action points we believe, when implemented, could help an organisation with maintaining a strong reputation. These action points serve as a unified framework for driving stakeholder trust and engagement across the organisation: 

1) Establish Clear Communication Response Protocols: Develop standardised communication protocols with defined timelines for addressing both internal and external inquiries. Setting Key Performance Indicators (KPIs) around response time and satisfaction could help maintain timely and consistent communications. Furthermore, communicative actions should be proactive. It’s everyone’s responsbility in an organisation to initate open and honest dialogue. This type of ongoing and proctive  communication style can provide clairty, quicker and more effective resolutions.

 2) Enhance Communication Tools: Upgrading to collaborative tools that facilitate efficient communication both internally and with external stakeholders can significantly improve responsiveness.

3) Streamline Processes: By identifying inefficiencies in workflows that may effect our stakeholder trust, companies can pull more focus on these areas. By doing so, they can optimise processes such as invoicing and payment to ensure faster, more reliable service delivery. 

4) Provide Collaboration Training and Encourage Cross-Functional Teamwork: Training in effective communication, conflict resolution, and teamwork can improve collaboration. Initiatives that encourage cross-functional partnerships create a culture of shared responsibility, strengthening stakeholder relationships at every level. Prioritising a consistent brand promise and experience is a must. This is to ensure that stakeholders enjoy their journey with us, no matter where they are in their lifecycle.

Building a Resilient Reputation: The Way Forward

 These findings underscore a fundamental truth: a resilient reputation isn't just an advantage—it's a necessity. Organisational reputation is multidimensional, encompassing every aspect of an organisation’s operations, culture, and societal impact. Some of the key factors defining organisational reputation are: 1. Product and Service Quality. 2. Employee Experience. 3. Social Responsibility. 4. Customer Experience. 5. Financial Performance and Stability. 6. Crisis Management. 7. Innovation and Market Leadership. 8. Governance and Ethical Practices

When stakeholders understand a company as a trustworthy, integrated, and responsive organisation, it strengthens overall relationships, drives business growth, and sustains loyalty. Companies that invest in developing a resilient reputation will find themselves more insulated from the risks of turnover and more competitive in an increasingly reputation-driven market.

Ultimately, reputation is more than just a reflection of how others see an organisation—it’s a critical factor in shaping its future. By prioritising organisational reputation, companies not only protect their current partnerships but pave the way for lasting success.

By Reka Sepsy