Hospitals should Learn from the Mandela Media Circus and Update their Crisis Plans


Here’s a question for you – When last have you conducted a dry -run or have had an independent audit of your hospital group’s crisis plan – its communication management and emergency action plans? Especially with the media furore and presence at Nelson Mandela’s hospitalisation and with the proliferation of social media tools and mobile phone technologies.

The Star newspaper reported that “jumpy journalists thronged outside the Pretoria Hospital where the icon is being treated…they also reported that Security had to be beefed up” Other Hospitals can learn from this. With more and more politicians and celebrities visiting South Africa, this is likely to happen more often.

Crises can result in unplanned visibility that can affect the standing of a Company in the eyes of its stakeholders. That’s why an audit of a Company’s crisis plan is as vital as regular financial audits.

A crisis can strike a Business at any time; and during this crisis a Company’s image and reputation can be damaged significantly. Often, this can be a result of not responding adequately to media and other stakeholder enquiries. Understanding what Communication challenges may arise during a crisis or before one occurs is therefore critical.

No Company, organisation or individual whose livelihood depends on public support can therefore afford to function without a crisis communication plan. Yet, many organisations still have no such plans. Many companies say they need it but think that with positive thinking and hope the inevitable will never occur. The reality is that Crises are often unavoidable. What is avoidable is being ill prepared. After all, Noah built the Ark before it rained. And, how is it possible that some companies find opportunities in the time of crises, while others succumb to the danger.

The secret is that they have a well-prepared and tested Crisis Communication and Management Plan and that all the staff, including those who will deal with the media are well trained, ready to face the crises.

Who in your organisation has had the responsibility and decision making authority to create and implement an effective crises communication plan, decide when and how to initiate media coverage – and when not to-, what to do once a crises does occur and how to ensure that the media tells your side of the story?

Does your plan cover the:

  • Definition of a Crisis?
  • Anticipating of Crises?
  • Tips on creating a how-to-manual on developing and implementing a crisis communication plan?
  • Creation of Contact lists?(And upkeep)
  • The link between Emergency planning and The Crises Communication plan?
  • Designating of Spokespersons?
  • Determining the most effective message to communicate to the media and stakeholders?
  • Maintaining Control?
  • Re-establishing lost goodwill?
  • Tips on how to prepare for a Crisis or a media press conference?
  • Tips and guidelines on how to deal with Social Media? (Twitter, Facebook, Blog Wars, etc.)

Organisations such as Hospitals should begin their crisis plan with a vulnerability assessment in which the crisis communication team looks at the likelihood of certain kinds of crises and assesses the organizations ability to respond. Below are listed some common crises with categorisation.

Most hospitals may be best prepared to accommodate Class A and B crisis, spurred by legal requirements. However, many may be less able to manage class C, although preparation for Class A and B may ready the institution to manage its own “disaster.” However, few hospitals may be properly prepared for Class D.

The value in grouping crises is in providing a potential list of scenarios for which the hospital may prepare and document their crisis contingency plan.

CLASS A

  • External Natural Disasters
  • Potential Medical Challenges
  • Fires
  • Floods
  • Severe thunderstorms
  • Tornadoes

CLASS B

  • External Disasters
  • Medical Emergencies
  • Building fires
  • Explosions
  • Structural collapse
  • Chemical or radiation exposure
  • Multiple victim accidents (Le., car, bus, train, plane)
  • Disease epidemic ~ scale poisoning
  • Riots
  • Paramilitary conflicts
  • Nuclear fallout

CLASS C

  • Internal crises / Medical Emergencies
  • Fire
  • Explosion
  • Disease epidemics
  • Serial killer or rapists
  • Staff-patient criminal actions (i.e., poisoning, suffocation)
  • Multi-victim food poisoning
  • Large-scale infections
  • Structural collapse
  • Air pollution
  • Terrorist attack

CLASS D

  • Internal Crises / Non-Medical Emergencies such as Severe disruptive union activities (i.e., slow-down, walk-out, strikes)
  • Unexpected executive death
  • Bomb threats
  • Class action lawsuits
  • Consumer demonstrations
  • Malpractice and/or negligence lawsuit
  • Citations by local/state/regulatory agencies
  • Indictments by judicial agencies of hospital or medical staff
  • Fraud or Embezzlement
  • Large-scale theft
  • Staff-patient abuse
  • Supplier disruption (i.e., blood, food, drugs and other medicines, construction, power failure)
  • Celebrity patients like Mr Mandela
  • Unusual medical treatment
  • Major changes in enabling or funding legislation (i.e., changes in charter conditions, cuts/ balloons in Medical aid allocations, tax exempt status, Medical aid fraud or abuse investigation).

Every hospital in a group should be prepared to deal with emergencies (other than that by the Casualty department). It is well known that the best way to prevent the spread of remorse and misinformation is by issuing factual information as soon as possible. At the same time, a hospital must protect its own interests and the patient’s right to privacy then relay factual information in an orderly, controlled manner.

That is why the hospital’s crisis communication plan should outline a procedure for communication with the media and other stakeholders. That is why your hospital’s emergency plan and crisis communication plan should be combined and tested.

An audit and benchmarking exercise could reveal opportunities for improvement and/or provide the assurance that everything is in order.

Conclusion

There are few kinds of organizations for which PR is more important than hospitals.

Hospitals must constantly strive to earn and keep a good reputation among doctors, patients, donors (if charitable), other funding sources and broad community leadership. If a hospital is not perceived by all stakeholders as providing quality care in a responsible manner it will fail. Because of the diversity of audiences, hospital PR must address a wide range of concerns and convey information at many levels of detail. Hospital PR also has a role in supporting the satisfaction and effectiveness of employees who perform critical tasks under difficult conditions.

Hospitals are typically among the larger institutions in their communities. Therefore, almost everything they do or say is potentially important and/or controversial. Public relations should be involved at the highest strategic levels of hospital management to help guide decision-making in ways that will help accomplish long-term goals.

My one blog article – http://deonbinneman.wordpress.com/2010/06/24/an-untested-emergency-response-plan-is-a-source-of-reputation-risk/ may also spark more debate about this.

You might also be interested in this information from my blog – I have my own product which is really a primer for starting the process of developing a crisis plan in a company – see http://deonbinneman.com/services/products/how-to-write-a-crisis-plan-toolkit/ and my blog post http://deonbinneman.wordpress.com/2009/05/26/how-reputation-event-crisis-ready-is-your-organization/ that could stimulate thoughts in this regard.

Anyway, I just thought that you might find my post and questions – thought provoking. Please access my blog for more information.

Knowledge is the Antidote of Fear


528128_10151085012794391_598681734_n(This comes from a South African male – working with multiple audiences including women across many industries for 17 years (Who many years ago trained SA Armed Forces in Buddy Aid – how to use everyday materials to render first aid when you do not have specialised equipment MacGyver style, who has facilitated hundreds of Health & Safety & Crisis Management workshops)

People often feel helpless and fearful in some difficult situations. The reason – Lack of Knowledge. Some become arrogant in order to hide their lack of knowledge.

The antidote to fear is knowledge. Knowledge of your strengths and weaknesses and ignorance. Knowledge of what to do in difficult situations.

Example – Scared of being hijacked by kidnappers. Attend courses facilitated by your local Police or Defence Agency. They often do this as Community Outreaches – for free.

Example – Danger of a loved one dying. Empower yourself with knowledge. Attend First Aid Training. You never know when you may need to save a life.

The point I am making is that often we are afraid because we have not made the effort to analyse a situation and equip ourselves with knowledge and skills. I mean do you know how to use a fire extinguisher, or do you even have one at home?

So here is a tip. Before you do anything, free yourself from the shackles holding you back. Attend some creativity workshops – These will enable you to think outside of the box, and is in fact some of the most important learning experiences you can ever attend.

As George Bernard Shaw said: “Some people said why, but I said why not”

Survey Says Boards Troubled by Reputation Risk – Compliance Week


After financial risk, reputation risk is the biggest concern that keeps board directors awake at night, according to the latest poll from EisnerAmper via Survey Says Boards Troubled by Reputation Risk – Compliance Week.

These days Reputation Risk is a a real threat or danger to the good name or standing of an organization due to the immediacy of the sharing of negative information and the impact of Social Media.

For a long time experts debated whether Reputation Risk was a strategic risk or a consequence of a risk.

What has become clear though is that it is now a“Meta risk – a potential menace to fundamental business strategy, and possibly an even greater hazard to organizational survival than a financial restatement or problematical findings in a compliance report”.

Reputation risk can occur through a number of ways: directly as the result of the actions of the company itself; indirectly due to the actions of an employee or employees; or tangentially through other peripheral stakeholders, such as joint venture partners or suppliers.

In addition to having good governance practices and transparency, companies also need to be socially responsible and environmentally conscious to avoid reputational risk.

This importance has been confirmed through a recent report “With CSR In Global Demand, Corporate Reputation Is At Stake”, according To New Research From Cone Communications And Echo Research: PR Newswire (http://money.msn.com/business-news/article.aspx?feed=PR&date=20130522&id=16510227#scpshrjmd)

 This must – read report shows that CSR is now a direct driver of Corporate Reputation and major cause of Reputation Risk.

Continue reading →

Why Bad PR Isn’t Always the Cause of Reputation Crises


Many organizations fall into the trap of always believing that Reputational Crises are caused by Bad Publicity.

This could not be further from the truth. All Crises or incidents have a root cause, a catalyst that sparked it. Often we only encounter it when it appears in the spotlight.

In a must read in Forbes Bad PR Isn’t Causing PetroChina’s Reputation Crisis – Forbes a lot can be learned.

Reputational Crises have stakeholder impact and influence.

I would take this article and circulate it to all Executives and Management. Then as an Organizational Learning/OD exercise I would ask them to read my post http://deonbinneman.com/2012/08/04/executives-need-to-learn-a-new-style-of-decision-making/

Reputation Risk is rooted in poor decision-making.

 

A Caricature of Yours Truly, Deon Binneman


Deon Few Years Ago CaricatureAbout 11 years ago I was asked to do a presentation on the importance of Crisis planning at a local university. My presentation really hit the mark and soon i was asked to advise on the writing and development of this plan.

What really got Senior Management talking was my Siamese twins approach. I have always been of the opinion that a Crisis plan needs to address both the perceptual and reality elements of a crisis. Thus it is not sufficient to just have a communications plan, an Integrated plan is needed.

Anyway, I was clearing out some of my archived files when I saw this caricature done that day, about yours truly in action. Never thought I would look like the late crocodile – ‘”Die Groot Krokkedil” – The late SA State President – P.W Botha” who used to use his finger in a liberal manner. Unintentional in the least, although I was adamant in getting my message across. The days when I still had hair.

Nice drawing though, HAHAHA!

( A caricature is a simple image showing the features of its subject in a simplified or exaggerated way. A caricature is the satirical illustration of a person or a thing, but a cartoon is the satirical illustration of an idea, according to Wikipedia.

Government Relations Is Not Just about Having Contacts In High Places


Lately I have seen quite a few advertisements for Government Relations Managers that blatantly requests that applicants must have the right contacts.

As if this was all that Government Relations is about. In my opinion Government Relations is much more than networking. It is about listening, engaging, communicating, lobbying, proposing and ultimately presenting your organisation’s case in a favourable manner.

Crucial to understanding the Government stakeholder is knowledge of the geo- political landscape and issues like Protocol and the time it takes to make decisions e.g. the brown paper, green paper, white paper, Bill and eventually legislative process.

In order to meaningfully engage with the Government Stakeholder it is vital that organisations understand the What, Why and How.

Why Build Relationships with the Government?

Increasingly regulators (Government & other bodies) are becoming highly significant stakeholders in organisations. Often they have considerable influence over the conduct of the organisation and the way in which it operates.

Assessment of regulator satisfaction indicates how well the organisation understands and interprets the regulator’s requirements and acts to satisfy them. These assessments will prevent situations such as the recent case of ICASA versus Wireless Business Solutions-  that turned ugly when the regulator aided by the police service, raided the telecommunication company’s premises in Johannesburg, where it seized radio equipment that included core fibre switches, vital to the running of its business services. WBS had to go to court to get an interdict to continue operations, but in the meantime the resultant loss in connectivity for more than 48 hours resulted in WBS facing “significant claims” from subscribers who may have incurred financial losses while their connection was interrupted.

In most circumstances satisfaction of the regulator and regulatory requirements is a precondition to market entry and continuance. If regulators are not satisfied the organisation quite simply will not be awarded a licence to operate. Or the regulator may pass laws such as the Consumer Protection Act that makes it more difficult to operate.

In many cases regulators represent the interests of other stakeholders or the community in which the organisation operates. This might include particular minority stakeholders, who are not organised collectively. Regulators might include industry specific regulators, environmental regulators, regulators of competition – Competition Commission, ICASA etc., health and safety regulators, accreditation bodies (e.g. ISO), etc.

How to Build Closer Working Relationships

There are many factors that can affect working relationships, but striving to actively develop closer working relations with regulators will enable easier identification of their wants and needs, and of the way in which they can be satisfied. That’s why some organisations have Parliamentary Liaison Officers. Individuals that work the space carefully and methodically.

Development of close working relations with regulators can also provide the organisation with the opportunity (subtle lobbying) to feed back their concerns regarding regulation with the hope of influencing the development of future regulations and the regulator’s approach.

In addition close and open working relationships can enable early notification of changes in regulations to be provided, allowing greater opportunity to satisfy their requirements in sufficient time. Just like an Editor may decide to contact an organization when he hears of bad news, to check the facts before publishing it. This only happens if there is a close working relationship and trust between the two parties.

A good sign of a close relationships with regulators will be when the regulator is willing to listen and openly consult about potential regulations. This in turn will be affected by the regulator’s satisfaction with the past performance of the organisation, current relationships and mutual understanding.

However this is not an easy task and not as simple as it sounds. Take SANRAL and the e-tolling saga as an example of conflict and public dissatisfaction and court action being taken.

Open and Close Working Relationships  implies many different sets of criteria, and those are often revealed in consultations when a stakeholder expresses his or her needs, wants and preferences. The problem is that few organisations have thought about meaningfully working the success of these relationships. As I stated before it is so much more than just having the right connections and relying on political affiliations and hand-outs.

I would advise that it is crucial to map the journey of the Government stakeholder with the organisation through defining contact points and moments of truth, but a close look will also need to be taken of:

1. The number of points of contact i.e. the number of people within the organisation who have contact with members of the regulator’s team. When relations are poor there is likely to be only one point of contact at a high level in the organisation, through which all communication must be channelled. When there are close working relations members at all levels of the organisation may be able to contact a member of the regulatory body to discuss specific issues or concerns with the regulator. Questions that should be asked about the nature and relevance of relationships and how the contact point measures his interactions.

2. It will be useful to take a look at the average number of meetings / communications / consultations with regulators in a given period by analysing:

- The number of meetings and considering how many were direct face-to-face communications with the regulator.

- The type and nature of the meetings and communications – which are the interactions between regulator and organisation via any medium.

- The number and nature of consultations – which are the two way negotiations between the regulator and the organisation, where the organisation is provided with the opportunity to feed back opinions on regulation. Were these open, honest or conflict-orientated.

3. Whether there was advance warnings of regulation changes – i.e. Did the regulator share or reveal information snippets of future regulation changes, allowing more notice to take action? If working relations are good the organisation will be able to instigate all modes of communication to consult on a wide range of issues. This will not be the case if relations are poor – all communication is likely to be from the regulator side.

Working with the Government regulator is so much more than just connection and networking. Government Stakeholder Managers need influencing skills, knowledge of negotiation, conflict, legal and personal and group psychology techniques together with the understanding of protocol, and much, much more.

But above all; questions – typical of a performance assessment type, must be asked of whether Government managers bring adequate value – performance and behavior to the process of building the organization’s reputation with the Government.

Doing Business with Disreputable Companies


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Should one do business with a company which once had a bad reputation, but now has new management? Or with a company which seems a little shaky due to a crisis or scandal? Or with known tenderpreneurs, Mamparas, etc.?…

The best advice is to proceed, but with caution. Follow these steps to avoid getting burned:

- Do your homework. Research the company and find out what the market is saying about them. Find out more about their modus operandi. Do a SWOT analysis. Do due diligence of not just tangible assets, but intangibles as well.

- Go slow. Meet with the CEO and/or company representatives. Meet with stakeholders. What is your gut feel about the management and leadership?

- Better still, get outside 3rd party independent opinion. Compare views and perspectives.

- Assess the risk. Compare your feelings and the research you conducted. If it’s positive, proceed.

Be careful who you get into bed with. Remember your reputation might be at stake.

You Better Be Running


gazelle

Every morning in Africa, a gazelle awakens. It knows that it must outrun the fastest lion that day, or be eaten. Every morning in Africa, a lion also awakens. It knows that it must outrun the slowest gazelle, or starve to death.

The moral of the story is this: Whether you are a gazelle or a lion, when you wake up, you had better be running. In today’s fast moving knowledge economy you better be building and protecting your reputation. You only have one chance at making an indelible impression.

- Anonymous

The Value of Doing Nothing


I learnt a lot on Good Friday.

Got invited to visit friends on a farm where they were bass fishing. I ended up doing nothing. No mobile phone, no e-mails, no books.

And, you know what I learnt. Yep, you have got it. The Value of Doing Nothing.

Right now I feel liberated. Tired from the sun and fresh air. But my battery seems charged. Not enough but a start.

Now I know there is a story that says that to do nothing in an organization you have to be very near to the top. Or the other one that says that the only reason men go fishing is because their wives will not let them sit at home and do nothing. But it honestly was nice.

image

The only problem in leaving there is that I felt just like Tony Soprano in the hit TV series – The Sopranos when I had to leave. This time I left and the ducks remained behind.

The Value of Policies in Protecting Reputation


What is the value of policies, especially in terms of building, sustaining and protecting corporate reputation?

The value of policies is immense. It sets a framework for people to operate within.

Prevention of reputation related incidents in an organisation is one of the least costly and most efficient means of protecting a treasured reputation, but usually the most overlooked. Preventing in the first place, the types of defects that can badly tarnish or destroy a reputation saves an extraordinary amount of anguish, time, effort and money.

Prevention starts with the published policies, guidelines and procedures that all organization employees are expected to follow and implement. These published policies, guidelines, and procedures should be a reflection of the reputation that the firm wants to achieve. If a company wants to be known as a safe and friendly place to work, its policies should assure employees won’t suffer from discrimination, harassment or safety issues. If a firm wants to be a good community neighbour, its programs should allow employees to contribute and participate in community programs and services.

However there are a number of important principles to remember when writing, distributing and implementing policies.

- The mere fact that a policy has been written and distributed is no guarantee that buy-in into the implementation will occur. How will you measure adherence to the policy?

- How can you ensure that I as the recipient of the policy understand and will act on the content?

- Has your policies been benchmarked against best practice, environmental context (An USA Policy may not work in Arabia)

Measurement of compliance needs to be built into the design phase, delivery, and implementation and distribution phases.

You cannot leave it to the Internal Auditors to report six months later that a policy is not working due to the following…..

Nastiness gets you Nowhere


Nastiness gets you Nowhere.

Last year July an overseas client of mine reported me to my email service provider for sending her a newsletter she regarded as spam.

They subsequently cancelled my subscription and kicked me off. I then approached the lady who said she forgot about me, and she wrote to the service provider but they refused to reinstate me, stating than a complaint is a complaint.

Now I have had a few of those over the past 16 years where my newsletter was reported to the abuse section of my provider, especially where people have forgotten signing up in the first place.

Now I regard that as nasty. With an unsubscription facility, surely if you do not make use of that, why just report me? Why not send me an e-mail requesting removal? I am not a spammer. I am trying to share and assist.

My newsletter is read by more than 10000 readers worldwide. Why not build relationships, than just report. In Communication studies we are taught to consider our audience. Do you ever consider who is on the other side of an e-mail?

Nastiness gets you Nowhere!

Who knows who you will meet again in your journey? Maybe you will need me one day. I have put all those complaints and nasty mails in a file. I flagged them. Maybe one day you will send me a mail inadvertently.

As they say revenge is sweet but a meal best served cold. Maybe one day I will respond in turn, if I chose to do so.

I am not like that. I use my finger – the delete button. I unsubscribe. I send a mail stating I am not interested in the contents.

But I do not just complain to the authorities.

If my neighbour makes too much noise I speak to him or her. I am in the business of building relationships. In fact every time I have function at my home I inform all my neighbours. In 16 years I have had no complaints.

Why?

Because I consult before the time. I give them an avenue to complain. I engage.

I do not engage or entertain impersonal complaints.

Perhaps this post will make you think. There are many ways to achieve the same objective. Niceness is one of them.

As Ghandi said many years ago: “You cannot shake hands with a closed fist”.

An Apology to my Readers


Time. Something in short supply when you are an independent consultant.

You get so busy that you forget about your own voice, your ideas and the words in your heart.

You forget about your readers, because you become so busy working on the task at hand, that you sometimes forget to not just work in your business but also on your business.

The last few weeks have been a roller coaster. I lectured on Stakeholder & Relationship Management at the Gordon Institute of Business Science (GIBS) for the the Barloworld Group Leadership programme, ran my Stakeholder Reputation Master Class working with 10 delegates and did most of my research for my upcoming Product Recall Crisis Management workshop.

In between all of this I also facilitated a number of Health & Safety Representative training workshops on behalf of Scott – Safe, an Occupational Health & Safety Compliance consultancy.

I became so busy that I did not update my blog. Now that is not so cool.

So to my readers I have not forgotten you. I still have lots to share, starting today.

The Shackles Of "We Have Always Done It This Way"


Organisations are like elephants – they learn through conditioning.

Trainers shackle young elephants with heavy chains to deeply embedded stakes.

After years of being chained, older elephants never try and leave even though they have the strength to pull the stakes out. Their conditioning limits their movements with only a small metal bracelet around their foot – attached to nothing

Like elephants, many companies are bound by earlier conditioning restraints. “We have always done it this way” is a limit to an organisation’s progress especially in this new era of enhanced speed.

In order to survive in this new society you have to let go of the shackles of the past. Too many organisations still have metal bracelets around their feet. However to make things happen you need to mobilise the support of your people behind your change.

And the process through which to do this: COMMUNICATION. My questions to you or to ask your clients is this:

  • “What shackles are constraining communication flow in your organisation”
  • Isn’t it about time for a relook or a new look at communication practices in your company?

Why Writing Concisely is Crucial


So, I started this piece by using the word brevity, then I thought to myself, who knows that word.

Concise and exact use of words is crucial in communication, just try and decode the following:

“We respectfully petition, request, and entreat that due and adequate provision be made, this day and the date herein after subscribed, for the satisfying of this petitioner’s nutritional requirements and for the organising of such methods as may be deemed necessary and proper to assure the reception by and for the said petitioner of such quantities of baked products as shall, in the judgement of the aforesaid petitioner, constitute a sufficient supply thereof”.

I guess a point can be made for the KISS method in writing – Keep it simple and short.

No wonder swear words abound. It fits the KISS description accurately.

As one professor once said:” Why use a twenty five cents word if a five cents one will do”.

The above: Give us this day our daily bread.

7 Compelling Reasons to Educate, Train and Develop your Employees About Reputation Management


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Managing an organization’s reputation may be the most important asset a CEO and his or her team manages – as a good reputation helps a company to attract business, investors, hire and retain the best employees, partner with other leading organizations and lower the cost of capital.

Reputation must be built from the INSIDE OUT, and encompasses everything that the organization says and does. Reputation is an intangible asset at risk on a daily basis.

Recent studies show that it can make up as much as 63% of a company’s market value. According to Steve Hamilton-Clark, CEO of TNS MENA “Reputation capital is the sum of the value of all corporate intangible assets, which include business processes, patents, trademarks, reputations for ethics and integrity, quality, safety, sustainability, security, and resilience”.

He goes on to say that “Indeed, companies must understand and influence the relationships they have with stakeholders – from customers, investors, business partners, influencers, the general public and employees. The ability to attract, maintain and motivate talented employees, as well as customers rests in a good reputation.”

Psychologists tell us that awareness precedes behavior change whilst the term preparedness refers to the state of being prepared for specific unpredictable events or situations. Awareness and Preparedness are therefore closely linked.

The level of preparedness is depended on the cumulative deposit of knowledge or the sum total of the learned behaviour of a group of people. This awareness that the psychologists talk about is created by knowledge and knowledge is acquired through information. (Even this process is fraught with danger – remember the Desert Survival or NASA team building exercises that some of you have done on Leadership training).

Therefore awareness can play a huge role in protecting and nurturing your organisation’s biggest asset and risk. How would a manager know whether he or she is adding or subtracting to that value, unless he or she has been made aware?

The next time your organization meets to decide what the training goals and priorities should be, ask yourself: “What are we doing to ensure that our managers understand the creation and protection of our Reputation”?

A good reputation means your name is trusted. You are considered a sound investment, purchase, trusted partner, and employer. All of this dramatically impacts the organization’s bottom line.

So, here are 7 compelling reasons why you should educate, develop and train your staff in reputation management principles.

1. To ensure that your business is well-positioned especially when reputational surveys such as the World’s Most Admired Company and Annual Best Employer surveys are conducted. Those businesses that obtain better scores, also have better revenues and a more sustainable footprint.

2. To remain competitive. If your employees are knowledgeable and motivated, they will build your reputation in a very competitive marketplace, and stakeholders like to do business with winners.

3. To understand your stakeholders needs and concerns and find ways to wow and engage them. You need to maintain good relationships with them and gather their support and trust.

4. To enable your employees to stand back from the day-to-day operations and understand the strategic implications of their work on the company’s largest and most important asset, and yet, biggest risk.

5. It sends one of the most powerful messages to your employees – that they and the organization’s reputation are valued. When your employees are anxious about maintaining the reputation of the institution, it is more important than ever to demonstrate a commitment to them, by giving them the know-how and understanding to manage that asset and risk.

6. To avoid Reputation Risk. When employees understand the value and risk of reputation as an asset, they will think twice before destroying it.

7. Training increases productivity in the short term, as well as the long term. It enhances reputation.

Think back to your own experiences. What a pleasure to deal with employees that are dedicated , focused and competent. The sooner you engage your staff, the earlier you can address and deal with the issues that may affect your reputation.

Read this post Education & Training Programs Woefully Reputation Deficient for more provocative insight based on research.

Should Reputation Management Training not feature on your company’s Training agenda? Are you leaving the deliberate management of this asset to chance?

One Event, Multiple Stakeholder Impacts


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Just a storm in a teacup! How often have I not heard CEO’s say this, only for the share price to be 20% down a day later!

Normally these are the visible signs, but a crisis poorly handled, have a wider impact than most managers anticipated. Look at the following model.

A single risk event is likely to have multiple impacts on a company‘s reputation. To understand this, imagine that XYZ Corporation has been fined by the Competition Commission for price fixing and allegedly engaging in unfair and predatory business practices.

News of the lawsuit is picked up by major media outlets, which run exposés on the company and how it has taken advantage of its customers.

The list below gives examples of how different stakeholders may react to this single lawsuit.

Current Customers – Possible Action: A number of customers believe they have been taken advantage of, and they refuse to do business with the company again. Other customers, who may not even be part of the lawsuit class, decide to cut back on their business or switch to new, aggressive competitors.

Potential customers – Decide not to do business with the company.

Suppliers and partners – Decide not to enter into an alliance or demand more favourable terms because of discomfort at being associated with the company.

Employees – Not wanting to be associated with a company that takes advantage of its customers, or believing that future opportunities at the company are limited, decide to take other jobs.

Financial markets and lenders – Believe the growth prospects of the firm are limited or even worse, that the business model is no longer valid. Discount the share price and demand more onerous lending terms

Government regulators – After a few politicians make speeches mentioning the fine, an aggressive regulatory agency puts a team of lawyers on the case to decide whether the company has broken the law and should face further fines or limitations on doing business

The downside of failing to meet stakeholder expectations can be enormous. In many cases, brand equity value is the single biggest component of a company‘s market value, even exceeding book assets.

Sixty-three percent of a company‘s market value is attributed to reputation (Weber Shandwick/KRC Research, Safeguarding Reputation, 2006).

The growth of the Internet-powered economy has dramatically raised the importance of reputation. Today, the velocity of information flow has increased to a level unthinkable in the years before the proliferation of websites, blogs, e-mail, instant messaging and other Internet-powered communications. In this environment, we say: Semel emissum volat irrevocabile verbum (Horace).

Loosely translated, this means that once the word is out, it has flown and cannot be brought back. In today‘s wired business environment, positive events may bring incremental benefits, while negative perceptions can spread like wildfire, with devastating results to a company‘s reputation and, ultimately, its shareholder value.

While a company‘s reputation can be harmed by a single major event, more frequently, reputations are harmed over time by “erosion” - slowly chipped away by one unsatisfactory stakeholder interaction after another. For example, dissatisfied customers are more likely to do less business with a company than they are to abandon it completely. Yet the cumulative impact of these decisions can be profound.

Question: Can you really afford to not manage your stakeholders? No wonder that, in the King 3 Code specific mention is made of the importance of stakeholder inclusivity (,i.e. that the legitimate interests and expectations of stakeholders are considered when deciding in the best interests of the company), stakeholder identification and determination of expectations and needs, the proactive management of stakeholder relationships, and that management should develop a strategy and formulate policies for the management of relationships with each stakeholder grouping.

To learn more about how to manage and engage stakeholders, you should consider attending the following event:

 
What: Stakeholder Reputation Management Master Class
This intensive 2-day training seminar explores international best practice approaches to Stakeholder & Reputation Management and will help organisations to comply with Section 8 of the King Code 3 Guidelines on Corporate Governance. The course gives a delegate the practical, experienced guidance they need for designing a successful Stakeholder Reputation Management system and includes a dedicated look at communication, engagement and relationship building and reputation enhancement practices. To register, e-mail deonbin@icon.co.za
When: Monday, November 26, 2012 8:30 AM to Tuesday, November 27, 2012 3:30 PM
Where: Apollo Hotel, Randburg, Johannesburg
158 Bram Fischer Drive Johannesburg 2118
Johannesburg, Gauteng 2118   South Africa

Building More Cost-Effective & Efficient Consulting Practices


Recently the Minister of Finance declared that Government Departments will need to become more lean and mean and make do with what they have.

This “freeze” is bound to affect consultant income. Times are going to be tough and Government are certainly going to be cutting costs and re-evaluating consulting relationships and contracts.

Professional Service Providers are going to have to do the same. Re-evaluate their practices and how they do things.

In this process there are two approaches that can be followed:  

  • Focus on what to cut or reduce or,
  • Focus on what you need to do to continue doing well.

426123_96981711The key to consistent success is to “Work smart, work efficiently and constantly deliver results to customers.”  

In 1984 I was in a situation where I joined a new organization, when after one week with the company, the CEO asked me in a meeting, so “What extra value are you going to add. I started rambling about my tasks, when he said, “No – no that is the minimum, what extra do you have to offer”. I have never forgotten that lesson. That’s sound counsel, regardless of the economy.  

So, here’s some advice that could help you with name recognition and your own reputation externally and internally in a tough economy.

Re-examine your Core Value Proposition – What made you successful in the first place? Sometimes we start to focus on turnover and forget about the small things, such as the personal attention to detail that made the practice successful in the beginning.

Stick to your knitting but embrace New Principles. Teaching an old dog new tricks is possible. Learn better, faster and more efficient ways to do things. My secret weapon – Reading the daily tips from Lifehacker.

Balance innovation and your past successes. Stay relevant. Constantly review your service offerings. Is it still in touch with customer needs? Along those same lines, an internal or external service provider needs to stay relevant. If you constantly prove your value, you’re more likely to remain a partner in the business”

Think and sell strategically and tactically. During a recession, value is going to be more deeply examined; clients are going to demand that you add extra value.

How do you do that – attend my new and revamped 1 day How to Market and Grow a Consulting Practice workshop on the 10th December in Johannesburg.

As we all know, perception is everything. Do you treat all people with respect? Not just senior management! Relationships are built at all levels. Often senior management will turn around and ask junior staff members about their perception of you. What would you like them to say?

Market, Market, Market yourself. In the book “High Income Consulting” by the late Tom Lambert, the author had the following to say: “The so – called window of opportunity is open only briefly as an organization’s priorities change. When a potential client recognizes the need for services which you supply, yours must be the name they know. Your marketing, therefore, must be CONSISTENT and INDIRECT, aimed specifically at making you well known to ALL your prospective clients”.

To be a recognized name means that you have to find methods that will work for you in the long term and in the short term, using vehicles ranging from public speaking engagements to suitable audiences to being listed in directories.

The lesson is clear. You should find ways and means to ensure that yours are the name customers remember when that window of opportunity arises.

Social Media has now become the preferred tool of choice in this strategy. Learn more on how to best market your consulting services using many different approaches and techniques on the 10th December.

Register now and avoid disappointment.

The Dates for the Remainder of my 2012 Public Training


Please check out and register for my remaining 2012 public courses. I will facilitate a Stakeholder Reputation Management Master Class, a Product Recall Crisis Management workshop, a Reputation Protection & Defence seminar and a Marketing and Growing a Consulting Practice workshop during November & December.