Reputation Management -Essential for Business by Roland Klein MSLGROUP


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Can crisis be an opportunity for reputation management? Read this presentation by Roland Klein, founding partner of CNC Communications, who recently spoke at a conference organised by Harvard Business Review Poland and MSLGROUP called “Priceless Reputation – protects, mobilizes, sells” in Warsaw.

He shared insights on drivers of reputation, how communication is the central control instrument of reputation management and how crisis can be an opportunity, with examples of Daimler-Benz and TPG/Grohe

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Reputation Management -Essential for Business by Roland Klein MSLGROUP

  1. 1. Warsaw 2013 Communication matters. Reputation Management – Essential for Business Harvard Business Review December 10 2013 - Warsaw, Poland 1
  2. 2. Warsaw 2013 Roland Klein 2
  3. 3. Warsaw 2013 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
  4. 4. Warsaw 2013 Selected CNC Credentials 4
  5. 5. Warsaw 2013 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 5
  6. 6. Warsaw 2013 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
  7. 7. Warsaw 2013 Reputation | Definition Important questions to consider: Does reputation = being the most admired company? Reputation = trust? Reputation, brand, image – what is the relation? 7
  8. 8. Warsaw 2013 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
  9. 9. Warsaw 2013 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, Co mmunity CSR Increase understanding of strategy & decisions Suppliers Leadership credibility GREATER COMPANY VALUE Strengthen business relations Reputation Secure support 9
  10. 10. Warsaw 2013 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, a pproach, t onality 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
  11. 11. Warsaw 2013 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
  12. 12. Warsaw 2013 Reputation Management Reputation as integral aspect of business. Corporate Strategy Communications Strategy Corporate vision and communications strategy must mutually reinforce each other. 12
  13. 13. Warsaw 2013 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
  14. 14. Warsaw 2013 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
  15. 15. Warsaw 2013 Case Study |TPG/Grohe Initial situation: the creation of a new term in the financial markets 15
  16. 16. Warsaw 2013 Case Study |TPG/Grohe Seven years later: resolved situation after reputation management 16
  17. 17. Warsaw 2013 Thank you for your attention! 17