Feature: The right reputation

Beverly Landais reveals how best to manage reputation in a downturn.

There can be no doubt that we are living through extraordinary times. The pace and severity of the downturn and the descent into recession is breathtaking. It is a global economic catastrophe that has left business leaders, politicians and media commentators stunned. No sector is unaffected and everyone feels the chill. Yet economic turbulence is also a catalyst for change. Crisis creates the resolve to think and act different. It provides the imperative to challenge the accepted ‘norm’ and the necessity to find a better way of doing business. Nothing escapes the spotlight as business squares up to the challenge of surviving the lean times.
So, how will business leaders meet this challenge? Some will respond constructively and with renewed focus and discipline, seeing it as an opportunity to take action to secure long-term growth. Others will demonstrate the remarkable strategic insight and take measures that will enable them to fly past the competition as the upswing occurs. Still others will flay around in panic and disorder withdrawing into their corporate shells hoping for the best. What is clear is that there will be winners and losers as we emerge from this recession. The choices made now will determine the outcome. Today’s decisions will have a profound and lasting impact on the long-term viability of a business. Survival depends on adaptability, resourcefulness and the willingness to embrace new thinking. Never has there been more at stake.

Communicate, communicate, communicate
Controlling the economy is out of the question. Choosing how to respond and articulating the direction taken to your stakeholders in a clear timely and effective manner, is not. Your staff crave strong leadership and unambiguous communication to help them make sense of the turbulence in their lives and to cope with change. Your clients want to be reassured that you have a firm grasp on your business and are capable of responding imaginatively to their issues and needs. The media, and other industry commentators and influencers of opinion, will sharply observe how you respond, as well as the manner and nature of your communication. Like it or not staying silent is not an option. Firms who put communication at the top of their agenda will reap the benefits of a better managed reputation in the longer term. The business leaders of such organisations know that corporate reputation is a key driver of future business success. They do not leave the management of it to chance, nor allow others to tell their story.

Putting ideas into action
So, where to start? With intelligent planning, cool-headed thinking and the courage to undertake open straightforward communication, there is much that can be done to manage reputation in a downturn.
Here are some points to consider:

For communication to be effective it is vital to get organised and get real.
If you don’t already have one, establish a communication response team that works as a business partner to your senior management. At any time, and more so during a crisis, it is hopelessly inadequate to have professional communicators at arms length from the key decision-makers. If the communicators do not understand the business imperatives and the reasons for the choices made, how on earth can they advise on the messaging and means of communication? Involving professional communicators early will make them all the more effective in telling the story. This is just as true in ‘normal’ trading conditions. Make a habit of involving your professional communicators.

Take the time to step back from the day-to-day fray to assess the internal and external environment.
It is tempting to rush into reactive communication and to call it ‘planned’. Resist this. Invest time to review and question what you think you know. In times of crisis and change the rumour mill grinds ceaselessly. Stop and check your facts. Gather information from reliable sources and review it from all sides. Don’t be panicked by what others are doing: focus on what is right for your clients, your people and your business. By all means take note and observe what others say and, more importantly, what they do. Consider it your business barometer – but not your decision-maker. By focusing on what is really going on, and thinking hard about what it means for your business, you will be in a better position to grasp the significance and respond more effectively.

There is no such thing as an ‘internal’ message.
What you say internally will eventually, in some form or other, reach the world outside your office walls. Bear this in mind at all times, but don’t be scared by it. Accept it as inevitable and deal with it. Work through the angles of the communication by considering the impact of the message on each of your key stakeholders. This may not prompt you to make changes, but it will focus your attention on understanding the likely outcomes – and you will be better prepared to deal these. Remember that your staff read the press, surf the internet and listen to news. Ensure that your internal communication does not lag the external. You will simply create anxiety and suspicions as your motives if any action taken that affects your staff is first read about into the media.

Respect the intelligence of your stakeholders.
Don’t try to be clever. Keep messages plain, open and straightforward. People will read all sorts of things into what you say – and what you don’t say – so make your communication confident and authentic. Ensure you communicate early and be honest. If you cannot say more on a certain point, admit it and move on. Tell people that you will be in touch when there is further to say. Mean it, then do it. Demonstrate the integrity of your communication by following up regularly and via a number of channels. You will build trust and a willingness to listen to your messages with an open mind. This is essential to managing your long-term reputation as a reliable and well-managed business and a good employer. Handled well, it can have a positive impact on the goodwill towards you from clients, employees and industry commentators.

Business leaders need to be visible, approachable and inspire confidence.
In turbulent times, people want to hear news from the ‘straight from the horse’s mouth’ and it is natural for them to turn to their line managers for reassurance. How well prepared are your business leaders to deal with this? Put as much effort into briefing and supporting them as you do in crafting the communication. Equip them with the tools to deliver messages in a confident, professional and timely fashion, and the skills to deal with feedback in a constructive manner.

Use this as an opportunity to reassess your communication channels.
Just how effective are they? Do you automatically resort to e-mail when face-to-face contact might be more effective? Might this be the time to try different routes? Think hard about how your stakeholders get their information and be imaginative. What about social media or starting a blog or perhaps pod-casts? It may not be the right communication channel for everyone and for each message, but at least consider the option. Think hard about the outcome you are trying to achieve with your communication. Is it on – going dialogue? Are you trying to boost morale and rally your troops? If so, choosing methods of delivery that signal to people that you are sending one-way communication is not going to be very effective. How are you going to keep the dialogue flowing? Thinking beyond initial communication will assist you in choosing the best communication channels.

Remember to celebrate good news and communicate it quickly and appropriately.
Crisis situation can turn people into pessimists and cynics. Guard against this. There is always something positive to communicate if you look hard enough. Don’t underestimate how small things can make a big difference to how your business is viewed by clients, your people and external commentators. So what if the deal done isn’t the biggest or if the award won is the industry equivalent of an ‘Oscar’ – talking about it will boost morale and give people a sense of pride, progress and purpose. What could be better than that in these gloomy times?

Be true to your corporate values and client service principles as these define your brand and impact your reputation.
In times of change these are precious as they will be a stabilising force for the owners of the business as well as a standard to rally for your people. A professional service brand’s reputation can be damaged or enhanced by the reality of the service offered and experienced by the client. During a crisis, it is all too easy to take your eye off the ball and forget that true brands have a set of common standards, values your people associate with and understand, and behaviours that are seen – not just talked about. People instinctively want certainty and this is made harder when an organisation is fuzzy in its branding and communication. The challenge, therefore, is to bring all of this into sharper focus by articulating what is special about your firm: who you are, what you stand for and the way you deliver your service. This needs to be put into words that describe why you are a different and better choice for clients and employees. Most importantly, you need to demonstrate this consistently in what you do as well as what you say. If you stand by your values and service principles in the bad times as well as good, you will build credibility with key stakeholders in your claim to be a different and better choice brand than the competition.
Right now business leaders are preoccupied with reviewing their strategic options, operational models and business processes. They must be rigorous in controlling cost, find ways of driving revenue and invest their finite resources wisely to ensure the long-term health of the business. Everyone is focused on doing what it takes to survive. Yet how much attention is being given to proactive communication and management of reputation? How many business leaders put the topic on the management agenda? More than ever there is increasing evidence that a good reputation supported by excellent communication can improve profitability and contribute to lasting success. It greatly influences a firm’s power to attract and retain the best talent. It can advance a firm’s competitiveness and assist in seeking and winning great work from the cream of clients. It can enhance a firm’s ability to develop and extend key client relationships. It can help a firm exert influence over industry opinion leaders and win the right to a fair hearing from media commentators. The circumstances behind this recession have greatly damaged the trust and confidence audiences have in all these stakeholders. In the post-recession world, businesses that chose to take communication seriously and put effort into managing their reputation effectively will be in pole position. The decisions taken now and the way in which they are communicated will have a strong influence over a firm’s corporate reputation. How will your firm measure up to the challenge?

Beverly Landais is chief executive officer at Devereux Chambers. She can be contacted at b.landais@sky.com