2 Critical Components to Rebuild a Reputation

February 4, 2018

I am often asked if a person or company can recover from a reputation crisis.  The simple answer is, “yes”, but the effort and discipline it takes to do so is not that simple and is solely up to the individual or the leadership of an organization to act upon two vital elements – consistency and time. While reputations are fragile, and once cracked can never quite be put exactly back together, recovery can be achieved if there is genuine and transparent acknowledgement of what was done, if there is clear and consistent behavior to make amends, and this is done (again) consistently over time. Robert Downey Jr., comes to mind when I think of a person who rose to prominence, fell, and then repaired his reputation to find success (and work in Hollywood) again.  Johnson & Johnson’s Tylenol brand is another example of a brand that lost confidence among consumers, but through diligent and consistent efforts, earned that trust back to regain its place as a global category leader, and a product welcomed back in people’s homes. Consistency – the key here is to recognize what actions or behaviors led to the reputation issue, make the proper amends, and then outline the ways in which you or your company will move forward in an authentic way to demonstrate your intent to regain trust and reputation – day in and day out! Downey Jr., took time to rehab his body from the addiction to drugs while also nurturing his mind and spirit to focus on what would be meaningful in his life and surrounding himself with like-minded people.  People soon saw that he was consistently working to make amends and move forward in a positive manner.  I’m not saying that the Iron Man franchise would not have happened without him, but there’s no question that his involvement and talent made it a blockbuster! Time – people can be skeptical as well as forgiving, so the critical element here is consistent behavior over time.  Commitment to a vision of regaining reputation is what will drive the consistent behavior over time.  Repetition (not only in how I ended the last two sentences) is the key to turning skeptics into supporters and from supporters to potential advocates.  Tylenol’s emergence from the cyanide tampering in the 1980s is an example of not only acting quickly (another form of time – see this story for the power of time), but also how leadership focused on creating a tamper-proof solution that would continue to demonstrate trust and reliability over time. If you or your company have been caught in a reputation crisis, it does not signal the end!  However, it will take deliberate planning to outline what must be done differently, clear communication to your family, friends, colleagues, customers or other key constituents as to what will be done differently moving forward, and then ‘walking the walk‘ each and every day!  Easier said than done, but your future and your reputation are more than worth the work! Don’t you think?

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3 Steps Adidas Must Take in Wake of College Bribery Scandal

October 5, 2017

Adidas is the latest example of the risk that all brands are subject to because reputations rest upon the shoulders of those employees wearing its logo. Jim Gatto, head of marketing for Adidas’ basketball division, is one of 10 people who are at the center of an FBI investigation centered on a high school athlete/college sports bribery scandal that is rocking the college sports industry. Business Insider writer, Dennis Green, put it very well in his Sept. 27 article on the topic, “Part of the reason for Adidas’ newfound success is its evolved reputation. It has courted fashion trendsetters and lifestyle gurus to help turn it into a “cool” brand. If the scandal grows, it’s not hard to see how that reputation could vanish.”   It takes both time and consistent effort to build, shape and protect a reputation. As Warren Buffett once said, “it takes 20 years to build a strong reputation and five minutes to ruin it.  If you think about that, you’ll do things differently.” Beyond the damaged public perception and tarnished image, Adidas also suffered a direct financial foul after the scandal hit headlines and saw its U.S. stock value dropped by 3% in one day. This type of reputation scenario as well as the financial and public fallout happens every day at varying levels to large and small organizations. While the court of public opinion has yet to deliver its verdict, below are three steps that Adidas – and any company – must take in the wake of a public scandal to not lose its business stride and come out stronger in public perception! 3 Steps Adidas must take in the wake of college basketball bribery scandal Commit to Action & Communicate – You can’t control where the investigation goes or what life it takes on as this scandal unravels.  However, Adidas can control how it processes the information it learns through its own internal investigation, the development of its action plan, and then how it is shared to its stakeholders, employees, and customers to demonstrate its commitment to doing the right thing. Demonstrate Transparency – What did you learn through the investigation? It might be tough to look at and even scarier to share, but understand that in this age of instant information, it will eventually come out.  It’s always best to ‘own’ the message versus it come from a third-party source.  The actions of an individual certainly don’t always reflect that of the organization.  This is the time to acknowledge breakdowns in the system and emphasize that this is not how business is done at Adidas. Outline Change – This is the proverbial ‘Tylenol moment’ and the stamp in time that will either propel a brand forward or anchor it down after the crisis. In every crisis there is opportunity to use a negative situation to create positive industry-wide change.  This is exactly what Tylenol did back in 1982 after seven people died of cyanide poisoning due to Tylenol bottle tampering.  Tylenol went on to create revolutionary bottle safety measures that helped re-establish the brand as an industry leader committed to safety.  Bribery is not new […]

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Are You Involved or Are You Committed?

September 7, 2017

I was eating a bacon and egg breakfast the other morning and was reminded of a conversation I had with NASCAR Hall of Famer Junior Johnson several years ago around the question of involvement versus commitment. At the time, I was running the PR campaign for NASCAR’s 50th Anniversary where I had the great fortune and opportunity to meet and work with some of the legends of the sport, including Junior.  During one encounter with the former moonshiner, whose life story was put on the big screen in the 1973 movie The Last American Hero, we were talking about what it took to be successful in this sport. He smiled and said in his low voice and Southern drawl, “Well, let me ask you a question. Are you involved or are you committed?” I wasn’t sure where he was going with this, so I naively asked him, “involved or committed in what way?” Junior went on to explain his point.  “You see, success comes down to being committed not involved,” he said.  “It’s like a bacon and egg breakfast – it took two animals to make that meal and one was committed and one was involved. “Now, that hog gave you everything it had – everything – while that chicken gave you something it could make plenty more of. It wasn’t that big of a deal.” I never looked at a bacon and egg breakfast the same after that chat. So, I’ll ask you the same question as you look at your business growth or perhaps how you are leading your team or organization – are you involved or are you committed? Better yet, do you know if your team is just involved or are they fully committed?  Are they committed to your company’s goals, culture and priorities? That is a vital question to consider when a study by Gallup found that more than 70% of employees feel disengaged at the office.  What’s worse is that an Allegis Group Services study found that more than 84% percent of employees would leave their current place of employment for a company with a better reputation (Aug. 2012).  Can it get worse? Yup! A study by Glassdoor Data Labs found that less than 50% of employees would even recommend their employer to a friend (Dec. 2015)! Your team will become a reflection of you.  So, when it comes to leadership and the type of team and business you are building, do you want an office full of chickens? Nope … bring on the hogs!

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Mom Was Right, You Do Have A Halo!

December 3, 2016

Mom was right, you do have a halo ::  To be clear, this is not a post talking about a religious halo or your spiritual aura – although, that is more than likely what your mom was referring to!!  But for now, what I’m talking about is the halo that your reputation has created around you and the impact it can have on not only your current state, but more importantly your future opportunities. Why do halos matter, especially now? Simple. Halos work off of the power of association.  Make no mistake, association has power and value.  Social Media channels have created a never-before-seen level of transparency making it incredibly easy for people and brands to better understand with whom they are interested in associating. I’ve seen the power of this first-hand throughout my career in motorsports.  Our world is all about the association between drivers, teams and brands.  For many years, my sole focus was on how to build positive association between drivers and their sponsors through public relations and marketing programs – building platforms to drive association and connection with fans.  The foundation for these types of partnerships is rooted in authentically aligning brand and values attributes with the athlete, which establishes credibility in the eyes of consumers. The power of association … → 84% of employees would consider leaving their current job if offered a job by a company with an excellent reputation → 69% of job seekers would not take a job with a company that has a bad reputation – even if unemployed → 100% of your referrals are based on reputation → 100% of your employees are your reputation ambassadors We often see the halo effect at work when it comes to brand and brand ambassador relationships.  If an ambassador acts in a manner that would negatively impact the brand, because of their association, you’ll generally see the brand quickly and publicly distance or disassociate itself because of the unfavorable publicity halo and adverse business impact it would create.  Can you think of any examples of this??  Does Subway and Jared Fogle come to mind? How about Tiger Woods and Gatorade? Do you remember Michael Phelps and Kellogg after the images of Phelps using a bong were released?  Does the name Ryan Lochte ring a bell? Then there is Kate Moss and H&M when she was publicly exposed for using cocaine.  H&M was quick to sever the relationship and issued a short statement related to what kind of person should represent their brand – “If someone is going to be the face of H&M. It is important they be healthy, wholesome and sound.” In the case of Subway, it’s disassociation with Fogle was quick, to the point and delivered via Social Media channels – “We no longer have a relationship with Jared and have no further comment.” One of the most iconic examples of corporate partners racing away from an ambassador is Lance Armstrong. Shortly after his admission of doping, bullying and lying, his corporate partners dropped the once legend of bike racing. The power of the halo is a two-way street, whether it’s an individual, corporation, franchise or a university. […]

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2 Critical Actions that Saved Belmont University’s Reputation

September 26, 2016

2 Critical Actions that Saved Belmont University’s Reputation:  When leaders or brands find themselves in the middle of a crisis there are two critical elements to remember in order to protect a reputation – time and decisive action. I’ve worked through my share of crisis situations over the past two decades – ranging from race car driver deaths to sponsor/brand crisis – and employed two vital components for successfully managing through those reputation challenges. Belmont University nailed both of them when the school was pulled into a social conversation by one of its students who posted a racially charged post on Snapchat. Click on the link below to read more from the New York Daily News. http://www.nydailynews.com/sports/football/belmont-boots-student-called-protesting-eagles-n-word-article-1.2799746 Below are 2 critical actions that saved Belmont University’s reputation. Time is not on your side Time is not on your side when assessing and beginning to manage a crisis situation. The Belmont University communications team quickly acknowledged, via the university’s Facebook page, that the administration was aware of the social post. Belmont University’s Facebook statement at 11:43 AM: “This morning, we were made aware of a racist social media post by a freshman student at Belmont. We reject comments rooted in racism or bigotry. This is not free speech – this is hate speech. The University is investigating and will take immediate action. As a Christian institution, it is our goal to build a diverse and inclusive community where all members feel accepted, safe and valued.” Acknowledgment, especially in today’s socially connected world, is a critical step in the timeline of reputation management. In fact, the expectation is that a brand or leader will respond through Social Media channels in a matter of hours. A response that takes too long can be considered to be avoidance or disinterest by the leader, organization or brand. Decisive Action is Necessary Theodore Roosevelt once said, “In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.” While the crisis-management clock is ticking, the social-media monster is still feeding – people are watching social timelines for updates, posting comments and armchair quarterbacking what should be done. While it is beneficial to monitor what is being said, those comments should never guide your actions and next steps. The best way to chart the path towards action is to ‘check in’ with your values. Does your action plan align with your values? If so, move forward. Now. If not and you choose to proceed, then you are opening yourself (or company) up to additional scrutiny and reputation damage beyond the initial issue. It’s time to put your plan into action once you have evaluated and selected a values-based decision. Now that your decision has been made, you must see it through. Anything less is indecisive and will undermine your efforts. Belmont University’s Facebook Update at 1:22 PM (less than 2 hours later): “After investigating a racist social media post that surfaced earlier today, we can report that the person involved is no longer a student at Belmont. […]

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10 Eye-Opening Reputation Statistics For Every Leader and Entrepreneur

September 19, 2016

10 Eye-Opening Reputation Statistics for Every Leader and Entrepreneur Winning in the Reputation Economy requires leaders, entrepreneurs and any individual looking for success to be vigilant in growing, protecting and leveraging one of their greatest assets – their reputations! Every day we see, hear or read about people who are not paying attention to how their actions and decisions are negatively impacting their business, careers and organizations. A critical key is understanding the ways in which our reputations are tied to every aspect of our lives – and the positive, as well as negative, impact it will have over our ability to succeed. Shakespeare even knew the power of reputations – “Defend your reputation, or say farewell to your good life forever.”   My intent in sharing these 10 eye-opening reputation statistics for every leader and entrepreneur is to deliver a catalyst for how you can proactively develop, protect and evolve your reputation to help you achieve your goals. Here they are: 10 eye-opening reputation statistics for every leader and entrepreneur 60% of a company’s market value is tied to its reputation 84% of employees would consider leaving their current job if offered a job by a company with an excellent reputation 69% of job seekers would not take a job with a company that has a bad reputation – even if unemployed 70% of U.S. recruiters and hiring managers have rejected candidates based on information found online 50% of a company’s reputation is tied to the CEO’s reputation 78% of consumers trust peer recommendations; 14% trust advertising 84% of marketers believe that building trust will be the primary focus for marketing efforts in the future (do you trust people with bad reputations?) 58% of executives believe that reputation management should be addressed, but only 15% actually do anything about it 4 out of 5 consumers changed their minds about a recommended purchase solely on negative information they found online 33% decrease in shareholder value of an organization within one year of a crisis situation becoming public Because I am a big believer in over-delivering, here are two additional statistics that need to be on your radar and developed every day! 100% of your referrals are based on reputation 100% of your employees are your reputation ambassadors As a leader, entrepreneur or anyone looking to succeed, here are 6 key takeaways as you digest the data above! 1. Cultivating your customer relationships will not only drive greater life-time value (which according to studies is 10x the value of their initial purchase), but will also increase your referral pipeline 2. It’s not just your behavior (good or bad), but your employees behavior that becomes the reputation of your organization 3. Trust is one of the core components of a strong reputation and is a business accelerator in the Reputation Economy 4. Your reputation (and that of your company) is a market differentiator in attracting and retaining top talent 5. What you post on Social Media channels will be reviewed and can just as easily shut a door to opportunity as it can open one 6. You must know the online conversation/comments […]

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