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BOXING CLEVER
HOW TO SAFEGUARD YOUR
COMPANY’S REPUTATION
IN THE DIGITAL AGE
FTP University, Hanoi - December 2016
Amcham Philippines, Manila – June 2015
CPC&
ABOUT CHARLIE POWNALL
• Managing Director of CPC & Associates. Previously Regional Managing Director of Burson-
Marsteller (Asia-Pacific), WPP, SYZYGY AG, Reuters, European Commission
• Over twenty years’ experience in communications planning & strategy, public relations,
issues & crisis communications, digital marketing, social media, government communications,
political advocacy, speechwriting, journalism
• Set up and ran the European Commission's first rapid rebuttal unit. Led communications for 15x
over-subscribed SYZYGY AG IPO. Grew Burson-Marsteller's digital/social offer and capability
across Asia by average 80% per year
• Author, Managing Online Reputation: How to Protect Your Company on Social Media (Palgrave
Macmillan, Alpha Books). WPP Atticus Award (2011) for Managing Corporate Reputation in the
Digital Age white paper
• Global experience; over nine years in Asia. Chairman, Communications & Marketing Committee,
American Chamber of Commerce in Hong Kong (2012-15)
2charliepownall.com
CPC&
3charliepownall.com
YIN & YANG OF REPUTATION
CPC&
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CPC&
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CPC&
‘Float like a butterfly,
sting like a bee’
Muhammed Ali
6charliepownall.com
CPC&
7
THE FURIOUS CUSTOMER
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CPC&
https://www.youtube.com/watch?v=PKUDTPbDhnA
8
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https://www.youtube.com/watch?v=4ESU_PcqI38
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CPC&
THE ACTIVIST ATTACK
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THE POLITICAL ATTACK
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15
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• Listen continuously
• Respond quickly
• Act decisively
• Be sensitive and proportionate
• Communicate persuasively
• Prepare thoroughly
• Collaborate closely
SO WHAT?
CPC&
19
charliepownall.com
THREE PREROGATIVES
20
CPC&
1. Hone your strategy
2. Strengthen your core
3. Sharpen your reflexes
charliepownall.com
‘The hands can’t hit what
the eyes can’t see’
Muhammed Ali
21charliepownall.com
CPC&
Source: EIU, Clifford Chance - 2014
TOP RISKS FOR BOARDS
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Source: Clifford Chance, EIU - 2014
IMPACT OF RISKS
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Source: EIU, Clifford Chance - 2014
Source: Clifford Chance, EIU - 2014
Source: EIU, Clifford Chance - 2014
ISSUES OF CONCERN
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CPC&
Source: Clifford Chance, EIU - 2014
RISK TYPES
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CPC&
• Political pressure
• Regulatory changes
• Religious/cultural/political
controversies
• Societal outrage
• Cyber attacks
• Health scares
• Hostile takeover bids
• Natural disasters
• Political unrest
• Sabotage & extortion
• Corporate/strategic failure
• Corporate governance failure
• Fraud/malpractice
• Poor employee behaviour
• CEO dismissal
• Employee injuries/death
• Industrial disputes
• IT system failures
• Product quality
EXTERNALINTERNAL
ISSUE-LED INCIDENT-LED
• Reputation, reputation, reputation
• Cyber attacks, social engineering, confidentiality, privacy
• Freedom of expression, harassment, defamation
• IP: impersonation, hijacking, copyright, trademarks
• Poor employee behaviour/comments
• Marketing, social media programmes, automation
• Online reviews, customer service
• NGO & community activism
• Rumours, misinformation, disinformation
• Smoking guns
ONLINE/SOCIAL MEDIA RISKS
CPC&
26
charliepownall.com
IGNITES AMPLIFIES SUSTAINS
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HOW SOCIAL MEDIA IMPACTS REPUTATION
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RISK PLANNING PROCESS
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Identify
Assess
likelihood
Assess
controls
Assess
impact
Score &
rank
Prioritise
Develop
plan
HIGH
MODERATE
LOW
CPC&
-LIKELIHOOD+
- IMPACT +
SEVERE
SCORING RISKS
29charliepownall.com
30
Critical • Extensive breach of customer data
• Kidnapping of an employee
• Major damage to a firm’s physical assets during an earthquake or terrorist
operation
Severe • Allegations of corruption amongst a firm’s senior leadership
• External leak about serious and unexplained injuries to employees at work
• Threat of legal action by a major investor over the accuracy of a firm’s financial
statements
Significant • Escalating allegations of use of child labor amongst a company’s suppliers
• Community protests about local environmental damage
• Campaign by a global NGO to boycott a company’s products
Moderate • An escalating online rumor about a controversial product ingredient
• A public complaint about a faulty product by a celebrity customer
• A backlash to an unexpected price increase or brand marketing campaign
Low • Known though uncontroversial concerns about a product circulating online
• Negative online feedback to a media article on employee compensation
• A one-off complaint on Facebook by a customer about poor quality product
packaging
RANKING THREATS
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CPC&
© Charlie Pownall/CPC & Associates
31
Source: D. Diermeier - 2008
REPUTATION MANAGEMENT SYSTEM
DECISION
SYSTEM
INTELLIGENCE
SYSTEM
IMPACT
ASSESSMENT
EARLY
WARNING
ALERT
FEEDBACK
ACTIONABLESTRATEGY-DRIVEN
charliepownall.com
CPC&
32
DIGITAL LISTENING/COMMAND CENTRE
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CPC&
CPC&
BUSINESS
INTELLIGENCE
REPUTATION
MANAGEMENT
IP/BRAND
PROTECTION
MARKETING &
COMMUNICATION
PUBLIC/PHYSICAL
SAFETY
COMPLIANCE
CYBER SECURITY
MARKET
RESEARCH
CUSTOMER
SERVICE
EMPLOYEE
BEHAVIOUR
ONLINE LISTENING TOOL TYPES
33charliepownall.com
See: https://charliepownall.com/resources/online-risk-and-reputation-monitoring-tools/
34
ONLINE THREAT ASSESSMENT
QUANTITATIVE QUALITATIVE
TONEVISIBILITY
VIRALITY INFLUENCE
MOTIVATION
VALIDITY
RELATIONSHIPS
CONTEXT
IMPACT ON BUSINESS & REPUTATION
charliepownall.com
CPC&
© Charlie Pownall/CPC & Associates
CPC&
THREAT ESCALATION SOPs
35charliepownall.com
MODERATE SEVERE CRITICAL
Issue • An escalating online rumour
about a controversial product
ingredient
• A public complaint about a
faulty product by a celebrity
customer
• A backlash to an unexpected
price increase or brand
marketing campaign
• Allegations of malfeasance
amongst senior leadership
• External leak about serious and
unexplained injuries to employees
at work
• Threat of legal action by a major
investor over the accuracy of a
firm’s financial statements
• Extensive customer data
breach
• Kidnapping of an employee
• Major damage to physical
assets
Threshold(s) • Volume xx/deviance %
• Sentiment xx/deviance %
• Volume xx/deviance %
• Sentiment xx/deviance %
• Volume xx/deviance %
• Sentiment xx/deviance %
Assessment • Platform manager, Listening
team, Communications, Topic
expert
• Communications, Public Affairs,
Legal, Topic expert
• Crisis Team, Communications
Approval • Communications • Public Affairs • Crisis Team
Response
time
• 12 hours • 6 hours • 3 hours
36
-SEVERITY+
- LONGEVITY +
INCIDENT CRISIS
PROBLEM ISSUE
charliepownall.com
FORMULATING THE RIGHT RESPONSE
©CharliePownall/CPC&Associates
CPC&
charliepownall.com
• Not responding
• Responding too slowly
• Being dishonest
• Being partially honest
• Deflecting blame
• Over-reacting
• Too much disclosure
• etc
RESPONSE PITFALLS
CPC&
37
38
BUSINESS
THREAT RESPONSE OPTIONS
TECHNOLOGICAL
LEGAL
COMMS
charliepownall.com
CPC&
© Charlie Pownall/CPC & Associates
CPC&
THREAT RESPONSE TOOLBOX
39charliepownall.com
REMOVE MINIMISE
RECTIFY
HIDEBLOCK
SUPPRESS RETRACT REFRAME
ATTACK DENY OFFLOAD
LEAVE
THREATEN
EVADEDIMINISH
SHARE
ARBITRATE
ADMIT
STRENGTHENREBUILDRESTORE CONVERT REPLACE MITIGATE
JUSTIFY
LITIGATE
PROMOTE
PREVENT
CRISIS PLAN
40charliepownall.com
CPC&
• Definitions
– Crises
– Incidents
– Issues
• For each scenario
– Roles & responsibilities
– Objectives & strategy
– Policies, protocols, checklists
– Relevant stakeholders/opinion-formers
– Pre-approved messages/statements
• CMT, R&Rs and contact details
CPC&
charliepownall.com 41
TRAIN YOUR TEAMS
CPC&
charliepownall.com 42
LEADERSHIP REPORTING
Source: Alva
43charliepownall.com
TO CONCLUDE
• Many online reputation threats, each of which differ according to the organisation,
industry and operating context
• Listen carefully to understand the broad range of risks to your business and reputation,
and how the internet/social media impact these risks
• Digitise your threat listening, decision-making and response systems across all channels
in advance of a incident/crisis occurring, ensuring senior management are in the loop
• Develop a comprehensive, practical crisis, incident and issue response plan
• Respond quickly, firmly, sensitively and proportionately to threats, using the
appropriate mix of business, communications, legal and technological tools
• Always bear your long-term reputation in mind
• Practice hard.
CPC&
‘Plans are useless,
but planning is useful’
Dwight D. Eisenhower
44charliepownall.com
CPC&
QUESTIONS?
45charliepownall.com
CPC&
46charliepownall.com
THANK YOU.
@cpownall
+44 20 3856 3599
cp@charliepownall
charliepownall.com
CPC&

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