RECOGNITION MANTRA
Sustainable awards
Aruni Goonetilleke
Q: How important are awards in contributing to an organisation’s credibility and reputation – both locally and internationally?
A: Some certifications and awards are essential for certain sectors and industries – especially internationally. There’s a minimum criterion that one has to meet prior to being considered for doing business with.
Beyond this, validation of a business’ performance and ability to deliver by a reputable independent party will bring credibility and build your reputation.
Moreover, it sets you apart from your competition and could be a criterion that is used when someone assesses if he or she should do business with you or buy your products. It can be in your public profile, a marketing tool on your website or other channels and leveraged through appropriate publicity.
Q: And likewise, in what ways do awards impact a brand’s credentials?
A: A brand is what you stand for and an award is recognition of this. Awards can build brand credibility.
For example, a bank’s brand could mean its financial stability, innovation and customer service. And for a fast-moving consumer goods (FMCG) company, the brand could mean quality, availability and consistency.
In addition to awards for financial performance and other standard criteria, environmental, social and governance (ESG) awards are becoming a critical part of what an organisation and a brand represent. They demonstrate social responsibility, impact and sustainability – all very important aspects for companies to adopt.
Q: How do you measure the long-term impact of winning awards on an organisation’s financials?
A: Awards can have several tangible as well as intangible benefits.
An award testifies to the performance of a business. It can boost the reputation of an organisation, which sets it apart from the crowd; and the customer will have it at the top of his or her mind.
It could also signify the high quality of a product, customer service and employees; financial stability; ethical practices; innovation; and social impact.
Ultimately, recognition of these factors leads to credibility, visibility and customer loyalty, and boosts sales and increases margins through premiums, which translates into higher profits.
Research indicates that there is a positive correlation between winning the right award and financial performance.
Q: In your view, how should award winning organisations maintain the high standards that led to their recognition?
A: Once you decide to apply for an award, there’s a risk that you may not be able to maintain your position – similar to a rating obtained by a financial institution or the Michelin star rating of a restaurant.
If you’re downgraded, there can be worse repercussions than having no award in the first place.
Before proceeding, you need to ensure that you have a sustainable business model, and rigorous standards and processes, to continuously improve those standards and performance.
Fundamentally, it’s not only about maintaining your position at any cost but doing the right thing based on the vision and long-term strategy of the organisation. The criteria and standards should be at the top of the board agenda, and key performance indicators (KPIs) of the CEO and top management, and cascaded down to the entire organisation.
Q: How should award winners manage the expectations that come with being award-winning organisations – both internally and externally?
A: An award can provide a way of assessing or benchmarking yourself against your competition and is essentially the validation of hard work put into a shared objective. Your people have to believe that you deserved the award based on transparent criteria that they understand and not because someone wrote a brilliant application.
Externally, it’s important for the organisation to continue to deliver the promise and live the values – this has to be in its DNA. For instance, if the award was for customer service, the customer should be at the centre of whatever you do and the core of your strategy.
