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Why having a strong corporate reputation can help organisations bounce back from adversity – and how to get started on the reputation journey.
BlueChippers recently attended the AMR Corporate Reputation Breakfast, where host Oliver Freedman from AMR led with a quote from Abraham Lincoln: “Character is like a tree and reputation like a shadow. The shadow is what we think of it; the tree is the real thing”.
Last week, we posted a blog about Apple and Australia Post as examples of the need for organisations to adapt and adjust to maintain their corporate reputations.
But, let’s take a step back for a moment, and think about how a reputation is built. How can an organisation grow a healthy tree? And therefore guarantee that its shadow is one to be proud of?
Following is a digest of some of the suggestions we heard at the AMR Breakfast.
1. Define reputation for your organisation
Agree on what it is and what it’s not. Make it definable and tangible, not some vague notion that launches a thousand fruitless and frustrating meetings. There are extensive resources to help you do this. The Reputation Institute is one starting point.
2. Secure the support of key stakeholders
Reputation falls squarely within the remit of an organisation’s Board and C-suite, or equivalent. It is the directors and key senior executives who carry ultimate responsibility – and therefore ultimate credit or blame – for how an organisation is perceived by those with the power to affect its fortunes, whether these be employees, customers, peers, regulatory agencies – or all of these groups. Tightened regulation and governance requirements means that blame may well come attached to hefty fines and even, if things go really wrong, prison sentences. Credit, on the other hand, goes hand in hand with all the good stuff: reduced risk, increased customer satisfaction, better bottom line. Maybe even a bonus.
3. Set your direction
A strong corporate reputation is not something that develops overnight, nor is it developed without strategic thought. You need to decide what your ideal outcome is, plan out how you intend to achieve it – and set smart KPIs that will help bring you closer to your goal. One key influencer who can add real value here is the CFO. The CFO can not only help develop and set smart KPIs – he or she can also help to frame the case for reputation in the kind of hard financial terms that can help bring the whole organisation along for the ride.
4. Make progress
We’re all guilty of having unproductive meetings. Set time aside to discuss your plan and its progress. Ensure there are tangible outcomes and actions from these meetings. Clearly define roles and responsibilities and check in to see how you are tracking against KPIs. It may seem tedious, but when a crisis hits, you’ll be grateful to have a solid reputation to fall back on.
5. Maintain
Don’t make the common mistake of resting on your laurels (a la Apple). Be aware of your place in the market, adapt when society changes, stay in touch with your target market, and most of all, track and measure your reputation and how you’re perceived by those who most matter to you. Don’t take it for granted.
By way of a post script, if you find yourself having to justify the need for active reputation building and maintenance, refer to Toyota as a salutary example.
Toyota spent years building its reputation. In one well loved advertising campaign, a dog muttering “bugger” became synonymous with the upfront Australian culture, helping build trust in what portrayed itself as an equally upfront brand.
This reputation became especially important in 2009 when Toyota had to weather a recall storm. In its approach to the issue, Toyota clearly demonstrated that its ‘tree’ of character matched its ‘shadow’ of reputation. It was swift and upfront with consumers and its key messages were consistent. A few years later, in 2012, Toyota had to rely on its reputation to manage another crisis – this time mass redundancies.
Despite having to deal with perhaps two of the industry’s most damaging crises in the space of five years, this year Toyota ranked number one on the Corporate Reputation Index. Its resilience and ability to bounce back from adversity, minimising associated brand and bottom line damage, is the result of years spent on active reputation building.
What it all comes down to is that reputation doesn’t build itself; it takes planning, action and investment from an organisation and its key stakeholders.
Every company has a reputation shadow, whether it likes it or not. The question is, how do you want you company’s shadow to look?
Sophie Schuler is an Account Executive at BlueChip Communication. In her few short months with us (fresh from New Zealand) she has worked across numerous clients in several different capacities. Her versatility is very much appreciated by team and clients alike. This is Sophie's first BlueChip blog.
