The Essentials of Reputation Management. Presented by Sara R. Brady Sara Brady Public Relations, Inc.

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2 The Essentials of Reputation Management Presented by Sara R. Brady Sara Brady Public Relations, Inc.

3 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

4 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

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6 DAMAGED GOODS

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8 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

9 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

10 THE LANDSCAPE Any company, any person is at risk of being damaged and in some cases, forever

11 Court of Law vs. Court of Public Opinion

12 Court of Law Rules are clear & specific Court of Public Opinion There are no rules - Deadly

13 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

14 It s almost ALWAYS about the cover-up

15 IT S ALSO ABOUT: Culture Leadership Communication

16 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

17 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

18 CULTURE OF DISREGARD UNTOUCHABLE?

19 ELEMENTS OF REPUTATIONS GONE BAD Self-inflicted Avoidable Arrogance Damaged trust Excruciating pain

20 but wait,there are more Often ignited by (employee) leaks Fueled by competitive & thoughtless media Social Media Citizen journalists Trolls Self-appointed whistleblowers

21 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 Go To Defend The Errors of The Organization s Ways

22 COMMUNICATIONS TEAM 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

23 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?

24 planning for the worst Pay 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

25 Evaluation 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

26 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?

27 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

28 She Never Recovered

29 He Did

30 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

31 Acknowledge Apologize Repair Communicate 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

32 NO WORDS

33 NO RECOVERY Would YOU want to be the one to try and fix this?

34 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

35 examples

36 (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 Brady President of her own perfectly operating bank Customer letter Website PR Team offers Bank President as Resource about Proper Banking Practices

37 VOLKSWAGEN APOLOGY LETTER CEO Martin Winterkorn 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.

38 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.

39 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

40 It takes 20 years to build a reputation and five minutes to ruin it. Just ask Kevin Spacey

41 Thank yooooou!