At Weber Shandwick, we first introduced the concept of the “Stumble Rate” in January when my book was released. The stumble rate measures the percent of companies that are in top place on Fortune’s World’s Most Admired Companies list in their industries five years ago vs. their standing today. Any company that was top-ranked five years ago and is no longer is considered a “stumbler.” 

Despite a declining stumble rate in the global market, the Stumble Rate for U.S. Fortune 500 companies has risen in the past year (2007). A year ago, approximately half (52 percent) of companies that were their industries’ most admired lost their crowns and this year nearly three-quarters (72 percent) have been dethroned. That is approximately a 38 percent jump year over year. Three out of four U.S. largest-revenue companies losing their reputation thrones is astonishing. Not surprisingly, the industries whose churn increased are associated with current U.S. economic challenges. Sectors such as building/real estate, energy, and automotive all included companies that newly stumbled this year. No surprises there. I imagine that the stumble rate for next year will be just as dramatic.

When I was in Asia Pacific, someone asked me whether these companies had actually stumbled or another company had lept forward in the reputation race.  A good question. I think that losing reputational equity because an up-and-comer has leap-frogged over you to the number one perch is the same thing as a stumble. Someone (usually those at the top) was not watching well enough.

All in all, Weber Shandwick’s stumble rate is a stark reminder that reputation recovery is as much a part of the reputation continuum as reputation building and reputation sustainability. In fact, it is the hardest part of reputation management equation

I am visiting our office in Shanghai before heading to Beijing. I was particularly excited to come to Shanghai because my son studied here for six months recently during his semester abroad from college. He has been learning Mandarin since he was about 10 years old and has already spent two summers in Beijing. So I wanted to see Shanghai as he saw the city during his many months here.

 Last night my gracious Weber Shandwick colleagues took me to a restaurant on the Bund that provided a view of the financial center and the old section of the city. The skyline is absolutely extraordinary — gleaming, tall, modern, flashy, whimsical, creative, and bold.  My first reaction was that the financial center looked like Second Life in real life. 

I am learning alot about the reputation of Shanghai and its cosmopolitaness. It is dynamic, energized and rushing to the future.

Just seeing the skyline caught my breathe. Beyond impressive.

Today I will be having lunch with clients, media interviews and even being interviewed on TV about my favorite topic. Reputation is certainly a hot topic here as China deals with the aftermath of the earthquake, the Olympics, globalization and building brand awareness and differentiation for its corporations and its country.

My son has lived in the future and his mom is just learning to understand what he saw.  I have alot of catching up to do.

I have not written recently since I have been traveling throughout Asia Pacific for my book and meeting Weber Shandwick clients. Media interviews are on the agenda as well. One of the side effects of my visit to AP, unexpectedly, is that my own perceptions of Weber Shandwick grows brighter and brighter every day. Although I often feel that I understand the depth and breadth of the firm, I see now that not until you visit the network do you truly understand. As a visitor for just a day or two in each market, I also get to meet my colleagues en masse in internal staff meetings. Without a doubt, my Weber Shandwick colleagues are WOWing me. Everyone is enthusiastic, client-focused, smart and generous of spirit. Little did I realize that as I talk about building corporate reputation at luncheons and events, I myself would personally be so impacted by Weber Shandwick’s reputation and its future. Definitely a big return on reputation for me.

So far, I have visited Sydney, Singapore and Hong Kong. Off to Shanghai and Beijing this week and then back to NYC next weekend.

I was catching up on my reading this morning when I learned about presidential candidate Barack Obama’s newest web site. Talk about taking a lesson from corporate America on handling myths and rumors! My blog has previously referred to Starbucks and Coca-Cola having designated areas on their sites that let them refute rumors. Well, Obama now has one and it is worth visiting.  It is called Fight The Smears. The YouTube generation is sure shaking up the entire presidential election.  Obama’s YouTube Channel has nearly 1,200 videos. More than 50m people have apparently watched Obama’s videos.  The advocates are turning out in numbers for this unusual presidential candidate. We are learning that reputation-building online is infectious.

On another subject, am listening to BBC while posting and heard that more confidential documents were left on the subway by someone. The information reveals data on money laundering, drug trafficking and terrorism. Since this is the second such incident in a week, embarrassment is an understatement. The reason I raise this is that our 2006 research found that “security breaches” and “data losses” are among the top five triggers of reputation loss.  Fairly prescient I might say.