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Communication matters.

Reputation Management Essential for Business

Harvard Business Review December 10 2013 - Warsaw, Poland

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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

Wide range of consulting services in all communications disciplines across

all sectors
Access to communications resources worldwide

society
Recognising that communication is part of corporate strategy best

(9 CNC offices, 100+ employees)

Independent brand within the international communications network

delivered by practical solutions

MSLGROUP (over 100 offices, 3400+ employees), part of Publicis Groupe

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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.

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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 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.

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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

Reputation

Secure support

GREATER COMPANY VALUE

Politicians, Community

CSR

Increase understanding of strategy & decisions

Suppliers

Leadership credibility

Strengthen business relations

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Corporate Communications| Task

Communication is the central control instrument of reputation management.
Topics

Business results Corporate strategy Products

Content, approach, tonality

Management Recruitment Innovations Corporate social responsibility Cooperations Acquisitions

Channels & formats

Messages

Services

Awareness

Reputation

It is the job of corporate communications experts to translate the companys 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
External factors Disasters / accidents Natural disasters Malfunction during production process Third party influence Reduction of relative market share False information spread by competition Products / services Product defects Service inadequacies Internal factors 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

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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.
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Corporate Communications |Strategy

Reputation management methodology:
PHASE I: Analysis
Corporate Positioning Media Analysis Issues Analysis Material Audit Stakeholder Analysis Perception Study Organisational Analysis Capability Assessment

PHASE II: Development of Communications Strategy

Development of a tailor-made communications strategy in line with the corporate strategy 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 Public Affairs Crisis Communications

Development of priority action points and roadmap

Brand Communications

Monitoring
Eyes and ears in the market: Ongoing monitoring of impact Issues management Increasing share of voice riding the communication wave

Process management
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

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.
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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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