Look at the current crises emanating from the United States government’s (DOJ) decision on an Indian businessman or the International Criminal Court’s decision to issue a warrant against a State Head. These crises are of course going to impact the organisation and the country. And they directly impinge on the person and the institution’s goodwill. Though they are a part of their business hazards – whether economic enterprise or running a country, but ultimately they impact their reputation.
Still, when people at large – the ‘Public’, ask me about my profession – what do I do for a living? I answer that I am a Reputation Management Adviser and a PR Professional. They mostly look at me quizzically. I am not very sure of how to place my profession. Do you do Advertising? Marketing? Sales? Publicity? They question back. Evolved and experienced businessmen or executives could not comprehend what ‘Reputation Management’ is and what impact it could create. We are near the end of the first quarter of the 21st century, yet entrepreneurs and executives are not sure why they would require Reputation Management.
Every time I face such a situation, I start thinking of what my profession lacks.
Marketing and Advertising are perceived by everyone as directly tied to the products and services of an organisation and its sales, revenue, and profit. The three elements are most dear to any company management world over. Whereas, PR, Corporate Communications and Reputation Management are perceived, in most enterprises, even today, as nice to have, yet, overhead additional expenses. Thought to be not directly tied to sales, revenue, and profit, and, mostly dispensable while the organisation is going through a cost-cutting drive.
This is where the aberration starts creeping in.
The ‘centre of gravity’ for any enterprise is ‘money’. Well, I understand that. The departments and functions that have the most impact on money or profit are the important ones. They are perceived as ‘Profit-Centres’. Though, in my opinion, Reputation Management and PR play a very important role within the gambit of money-making or profitability of any organisation. We, as PR Professionals, have generally failed to elucidate the effectiveness of our profession with demonstrated examples to the top management of the organisations. As a result, we are not perceived as one of the ‘Profit Centres’ but a ‘Cost Centre’.
While ‘Marketing & Advertising’ with their various business-modelling and case studies have successfully placed themselves at the core of the ‘Brand Building’ activity of sundry organisations, the PR professionals have repeatedly failed to encash because of the absence of demonstrated ROI business-modelling, feasibility, as well as case-studies. We have effectively failed, so far, to indicate that we contribute to the ‘core’ element of any organisation – ‘Reputation’ – which is directly related to the organisational growth, profit, and ‘Goodwill’ – a Balance Sheet item. We have failed to convey that PR is the ‘Tool’ for managing the ‘Reputation’ which directly impacts the stock price and thereby the goodwill of the organisation.
What advertising and marketing professionals have repeatedly done is to measure every impact of their creativity – through campaign measurement, audience research, focus group studies, soft-launch measurement, and so on. And show the ROI they bring to the table. We, the PR Professionals, have successfully avoided doing that so far. Advertising folks, wearing their creative hats, claim that they can measure and evaluate results achieved from each of their campaigns. The Board of Directors love them because that brings in the element of certainty in their decision-making process.
The only way that PR can claim its rightful space, a seat on the BOARD, is by driving initiatives that are critical to the success of the organisation, with demonstrated abilities. With Social and Digital media becoming all-encompassing. With the growth of ‘Civil-Society’, ‘Citizen-Reporters’ and, with all-pervasive growth of ‘Public Opinion’, the time has come for Reputation Management to drive ‘conversations’ with the various stakeholders of an organisation, including the consumers to establish a favourite narrative. This is only because it has the wherewithal to bring in the ‘earned’ media instead of being ‘paying for the media to convey the message’ which influences public opinion. And, thereby create and increase the ‘Trust’ among the target audience.
Reputation Management needs to demonstrate and document that ability, and here is a representative case study to reinforce that claim.
Case Study: Project Z – A Caring Separation / Organisation ABC*(name changed but facts undisputed):
Scenario: In the early months of winter, a couple of years ago, ABC – a well-known and listed corporate house of India Headquartered in Mumbai – decided to retrench its labour force in its leather garments manufacturing factory situated in one of the Indian provinces drastically, and, to close that unyielding unit over time, because of continuous deterioration in market conditions, non-supportive government policies, poor infrastructure and reduced export orders.
Objective: ABC asked the PR Consultancy to work on containing the negative media sentiment locally -(at the place where the factory was situated, along with the state’s capital and in Mumbai, considered to be India’s financial capital. The basic purpose was to try and achieve a no-negative impact on ABC’s share price. Or, at the least to minimise the volatility. So that the value-loss to the investors is minimal. The overarching purpose of course was also to protect the image of being a ‘Caring’ organisation.
Research: The initial perception audit carried out among media (locally and in the state’s capital), and non-media stakeholders revealed a latent disenchantment towards the organisation. Even the affiliation of the organisation with the local milieu was weak. Consequently, the decision to close the unit or even to operate it at a reduced capacity could adversely impact ABC’s organisational image and its share price.
Basis the findings, the following four-pillar strategy was developed:
- Identify media & non-media stakeholders– We identified the active local media, along with the non-media stakeholders such as the local labour unions and their political affiliations, local relevant administrative authorities and bureaucrats because the affirmative opinions of these stakeholders, jointly and severally, were important for the success of the entire communications programme and for positively influencing media sentiments.
- Convey the organisational story– Conveying ABC’s story to all stakeholders was also key to the communication strategy. It was emphasised on the messaging that despite the economic and business challenges the company supported the factory and its workforce for over 2 decades.
- Highlight the offer of a compensation package to the affected workers– It was important for ABC to highlight its efforts of continuously engaging with all stakeholders to arrive at a mutually acceptable compensation package for the affected workforce.
- To talk persuasively about the reskilling workshops organised for the affected workforce– It was also decided that ABC should communicate endeavours undertaken for organising reskilling workshops for the affected workforce as a positive rub-off on the brand. Before a calibrated communication strategy was rolled out targeting and connecting with key stakeholder groups.
Implementation:
The main focus was on local and regional media – a reach out was done to over 35 media publications in print, online and electronic. Borrowing a phrase from sports, the engagement was – ‘man-to-man marking’ – tapping every journalist who wrote on the organisation and the brand.
Media messaging and monitoring – So that at any given point in time the spokespeople can communicate ABC’s story effectively to the media and non-media influencers in a single voice.
There was constant engagement with the opinion leaders- The targeted and focused engagement with media and non-media stakeholders paid off when the severance/compensation package was announced by ABC. It was well-received by the workforce and consequently by other stakeholders including the media. It was seen as a caring separation for over 1000 workforce the unit had. After the compensation package was disbursed, the affected workers were directed to various Non-Governmental Organisations (NGOs) locally, to receive re-skilling orientation programmes. The interested members received reskilling training at the cost provided for by ABC. Local media wrote about it, too, appreciatively.
In Mumbai or the state’s capital, there wasn’t any adverse media report discussing the closure.
Outcome: ABC’s share price never got impacted negatively because of this closure and the separations.
The views and opinions published here belong to the author and do not necessarily reflect the views and opinions of the publisher.
Be the first to comment on "What Reputation Management Lacks?"