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Posts Tagged ‘reputation’

American Airlines earns its bad reputation, one mechanical delay and one nasty flight attendant at a time

August 16th, 2010

Apologies in advance for this long post…but you’ve got to hear it all to believe it.

Air travel has become positively uncivilized….and really, when you pack hundreds of people into a flying tin can, there are bound to be issues. Add a lengthy security process, crowded cabins (I know airlines are all touting leg room, but I’d really like some elbow room, please),crowded skies which lead to all kinds of delays and lost luggage, it is no wonder that any time there is an issue in the air, it makes big news.

From what I remember about Economics 101 (which isn’t much), deregulation is supposed to drive prices lower, and increase competitiveness of an industry. We got the lower fares, no doubt. But somehow, the kind of service you’d expect from competitiveness just isn’t happening.

I’ve worked with airlines as clients for most of my career, and I am generally sympathetic to their plight. But sometimes, an airline earns its bad reputation. Take American Airlines….big, aloof, arrogant. And the experience I had with them last month is so outrageous, you couldn’t make it up. Like millions on the Internet, I now believe that American/American Eagle is the worst airline on the planet.

On a sunny Sunday afternoon in July, I (over)packed my wheelie bag and headed to the airport for a trip to Springfield, Missouri via Chicago O’Hare. My general rule of thumb is this, “If you need to make a connection to get there, I don’t need to go.” And connections via O’Hare usually spell trouble. But sometimes, clients pick locations that don’t have non-stop options. The ticket agent asked if I would check my bag, as the flight was very full…and I reluctantly agreed – I didn’t want to be difficult, and since I was arriving on Sunday night, I wouldn’t be in a rush.

Despite the blue skies, thunderstorms in the Midwest were causing havoc all over the system. Weather delay number 1. Stuff happens. Not their fault. When we arrive in Chicago, the flight attendant announces connecting gates – and while we are very late, I figure this means that the flight to Springfield is also very delayed. After a fellow passenger dropped the luggage that they didn’t ask him to check on my flip-flopped foot, I de-plane and hobble my way to the gate, which is in an entirely different concourse….only to learn that this flight left long ago. The gate agent advised that he could not help me rebook, and that I needed to go to the rebooking center, where they will rebook me and provide me with a hotel voucher. By now, my big toe is swollen and black…so I gimp it back to the rebooking center (which is back where I started, and if you’ve ever been to O’Hare you know that I’ve covered a lot of distance at this point).

The rebooking center is a BANK OF PHONES…no humans in sight. And no hotel vouchers in sight. So I hobble out to the ticket counter. After a minor scuffle with a duty manager, they agree to get my bag for me (originally they wanted to hold it and send through to Springfield – but I explained that I could not arrive at my meeting tomorrow in a juicy sweat-suit.) I get rebooked – they tell me the first flight of the day is sold out (but I later learned it left with 4 empty seats)…and book me on the next one. I’ll be a little late for my meeting, but it will have to do.

Monday morning comes, and my flight to Springfield is cancelled, Mechanical Number 1. Rebooked on the next flight. That flight gets delayed due to a Mechanical. Mechanical Number 2.

I finally arrive in Springfield, several hours late for my all day meeting, and wearing flip flops because I can’t get a shoe on. 26 plus hours after I left home. Not a great showing, but stuff happens.

Tuesday comes, we wrap up our meetings and head back to the airport. I’ve re-booked my ticket to go through Dallas, because I am thinking that O’Hare has bad karma for me. That flight gets cancelled. Mechanical number 3. Rebook back to the original flight through O’Hare. We board, get ready to push back, and they can’t close the door. Mechanical Number 4….we get deplaned, sit in the gate, and they announce re-boarding. Here is where the wheels really fell off.

This is my 4th mechanical in 24 hours. I am starting to worry about the maintenance competency of AA. And I am getting worried about being stranded overnight for the 2nd time in as many days. As we board, I asked the ramp agent in a weary voice if we were really leaving this time…because a Delta flight is leaving shortly and I don’t want to get stuck in Springfield. She responded very sarcastically, “Well, we are boarding you aren’t we?” (As if I hadn’t already boarded and de-planed 30 minutes earlier.). Silly me, I thought I might get an “I’m sorry you’ve had such a bad experience, I hope you have a good flight home.”

So in a calm but annoyed voice I said, “Well, I’ve had 4 mechanicals in 24 hours, which seems statistically impossible. Since you seem to be running the worst airline on the planet, I thought I’d ask before I miss the last flight of the day out of Springfield.” In hindsight, perhaps the calmness of my reaction was a problem…but more on that. She gives me a very snide “gee, thanks for sharing” response, and I head onto the aircraft, settle into my seat, turn off my BB and put on my iPod.

I see Julie the flight attendant approaching me, and she indicates that she’s heard I had “a problem with the gate representative”….silly me, I think she is there to apologize. Like Julie McCoy of Love Boat fame, I think she wants to have a perky chat with me and smooth things over. Anticipating this desire to be helpful, I decide to be gracious. I smile and tell her, “You can’t even imagine how many bad things have happened to me on your airline in the past 2 days…but there is no point in talking about it, I really just want to get home and put this trip behind me.”

It was then I realize that she wasn’t there to apologize….she proceeds to tell me that she is going to get the captain, and that I am in the exit row and she doesn’t think I am capable of serving those duties due to my “mental state.” (You know, if you curse and scream at a flight attendant they pop the chute and quit…but if you calmly tell them you’ve had a bad experience, you are the crazy one.)

“Really, you think I would refuse to open the door and let this entire airplane full of people die because I think you run a crappy airline? By all means, if you feel you need to get the captain, go ahead….but I think these people would really like to go home.”

She comes back….alone….and advises me (and the entire aircraft) that she thinks I am mentally unstable and that I need to move to a seat alone in the first row near the captain.

Now I am upset, angry and humiliated, but I know better than to argue with her….because I want to get home today. So I tell her, calmly, that I would be happy to move so that I can be the first one off her airplane. Once I am in my new seat, and she is “guarding me” in the galley, she advises me that she is filling out a report to the FAA because I’VE CAUSED A DELAY!!!!!!!!!!

So I am still speaking in a low voice, but I told her I’d be sending a report of my own to the DOT and that I’d like her name….because she may not like it, but I am certainly entitled to tell them that I am dissatisfied with the experience I’ve had on their airline, and that doesn’t make me unstable or the cause of her delay, and considering that I’ve been booked on 5 flights in 48 hours and not one of them has been on time, I didn’t think her argument would wash. She declines to give me her full name (“against company policy”) and the captain tells her to sit down and stop arguing with me so we can leave.

I arrive in Chicago, take another delay and finally get home to Newark.

Now, throughout the trip I tweeted and used my FB status….and the only thing I got was e-mail from friends at other airlines asking if they could sAAve me. Nothing from American. I got auto-emails from AA telling me that the flight had been delayed to a time that had already passed (so a message that we were delayed until 6 p.m., for example, arrived at 6:15)

I wait a week. Then I send a letter to American Airlines. Not because I want anything from them – heck, lifetime Gold Elite status wouldn’t make up for the bad experience I’ve had. But I would like to know that the flight attendant in question has been advised that she didn’t handle the situation well.
Nothing. Literally. In fact, I haven’t even been able to get the miles posted to my account for that hellacious trip.

72 hours of hell in the air – or in this case, mostly on the ground. 4 mechanicals. 2 other delays. 1 nasty flight attendant. A host of rude, incompetent people. Sorry American Airlines…you have a bad reputation, and as far as I’m concerned, you’ve earned it.

cwinters General Corporate , , ,

Fish on! Jenny was a hoax, but the reputation rules still apply

August 11th, 2010

Okay, we confess – we took the bait about Jenny and her white-board flame job of her boss, Spencer. Turns out it was all a hoax.

But we were in good company. Word is that Leno’s people were scrambling around yesterday, trying to find Jenny in order to get her on his show. Ditto for Good Morning, America. In fact, Gawker called it “The Quitting Tale that Suckered the Whole Internet.” Including them!

It reminds me of the day that the New York Mets listed Sidd Finch on their 1985 spring training roster, but at least Sports Illustrated and George Plimpton had the decency to pull off that prank on April Fools Day.

All kidding aside, our points about reputation and social media still stand. In an era when news can spread instantly from a variety of sources, executives can’t be too careful, corporations have to keep their crisis protocols / plans fresh and their crisis teams, internal and external, have to be ready to respond on a dime. You never know when a real Jenny will turn up on the Internet with her white board.

bsilver Employee Engagement, General Corporate , ,

PR firm’s reputation at risk from HP’s CEO fiasco

August 10th, 2010

At what point does the reputational fallout from Mark Hurd’s resignation rain down on Hewlett-Packard’s PR advisors?

The New York Times reported today that APCO, a well-respected PR firm, advised HP’s board to get ahead of potential leaks associated with the investigation into allegations of sexual harassment by then-CEO Hurd.

The board took the advice, disclosing the unsupported allegations. Hurd resigned later that week – not due to the sexual allegations, but because he admitted to falsifying travel expense reports.

But I digress. Let’s look at APCO’s role here. APCO seemed to follow the crisis playbook – be proactive, be open and provide full disclosure. So far, so good. But if they made a mistake – and you could make a strong argument that they didn’t – perhaps it was to counsel their client to move quickly without all the facts in hand.

Now APCO’s reputation is getting bruised by a variety of media outlets, including the Times, which concluded its story today by reporting that APCO “does not have a particularly strong reputation for crisis management or technology expertise” despite advising corporate icons such as Microsoft, Intel and yes, HP, on such matters.

Ouch!

bsilver General Corporate , , , ,

Your culture and your “behavior” are your brand

August 9th, 2010

Our CEO sent me this great piece about the 5 Commandments for Brands in the post-crash economy that was posted by Fast Company.

At its heart, the piece suggests that brands must help consumers achieve balance – defined as a move toward simplicity – and must be trustworthy. In fact, much of the piece reads like a primer for how to approach CSR.

One of the things I love about this piece is its simplicity – one of the core values it recommends for brands, by the way. And for me it crystallized a concept about CSR that has been on my mind.

I recently had a discussion with a colleague who is an expert in consumer marketing, and to her, CSR is all about branding, with a heavy emphasis on cause.

For me (and many of my co-contributors to this blog), CSR is all about reputation…about engaging employees and building a culture, about growing your business (and its value) and about earning the trust of key stakeholders in government, community, industry and the consumer marketplace.

It could be that when you are a hammer, everything looks like a nail. But I think that what this really means is that we are both right.

At MWW Group, we’ve always advocated a total stakeholder approach. As CSR continues to drive further convergence of corporate reputation and brand, this approach will be more important than ever.

cwinters CSR , , ,

Customers Really Don’t Come First…..But Don’t Say That to Your Customers

March 29th, 2010

Last week I had the privilege of moderating a panel at a seminar by The Conference Board on the customer experience. It was a great conference with leaders from iconic service and experience organizations like Disney, Starbucks and the Girl Scouts.

Our session was about creating a culture for service, and our panelists provided some great insights into this critical subject matter.

Stan Hart of Ritter & Associates talked about the importance of measurement in order to translate the language of the importance of service into action at all levels of the organization.

Ed Reilly of the American Management Association provided some great context around the reason that service and customer service has been elevated to a C-level imperative, and provided great guidance on how to provide the leadership and training that “walks the talk.”

For me the proverbial “a-ha” moment came during a session led by Michael Chen, CEO of GE Commercial Finance. He talked about the 4 I’s of creating a culture for success, and reminded us of the window of Batman’s girlfriend who told us (in Batman Returns) that actions are more important than intentions. He also said “Customers don’t come first – your employees do. Treat your employees like customers, and they will treat your customers like royalty.”

It’s great to hear that coming from a CEO, because this simple truth is so often forgotten as companies become entangled in creating measurement protocols, rolling out CRM programs and otherwise focusing their customer service resources externally. Your employees are the single greatest asset you have in achieving customer satisfaction – they impact every step in the process. And the power of social media means that you are only as good as the worst decisions of a single employee. Just ask Domino’s – who found itself battling a massive reputational threat after a couple of part time employees posted some distasteful video on YouTube.

Carreen Winters can be reached at cwinters@mww.com

cwinters General Corporate , , ,

Cracking the Code on Being a Most Admired Company

March 23rd, 2010

Fortune’s Most Admired Companies list is undoubtedly sparking renewed conversations by reputation managers about their place on the list. This list is often used as the single greatest test of efficacy of reputation programs. While the editorial team at Fortune certainly holds influence, they are quite transparent about the process, which emphasis the opinion of executives/peers, directors and analyst. Geoff Colvin’s column in the latest issue provides great support for my point of view that reputation begins and ends with employee engagement.

Employees at all levels are the universal touch-point for all of your constituencies – and often, your reputation is only as good (or not) as the experience your customers, shareholders, business partners, communities and influencers have with those employees. Reputation begins at home. Colvin’s column states it eloquently:

“It turns out that this year’s leaders — the industry champs that really did come through the recession on top, such as UPS, Disney, McDonald’s, and Marriott International — differ from the stragglers in at least one way: They actually believe what every company proclaims about people being their most valuable asset.”

The Hay Group’s survey methodology debunks a lot of myths for reputation management practitioners, and indicates that the ability to attract and retain talent is their number 1 indicator – above all of the other Building Blocks of Reputation such as quality of management, innovation, long term investment value and even quality of product services.

As we look at the list of influencers on the Fortune survey – directors, peer executives, analysts – it makes a great case for the importance of executive visibility programs, such as our CEO EquityBuilder™ programs, which help create, reinforce and preserve the admiration of these influencers for leaders, and by association, their companies.

Clearly this list isn’t perfect….Toyota still ranks well, although the data would clearly be different if the survey were re-done today. But if you didn’t make the list, or want to improve your ranking, begin by looking within. Reputation begins at home.

Carreen Winters can be reached at cwinters@mww.com.

cwinters General Corporate , ,

Sweat the Small Stuff

March 16th, 2010

Would you spend $250 for a bottle of water? How about $750? How about … well, pick a multiple.

Wondering what a simple bottle of water has to do with reputation? Sometimes, it’s everything. Let me explain.

A friend of mine recently traveled to wine country with his wife and 1-year old son. After a long drive, they checked into a lovely boutique hotel that prides itself on customer service. In fact, this particular hotel pledges to deliver “an exceptional customer experience every time.” They infuse this goal in most of their customer-facing marketing efforts, particularly on their Facebook fan page and their Twitter feed.

As they unpacked in their room, their son had one of those meltdowns that all of us parents can relate to. My friend called the desk and asked if a bottle of water could be sent up so they could prepare some baby formula. Sorry, the desk clerk told them. Room service was closed for the evening and there was no way to accommodate the request.

My friend quickly sent out a tweet about his experience to the several hundred people on his Twitter account. After he returned home, he posted a customer review on the popular social media site, Yelp!

So the hotel had a seemingly small misstep over a $1 bottle of water and the incident was chronicled on several social media channels. No big deal, right? After all, this hotel spends thousands of dollars annually on advertising, which will be much more powerful than a post on Twitter and Facebook. Unfortunately, the opposite is true; multiple consumer surveys show that nearly 80 percent of consumers trust peer recommendations, and less than 15 percent trust advertising.

So how much did that bottle of water cost? My friend won’t be returning, which means they lose several future nights of room and restaurant revenue. And an unflattering review on a travel referral site like Yelp! likely will drive others away, meaning more lost revenue. So it’s not hard to imagine that a $1 bottle of water actually cost this hotel $1,000 or more.

In this era of social media and citizen journalists, your reputation balances on a razor’s edge. Simple decisions and rote responses can have a lasting impact on your business. Now more than ever, the devil is in the details and businesses, from the CEO down to the night desk clerk, have to sweat the small stuff.

Bob Silver can be reached at bsilver@mww.com. Follow him on Twitter @Bob_Silver.

bsilver General Corporate , , , ,

Teaching an Old Brand New Tricks

February 22nd, 2010

What can you do with an old brand?

Even new media companies face that dilemma in Twenty Ten – AOL and MySpace, for example. Struggling to stay relevant, both companies are searching for a leg up in the brand wars.

AOL and MySpace both have a similar challenge – recovering from being the eclipsed top dog in their sectors. It’s too easy for many critics to say their time has passed, but with some smart acquisitions, sharpened brand management and a serious socially-responsible corporate outreach program, they could each recapture market share and relevancy.

Generally this involves buying or merging with an up-and-coming company first, and then setting out to freshen the brand with a high-visibility communications/PR project, preferably of the CSR persuasion. Both of those companies could take acquisition lessons from Xerox, which just merged on February 5th with the IT giant ACS. ACS is a terrific growth story, a global company with a 21st-Century business model and reputation for being well-managed and fast-moving. With one fell swoop Xerox made itself newly relevant and cutting-edge, and I’m sure their branding and CSR programs will follow.

Xerox is a known and trusted brand that defines the duplication and printing business – but their name and their image needed a new infusion of immediacy and impact, and ACS gave that to them. AOL and MySpace could do the same with one smart acquisition — and they’re probably looking as we speak.

David Langness can be reached at dlangness@mww.com.

dlangness CSR, General Corporate, Sustainability, Uncategorized , , ,

Tiger Woods – Shanking it Badly on Reputation

February 18th, 2010

Tiger Woods’ Thanksgiving weekend car crash spawned a cottage industry for the media. The tabloids have reported breathlessly 24/7 about his alleged extra-marital exploits, the participants (both outed and self promoted) and a possible stay at a rehab facility. Cable and national TV news programs have to various extents joined the tabloid fray or just reported on the tabloid reports. The business/financial media have covered Tiger’s myriad sponsors and their varying reactions to his debacle as well as the financial impact on him, his sponsors and the golf industry.

Now comes Tiger’s first public pronouncement on the dalliances that have gripped the nation (ABC News ran the news as their lead story last night in front on the release of Americans held in Haiti, the one-year anniversary of the stimulus and the US gold medal haul in Vancouver). Tiger and his people, who already have a nice record of pr/crisis communications missteps since late November, have dictated that his appearance in front of a group of hand-picked friends, colleagues and close associates will include only a short statement in front of one camera with no reporters or Q&A.

The logistics and choreography of this event should be a primer for celebrities/sports stars as well as corporations/executives on how not to respond to a reputational crisis. Corporations and sports stars who deal with crises successfully have learned that the best way to move forward and begin reputational repairs is to address the situation quickly and factually, to be transparent and to engage the questions of the media and the public. To do otherwise only perpetuates the crisis, allowing others to fill the void with their own answers, competitors to seize on the opportunities that are afforded and reputations to remain denigrated.

The executives at Toyota (who made numerous communications missteps but are slowly figuring things out) and former baseball star and now avowed steroid user Mark McGwire (who after years in the wilderness is making his way back) are just two recent examples of what works and what doesn’t when it comes to crisis communications and reputation. Tiger is arguably the greatest golfer of all-time but is terms of crisis communication and repairing the reputation he worked so hard to build he is nothing more than a weekend duffer.

Richard Tauberman can be reached at rtauberman@mww.com.

rtauberman Crisis Communications , ,

Domino’s Reputation Recipe

February 11th, 2010

My favorite corporate message these days comes out of Ann Arbor, Michigan, where Domino’s Pizza calls home. Don’t get me wrong – I rarely eat the stuff, although back in the day I could go toe-to-toe with a large pie (Canadian bacon, green pepper, extra cheese) at the drop of a hat.

I’m intrigued by Domino’s determined attempt to re-establish its image as a quality quick-serve restaurant that lives up to its corporate promise – delivering a quality product in 30 minutes or less. They seem to be doing okay on the 30-minute promise, barring a couple of expensive lawsuits back in the 1990s. But the quality product part… well, not so much.

In 2009, consumers participating in a series of focus groups totally trashed Domino’s pies. Common complaints – the crust tastes like “cardboard,” the sauce is just “ketchup,” and so on. In response to this harsh criticism, the company launched an aggressive campaign called The Pizza Turnaround designed to re-claim the consumer’s hearts, minds, taste buds and wallets.

The logistics and complexity of The Pizza Turnaround resemble the invasion of Normandy, except in the pizza industry. There are multiple points of engagement: TV and print advertising, in-store signage, a huge web presence, Twitter feeds, YouTube videos, Facebook pages and even Domino’s Championship Gear celebrating the company’s epic win over Papa John’s in a recent taste-off.

So is Domino’s delivering (pun intended) on the Pizza Turnaround? It sure seems that way. The folks at Pizza Throwdown liked the new recipes. So did the gang at Slice (“America’s Favorite Pizza Weblog!”). Even Stephen Colbert jumped on the bandwagon.

But to me, the most fascinating piece of this has to do with Domino’s corporate reputation. By building its loud, but engaging advertising campaign and the other elements of The Pizza Turnaround on the idea that, “you told us we suck and we’re doing something about it,” the company is sending some powerful messages to consumers. We listen. We heard you. We acted based on your feedback. Your opinions are as important as your dollars. We care. One Web pundit called it “reverse engineering reputation management.”

So was the pizza really so bad that the company had to start over? Not likely, since their annual revenues clock in north of $3 billion. But that’s not the point, is it? This is all about image, perception and reputation, and Domino’s has baked together a potent recipe that resonates well with the public.

In many respects, corporate reputation is a function of public perception and I’d wager that the public perception today about Domino’s is very positive. It’s the kind of enviable position that any corporation would love to be in these days.

Bob Silver can be reached at bsilver@mww.com.

bsilver General Corporate , ,