Posts Tagged ‘reputation’
I spoke on a panel one week ago organized by the Association of Corporate Counsel (ACC) in Connecticut. The topic was “Can They Really Say That About Me?” I was joined by terrific panelists….John Hines of Clark Hill (Online Reputation: Legal Perspective), Polly Wood of Reputation.com (Protecting Your Online Reputation), Dr. Pamela Newman of Aon‘s Newman Team (Insuring Reputation) and Stephen Schultze of the Princeton Center for Information Technology Policy (Policy Perspective on Reputation). We all had a terrific time learning from one another since we all approached reputation from different angles. I approached reputation from a company point of view, John from a legal point of view, Polly from an individual point of view, Pamela from an insurance perspective and Stephen from a policy angle. John Hines organized the event and we are hoping to take the show on the road to Chicago.
Stephen brought up a question that has been lingering in my mind since the session ended. He asked whether society was perpetuating a “reputation gap.” He posed the idea that there is a divide between those that can police their reputation and those that cannot. It costs money, time, resources and know-how to protect your reputation, build positive mentions to push down the negative, open new domains and populate social media to create good first impressions. The “have nots” do not have the same access to information and Internet savvy to protect their reputations, balance the positive with the negative or hire an online reputation management specialist to help better situate their reputations. Just yesterday I wrote on this blog that nearly $1.6 billion was spent in 2012 managing reputations online. With figures like this, Stephen Schultze has to be right asking whether there is a reputation gap. The answer is clearly “yes.” Perhaps some of these online reputation management companies should provide services pro bono for some of the unfortunate who are maligned online and do not know where to turn to for support.
As for me being in the reputation business myself, I do make it my business to help people whose reputations have been tarnished by explaining what they can do and where they might seek help. So I hope that I am doing my bit to narrow the reputation gap.
Today I am speaking at an event with the Association of Corporate Counsel on reputation. The title is Can They Really Say That About Me? As I was preparing I looked at how much the term “reputation” had grown in the past 5 and 10 years. Listen to these numbers. Wow. In the past five years, the increase in use of the term “reputation” on Google rose 3,647%. Looking over a 10 year span, the increase was 13,056%. Incredible.
Just thought I’d share as the morning begins.
Last week I came across something that stopped me in my tracks. Actually I was going nowhere because I was on the subway but it struck me (and I shuddered) that I had a moment of insight into a news story that had tremendous implications for companies and their abilities to create lasting reputations. The Pulitzers were announced last week and The New York Times won four. What was so startling to me was that two of the highly prestigious and acclaimed Pulitizers (50%) were for indepth, investigative reporting on the overseas behavior of two different companies. One was a series of reports on alleged corruption at one company and another Pulitzer was won on the costs of human capital in a company’s manufacturing products abroad.
Here is why this is so important — leading companies, the best we have to offer, must safeguard their reputations at all times and not let up for one minute because the spotlight on them is only growing brighter. And just because business operates differently in other cultures or regions, if the behavior does not align with the company’s values or is morally correct, it’s reputation-damaging and wrong no matter where on earth it happens. Earning the right to operate is given to companies through governments or regulators but the license to operate is still very much dependent on the perceptions of communities and consuming public around them and online. How a company behaves matters today and consumers buy based on how companies treat their employees, vendors, customers, communities and others everywhere. Our recent research on the company behind the brand shows that in spades.
These Pulitizers are an early warning sign to companies to carefully consider their behavior on all counts if they want their reputations to be shatterless.
Lately I have been wondering if reputation is going the way of sustainability. Years ago, sustainability and corporate social responsibility was on everyone’s agendas in corporate American and around the world. It was hard to distinguish what was the difference between corporate social responsibility, corporate responsibility, community development, philantrophy, charitable giving, sustainability and all the other terms that were increasingly undefined, bundled together and fuzzy around the edges. Today, nearly all companies have CSR reports and it is expected of leading companies. CEOs too agree that CSR is critical to their business. A recent Accenture/UN Global Compact study found that 93% of global CEOs believe that sustainability issues will be critical to the future success of their business and 72% cite “brand, trust and reputation” as one of the top three factors driving them to take action on sustainability issues. Revenue growth and cost reduction are second at 44%. Everywhere you turn, sustainability is on the agenda. All in all, that’s a good thing. However, I still think that the terms have been interchangeable and are used indiscriminately except by those really in the know.
In a new book I just heard about, The Nature Of The Future: Dispatches From
The Socialstructed World by Marina Gorbis, she argues that in the future we may start to see Reputation Statement Accounts just like we get from the bank. But these monthly statements will not inform you of your monetary transactions, but will tell you “how much you’ve earned by contributing to sites such as Wikipedia or Flickr, how many points you’ve earned by providing rankings or ratings on various community sites, or how much social currency you’ve spent by
asking someone for advice.” We already have these kinds of ratings through Kred and Klout although somewhat different.
Her book also refers to the Whuffie Bank which is a nonprofit built on a new reputation currency that can be redeemed for real and virtual products and services. “The Whuffie Bank issues whuffies based on a reputation algorithm that blends information from different social networks and provides an accurate reflection of people’s web reputations. And as the Internet and social networks become a large part of people’s lives, your web influence will become an increasingly accurate reflection of you.” That sure is the truth looking us in the eye.
I am afraid to say that everyone is a reputation expert today. Reputation means so many things that it is getting harder and harder to pin down. And I hope it does not become the new sustainability which has meaning depending on who you are talking to.
On to the future.
Each year Fortune publishes the 100 Best Companies to Work For in the U.S. While the bulk of the company evaluation rests on a comprehensive employee survey, Fortune publishes a wealth of employer statistics about benefits, diversity and jobs. Weber Shandwick has been cataloguing this data since 2006, enabling us to look at how each factor is changing over time and how reputations can be shaped by being a best company to work for.
Most Best Company statistics for jobs, diversity and benefits were unchanged between 2012 and 2013. However, this leveling off could be taken as a sign of good news. 2010 and 2011 were mediocre years for jobs and the improvement in job and diversity statistics in 2012 suggested that the market was starting to strengthen and reputations are stabilitzing. Similar numbers in 2013 may signify that improvement is still underway.
Below are insights into these jobs, diversity and benefits trends:
Jobs: The Best Companies reported virtually the same job statistics in 2012 and 2013, including median job growth (6%) and median voluntary turnover (7%). In fact, with the exception of 2010 and 2011 which were poor years for jobs statistics, median job growth has maintained a steady rate since 2006, only fluctuating between 5% and 7%. Perhaps this job growth range is a Best Company standard.
Improvement in negative growth may be a sign of recovering job market. After hitting a low last year (11%), the number of companies experiencing negative job growth remained steady in 2013 (12%). This is a drastic improvement from 2011 when 45% of Best Companies reported negative job growth.
The rate of Americans quitting is on the rise, suggesting that people across the country are becoming more confident in leaving their jobs to find work elsewhere. Best Companies, however, maintained the same voluntary turnover rate between 2012 and 2013 (8%). The difference between these two trends may reflect the impact that a good reputation can have on retaining a company’s workforce.
Diversity: Diversity initiatives at Best Companies have also remained mostly unchanged. The average percentage of women and minorities working at Best Companies has been consistent since 2008. But with women already comprising, on average, nearly half the Best Companies’ workforces, it is very possible that we will see this trend continue into the coming years. 2013 was another solid year for gay-friendly policies and benefits. Nearly all Best Companies this year have gay-friendly policies (99%) and the number of those offering gay-friendly benefits has hit a record-high (93%).
Benefits: The most noticeable change in employee benefits offered by Best Companies since last year is the decrease in number of companies extending compressed workweeks (down from 80% in 2012 to 73% in 2013). Also taking a small hit is on-site childcare, which fell below 30% for the first time since 2008. The Fortune evaluation, however, does not look at companies that offer flexible workweeks, which could be taking the place of these two benefits. Best Companies could be giving employees the opportunity to better balance their work lives outside of a formal perk. We may be starting to see this trend happening at companies not on the best-of list too. For example, while Yahoo CEO Marissa Mayer was recently in the media spotlight for banning working from home, it is possible that Yahoo employees have other options for work flexibility aside from telecommuting. The benefit with the greatest improvement is on-site gym, which hit a high this year (73%). All other perks remained largely unchanged from 2012.
I mentioned this new survey on reputation from McKinsey on my blog a few weeks back but what I did not mention was how perplexed I was by the artwork they chose in the report. This is not to knock the great work they do but to raise the question about why they would not question artwork of men saluting each other when it comes to a serious business topic. I know that they regularly use this artist and look in their reports but I flipped through the pages to see if there was a mirror image with a woman or two in it. There was none. And I realize that this harkens back to an earlier style when men ruled the business suite. I understand the style because I saw plenty of it while at Fortune and still love the look. Yet, all in all, I was surprised that they chose this image when we have a paucity of female CEOs and women at the top. Women are getting ahead but glacially so. And in defense of women, women are already adding value to the reputations of some of our largest, most prestigious corporations.
A former colleague sent me an engaging article from Gawker about CEOs and hubris. The first half of the article was actually about powerful CEOs sock exposure when their legs were crossed on stage. But the article hit the nail on the head when it comes to CEOs. “A Wall Street CEO primarily serves as the human embodiment of the firm—the competent, reassuring face that the many-tentacled monster projects to the world. As Nassim Nicholas Taleb once said, ‘A C.E.O.’s incentive is not to learn, because he’s not paid on real value. He’s paid on cosmetic value.’ This is not to say that these wildly successful men are dumb; it is simply to say that their job is not about muddling in the details, or tinkering with the gears of the machine. The CEO’s job, in public, is to frame the perception of what his company does, to cast the company’s activities in the proper terms, so that it sits in the public’s mind in an acceptable way.”
I thought that this quote and the part that I bolded sums up well the role of the public CEO — positioning the reputation of the company to its many publics in the most effective way. Of course, I could go on about how important the narrative is and how it should be distributed to maximum effect. But it does go to the central core of the CEO’s external job today. Internally, the CEO’s job is vastly different — modeling the values of the company, inspiring and motivating employees, building a top team, and communicating its mission and purpose. Creating meaning for the workforce and making sense of it all. A massive job.
We just issued our study on Socializing Your CEO II. It is a sequel to the audit we did in 2010 on how CEOs were using social media. It was one of the earliest explorations of social CEOs and we found that two-thirds of the largest revenue producing company CEOs were bascially UNsocial. Two years is a long time in Internet time so we were curious how these chieftains were faring in the social dimension now.
We learned that CEOs are more social — hurrah! Good news. In 2012, 66% of CEOs of the world’s top 50 companies engaged online compared to 36% in 2010. There was heightened visibility on corporate websites and usage of video such as corporate YouTube channels. Where they failed to show a surge like we saw in other social activities was in their usage of social media platforms such as Twitter, Facebook, Google+, Pinterest and LinkedIn. In fact, in 2010, 16% of CEOs of the largest companies in the world used social media compared to 2012 where the incidence was 18%. Interestingly to me, the current usage of social media platforms at 18% is similar to what the IBM CEO survey found in 2012 (16% of CEOs participate in social media). However, when IBM asked CEOs whether they’d be using social media three to five years from now, a whopping 57% said yes. They may be over exuberant here but let’s just say that they are acknowledging its importance and their commitment to get the hang of it.
What do I think about all our results? I think that CEOs are still dipping their toes in the social media waters but for the most part, I’d have to say they are decidedly taking their jobs as social storytellers to heart, whether on their About Us/home pages, in video, and to some extent on social media. They are covering all their bases, trying out different channels to find out what suits them and reaching out to stakeholders in the many places they may be — be it prospective talent visiting their career pages, investors checking out their credibility quotient on YouTube or customers visiting their Facebook pages. Of all the social media we examined, the greatest increase over the past two years was for CEOs on Facebook. Usage of Twitter declined which is curious. Perhaps Twitter appears to pose more risk than most. Mind you, these are the largest companies in the world in mammouth sectors – oil, automotive, telecom, financial — and not the usual Internet technology companies that feed off of social media. Also, those of us in the U.S. do not quite realize that CEOs in other regions consider being on a home page to be a big giant social step and in some regions, there are security issues about plastering your information or picture widely. I should add that U.S. CEOs are more social on social networks than their peers in Europe, Asia and Latin America — 26% vs. 18%, respectively.
I thought, however, that I would use this post to talk about social CEOs and reputation since that is what my blog is about. I will return to our Social CEO study often so keep a watch. Not only will I continue to observe social CEOs because I am interested in reputation but because I firmly believe that being social will be a prime driver of reputation in years to come.
Here goes. We learned in our audit that CEOs of the world’s most reputable companies consistently demonstrate greater online engagement than peers at less reputable companies. 81% of CEOs from Most Admired companies (using the Fortune World’s Most Admired study) engage through company websites or in social media, compared to 50% of those from less reputable or “contender” companies worldwide.
The growth in engagement among CEOs at Most Admired companies exceeds the growth in engagement among CEOs at contender firms. While contender company CEOs are more social in 2012 than they were in 2010 (50% vs. 28%, respectively), Most Admired company CEOs essentially doubled their sociability in the past few years. I have no doubt about it. Most Admired company CEOs may more acutely recognize the relationship between social media engagement and positive reputation and the importance of having a dialogue with customers
despite the risks.
Lessons on dealing with a crisis are always helpful, especially when your company’s reputation is in jeopardy. I found this list particularly worthwhile because it was written by Sallie Krawcheck, one of the most senior women on Wall Street. I heard her speak at a Forbes conference years ago and really enjoyed her tales of juggling work, family and husband. She was very down-to-earth, approachable and humble. She recently wrote on her LinkedIn page about the lessons she learned from leading through various crises and as she says, watching others make career-ending mistakes handling crises. Here is a brief synopsis of what she advises:
1. Be heroically available. I wholeheartedly agree with her that there are times when executives wish they could just close the door and wait until a crisis fades. We all also know that this strategy does not work and rarely happens. She mentions a colleague who hosted a call for Financial Advisors when investments had gone south and how he said he’d stay on the call until every last question was answered which lasted late into the evening.
2. Allow people to ask real questions, even if you don’t want to hear them. We have all been in meetings when no one wants to ask the hard question and most people just throw softballs. Leaders have to create an environment where the hard questions can be asked and there are no repercussions. Sometimes I advise a leader to ask the question himself, provide the answer and get on with it. Once the question is asked, others might have the courage to speak.
3. Frequency matters more than perfection. Krawcheck mentions how her management team had a call at the start and end of every day when the economy was tanking a few years ago. She says that some of the calls were not all that good and packed with answers but at least everyone knew they would be getting an update on a regular basis.
4. On your message: Repeat it, repeat it, repeat it. And do in different media. That is dear to my heart because those of us in public relations understand that to reach people who need certain information, you have to reach them where they are. And they are often not where you think they are. Some people read company emails, some ignore them. And as Krawcheck says, some people are readers and some are listeners. Some are in facilities where there is no easy access to electronic information. Make it easy to find out what needs to be known.
5. Bring in people who know more than you do or provide a different perspective. I found this one unusual since so many companies keep all their information and goings-on close to the vest. And rarely do they want to admit that they might not know something. She mentions how during the recent downturn, her company brought in some experts to bring a new voice into the conversation even if they were saying the same thing she was saying. This is good counsel.
6. Let them see you sweat, but don’t let them see you tremble. Another piece of good advice and a good way to end this post. It is okay to work super hard and show that you are not home for dinner with the family night after night when crisis is on your doorstep but make sure that your team does not see you scared. Being confident “goes a long way.” Yes indeed.
It is November and I remembered that the World’s Best Multinational Companies to Work For list must be out. I went to the Great Place to Work Institute and there it was. The list was released last week. I have to say that between Hurricane Sandy, the election and the Noreaster we had in New York, we lost two entire weeks to chaos. So I must have missed the awards announcement on November 12th.
To make it to this premier ranking is not easy. Companies have to meet the following criteria — chosen from 350 companies, appeared on at least five national Best Workplace lists, have at least 5,000 employees worldwide and have at least 40% of the workplace based outside the home country.
Some of the amazing facts about these companies are:
- On average, returning companies on the World’s Best Workplaces list increased their revenue by 9% this year.
- Over the past 12 months, these 25 companies created 120,000 new jobs globally.
- Furthermore, voluntary turnover at 15 of the 25 companies was at 8 percent per annum, compared with the all industry average in the United States of 9.1%, according to CompData Service.
- Country with the most companies on the list — Mexico.
- Average number of national list recognition awards — nine
- Percent of women in executive/senior positions — 27%
- Greatest improvement in Trust Index — work/life balance, professional development
- Region with the most companies on the list — Europe
- Most represented industry on list — Manufacturing and Production
The reputation of the companies on the list are all stellar. I am, however, trying to understand why the logo of this award uses a dinner plate. Or am I being too literal? Perhaps it is the dinner plate from a white-tie dinner. You think?