Times are tough for PR executives, and there's no sign of that changing anytime soon. And it's not because the public relations profession is deflating alongside other
recession-stricken industries, or that its foremost leaders aren't making the necessary transition from tacticians to strategists--rather, it's the inevitable reality that the
current business environment makes organizations' reputations vulnerable to every possible antagonist, but no less integral to bottom-line business success.
According to Leslie Gaines-Ross, chief reputation strategist for Weber Shandwick, "The value of a good reputation continues to grow largely because of the competitive advantage
and market differentiation it delivers. Intangible assets such as reputation are now central to company competitiveness and profitability.
Given PR/communications' role as the ultimate reputation guardian, any threat and subsequent recovery mission is these execs' cross to bear. And the potential quagmires are not
insignificant.
"According to global business executives, leading triggers of reputation failure are financial irregularities, unethical behavior and executive misconduct--all issues that
could be prevented if companies had better controls in place," says Gaines-Ross, who did extensive research on the topic for her book, Corporate Reputation: 12 Steps to
Safeguarding and Recovering Reputation (Wiley, 2008). "Other frequently mentioned strikes against reputation are security breaches, environmental violations and health and
safety product recalls."
The threats are out there, but what about the defense mechanisms? Communications professionals at any organization should take the following proactive approaches to protecting
their reputations and, if need be, recovering them.
*Engender goodwill before you need it, and think of employees as the starting point. Internal stakeholders are any organization's best bet for building a brand that can weather
a reputation crisis, if and when one occurs. Southwest Airlines has made employees the first priority; this enthusiastic corporate culture then emanates externally to positively
affect other stakeholders.
According to Ginger Hardage, Southwest's senior vice president of corporate communication, the leadership team engages employees in multiple ways to enhance the airline's
reputation as one that is people-centric:
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Encouraging any and all employees to contribute to the "Nuts About Southwest" blog;
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Conducting surveys that include open-ended questions, including "If you were CEO of Southwest Airlines for a day, what one change would you make?" The answers to these
questions were them implemented, thus giving employees the feeling of being of value; and,
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Disseminating internal communications on a daily, weekly, monthly, semi-annual and annual basis, and via different channels (newsletters, pulse surveys, CEO updates,
companywide meetings, etc.).
*Know which threats are the most dangerous to your organization. While any number of reputation-damning issues exist, it's important to conduct research about the ones that are
most likely to strike your industry. Look at the history of your competitors to see what crises befell them, and investigate the long-standing challenges that continue to plague
your industry.
For example, an energy company is more susceptible to crises involving environmental/sustainability issues, while a financial organization should focus more on safeguarding
against corporate fraud and executives who might be inclined toward white-collar crime.
Then, consider triggers that are more ubiquitous. According to Gaines-Ross' research, "Online scrutiny and exposure pose the greatest challenges for effectively managing
company reputation in the future. Companies need to regularly monitor the Internet for what is being said about them, their competitors and industry. Managing reputation online
should extend beyond what companies are measuring offline in the regular course of business."
*Anticipate. Once you know the aspects of your organization's reputation that are most vulnerable to attack, safeguard against them.
"One of the most effective strategies for protecting corporate reputation is creating an early warning system that detects and tracks potential threats, and provides response-
related policies and procedures, before the threat matures into a full-blown crisis," Gaines-Ross says. "Regularly and consistently communicating internally the importance of
corporate reputation, and the company's commitment to protecting it, is also important in ensuring that a positive reputation remains a priority for all employees and a core
feature of the corporate culture."
*Swing into action. Once a reputation threat has become a reality, communications executives must endure what Gaines-Ross distinguishes as four separate stages:
1. Rescue: This is the moment during which you have to take the heat and communicate tirelessly.
2. Rewind: Analyze what went wrong in the first place.
3. Restore: This is the time to "right the culture, seize the shift and brave the media," according to Gaines-Ross.
4. Recover: At this point, it's time to "build a drumbeat of good news" and minimize future reputation risks.
Ultimately, it isn't a matter of if a crisis will hit, but when. Preparing by safeguarding your reputation is the first step on the long road to recovery. PRN
CONTACT:
Leslie Gaines-Ross, [email protected]; Ginger Hardage, [email protected]
Steps For Safeguarding & Recovering Reputation
1. Don't leave your reputation up to a roll of the dice.
2. CEOs must be the first line of defense.
3. Communicate in heavy doses.
4. Pay attention to your employees' vital signs.
5. Think of stakeholders as your electorate.
6. Remember, no reputation is bulletproof.
7. Multiply all the bad news you hear by 10.
8. Don't forget that we all live in glass houses--there are no secrets.
9. Inoculate your reputation--build a reservoir of goodwill before you need it.
10. Shift focus from what has happened to what should happen next.
11. Don't underestimate your competitors or critics.
12. Recovery is continuous, with no shortcuts or days off--stay the course.
13. Don't let the Internet's allure blind you.
14. Know that each crisis has its own rhythm.
15. Don't believe your own propaganda.
16. Use the "R" word--recovery--judiciously.
17. Second chances are rarely a matter of luck--don't waste them.
18. Spin gold from clay--turn crisis into opportunity.
Source: Leslie Gaines-Ross, Chief Reputation Strategist, Weber Shandwick