What is reputation?

Families and private-client advisers deserve a better explanation of reputation. As a concept, it feels nebulous, intangible and difficult to grasp. The word 'reputation' also gives rise to misconceptions about profligate media coverage, self-aggrandisement or avoidance of public scrutiny. But reputation is, actually, something a lot deeper, more powerful and tangible.

Magnets

Many people define reputation by media coverage or public profile. This definition is shallow, damaging, and misleading.

There are people with positive media coverage who, nonetheless, have a bad reputation in private circles. There are also many families with a minimal public profile but significant global reputations.

At Transmission Private we understand and measure reputation not in column inches but in the leverage it gives the family to achieve new things, whether that is in business, philanthropy, public or private life.

Reputation as magnetism

Reputation acts like a magnet: a good reputation attracts; a bad reputation repels. If an individual or family has a good reputation, people want to partner with them, work with them and invest with them. They attract new people, interesting opportunities, and business becomes almost effortless.

If an individual or family has a bad reputation, people avoid being seen with them, are reluctant to invest with them and go out of their way not to work with them. They find it difficult to access deals and doing business can be tough. At worse, governments, banks and other partners cut them off.

Reputation acts like a magnet: a good reputation attracts; a bad reputation repels.

Most families sit somewhere between these two poles: they neither repel nor attract. They have neutral reputations. But they lack the real leverage a truly good reputation gives them: the leverage 'upwards' to realise new business and personal opportunities and the leverage 'downwards' to safely weather bad news without it leaving a lasting negative impression.

A deeper understanding of reputation

Our research reveals stakeholders such as investors, banks, the public and others look at three basic elements when judging a person or family’s reputation.

Taken together, these are the three constituents of a good reputation, and our model for understanding reputation breaks down as:

Reputation = Values + Actions + Financial & Social Capital

Our reputation solutions focus on incrementing or communicating one, or all, of these elements. This provides the model for our work.

Transmission Private publishes a monthly newsletter that tracks the future of reputation management for private clients.

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Transmission Private publishes a monthly newsletter that tracks the future of reputation management for private clients.

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Transmission Private publishes a monthly newsletter that tracks the future of reputation management for private clients.