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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