What Every Leader Should Know About Their Reputation.
One thing that leaders like Richard Branson, Warren Buffett, and numerous others have in common is how they emphasize the critical importance of their reputation. It is being discussed at the World Economic Forum and the finance magazine Economia wrote: “More than three-quarters of global finance leaders say they are willing to put reputation before profit for long-term benefit.”
Your reputation as a leader is your most valuable asset, and according to numerous articles and research, great leadership starts with self-awareness since it makes you take better decisions and be more successful as a leader. Let’s face it – others see your unique qualities and flaws best which makes reputation a critical leadership tool. When knowing your reputation, you should invest in your perceived strengths that make you a great leader but also handle the flaws that hinder successful leadership. In spite of all leadership programs and tests, self-awareness is in short supply among leaders and is an essential capability to develop. It is what knowing your reputation is all about.
There are other exciting aspects since the reputation of top executives is also affecting the entire company’s reputation with a substantial impact on the market value. According to research by Weber Shandwick, almost half of a company’s overall reputation is attributed to a CEO’s reputation. The study also indicated that 60% of a company’s market value is assigned to reputation.
A majority of investors also say that they base their decisions on the reputation of the top executives and the expectations that it sets. I dare to say that there is no other single strategy with the same impact on the company’s economy as working with reputation.
Another critical question today is how to attract the best talents. The reputation of the top executives is one crucial factor that is seldom talked about in employer branding discussions. An excellent reputation of the leaders will attract the best talents and will dramatically reduce the costs of recruiting.