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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 More here: http://blog.mslgroup.com/harvard-business-review-mslgroup-conference-on-reputation/
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www.cnc-communications.com
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
● 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
MSLGROUP Network
CNC IS A LEADING CONSULTANCY SPECIALISED IN COMMUNICATIONS – PART OF MSL GROUP
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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.
“Perception is fact” – role played by instinct & bias.
Building a reputation is a complex and time intensive process but
destroying a reputation can occur easily and rapidly.
Reputation as PROTECTION.
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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
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.
Identify and use reputation drivers
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Reputation Drivers
Reputation drivers influence stakeholder opinions to create value.
Establishing trust &
loyalty Customers
Investors,
Banks
Employees
Politicians,
Community
Suppliers
Product
quality
Working
climate
Financial
performance
CSR
Leadership
credibility
Reputation
Faciliate knowledge/
exchange/excellence
Secure support
Increase understanding
of strategy & decisions
Strengthen business
relations
GREATER
COMPANY
VALUE
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Corporate Communications| Task
Communication is the central control instrument of reputation management.
Awareness
Content,
approach,
tonality
Channels & formats
Mess
ages
Reputation
Business results
Corporate strategy
Management
Services
Products
Recruitment
Innovations
Corporate social responsibility
Cooperations
Acquisitions
Topics
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.
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Corporate Communications| Task
Building reputation = running a marathon / losing a reputation = sprinting
• Natural disasters
• Malfunction during
production
process
• Reduction of
relative market
share
• False information
spread by
competition
• Product defects
• Service
inadequacies
Unsatisfied stakeholders
Negative mouth-to-mouth propaganda
Negative press
Disasters / accidents Products / services
• Miconduct by
management
(intended /
unintended)
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.
Third party influence
External factors Internal factors
• CSR
• Working
conditions
• Financial results
• Misinforming
stakeholders
Management Corporate
"An issue ignored is a crisis invited.“ – Henry Kissinger
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Reputation Management
Reputation as integral aspect of business.
Corporate vision and communications strategy must mutually reinforce each other.
Communications Strategy Corporate Strategy
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Corporate Communications |Strategy
Reputation management methodology:
● 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
Development of a tailor-made communications strategy in
line with the corporate strategy
Development of priority action points and roadmap
● Eyes and ears in the market: Ongoing monitoring of impact
● Issues management
● Increasing share of voice – “riding the communication wave”
Monitoring Process management
PHASE I: Analysis PHASE III: Implementation PHASE II: Development of Communications Strategy
Corporate Communications
● Network Support
● Media Relations
● Event Relations
● Internal Communications
● CEO Positioning
● CSR
Financial Communications
Public Affairs
Crisis Communications
Brand Communications
Corporate Positioning
Media Analysis
Stakeholder Analysis
Material Audit
Perception Study
Organisational Analysis
Capability Assessment
Issues Analysis
● 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
Measures: management strengthened
public voice, apologised openly and
made extensive changes to car.
Initial situation: A-Class labeled unsafe as
result of roll-over incident.
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!