Uk INDEX OF THOUGHT LEADERS 2011-12

EXECUTIVE SUMMARY INTRODUCTION

The purpose of our annual Index, now in its fifth year, is two-fold: to reveal which businesses are recognised by Opinion Formers as Thought Leaders; and to identify key themes and factors influencing corporate reputation. The purpose of TLG Communications is to turn corporate reputation into a competitive advantage. We define successful Thought Leaders as those organisations or individuals that change attitudes and behaviours. A Thought Leadership approach gives brands a positive point of difference, forging stronger, more strategic relationships with key stakeholders, from investors to consumers. Malcolm Gooderham Founder, January 2012

UK BUSINESS THOUGHT LEADERS

RANK
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

COMPANY
Apple John Lewis Partnership Google Amazon The Co-operative Group Twitter Innocent M&S Facebook Microsoft IKEA GlaxoSmithKline RIM (Blackberry) Virgin Group Unilever McKinsey Nike BAE Systems pwc Goldman Sachs
Source: Populus / TLG

IMPACT OF THOUGHT LEADERSHIP PERMISSION TO GROW

15%

Positive improvement No impact

85%

LICENCE TO OPERATE

19%

Positive improvement No impact

81%

Source: Populus / TLG

For more information please contact TLG on: +44 (0) 20 7831 8000 | leadership@tlg-ltd.com

TEN THINGS YOU NEED TO KNOW

A Thought Leader is an individual, or business, that changes attitudes and behaviours

ideas.influence

ONE
There are three types of Thought Leader: First, the category leader - market leaders like Apple. Second, the issues leader - like M&S and its commitment to the environment through Plan A. Third, the values leader - businesses recognised for extolling a higher purpose like The Co-operative Group

TWO
Less than 40% of the top twenty are indigenous British firms. However, three of the top four British companies continue to rise: John Lewis, The Co-operative Group and M&S

THREE
The unexpected fall of Facebook indicates that the privacy debate is having a negative impact on the brand

FOUR
Thought Leadership status is not for life; it needs to be earned and cultivated. It can easily be destroyed, as BSkyB (who finished 10th in 2007) and BP (9th in 2008) demonstrate

FIVE
Thought Leadership status does not inevitably follow from being a market leader or from product familiarity, as demonstrated by the continued absence of the big FMCG players. Companies must actively demonstrate and communicate Thought Leadership credentials

SIX
Thought Leadership does not come from being a Challenger Brand. In fact, two famous challengers appear to be losing their way: Virgin again fails to make the top ten while Tesco has fallen 11 places to 24

SEVEN
There is no room in the top twenty for the biggest high street banks, insurance companies or utilities. Companies in these sectors have the biggest leadership opportunity

EIGHT
Thought Leadership status cannot be bought. Above-the-line marketing alone does not alone deliver or drive recognition as a Thought Leader. Multi-national companies that have invested in high profile issue advertising continue to miss out on the top twenty (for example the accounting, energy and automotive sectors)

NINE
Being young or innovative is no guarantor of being a Thought Leader. UK Opinion Formers are not easily swayed by hype surrounding brands. For instance, despite the City and media interest in virtual businesses such as Groupon and Zynga, both fail to make the top fifty

TEN
Apple maintains its position at the top of the rankings for the third year running, having displaced Google in 2009. Whether the brands status can transcend changes in management and withstand growing criticisms of litigious behaviours will be revealing

BENEFITS OF THOUGHT LEADERSHIP

OVERVIEW
What are the benefits of being a Thought Leader?

ideas.influence

First, there is a significant correlation between companies with strong reputations and companies recognised as Thought Leaders. Second, there are powerful intangible benefits that distinguish successful businesses, beyond building Permission to Grow and protecting Licence to Operate

THE BENEFITS OF BEING A THOUGHT LEADER

RANK
1 2 3 4 5

BENEFIT
Most Admired Most Authoritative Change Maker Most Trusted Cool Factor

%
83% 82% 80% 78% 53%
Source: Populus / TLG

100% Most Admired Most Authoritative Change Maker Most Trusted

50%

Cool Factor

0%

KEY INSIGHTS ONE

If you want to be trusted, dont talk about trust - demonstrate leadership. Simply acknowledging the need to rebuild trust is not going to achieve the desired outcome

TWO
Pursuing a Thought Leadership approach can unlock hidden capital in a business, which will strengthen reputation, and generate a range of benefits business leaders can leverage. If a company fails to either develop or communicate Thought Leadership, then it is squandering competitive advantages

THREE
Opinion Formers are very clear that by establishing a leadership position, CEOs can help to protect their Licence to Operate and build Permission to Grow

THE DEFINING BEHAVIOURS OF THOUGHT LEADERS

Through extensive studies, TLG has identified five core behaviours common to successful Thought Leaders. TLG uses these behaviours to assess the strength of an organisations Thought Leadership credentials and potential. This year we have also asked Opinion Formers to rank the behaviours according to which they attach the most value when assessing Thought Leadership

RANK
1 2 3 4 5

BEHAVIOUR
Pioneer Authenticity Rigorous Clarity Objective

%
76% 70% 63% 62% 52%
Source: Populus / TLG

METHODOLOGY
The UK Index of Thought Leaders 2012-12 highlights the most successful Thought Leaders in the UK, according to British Opinion Formers. The research was conducted by Populus using their Opinion Leader Network (OLN) during autumn 2011. The OLN is drawn from four stakeholder groups business, media, government and NGOs. Respondents included company directors, editors, senior politicians and charity leaders

2012 LEADERSHIP OPPORTUNITIES

OVERVIEW

ideas.influence

To build a stronger brand (and take leadership opportunities) it is important to know the salience of key socio-economic issues with Opinion Formers and Decision Makers. Our annual research identifies the top leadership opportunities

The table below ranks issues that offer the biggest opportunity to build brand reputation

RANK
1 2 3 4 5 6 7 8 9 10

OPPORTUNITY
Paying suppliers a fair price for goods and services Investing in economically deprived areas of the UK Improving financial responsibility Tackling long term unemployment Increasing the number of apprenticeships Fostering social cohesion within local communities Pursuing ethical as well as profitable investments Helping to improve delivery of public services Increasing transparency as to how and where investments are managed Improving energy efficiency
Source: Populus / TLG

KEY INSIGHTS ONE

Opinion Formers appear to agree with the Governments assessment that business should be doing more to help create a Fairer society

TWO
The biggest opportunities for businesses to demonstrate leadership in 2012 centre on people and economic matters. The impact and effects of global economic turmoil dominate Opinion Former priorities

THREE
The financial services sector, in particular, has a great opportunity to demonstrate leadership by demonstrating more transparency around how they do business and helping consumers manage their personal finances

THOUGHT LEADERSHIP SERVICES

TLG delivers services and campaigns to build brand leaders:

ONE. LEADERSHIP CAMPAIGNS:

Identify leadership propositions and devise/ deliver leadership campaigns

TWO. LEADERSHIP REPORTS:

Publish and establish a leadership report that drives debate and reputation

THREE. LEADERSHIP MEASUREMENT:

Track impact of leadership campaigns and review competitor landscape

For more information please contact TLG on: +44 (0) 20 7831 8000 | leadership@tlg-ltd.com