Why do we look for the Good Housekeeping Seal of Approval? When Berkshire Hathaway takes a position in a company, why do we believe that this is a fundamentally good company, even if it is underperforming? It’s simple – Reputation, with a capital R.

Throughout the centuries, great thinkers and leaders have talked about it. Yet reputation remains an elusive, amorphous concept that called to mind that famous Supreme Court reference to pornography – it’s difficult to define but you know it when you see it.
 

When it comes to employees and social media, the ruling is new, but the rules remain the same
January 22, 2013

You’ve developed a social media policy with an eye toward protecting your brand and your company’s reputation.  You’ve trained your employees on proper use of social media.  Perhaps you’ve even guided them about the permanence of social media, and that today’s rant will live on in perpetuity – to be seen by customers, colleagues, supervisors, even future employees.  You thought it was safe to go into the water (cue scary music)…until it isn’t.  A recent ruling from the National Labor Relations Board (NLRB) protecting employee social conversation is likely to cause a whole new set of issues and concerns for leaders grappling with how to productively leverage and manage social media, and their employees’ use of it.

Before you panic and block employee access to Facebook on the job, let’s be clear about what this ruling really means.  Yes, the definition of protected activity has been expanded, but that simply means that employee conversations on social media have the same protections as they do around the water cooler. This includes conversations designed to organize employees seeking representation.   And while some level of venting and complaining is human nature, the best protection against employee negativity is a positive, productive workplace and culture.

If you don’t have a social media policy today (and nearly half of companies still don’t have any policy), the good news is you are not in violation of these recent rulings.  But it shows clearly that now more than ever you need one.  In the absence of guidance, well-meaning employees and supervisors may say or do something to damage your reputation, or their own.  And if you already have a social media policy, it needs to be updated.  I’ve consulted with a few friends in the legal world, and it seems one of the biggest issues with first generation social media policies is their lack of specificity.   Blanket statements about not saying anything negative about anyone or anything just don’t fly. It is probably illegal to have consequences (real or implied) for doing so. But that doesn’t mean there is no way to protect your brand and your Company’s reputation.

A good social media policy protects your employees, and their right to free speech, as well as your brand.  Here’s my take on how to create a policy and an environment that is social media-safe, for everyone:

  1. Focus on what your employees should do…not a bunch of rules about what they shouldn’t do. Dell is a good example of this, encouraging employees to use social media the right way. Creating a culture of surveillance and hand slapping is counter-productive to the goal of using social media at all.  (That isn’t to say you shouldn’t monitor – in fact, being aware of social conversation might be your best real time focus group about employee sentiment that you can get.)
  2. Make it a conversation.  The idea that a policy to govern conversation is covered in the annual signing of the employee handbook is as ludicrous as believing you’ll meet your New Year’s Resolution goal by going to the gym on January 1.  Social media policy requires use of good judgment, and ongoing conversation.  In light of recent rulings, it is especially important to be sure your employees understand your policy, and that your supervisors and middle managers know how to talk about it.
  3. The medium matters as much as the message.  Just like any communications, a well understood and adopted social media policy needs to be conveyed in a way that is engaging, simple and relevant.  Check out this video SMP from the Australian Department of Justice for a great example.  If a government agency can do it, so can you.
  4. Walk the talk/lead by example. If your leadership team isn’t socially active, they need to be.  Employees follow what you do more than they will listen to what you say.  Social media is all about transparency and authenticity, and that begins at the top.  We’ve talked about the value of a socially active CEO at length on this blog – and the evidence is mounting.  Just do it.

Social media policies, like crisis plans, are living, breathing things – not a document you dust off once a year.  And keeping it relevant is an ongoing assignment.  What have you done to educate your employees about social media use, and what has worked for you?  Please share your ideas and advice with us here.

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Posted by cwinters at 8:17 pm | Tagged , , , | Comment (0) | Trackback (0)

Can forgetting about shareholder value actually create shareholder value?
January 16, 2013

If I had a nickel for every client in my career who wanted to put a quote in a news release about their commitment to creating shareholder value, well, I wouldn’t really need to care about shareholder value.  That’s why I found this Q&A with Amazon’s Jeff Bezos in Harvard Business Review’s round up of best performing CEOs fascinating.

From the moment Amazon went public, he was a contrarian, telling investors that he wanted them to put the long term ahead of this quarter and then sticking by that philosophy.  Bezos doesn’t chase quarter to quarter results, nor does he cave to the pressure to increase margins if it is contrary to their strategy.  As in, we will sell the Kindle at break-even to advance the platform by which we sell our content. Even though we could charge a little more for it and eke out some nice margin dollars.

What does this mean for those of us in the investor relations and financial communications profession?

We have two paths to choose:  quarterly news release writer/script developer/order taker; or leadership, strategy and communications “management consultant.”  Before you decide I am crazy, hear me out…while it may be somewhat outside of our remit to advise on management strategy, depending on the nature of your client relationships, it is well within our industry’s purview to help clients find the narrative to tell, and more importantly, sell their strategy to key stakeholders.  And Bezos wisely points out that over the long term, customer, employee and shareholder interests are aligned – it is the short term that creates the conflict.

Yet another reason to love and admire Jeff Bezos.  He gets it.  He’s mastered the art of using communications to advance his position.  No wonder he is No. 2 in Harvard Business Review’s list of best performing CEOs of all time – measured in creation of shareholder value.

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Posted by cwinters at 6:11 pm | Tagged , , | Comment (0) | Trackback (0)

Reputation Fail! Who could have made it, but missed the opportunity?
January 9, 2013

I believe in second chances.  That’s why Rocky gets to come back.  Why playoffs have a wild card.  And why it isn’t over until the fat lady sings.  Last January, we published a list of reputations to watch – the companies whose reputations were at a crossroads, and whose actions in 2012 would dictate their future.  Some, like J&J and Target, seem to be muddling along – they haven’t permanently shot themselves in the foot, but the absence of a major negative issue is hardly a ringing endorsement for reputation rehabilitation.  Same for Sears, whose acquisition of Kmart still seems like a big mistake.

This year’s biggest missed opportunities:

HP – There is nothing like a new leadership regime to give a company and its reputation a fresh start.  And after the Mark Hurd debacle, and the entry of Meg Whitman, I was rooting for HP.  But two major post-acquisition write downs and lots of finger pointing have done little to restore HP’s reputation mojo.

Facebook – Last year saw Zuckerberg punching back after a nasty movie portrayal with a massive philanthropic donation to Newark public schools.  With its reputation at a crossroads, Facbook IPOed, with well-documented and disastrous results.  Still relevant because they are prolific, but not on many “Most Admired” lists, and that is too bad.

North Korea – was on our reputations to watch list last year, because the election of a new leader might have been the start of a new era for the nation as a participant in the free world.  And while Kim Jong Un is meeting with Google’s Eric Schmidt, most believe that is about appearances, not really change.  It isn’t good when your finest moment as a world leader is being parodied by The Onion as the Sexiest Man Alive, and having China fall for it.

Sesame Street – An unfortunate sex scandal for Elmo changed the trajectory after Mitt Romney’s Big Bird comments gave American’s favorite neighborhood a boost in relevance.

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Posted by cwinters at 4:20 pm | Tagged , , , , | Comment (0) | Trackback (0)

Reputation Losers of 2012
January 8, 2013

Why is it so much easier to come up with a list of reputation losers of 2012?  Is it because there were so many, or because they were more memorable?  Either way, in no order, here are our picks:

General David Petraeus and the U.S. Army – Sex scandals are hardly worth mentioning today, especially in Washington.  But when a revered four star general, whose star was rising after reversing the United States’ fortunes in Iraq and receiving bi-partisan support for the top position at the CIA, comes crashing down in one day, it’s worth mentioning.  What’s next, a reality show on Generals gone wild?  The Petraeus scandal left America wondering exactly what kind of code governs the leaders of our armed forces.

Donald Trump – is still living by the motto that any publicity is good publicity, and continued to spout comments and ridiculous propositions about the President right up until Election Day.  It is not a good day when your children need to stage a publicity intervention and tell you to just be quiet.  Now if they would only stage a hair-do intervention, too.

Lance Armstrong – the only thing worse than a cheater is one who lies about it, and leaves his foundation with the baggage.

Mitt Romney – The presumed winner after the first debate and with most pollsters picking him to win, Mitt Romney’s 1 percent ideology failed to earn him the job of CEO of America.  The only thing worse than the public humiliation of losing?  His son’s lame attempts to claim he never wanted to be President anyway.

The NRA – Tone deaf is the only way to describe their response to the horrific events in a small town in Connecticut.

Speaker Boehner and the Republican Party – Watching the sore loser behavior of the Republican Party is like watching a train wreck – you want to look away, but you just can’t.  Somewhere in a red state, a group of strategists is debating how their discussions and definitions of rape were so “misunderstood.” A word of advice – when elected to Congress, at least pretend to be interested in doing the job.

Chick Fil-A and Papa John’s – proved that getting your business involved in politics and religion is a recipe for disaster.

This list could have gone on for 1,000 words.  Who would you add to the list?

 

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Posted by cwinters at 5:05 pm | Tagged , , , , , , | Comment (0) | Trackback (0)

2012’s Reputation Winners
January 7, 2013

Here it is, our long awaited, completely unscientific review of the reputation winners and losers of 2012.   I will admit, the losers list was much easier (OK, I’ll admit it, and more fun) to compile.  But we will begin with the winners (in no particular order).

 

 

Winners:

Occupy (fill in the blank) – The occupy movement proved it had staying power and relevance beyond the financial crisis with its entry into Hurricane Sandy relief.  While they may not always use an Occupy hashtag, watch for business agendas disguised as social movements to emerge as the new approach to advancing an issue or cause.  Fast Food Forward and the various movements for low wage workers are a great example.

N.J. Gov. Chris Christie – despite telling the world he smells like wet fleece, Gov. Christie has done some major reputation rehabilitation this year.  While he still has a tendency to attack his opponents in what he likes to call, “Jersey style” – he has proven to be a leader who can put partisanship aside and put his constituents first.  He made his Republican brethren none too happy when he praised President Obama just before the election, then topped it by outing Boehner for neglecting to put aid for Hurricane Sandy up for a vote.

Nate Silver – Sometimes you have to bet big to win big.  The NYT FiveThirtyEight blogger bet the reputation farm with a bold and early prediction of an Obama victory and became the Fox News whipping boy. Until he was right.  His books sales jumped 800 percent, and he is now the face of a new movement of bloggers and statisticians  who are using data and heavily-researched mathematical models to make predictions in politics and numerous other fields, and thanks to him, elections will never be covered the same again.

Yahoo! – Scored Marissa Mayer for the top job, and a new “Celebrity CEO” was born.

Marriage Equality – found support at the ballot box and from the judicial bench.  A huge win for LGBT rights, proving that hatred and intolerance are not family values.

Hillary Clinton – Does anyone even remember when she was the most hated woman in America? Madame Secretary has earned the respect for global diplomacy under the most difficult of circumstances, and is the presumed Presidential nominee.

Honorable mentions:

Tim Tebow –His arrival to the Jets certainly didn’t live up to the hype…but he also never got much in the way of opportunity – so while the Jets went down in flames, Tebow, quite literally, remained on the sidelines.

Malala Yousufzai – for standing up to the Taliban to advocate for girls’ education, and living to tell about it.

President Obama – nothing proves reputation and respect more than winning a national election.  Let’s see what this second term leader of the free world can accomplish when he takes that reputation out for a spin.

Big BirdOur yellow feathered friend hasn’t seen this kind of pop culture relevance since Snuffy became real.  Hopefully he can transfer some of this equity to his pal Elmo, who has surely seen better days.

Who were your reputation winners?  Who did we miss? Come back tomorrow for our list of losers.

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Posted by cwinters at 4:05 pm | Tagged , , , , , , | Comment (0) | Trackback (0)

3 Reputation Resolutions Every Company Should Make
January 4, 2013

Martin Rooney said, “Goals are dreams with deadlines.”  As we begin 2013, across America people are making resolutions – to get in shape, drink more water, save more money or improve themselves in countless ways.  I love this optimism, this “Can do spirit” that encourages us to try, try again, even if we have tried and failed before.

January typically also marks a fresh start for companies.  Leaders and organizations have completed their fiscal year business planning, and begin to shift the focus from what they need to do to how they are going to do it.  That is a perfect time to take stock of your organization’s reputation, and identify the areas that need work.

What are the reputation resolutions that every company should make?  Here is my take:

  1. Move from philanthropy, to citizenship – there is lots of lingo about the double bottom line, and the CSR imperative.  Companies don’t need a rationale about why they need to be good citizens – they need to change and expand the definition of CSR.  It isn’t about philanthropy…although I am not knocking philanthropic endeavors.  And it isn’t just about eco-responsibility, even though the catastrophic weather events of the past couple of years should be a wakeup call to all of us about the need to preserve our planet.  But CSR is so much more than that – it is about your culture and workplace, your approach to leadership and governance, and engagement.  The data increasingly shows that employees place citizenship high on their list in choosing an employer, and if today’s jobs report is any indication, we won’t have near double digit unemployment forever.  As our economy improves, employees will have more choices, consumers will have more money to spend – and they will vote with their actions.
  2. Get social, and start at the top – many reports were issued this year about CEOs and their lack of engagement in social media.  I’ve blogged about it, hosted panel discussions at SMW about it and we’ve written about it. The reason is simple:  we are still experiencing a crisis of confidence, and we trust people, not companies.  Social media provides an easy, manageable way to put a face to the company and build trust with your key constituencies.  It also makes your company relevant in a way that no other communications discipline can.  And before my PR agency brethren get smug about being “ahead of the curve” on this one – think again.  Being counselors and strategists on social media for our clients requires a lot more than telling them they need a twitter, or pitching bloggers for coverage.  If your counsel to clients is only about how to use social media to get more coverage, you are missing the boat.
  3. Refresh your crisis plan – this is the reputation resolution equivalent of lose 15 pounds and go to the gym every day.  We all say we will do it, but life interferes.  Just do it.  If your crisis plan is in a binder, on a shelf in your office, I can guarantee it won’t stand up to the real time nature of crisis communications today.  Today’s crisis planning tools are online – and the best ones are housed and managed via technology platforms that enable you to push content via mobile devices, convene a crisis team in real time, and use social media to manage the narrative, rather than a runaway train of reputational damage.

What are your company’s reputation resolutions for 2013?

 

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Posted by cwinters at 4:13 pm | Tagged , , , | Comment (0) | Trackback (0)

No Politics on My Pizza
December 19, 2012

There is an old adage that you should never discuss religion or politics outside of your doorstep and in the past few months not heeding this advice has tripped up a number of restaurant chains. Earlier this year it was Chick-fil-A, which was forced into crisis mode by anti-gay marriage comments from the chain’s president. The comments energized partisans on both sides of the debate and gave a range of politicos an opportunity to make hay. While some are trying to argue that the incident actually helped short-term sales at Chick-fil -A, it was certainly not the sort of publicity that helps build brands and burnish reputations.

In the weeks since the presidential election, Obamacare has been the blue plate special served up for controversy at places like Papa John’s, Denny’s and Applebee’s with the pizza chain’s head and franchisees at the other two restaurants decrying the healthcare law and threatening draconian staff cuts and price rises.

Now comes evidence of how this latest venture out of the kitchen and into the political scrum impacted perceptions of the aforementioned restaurant thanks to a study by YouGov Brandindex. The results show a quick and precipitous drop in Papa John’s and Applebee’s perceptions. Denny’s suffered a similar fate initially when a major franchisee added his voice to the anti-Obamacare chorus but perceptions bounced off the lows when the corporate CEO publicly apologized a few days later.

Reputations are fragile things which need much care and protection, particularly in the consumer marketplace. They take hard work and time to establish and preserve but as too often seen in recent months, can be cast asunder with a few intemperate words regarding subjects many don’t want the companies/brands they utilize to weigh in on. Interestingly, at a time when there is much discussion about the bounds of corporate speech, it is the people aligned with these companies who can damage reputations by exercising their own constitutional rights. Corporate communications professionals need to help their executives understand how airing views beyond the scope of company business can impact all stakeholders. The YouGov BrandIndex study provides a lesson worth learning.

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Posted by rtauberman at 5:01 pm | Tagged , , , , , | Comment (0) | Trackback (0)

When In Doubt, Blame Healthcare
November 26, 2012

I spent the early years of my career working with a large number of retailers, often distressed retailers.  Every quarter, as they presented their results, they were always looking for something (anything?) to explain declines other than the fact that their business was broken.  There was one fewer Saturday. Seven more rainy days.  The calendar – and the weather – became a company’s best friends in the proverbial “blame game.”

Today, the game hasn’t changed much – but these friends have. Now, it seems the new trend is to blame healthcare for all that ails your business.  Papa John’s cites healthcare for an increase in prices and a reduction in workforce.  Opponents of Obamacare blame it for the national unemployment rate.  Hostess and its major union’s dangerous game of corporate “chicken” began over a proposal to increase employees’ out-of-pocket costs for healthcare.  The Verizon strike began the same way.

Don’t get me wrong – healthcare is a massive expense for employers.  It has legitimate implications for financial results, and even product pricing.  But proactively addressing costs – rather than blaming them – is something responsible leaders and employers must do if they want their businesses to remain viable. Especially when the victims are as beloved as the Twinkie, Americans – and stockholders – will stop accepting the healthcare excuse and start demanding better leadership from their companies.

Part of the problem is the changing shift in attitudes of Americans about the role of healthcare in general.  My parents’ generation viewed healthcare as protection from catastrophic illness.  They were covered under traditional indemnity plans, and expected to pay a deductible and 20 percent of the costs on top of that.  Then came managed care, and the notion of covering preventative and wellness care in order to reduce the incidents of catastrophic or chronic illness.  The unfortunate side effect: Americans now expect a CAT scan to cost them less than a haircut. That’s just not realistic – and companies, both the health care providers and the employers themselves – can do a better job of setting expectations.

An interesting side effect: as the “blame healthcare” movement heats up, time will tell if it impacts insurers in a more dramatic way.  Sure, there are always discussions about insurers being too profitable at a time when so many struggle to afford insurance at all.  But as publicly traded companies, they have a primary responsibility to their investors to make a profit (which is why some in related businesses, like Nationwide Auto Insurance, even tout their privately held status as better for policy holders).  So as the blame game intensifies, the insurers, many of whom boast market caps measured in billions, may be the next target.

Occupy healthcare, anyone?

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Posted by cwinters at 4:05 pm | Tagged , , , , | Comment (0) | Trackback (0)

Mission Critical: No Better Time to Get Naked
November 14, 2012

Storytelling is the foundation for every corporate public relations program.  I spend a lot of time working with companies on developing and refining their core stories – or what we refer to as a company’s “master narrative.” Like all great stories, there needs to be a centrally defined focus – a purpose that brings together the main characters and the plot and makes the story all worth telling.  The business equivalent is a company’s mission, the articulation of why an organization exists.

At a time when many corporate leaders are battling extreme global competition, evolving regulation and consolidation, articulating why the company is in business should be the easy part, right?  Wrong.  Surprisingly, I have found that the single biggest stumbling block executives have when thinking about their companies is agreeing on the very essence of what they do and why.  Many have the most trouble getting back to the basics and stripping away superfluous language that can water down or even distort the mission.

So who is getting it right?  Take a look at a few of my favorites:

Zappos: “Wow” philosophy “to provide the best customer service possible.”

JetBlue: “Bring humanity back to air travel”

Starbucks: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”

McDonald’s: “To be our customers’ favorite place and way to eat.”

I list four very different businesses and four very different missions, yet they all have one thing in common: they get at the very essence of why they are in business, simply and cleanly.  You don’t need a PhD to understand what they do, who they do it for and why they do it.  You immediately get why their people come to work every day and while it’s not to cure cancer, abolish poverty or another of the world’s intractable problems, they are inspiring in their own right.

And why should a company care? Mission statements have been directly linked to greater returns on investment, and return on equity has been found to be more than double in companies with a written mission statement.

Telling your company’s story with a strong mission at the core has the ability to rally employees, inspire customers and keep the company on track when it verges on losing its way.  When thinking about your own business, remember that a mission statement is more than words on paper, and often what’s not there is even more telling.  Less can be more.  Go ahead and bare all!

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Posted by dlauer at 4:47 pm | Tagged , , , , | Comment (0) | Trackback (0)

Communications During External Crises: Tone and Relevance Matter Most
November 13, 2012

During and after Super Storm Sandy, we witnessed a variety of commercial responses to the storm, from the selfless to the craven. There are those, like American Apparel and Ace Hardware, that have attempted “blow out” sales and earned jeers from the Twitterverse. There are those, like many local restaurants, that have selflessly donated food, supplies and labor to relief efforts. And those who have tread the delicate line of offering support while delivering a potent marketing message.

One example of a marketing effort done well was from State Farm Insurance which, when Gawker and its sister sites lost server support, sponsored the temporary Tumblr pages. This effort was helpful, not overtly promotional, relevant and non-intrusive. It’s a challenging balance to strike, but provides some useful signposts.

When considering communication during a crisis, ask the following questions:

  1. Is it necessary? Keep customers and employees informed of how you are affected and how you are serving them, if they are affected.
  2. Is it relevant? Does the standard “thoughts and prayers” message make sense and is it meaningful under the circumstances?
  3. Is it appropriate? During times of emergency, the dominant tone, especially in social media, shifts from snark to sincere. Misjudging tone is simply an unforced error.
  4. Is it helpful? If you are able to help, do so. The goodwill is always worth it. If you can help in a way that reinforces your brand, so much the better. JetBlue is among the companies that have harnessed the power of their customer base to give frequent flyer points to those contributing to the Red Cross. This is an ingenious way to drive contributions and forge closer bonds with customers.
  5. Is it over? Be judicious in determining when and how to return to business as usual. Expect a lingering somber tone as communities adjust to losses and new realities.

Navigating crises is never easy, but a sensitive approach can position companies well into the future, while missteps can inflict serious reputational damage. Think twice before putting your marketing hat on – think service, relevance and community.

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Posted by rmarks at 3:55 pm | Tagged , , , , | Comment (0) | Trackback (0)