Is your reputation ready for 2021?

Reputation can be described as the sum of the values that stakeholders attribute to a company, based on their perception and interpretation of the image the company communicates and its behavior over time.

A way of simplifying this definition is to say that reputation results from a company’s Performance + Behavior + Communication. In other words, your reputation is what others say about you based on shared perceptions. This differs from a company’s brand, which is based on what a company says about itself and how it behaves.

A solid reputation takes time and money to build and efforts are cumulative. Over time, reputation can become an important asset, though, like any asset, it can decrease in value if a business leader leaves a company’s reputation unmanaged.

In the worst case, a company’s reputation will be dictated by public opinion, with potentially disastrous results. Slightly better is a scenario where a lack of reputation management means a wasted opportunity to differentiate a company from its competition and build a commercially useful profile. In the best case, a company will engage in online public relations, crisis management, corporate public relations, and other activities in order to maximize value and become an envied market leader.

Every business leader should thus take the following actions, especially as we embark on what is likely to be another tumultuous year.

1. Determine what reputation you want: Reputation building should be a proactive process and not left to chance or be dictated by others. Figure out what your company should be known for and conversely what associations you do not want for your company. Build the foundation to your reputation through authentic engagement so that people understand your company’s values, competencies, differentiators, mission, et cetera. Make sure your brand promise is built on honesty, integrity and trustworthiness.
2. Perform a brand audit: A company should continuously know what people are saying about it in the mainstream and social media, trade literature, brand surveys, third-party review websites, et cetera. For example, you should know off-hand how your brand weathered the coronavirus pandemic. Has your brand’s voice gone silent over the past months, with the result that your clients have forgotten about you? Make it a habit to periodically conduct a brand report with a detailed list of metrics and benchmark the findings against your competition, if possible. A regular audit will also reveal reputational risks and opportunities.
3. Determine the difference between your brand identity and reputation: This difference can be called the ‘authenticity gap’ and insights from the analysis will enable you to craft a holistic engagement and communications plan for your company’s stakeholder base.
4. Build your reputation but be prepared: A credible and valuable reputation requires a company to be seen and heard in the market place. This has never been easier and cheaper than today, thanks in large part to digital and social media platforms. Business leaders are increasingly using these platforms for thought leadership and to highlight positive actions of their companies. Gradually building a depository of ‘good news stories’ represents industry best practice and can be seen as insurance for countering the unexpected reputational damaging event, i.e. a crisis. A crisis will invariably occur one day and it will pay off to have your company’s spokespeople trained to implement a crisis communications plan and thus limit any damage to your company’s reputation.