Think of it as reputation
- Do you want to do business with someone with a good reputation? Most likely the answer is yes.
- What about someone with a bad reputation? Most likely you will avoid business dealings with a person or business with a poor reputation.
If a firm has a bad reputation, IE: paying on time, their score drops. People and vendors will stop interacting with such entities. People and organizations with low or zero as a whuffie score are avoided. Higher scores attract people like a magnet.
Results:
Low Scores: Fewer interactions are of lower quality and effectiveness. Interactions are fewer and weaker with lower whuffie scores. When input strength and quality is lower, output quality moves in tandem.
High Scores: More talent with stronger strengths. Firms that make the Fortune 100 Best Companies to Work for list are probably deluged with applicants when they post job openings. These firms have a strong reputation for respecting and valuing their human capital. People make it all work. These firms understand that as well as their reputation [whuffie].
Measuring?
Not sure if there is yet one method for measuring it. It probably exists, but there is not yet a common standard. This may change in coming years as technology expands and innovation creates new ideas.
*This post is my current opinion. It was created in about 30 minutes while multitasking. Looking forward to expanding my understanding with the release of “The Whuffie Factor” next month [April 21, 2009]
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