reputation management -essential for business by roland klein mslgroup
TRANSCRIPT
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www.cnc-communications.com
Communication matters.
Reputation Management – Essential for Business
Harvard Business Review
December 10 2013 - Warsaw, Poland
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CNC at a glance
● 11 partners with extensive experience in the fields of management, politics and journalism:“Most senior team in the industry”
● Long-standing international network in media, business, politics and society
● Recognising that communication is part of corporate strategy best delivered by practical solutions
● Wide range of consulting services in all communications disciplines across all sectors
● Access to communications resources worldwide (9 CNC offices, 100+ employees)
● Independent brand within the international communications network MSLGROUP (over 100 offices, 3400+ employees), part of Publicis Groupe
MSLGROUP Network
CNC IS A LEADING CONSULTANCY SPECIALISED IN COMMUNICATIONS – PART OF MSL GROUP
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Selected CNC Credentials
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Reputation | Definition
What is reputation?
“The net result of the interaction of all the experiences, impressions, beliefs, feelings and knowledge that people have about a company.”
OR
“The reservoir of goodwill a company has with its stakeholders.”
- Professor Rui Vinhas da Silva, Manchester University
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Reputation | Definition
Reputation – an evolving definition
Reputation management is not a new concept but is of increasing importance.
“Perception is fact” – role played by instinct & bias.
Building a reputation is a complex and time intensive process but destroying a reputation can occur easily and
rapidly.
Reputation as PROTECTION.
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Reputation | Definition
Important questions to consider:
Does reputation = being the most admired company?
Reputation = trust?
Reputation, brand, image – what is the relation?
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Reputation Drivers
Financial Performance: Results, risks, growth, opportunities
Management Quality: Employees, working environment
Products & Services: Brand, quality, value
Corporate Strategy: Vision, leadership, values
Innovation: Speed, outcome, progress
Social & Environmental Responsibility: Citizenship
Emotional Appeal: Likeability, credibility, respect
Reputation
Reputation management is a process, not a measure. This process needs time.
Identify and use reputation drivers
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Reputation Drivers
Reputation drivers influence stakeholder opinions to create value.
Establishing trust & loyalty
Customers
Investors, Banks
Employees
Politicians, Community
Suppliers
Product quality
Working climate
Financial performan
ce
CSR
Leadership
credibility
Reputation
Faciliate knowledge/
exchange/excellence
Secure support
Increase understanding of
strategy & decisions
Strengthen business relations
GREATER
COMPANY
VALUE
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Corporate Communications| Task
Communication is the central control instrument of reputation management.
Awareness
Content, approach, tonality
Channels & formats
Messag
es
Reputation
Business results
Corporate strategy
Management
Services
Products
Recruitment
Innovations
Corporate social responsibility
Cooperations
Acquisitions
Topics
It is the job of corporate communications experts to translate the company’s aspirations, visions, values and strategic decisions into consistent messaging for all stakeholder groups.
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Corporate Communications| Task
Building reputation = running a marathon / losing a reputation = sprinting
• Natural disasters
• Malfunction during production process
• Reduction of relative market share
• False information spread by competition
• Product defects
• Service inadequacies
Unsatisfied stakeholdersNegative mouth-to-mouth propaganda
Negative press
Disasters / accidents
Products / services
• Miconduct by management (intended / unintended)
Possible consequences:1. Company masters crisis by consistent management of reputation drivers and explaining
misconduct plausibly to avoid permanent reputation damage.2. Company fails to master crisis through manage reputation drivers and jeopardises the
reputation it has built up over years.
Third party influence
External factors Internal factors
• CSR
• Working conditions
• Financial results
• Misinforming stakeholders
Management Corporate
"An issue ignored is a crisis invited.“ – Henry Kissinger
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Reputation Management
Reputation as integral aspect of business.
Corporate vision and communications strategy must mutually reinforce each other.
Communications StrategyCorporate Strategy
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Corporate Communications |Strategy
Reputation management methodology:
● Definition/update of communication objectives● Messaging platform: key messages, proof points ● Definition/update of target groups ● Definition of potential third-party supporters,
multipliers, experts● Toolbox: instruments, activities and formats
Development of a tailor-made communications strategy in line with the corporate strategy
Development of priority action points and roadmap
● Eyes and ears in the market: Ongoing monitoring of impact● Issues management ● Increasing share of voice – “riding the communication wave”
Monitoring Process management
PHASE I: Analysis PHASE III: ImplementationPHASE II: Development of Communications Strategy
Corporate Communications● Network Support● Media Relations● Event Relations● Internal Communications● CEO Positioning● CSR
Financial Communications
Public Affairs
Crisis Communications
Brand Communications
Corporate Positioning
Media Analysis
Stakeholder Analysis
Material Audit
Perception StudyOrganisational AnalysisCapability Assessment
Issues Analysis
● Regular update calls/reviews, ongoing controlling system● Clearing house for the approval of documents
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Case Study |Daimler-Benz
Crisis as a reputation management opportunity: A-Class
Measures: management strengthened public voice, apologised openly and
made extensive changes to car.
Initial situation: A-Class labeled unsafe as result of roll-over incident.
Lessons learned: crises can be an OPPORTUNITY. Recognising and correcting a flaw actually made
Mercedes more likeable and improved its reputation.
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Case Study |TPG/Grohe
Initial situation: the creation of a new term in the financial markets
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Case Study |TPG/Grohe
Seven years later: resolved situation after reputation management