Monthly Archives: December 2011
Reputation Losers of 2011
December 30, 2011
Trust and relevance, in combination, is the key to building reputation. What happens when you are relevant for the wrong reasons? When relevance comes without trust, the result is negative for reputations. Here are my thoughts on the biggest reputation losers of 2011:
- Rupert Murdoch – Murdoch was never a beacon of honesty, but a publication-ending scandal of this magnitude solidified his position as the guy we shouldn’t trust.
- Ashton Kutcher – what happens when a twitter-licious celebrity goes off the rails? Ashton’s public marital problems, followed by his rant defending Joe Paterno caused his reputation to take a major tumble.
- NBA and David Stern – when millionaires fight with billionaires, nobody wins. And while the fans got a Christmas gift with the return of NBA play, they start the shortened season with a black eye.
- Yahoo – is this really how you fire a CEO? Enough said.
- Joe Paterno and Penn State Football – Legendary coach Joe Paterno’s firing in the wake of a sexual abuse scandal is the headline here, but far from the only reputation damaging event in college football.
- Bank of America – already the poster child for labor protests on executive pay and the “1 percent problem” Bank of America’s decision to implement nickel and dime fees to customers is one of the things that makes me go “hmmmm?”
- Mayor Bloomberg – OWS, mishandling the October blizzard and the Cathie Black debacle have made the straight talking Mayor one of the year’s reputation losers.
- Big Banks, Wall Street and the Financial Services industry – it’s hard to believe that there is further to fall after the TBTF trend of last year – but OWS, MF Global and other high profile events are proof that there is still further they can fall.
- The European Union – the European Financial Crisis is one to watch in 2012…seems like yesterday that the world was celebrating the EU and the Eurozone – concepts whose viability are now in question.
- Netflix – the customer owns the brand. And that customer is angry. A bumbled apology doesn’t make up for a breathtaking lack of awareness of what matters to customers. BofA and Netflix seem to be missing the same chip here.
Reputation Dilemmas: When the CEO isn’t Helpful
December 16, 2011
It’s that time of year again..when we recap the biggest PR blunders of the year, the biggest crisis of the year, the best PR campaign of the year. I’ve even got a few of those on tap for this blog in the next few weeks. (Stay tuned!).
As a self-processed “Student of the CEO” – I’ve often written about the value of the CEO in building trust for a Company or brand, and more importantly, making or keeping that brand or Company relevant. In its simplest form, the notion of CEO as a reputation driver is predicated on the presumption that the CEO’s actions are additive.
But what happens when the CEO doesn’t help your cause? Typically, that conjures up images of a CEO in handcuffs, or professing ignorance about what transpired at his company. This David Pogue piece from yesterday’s New York Times makes a great case about questionable decisions by CEOs leading to reputational damage…Netflix, Cisco, HP are his examples. Where a CEO’s singular focus on a particular constituency, at the expense of all others, causes reputational damage, not only to the CEO (some end up losing their jobs), but to their Company or brand.
Leadership requires balancing the needs of multiple stakeholders in all decision making. And while you can’t make all of them happy all of the time (sometimes their needs are diametrically opposed), you can communicate big decisions in a way that includes and addresses each stakeholder. We call it the Total Stakeholder Approach.
In the post OWS world, it is clear that ignoring even one of your stakeholder groups is ill advised….will the leaders of 2012 learn from these CEOs’ blunders….or do more of the same?