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Communication matters.
Reputation Management – Essential for Business Harvard Business Review December 10 2013 - Warsaw, Poland
www.cnc-communications.com 1
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Roland Klein
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CNC at a glance CNC IS A LEADING CONSULTANCY SPECIALISED IN COMMUNICATIONS – PART OF MSL GROUP
MSLGROUP Network
● 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 3
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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.
Reputation as PROTECTION.
Building a reputation is a complex and time intensive process but destroying a reputation can occur easily and rapidly.
“Perception is fact” – role played by instinct & bias. 6
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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 Identify and use reputation drivers
Financial Performance: Results, risks, growth, opportunities Management Quality: Employees, working environment Products & Services: Brand, quality, value Corporate Strategy: Vision, leadership, values
Reputation
Innovation: Speed, outcome, progress Social & Environmental Responsibility: Citizenship Emotional Appeal: Likeability, credibility, respect
Reputation management is a process, not a measure. This process needs time. 8
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Reputation Drivers Reputation drivers influence stakeholder opinions to create value.
Customers
Product quality
Establishing trust & loyalty
Employees
Working climate
Faciliate knowledge/ exchange/excellence
Investors, Banks
Financial performance
Politicians, Community
CSR
Increase understanding of strategy & decisions
Suppliers
Leadership credibility
Strengthen business relations
Reputation
Secure support
GREATER COMPANY VALUE
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Corporate Communications| Task Communication is the central control instrument of reputation management. Topics
Business results Corporate strategy
Services Management Recruitment Innovations Corporate social responsibility
Content, approach, tonality
Channels & formats
Messages
Products
Awareness
Reputation
Cooperations Acquisitions 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. 10
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Corporate Communications| Task Building reputation = running a marathon / losing a reputation = sprinting External factors
Internal factors
Disasters / accidents
Third party influence
• Natural disasters
• Reduction of relative market share
• Malfunction during production process
Products / services • Product defects • Service inadequacies
• False information spread by competition
Management • Miconduct by management (intended / unintended)
Corporate • CSR • Working conditions • Financial results • Misinforming stakeholders
Unsatisfied stakeholders Negative mouth-to-mouth propaganda Negative press 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.
"An issue ignored is a crisis invited.“ – Henry Kissinger 11
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Reputation Management Reputation as integral aspect of business.
Corporate Strategy
Communications Strategy
Corporate vision and communications strategy must mutually reinforce each other. 12
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Corporate Communications |Strategy Reputation management methodology: PHASE I: Analysis
PHASE II: Development of Communications Strategy Development of a tailor-made communications strategy in line with the corporate strategy
Corporate Positioning Media Analysis Issues Analysis Material Audit
● ● ● ●
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
PHASE III: Implementation Corporate Communications ● ● ● ● ● ●
Network Support Media Relations Event Relations Internal Communications CEO Positioning CSR
Financial Communications
Stakeholder Analysis
Public Affairs
Perception Study Organisational Analysis Capability Assessment
Crisis Communications Development of priority action points and roadmap
Brand Communications
Monitoring
Process management
● Eyes and ears in the market: Ongoing monitoring of impact ● Issues management ● Increasing share of voice – “riding the communication wave”
● Regular update calls/reviews, ongoing controlling system ● Clearing house for the approval of documents 13
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Case Study |Daimler-Benz Crisis as a reputation management opportunity: A-Class
Initial situation: A-Class labeled unsafe as result of roll-over incident.
Measures: management strengthened public voice, apologised openly and made extensive changes to car. Lessons learned: crises can be an OPPORTUNITY. Recognising and correcting a flaw actually made Mercedes more likeable and improved its reputation. 14
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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
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Thank you for your attention!
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