The Essentials of

Reputation Management

Presented by Sara R. BradySara Brady Public Relations, Inc.

BACKGROUND • Former newspaper reporter• Transitioned to PR via defense industry• Former cable industry executive (VP Public Affairs) • Established firm in 2010: Corporate & Crisis Comms & Reputation Management • High-profile cases with national & international interest• Frequent resource for NYTimes, CNN, and other media outlets

It takes 20 years to build a reputation and five minutes to ruin it. If you think about

that, you'll do things differently.

Warren Buffett

DAMAGED GOODS

WHAT IS REPUTATION?• The estimation in which a person or thing is held, especially

by the community or the public generally

• A favorable and publicly recognized name or standing for merit, achievement, reliability, etc.

• Your company and your good name

• Translates to trust

WHAT IS MANAGEMENT?

…The person or persons controlling and directing the affairs of a business, institution, inc.

…when that goes sour, in comes the Communications Team

THE LANDSCAPEAny company, any person

is at risk of being damaged…and in some cases, forever

Court of Law

vs.

Court of Public Opinion

Court of Law

• Rules are clear & specific

Court of Public Opinion

• There are no rules - Deadly

HAVE A CRISIS COMMUNICATION PLAN

• Be ready to respond to a variety of issues, including those that challenge an organization’s good name/brand/reputation

• Have a trained team in place • Have three key messages about the organization approved and ready• Keep list of traditional & social media contacts current • Always expect the unexpected

It’s almost ALWAYS

about the cover-up

IT’S ALSO ABOUT:

• Culture• Leadership• Communication

CULTURE OF DISREGARD

• Profit/gain take priority over reputation• Mindset of being untouchable, unrealistic• Leaders are UNcomfortable speaking during difficult times• Internal audiences are secondary• Leadership goes into hiding• Employees are left with the mess

CULTURE OF INTEGRITY

• Reputation is valued & consciously protected• Internal audiences are valued as much as external• Leadership is comfortable speaking during difficult times• Leadership understands & agrees to tactics:

• Acknowledge• Apologize• Empathize• Repair• COMMUNICATE

CULTURE OF DISREGARD

UNTOUCHABLE?

ELEMENTS OF REPUTATIONS GONE BAD

• Self-inflicted• Avoidable• Arrogance• Damaged trust• Excruciating pain

•

…but wait,there are more

• Often ignited by (employee) leaks• Fueled by competitive & thoughtless media• Social Media

• “Citizen journalists”• Trolls• Self-appointed “whistleblowers”

•

Communications Leader:

Organization’s Conscience

You’ll be tested!

• Integrity & Credibility • Tolerance & An Open Mind • Backbone

It Is Essential That You Know How Far You Are Willing To GoTo Defend The Errors of The Organization’s Ways

Internally (ongoing)• Communicate the company’s strengths, core values • Work with HR on employee outreach at all levels (upward and downward)• Use compromised reputation events as examples of what not to do/what can happen• Speak up during questionable circumstances

Externally• Always have standard messaging ready • Key points of strength and values• Distinguish yourself from competition – diplomatically, but clearly • Respond quickly, truthfully and consistently

COMMUNICATIONS TEAM

Hope for the best…

Plan for the worst• Train leadership & organization about the value of a good reputation – how that

translates to customers/investors/stock values• Identify & regularly incorporate messages of organization’s strengths into the overall

culture• Have at-the-ready

• Policies, procedures, safety track record, customer service, etc.• Ongoing monitoring of social media – know what’s being

said/trending/where/when/by whom/hot channels, etc.

• Incorporate “what if” into decision-making – what will our publics think if we do this?

…planning for the worstPay attention to the competition• Their culture• Their issue

• Does it impact your organization• Proactively deflect with facts and communication channels

• Key response tactics should be approved and ready to go• Key message points should be approved and ready to go

• Expect and prepare for the unknown – there’s always more

• Is the issue unique to or typical of your organization’s culture• How bad can it get; don’t underestimate • Communicate quickly – internally & externally

• Acknowledgement• Empathy

• Be truthful & transparent “Boy did we ever botch this!”• Does organization’s structure & culture support the difficult steps to correction• What are you willing to do on behalf of the organization

• You may not be able to fix this

Evaluation

WHO WHAT WHERE WHEN & WHY

• Who’s involved, who will care • What’s true and what’s not• What’s the potential/actual damage to reputation• Where is this story now and where will it go • When did it happen & how long has this been going on

• WHY, OH WHY, OH WHY DID THIS HAPPEN?

Can Reputation Be Repaired? Events are different: Current High-Profile, Highly Emotional Issues

• Racial Issues – NFL, Law Enforcement• Security/Privacy – hackers, ID theft• Sexual harassment – Every Man On the Planet

What matters is how you handle it?• Acknowledgement• Apology• Empathy• Repair • Communicate

She Never Recovered

He Did

For Example…WELLS FARGO

• Shifted from traditional banking model to retail – sales vs. service. • Branches were converted to stores• Employees pressured and threatened to meet significant sales quotas• Employees fired, quit – high turnover• Execs dismissed impact of controversy when it became public

• CEO John Stumpf told Congress issue “absolutely immaterial.”• Cost WF millions and damaged public trust• Competing banks deemed untrustworthy

AcknowledgeApologize

RepairCommunicate

Reputation Repair• Organizational changes – new CEO• Employee incentives based on customer satisfaction vs. sales• Returned to branches • Revoked severance to two top execs who left mid-scandal & with millions• Created office of ethics, oversight and integrity • Made public apology• Made plans public

NO WORDS

NO RECOVERY

Would YOU want to be the one to try and fix this?

GUILT BY ASSOCIATION

• How is your business affected by competitor’s reputation issue• Pay Attention to:

• Leadership • Stakeholders• Social media for tone/trends• Where you may be vulnerable (internally & externally)• How to differentiate yourself IMMEDIATELY

• Communication plan in place• Execute

examples

(Banking)Sample statement

“As a respected financial institution, the Bank of Brady, wholeheartedly supports shining a spotlight on unethical practices in the banking industry, which is completely reliant on customer trust. Bank of Brady has a clear culture defined by ethics and respect for our customers.”

Sara BradyPresident of her own perfectly operating bank

• Customer letter• Website• PR Team offers Bank President as Resource about Proper Banking Practices

I also currently don’t have the answers to all the questions. But we are in the process to unsparingly reveal the background.For that purpose, we are currently putting everything on the

table – as fast, thoroughly and transparent as possible. I apologize sincerely to our customers and the regulatory agencies

and the public for the misbehavior.

VOLKSWAGEN APOLOGY LETTER

CEO Martin Winterkorn

In our corporation, more than 600,000 people work to build the best cars for our customers. And talking directly to our employees, I am

saying, I know how much effort and great, true sincerity you do your jobs day in and day out. It is clear to me that now much will be

questioned now. I understand that.But it would be false, if because of the terrible mistakes of a few, the

hard and honest work of 600,000 people is put under a general mistrust. Our team does not deserve that.

That’s why we ask – I ask – for your trust in our way forward. We will uncover this.

TAKEAWAYS• Every issue is different, but the same• Know your organization’s vulnerabilities & strengths• Have fundamentals in place for a benign or generic response• Pay attention to the big picture • Know that you don’t know what you don’t know

BE STRONG

It takes 20 years to build a reputation and five minutes to ruin it.

Just ask Kevin Spacey

Thank yooooou!