As we move into the New Year, who will be 2012’s biggest winners and losers in the reputation game?  Here are a few on my “watch list”:

1. Tim Tebow – College and professional sports have had a rough year, and we are looking for some new heroes.  Enter Tim Tebow – athletic uber-achiever, seemingly authentic advocate for faith, Tim Tebow has the stuff that heroes are made of…so much so that he was voted the most desirable celebrity neighbor in a recent poll.  Is this sustainable?   Or is he a one hit wonder?
2. President Obama – this one is self explanatory – people don’t think of our President as the CEO, but he is the CEO of America, Inc.  As Washington’s gridlock continues and the Republican nominees become more of a known quantity, will President Obama be the reputation winner?
3. Target – still a beloved brand for its budget-chic sensibility, Target is a reputation at a crossroads.  Last year brought negative attention for support of anti LGBT candidates to the red bulls eye, and a series of workplace issues threatens the store where the First Lady loves to shop.
4. Johnson & Johnson – The iconic trusted “baby company” is taking a lot of punches due to a series of recalls.  How long before that reputation goodwill bank runs out?
5. Mark Zuckerberg and Facebook – The young billionaire took a few punches with release of The Social Network, punched back with a mega-donation to the Newark Schools.  If Facebook IPOs in 2012, all eyes will be on this company.
6. London and the 2012 Olympic Committee – an event of this magnitude is a make or break proposition.  But no pressure…
7. Sears & Kmart – my personal view is that the Kmart acquisition gave Sears a big black eye.  After weak holiday sales, they announced this week that they are shutting stores.
8. North Korea and Kim Jong Un – will a new supreme leader change the nation’s reputation, and its economy?
9. Meg Whitman and HP – distractions in leadership and strategy shifts put HP on the reputation roller coaster at a time when it was still reeling from the scandalous resignation of Mark Hurd.  Whitman seems to be bringing focus back to HP – and this may be the year they get their reputation mojo back.
10. Warren Buffet – 2010 was the year of asking billionaire’s to give away their wealth.  2011 brought the Buffet “tax me please” message to Washington.  What will the Oracle of Omaha do in 2012?

cwinters General Corporate Barack Obama, Facebook, HP, Johnson & Johnson, Meg Whitman, Tim Tebow

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:

1. 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.
2. 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.
3. 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.
4. Yahoo – is this really how you fire a CEO?  Enough said.
5. 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. 
6. 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?”
7. 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.
8. 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.
9. 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.
10. 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.

cwinters General Corporate EU, Murdoch, NBA, Netflix, Penn State, Yahoo

Reputation building requires relevance – sometimes that relevance comes from an event in the news, and sometimes it is created and crafted by the choices, statements and actions of individuals. History is filled with examples of reputations ruined in a single action or in a brief news cycle, and 2011 was no different.  (Watch for that blog soon). 

But winning the reputation battle…that is another story altogether.  Here’s my list of reputation winners of 2011 – who would you add?

• NYC as a tech hub – the success of FourSquare, Twitter’s NY office and Facebook’s plan to come to NY in 2012 have put NYC back on the map as a legitimate technology center.
• Tablet Computing – sure, Apple still dominates the category – but the holiday success and popularity of the Kindle Fire and Samsung’s Galaxy Tab have taken Tablets from a product (the iPad) to a category.
• Populism and mass protest – three letters – OWS.  But this wasn’t the only movement that captured attention this year – think about the protests over Russia’s elections, the Arab Spring or even India’s anti-corruption movement. 
• The British Monarchy – there is nothing like a royal wedding to make an out of date institution like the monarchy relevant again.  Will and Kate have captured the hearts of the public in a way we haven’t seen since Princess Diana.
• Social Media – no longer the wild, wild, west – social media’s acceptance in the mainstream world and in the board room makes it a big winner of 2011.
• NCAA Basketball – scandals in college football and an NBA lockout made college basketball the darling of winter sports – where the love of the game rules the day. 
• Steve Jobs – The untimely passing of Steve Jobs, and the insight into the long range plans he left behind for Apple has taken an iconic leader of our time and made him even larger and more iconic than when we was living. 
• Google’s Sergy Brin – taking back the reigns of Google and tackling tough issues like China while restoring Google’s focus on the ideas that work is helping Google get its mojo back.  Let’s watch Google+ in 2012.
• GM, Ford and the American Automotive industry – Once the industry America loved to hate, complete with CEOs taking private jets to Washington to ask for a bailout, the American Automotive industry is on the rise, fueled by bold leadership by CEOs like Dan Akerson, who dares to say out loud what many just think, or Alan Mulalley, who arguably led the industry’s reputation turnaround.
• Lady Gaga – once known simply for her eccentricity (meat dress, anyone?), Lady Gaga has emerged as a leading equality advocate – for LGBT issues and for anti-bullying in general.

cwinters General Corporate Arab Spring, Ford, GM, Google, Lady Gaga, OWS, Social Media, Steve Jobs

Here’s some unsolicited advice to Penn State students – you are up in arms over the wrong thing.  You shouldn’t be protesting Paterno’s exit – you should be protesting the fact that the Coach you so admire allowed little boys to be abused, and turned a blind eye….literally. 

Penn State was one of those schools that prided itself on being “clean” back in the day when a college sports scandal usually involved an alumnus purchasing a car for a hot recruit. Paterno, who was well on his way to a legacy akin to that of Vince Lombardi, prided himself on being free from those sorts of allegations.  This is worse.  Far worse.

Even though Paterno, who reportedly hired a criminal attorney, has coached his last game, the reputational implications for the University will live on for a long time.  Some would say that this requires bold action – like suing Paterno or suspending the football team for a couple of years, to rebuild it from scratch.  I’m not a fan of punishing the kids – those who play and those who chose Penn State and are looking forward to the weekend football game as part of their college experience.

What can Penn State do to put this behind them?

1.  Open the kimono…it’s time to ‘fess up, take responsibility and make some sort of reparation to the victims before a court requires you to do so.  No amount of money can “fix” those abused children…but until Penn State does this, they can’t move on to what comes next.
2. Take action against anyone and everyone who was peripherally involved…if you knew, might have known or should have known – start looking for a job.
3. Choose your next head coach carefully – and from the outside.  Thoroughly investigate the candidates, and involve credible third parties to do so.
4. Implement a policy that prohibits a child from being alone with an adult for any reason.  Hundreds, if not thousands, of children attend camps, clinics and programs at Penn State each year (or at least they used to).  This is closing the barn door after the cows have escaped, for sure. But it needs to be done.
5. Lead with something other than football.  I’ve seen Penn State students take to social media saying that football doesn’t define the University.  Really?  Because to most people Paterno, Penn State and football are inextricably linked. Penn State should lean in to the prominent alumni, focus on academic programs…anything other than football.  

The reputational implications are significant, but the practical consideration is that Penn State is likely to see a change in its applicant pool – parents just won’t feel good about sending  their kids to a place they no longer trust.    It’s going to be a long haul.  It’s not likely that there will be a bigger scandal to take them off the hot seat – although Herman Cain should send Paterno flowers.

cwinters General Corporate Joe Paterno, Penn State Scandal

The latest political drama to hit cinemas is The Ides of March (based on a play based on truth) adapted for the screen by the ever-relevant George Clooney and starring the newly ubiquitous Ryan Gosling, as the “country’s greatest media mind” behind the campaign of a presidential candidate (played by Clooney).

The film’s themes are provocative for those of us in the business of PR, as they reflect many ingredients of effective reputation management:  one part media relations, one part crisis, and a helping of ethics on the side. In the film, Gosling’s character is a media relations superstar, tasked with maintaining the high profile reputation of a potential future president, yet grappling with a possible sacrifice of values.

No one would argue that reputation management can be a sneaky game especially in politics, but these days, flaws are harder to sweep under the rug. On the other side of the silver screen, everyone from corporations to students are realizing that it’s not just the media at the helm of their reputations – it’s social media. We know the examples: Nestle ran into trouble, as did Urban Outfitters. The political world is almost too obvious, with the downfalls of Anthony Weiner and Chris Lee as examples.  Hollywood itself isn’t exempt – what’s the most buzzed-about topic related to the affair rumors facing Ashton Kutcher and Demi Moore? Tweeting habits.

Though the film doesn’t address social media specifically, it recognizes the power of public relations on an individual and broader level, presenting a compelling narrative on ethics and the role of reputation and media. It does a particularly good job of examining the lengths that those in the highest echelons of politics go to in order to maintain that critical, yet fragile, sphere of influence.

But today, the approach by many lately has been the opposite of the underhandedness in Ides – it is openness over exclusivity, transparency over bureaucracy. Whether in Hollywood or in Washington, we’re all learning hard and fast that the person with just about as much power as that scrappy reporter from the Times, might just be your Facebook friend.

fhamid General Corporate Facebook, Ides of March, Nestle, Twitter, Urban Outfitters

If you live in the NYC area and watch the evening news, you might have the impression that Occupy Wall Street is the biggest thing to hit since Lady GaGa.  Think again.

In a recent poll, just 17 percent of Americans say that they are following the protest closely – down from one in four in April.  It is not surprising that more people followed the death of Steve Jobs than Occupy Wall Street…but more people are also following the situation in Afghanistan closely than OWS.  

It seems to me that the OWS protest is more like organized labor’s inflatable rat than a real movement…you see it, and move on without engaging unless you are already a supporter.

Why? The protestors are certainly getting plenty of ink and air – which is the key criteria for legitimacy for many in my profession. 

• Sustainable movements need a leader.  A face for the cause.  Would the Civil Rights movement of the 60s been the same without Martin Luther King Jr.?
• You have to be for something.  Much like the broader, more generic protests of the 60s, it is clear that the OWS protestors are against “the establishment” – but they offer little in terms of specific recommendations.  President Clinton pointed this out in a recent interview, and recommended that the protestors get behind the Obama Job Plan. 
• They need defining moments that create a real connection with the broader population.  Historically, these moments come from the missteps of the establishment, particularly law enforcement.   One of the founders of the movement seems to think that the arrests on the Brooklyn Bridge are that moment – but I’m not sure that is sustainable.  And I’m not sure jumping on the beat up Bank of America bandwagon will do it, either.

In totality, OWS needs a relevant, sustainable narrative, delivered by a credible and compelling spokesperson.

cwinters General Corporate Bank of America, Bill Clinton, Occupy Wall Street, Steve Jobs

If you work in the public relations profession, you’ve probably heard a common lament among clients – “People aren’t getting our story.“

It may be one of the common denominators that make clients from diverse industries and across all practices of public relations alike.  Whether launching a brand, working an issue in Washington, conducting an investor road show or managing a crisis, having a compelling story is a fundamental requirement. 

In the public relations business, we’ve always been storytellers – whether you call it messaging, corporate/brand positioning or narrative – it’s all about the story.   And the greatest, most iconic brands and companies do it really, really well – Nike, GE, Apple and Starbucks all understand that to remain relevant as you grow and change, having a story that resonates is key.

This piece on Starbucks features the philosophies of noted brand evangelist Stanley Hainsworth, and credits great storytelling for transforming a commodity product into a $4 splurge.  He talks a lot about the art of storytelling, and gives us a glimpse into the approach he uses to create an emotional connection with stakeholders.  As I read this piece, I was struck with the significant alignment between his priorities and the way we approach developing a client’s narrative at MWW Group…in particular, the emphasis on tailoring your story for different audiences – what we call the Total Stakeholder Approach.   

The irony is that while this may be a fresh, new approach for the brand evangelist – it has been core to of great public relations programming and strategy from the beginning.   

How do you know if your story needs revisiting and refreshing?

• Any time there has been a significant change in your business – new leaders, new business strategy, new line of business.  Chances are you need to rethink your narrative.  A more thoughtful approach would have made a big difference for Netflix, and saved them lots of backpedaling.
• Significant changes in your industry also call for a new story – because your old story simply won’t be relevant anymore.
• Shift in strategy or emphasis on who, or what, is important.
• If you are underperforming – in sales, in employee retention, in share price performance – that may be a sign that your story isn’t resonating.
• If it feels stale, out of date or misaligned with your priorities – even if it isn’t impacting your stakeholders yet.

cwinters General Corporate Apple, GE, Netflix, Nike, Starbucks, Total Stakeholder Approach

Amanda Knox arrived home in Seattle last night, tearfully thanked her supporters, pinched herself to be sure it was real, then went home to sleep in her own bed after four years in an Italian prison.   Four years is a long time to remain relevant in the American psyche…and I’ll admit that I didn’t follow her case week by week, blow by blow.  But I do remember early reports of the wild, promiscuous girl partying, I mean studying, abroad.  Fast forward two trials and four years, and we see a completely different picture – one of the girl next door – our sister, our daughter, our BFF.   That’s quite a reputational turnaround.

This story in the New York Times is one of the few I’ve seen recently that provides a realistic, constructive view about the role of PR – in litigation support and in reputation management – rather than the popular hobby of bashing the “spin doctors.”   With time, diligence and working with the media – vs. trying to either ignore them, trick them or bully them, Amanda Knox’s family successfully evolved her from “Foxy Knoxy” to the accurate view of a girl unfortunately caught up in a wrong place, wrong time scenario, halfway around the world.

Would an image overhaul alone have secured the reversal of her conviction?  Not likely.   But when the DNA evidence came in to play, the image of the demure girl next door gave the judges and jury emotional permission to reverse that decision – and the public “air cover” for doing so.

That, my friends, is a good day – for Amanda Knox.  And for our industry.

cwinters General Corporate Amanda Knox, New York Times, PR

As Netflix suffers from consumer backlash of price increases and the division of its DVD and online streaming services, communication from CEO Reed Hastings with Netflix’s customers have been just as big a problem.

Will Netflix survive despite its communication woes?  MWW Group’s CEO Michael Kempner explores this in his latest blog post on MWW Straight Talk.

admin General Corporate Netflix

If you are planning to rob a bank, don’t ask anyone from HP to drive your getaway car…that company leaks live a sieve.  In what may be the worst kept secret in America (including no fewer than three articles in the New York Times about the rumor yesterday), HP has named Meg Whitman as its 4^th CEO in six years.   Thanks to those articles, they already know what the concerns are about Whitman – she has no turnaround experience, her background is in consumer tech, she’s built a company – not fixed a company, eBay was a simple, straightforward business – HP is a complex, multi-business company.

All three of her predecessors have been fired.  How can Whitman avoid that fate? Give the communications leadership a seat at the strategy table.   Sources say the board supported the company’s strategy, but didn’t have confidence that leadership could communicate it effectively (aka “sell it” to stakeholders).  It doesn’t get clearer than that.  

Whitman’s first communication to employees was a miss.  In that e-mail, HP failed to define any specific course of action, the board didn’t address the perceived shortcomings of Whitman or provide a compelling rationale for her selection, and contradicted themselves calling Leo Apokother’s “resignation” his decision, then later classifying it as a difficult decision for the board.

How can effective communications help Whitman, and HP succeed?  

1. Building Internal trust — HP needs a culture change.  Reportedly each business is a fiefdom, jockeying for control.  This is one explanation for the leak du jour (or multiple leaks du jour) at HP.  When confidential information is constantly reported in the news, that’s a clear indicator of a trust problem…employees don’t trust leadership to tell them what they need to know – which is only exacerbated when they’ve read about something all day and then get communication from the Company.
2. Creating external relevance — HP’s needs to be more relevant.  They’ve got no real skin in the game in the tablet wars (even though they had one of the first tablet PCs out there, albeit a different take on tablet than the wildly popular touchpad tablets like the iPad and the Galaxy).  The reputational boost they enjoyed from the photo printer wave is long gone. Right now, the most interesting thing about them is the board level drama and the leadership revolving door. 
3. Establishing credibility – stakeholders need to see HP define a course, establish interim benchmarks of success and then deliver.  It’s simple and old fashioned, but it works.  Thus far, Whitman has defined her course as “stay the course” – including proceeding with an acquisition that reportedly played a role in Apotheker’s ouster.   It’s hard to say if that is a meaningful validation of the strategy, or a belief that the same old thing, with some Celebrity CEO pixie dust thrown in, will make it more palatable to stakeholders.
4. Re-define success, at least for the short term.  Specifically, stop defining success solely by share price.  The turbulence and tumultuousness of the capital markets, especially these days, can hardly be considered the benchmark of success.  I’d start with the ability to preserve confidential information as a sign of confidence in leadership and the company’s direction internally.  Build customer relationships…and ultimately sales.  Innovate and bring the right products to market – and grow market share.  Provide stability and predictability for your stakeholders.   The share price will follow.

cwinters General Corporate eBay, HP, Leo Apotheker, Meg Whitman