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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Communication matters.
Reputation Management – Essential for Business
Harvard Business Review
December 10 2013 - Warsaw, Poland
www.cnc-communications.com
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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
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
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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
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.
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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
Politicians, Co
mmunity
CSR
Increase understanding
of strategy & decisions
Suppliers
Leadership
credibility
GREATER
COMPANY
VALUE
Strengthen business
relations
Reputation
Secure support
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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.
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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
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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
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
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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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