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www.cnc-communications.com

Communication matters.

Reputation Management – Essential for Business

Harvard Business Review

December 10 2013 - Warsaw, Poland

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Roland Klein

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CNC at a glance

● 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

MSLGROUP Network

CNC IS A LEADING CONSULTANCY SPECIALISED IN COMMUNICATIONS – PART OF MSL GROUP

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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.

“Perception is fact” – role played by instinct & bias.

Building a reputation is a complex and time intensive process but destroying a reputation can occur easily and

rapidly.

Reputation as PROTECTION.

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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

Financial Performance: Results, risks, growth, opportunities

Management Quality: Employees, working environment

Products & Services: Brand, quality, value

Corporate Strategy: Vision, leadership, values

Innovation: Speed, outcome, progress

Social & Environmental Responsibility: Citizenship

Emotional Appeal: Likeability, credibility, respect

Reputation

Reputation management is a process, not a measure. This process needs time.

Identify and use reputation drivers

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Reputation Drivers

Reputation drivers influence stakeholder opinions to create value.

Establishing trust & loyalty

Customers

Investors, Banks

Employees

Politicians, Community

Suppliers

Product quality

Working climate

Financial performan

ce

CSR

Leadership

credibility

Reputation

Faciliate knowledge/

exchange/excellence

Secure support

Increase understanding of

strategy & decisions

Strengthen business relations

GREATER

COMPANY

VALUE

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Corporate Communications| Task

Communication is the central control instrument of reputation management.

Awareness

Content, approach, tonality

Channels & formats

Messag

es

Reputation

Business results

Corporate strategy

Management

Services

Products

Recruitment

Innovations

Corporate social responsibility

Cooperations

Acquisitions

Topics

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

• Natural disasters

• Malfunction during production process

• Reduction of relative market share

• False information spread by competition

• Product defects

• Service inadequacies

Unsatisfied stakeholdersNegative mouth-to-mouth propaganda

Negative press

Disasters / accidents

Products / services

• Miconduct by management (intended / unintended)

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.

Third party influence

External factors Internal factors

• CSR

• Working conditions

• Financial results

• Misinforming stakeholders

Management Corporate

"An issue ignored is a crisis invited.“ – Henry Kissinger

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Reputation Management

Reputation as integral aspect of business.

Corporate vision and communications strategy must mutually reinforce each other.

Communications StrategyCorporate Strategy

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Corporate Communications |Strategy

Reputation management methodology:

● 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

Development of a tailor-made communications strategy in line with the corporate strategy

Development of priority action points and roadmap

● Eyes and ears in the market: Ongoing monitoring of impact● Issues management ● Increasing share of voice – “riding the communication wave”

Monitoring Process management

PHASE I: Analysis PHASE III: ImplementationPHASE II: Development of Communications Strategy

Corporate Communications● Network Support● Media Relations● Event Relations● Internal Communications● CEO Positioning● CSR

Financial Communications

Public Affairs

Crisis Communications

Brand Communications

Corporate Positioning

Media Analysis

Stakeholder Analysis

Material Audit

Perception StudyOrganisational AnalysisCapability Assessment

Issues Analysis

● 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

Measures: management strengthened public voice, apologised openly and

made extensive changes to car.

Initial situation: A-Class labeled unsafe as result of roll-over incident.

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!