Following on from a topic discuss in EQLP to encourage quality leaders to translate their statements into ones that matter, in terms of dollar signs. Much of this is already done: 6 sigma project success is measured in cost savings/avoidance and cost of quality is a fairly universial qualtiy metric.
I stuggle, however, to find any help or guidence in how to build a model around reputational damage. I can caluclate costs associsated with recall, repair, rework, etc. but I cannot derive a financial estimate for future lost sales through lower goodwill, un-renewed or canclled contracts, etc. Yet, we all live these realities when cleaning up after a quality failure outbreak that has reached customers. Being able to put a figure with some good maths behond it to reputational loss would give quality leaders a way to articulate (in what matters, $$$$) the future impact of not doing the recall, not patching the bug, not notifing customers.
Can anyone share any methods/models they have used before?