ROCK STARREPUTATION© 2010 Steve Loepfe, www.blog.loepfe.ch

Select Reputational Risk Brief Cases L&P Were they ready? What was the impact

Milestone Gallery

Selected Projects, performed by Loepfe & Partner AG Associates in the Field ofReputation Management, PR and Corporate CommunicationsStrategic Change CommunicationReputational Risk Management and Crisis CommunicationEquity Capital Market Transaction Communication

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45 FTE, 2 Locations, USD 2b AUM

Crisis communication tacticsStakeholder communication

Workout communicationComs coaching of management team

Trade sale communication during recovery

Specialized Financial Service Provider, Private Bank300 FTE, 15 Member Entities

Crisis communication workshopsIncident and crisis training member entitiesMedia training both radio and print media

Support in developing crisis manualPro bono PR and communication support

Organisation in the field of Volunteering150 FTE, 2 production facilities

Preparation crisis scenarioCommunication of plant discontinuity

On-campus internal coms re dislocationMedia training management/media relations

Communication facilitation with unions

Supplier Furniture Industry, Market Segment Leader

20k FTE, Sales 13bn, Central EU Project

Preparation of merger communicationsHosting of off-campus communication function

Development of issues/crisis scenariosDevelopment of roll-out coms and wordingInternal communications and messaging

Producer and Distributor of Branded Beverages700 FTE, Strong Footprint in Central EU Region

Reputational risk evaluation initiativeDevelopment of rep risk mitigation plans

Management training and crisis simulationsAd hoc support in severe crisis situations

Permanent crisis management team mandate

Provider of Fresh and Convenience Food ProductsRegional Leader, fast growing

Ad hoc crisis coms support in fraud caseReputational risk mitigation scenarios

Development of crisis messaging and instrumentsBoard member and management team trainings

Event, AGM and media relations support

Social and Health Insurance Plan Provider

560 FTE, Sales CHF 88m, SME

Change and crisis communications preparationsManagement trainings

Development of wording and storiesExecution of story in presentations and events

Roll out event support

Electrical Installation and Services ProviderFMCG, Global Presence

Evaluation of reputation risk exposureDevelopment of reputational risk scenariosBoot camp style crisis simulation training

Management trainingMedia training (radio, TV, press)

Supplier of Branded Products200 FTE, Broad Service Offering

Media relations and corporate coms supportCommunication support in crisis situations

Development of presentations and brochuresAd hoc management communication coaching

Media Service Provider, SME, Sales Organization

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Reputation is...

4

„We hold these truths to be self-evident, that all men and women are created equal.“

Reputation Rules.

Paris Hilton 27.600.000

Nicole Richie

2.210.000

21‘339‘572 (+99 within 3‘)

Despair

Reputation

Desperately Seeking Reputation

high

low

low high

Carlos

Mike

Orson

Victor

Tom

Edie

Bree

Susan

Gabi

Lynette

No USD Artist1 123.0 U22 94.5 Springsteen3 88.0 John/Joel4 82.5 Spears5 77.9 AC/DC

Pollstar Top 50 2009

Top 50 Global Best Sellers 2008(Physical and digital)

1 Coldplay Viva La Vida2 AC/DC Black Ice3 Various Mamma Mia!4 Duffy Rockferry 5 Metallica Death Magnetic 6 Leona Lewis Spirit 7 Winehouse Back To Black

Source: IFPI

11 Reputation. The New Gold Standard

0

1

2

3

4

4 5 6 7 8 9

Sensitivity of market capitalization to changes in reputational score

Price to Book

Reputation Score

Source: PWC, IBCM, Loepfe & Partnern = 41 NYSE listed and Fortune AMAC rated companies

y = 0.3336e 0.2596x

R2 = 0.5039

Reputationis the world‘sgreatest drug. (Georg Frank, well not quite...)

LeBron's Reputation Plummets, Will It Impact Sponsors? (NKE, MCD, KO)

Now, James is the sixth-most-hated sports star, behind the likes of Michael Vick, Tiger Woods, and Kobe Bryant. How did everything go down so quickly?

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“ Reputation, reputation, reputation! Oh, I have lost my reputation!

I have lost the immortal part of myself, and what remains is bestial.”

Cassio speaking to Iago in Othello, act II, scene 3

17 Reputation Matters? Merck‘s Perception and the VIOXX Announcement

Source: Eccles, Newquist, Schatz, HBR February 2007

19 Reputation Matters BP - Bad News Triggers Hookline

Source: Eccles, Newquist, Schatz, HBR February 2007

20 Global Top Ten Risk Categories All Industries

Please review the following risk issues and indicate the ten key risks for your organization.

1 Damage to reputation

2 Business interruption

3 Third party liability

4 Distribution or supply chain failure

5 Market Environment

6 Regulatory /legislative changes

7 Failure to attract or retain staff

8 Market risk (financial)

9 Physical damage

10 Merger/acquisition/restructuring

11 Failure of disaster recovery plan

Source: AON Global Risk Management Survey n = 320, whereas 223 public, 79 private; 33% EU, 48% US; revenues: 20% 15B+, 80% 15B-

21 Reputational Risk Readiness and Mitigation Ranking by Industry, Global

Source: AON Global Risk Management Survey n = 320, whereas 223 public, 79 private; 33% EU, 48% US; revenues: 20% 15B+, 80% 15B-

Rank Industry No.1 Risk identified Readiness in %

1 Food, Agriculture, Beverages Damage to reputation 67

2 Insurance, Investment, Finance Damage to reputation 64

3 Professional and Personal Services Damage to reputation 55

4 Natural Resources, Utilities Damage to reputation 47

5 Banks Damage to reputation

6 Wholesale, Trade Damage to reputation

7 Telecommunications, Broadcast Damage to reputation

8 Pharmaceuticals Damage to reputation

For each of the ten key risks identified for your organization, please indicate whether or not a plan is in

place or a formal review undertaken

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It takes 20 years to build a reputation and five minutes to ruin it.

Warren Buffet

„...total crap.“

April 23, 1991: „We also do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £4.95. People say, "How can you sell this for such a low price?", I say, "because it's...

...total crap.“

total crap

28Manic MondaySep 8 2008

Bloody SundaySep 7 2008

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Soufflé-Bild einfügen

«...Switzerland has been hit with a humiliating climbdown over tax evasion, banking giant UBS being dragged through the mud, an intensifying dispute with Libya and criticism over a vote to ban minarets.»

Defend

Hide

ValuJet AirTran

Cablecom UPC

WorldCom MCI

Blackwater Xe

Philip Morris Altria

Andersen Consulting Accenture

UBS «We decided...not to...»

Rebrand

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You can‘t manage reputation.Period!

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Reputation Management...doing things right...

Reputation Leadership...doing the right things!

Prism © 2010, Entertainment Buddha

Tell a Great Story.Be Amazing.Be Inspiring.Be Relevant.

Reputation Leadership...

Tell a Great Story

Communication

Los Del Rio - Macarena, Vanilla Ice - Ice Ice Baby , Right Said Fred - I'm Too Sexy, Dexys Midnight Runners - Come On Eileen, The Knack - My Sharona, Survivor - Eye of the Tiger, 4 Non Blondes - What's Up, Sinead O'Connor - Nothing Compares to you, The Cardigans - Lovefool, Soft Cell - Tainted Love, Europe - The Final Countdown, Lou Bega - Mambo No. 5, Aqua - Barbie Girl, Spandau Ballet - True, Haddaway - What is love, Ziggy Marley - Tomorrow People, Buggles - Video Killed the Radio Star, Lipps, Inc. - Funkytown, A-ha - Take on me, Frankie Goes to Hollywood - Relax, Wild Cherry - Play that funky music, Carl Douglas - Kung Fu Fighting, Gary Numan - Cars, Toni Basil - Mickey, The Weather Girls - It's Raining Men They all had one story.

Mainstream music is the boring attempt of boring artists to sell boring music to bored listeners.

Marketing...is ...the boring attempt...

...of boring companies... ...to sell boring stuff......with a boring story......to bored customers.

Reality? Sadly so!

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Banks

WeYou

Semantics

«The best way not to differentiate

What marketing brochures reveal about strategy;

is to emphasize traditional soft values such as

commitment, discretion, honesty, or stabilityand to highlight the prestige of an institution by using words like achievement, awards, leading or reputation.» Source: Differentiation and Positioning

in Private Banking: Arvetica, April 2008

Tell aGreat Story...

...ain‘t‘nough...

Be AmazingExcellence Rules

2.500 concerts35.000 songs played600 songs30 years11 members1 top ten hit1 band

The Greatful Dead• One of the most profitable bands, one hit in 30 years• Top customer service - own list and free newsletter• BoD, CEO, two year term, monthly meetings• Band and roadcrew equal salary, 70 FTE, social security• Alembic - own outsourced R&D department• Internal functions: Booking, production, merchandising• John Perry Barlow: "Want demand? give it for free!" • Own area for fans to record concerts, trade tapes• Cash: concerts/merchandising, double digit millions

They loved their fans and followers.Now that‘s Amazing.

They loved their fans

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Greatful BankWe Love to Serve.

1) Deliver WOW Through Service2) Embrace and Drive Change3) Create Fun and A Little Weirdness4) Be Adventurous, Creative, and Open-Minded5) Pursue Growth and Learning

6) Build Open/Honest Relationships With Communication7) Build a Positive Team and Family Spirit8) Do More With Less9) Be Passionate and Determined10) Be Humble

Zapppos CEO Tony Hsieh, Author of "Delivering Happiness"

...starts with a smile!

Reputation

Hire for smile. Train for skills.

Telling a story and being amazing still

won‘t get you a Rock Star Reputation...

Be Inspiring.Empowerment

Eddie Hazel (Funkadelic)Leigh Stephens (Blue Cheer)Stevie Ray VaughanFrank MarinoRobin TrowerPrinceRichard LloydJohn Frusciante (RHCP)Eddie Van HalenLenny Kravitz

Ten Guitarists Inspired By Jimi HendrixRob O'Connor

...inspired people do stuff of value that customers find memorable.

Tom Peters

Robert Trujillo

Do they do it for their organization?

Absolutely not!Do they do it for themselves?

Positively yes!

IPFInspire People First

Telling a storybeing amazing, and

inspiring people still won‘t get you there...

Be RelevantLeadership Mission

Ten Rules Of Rock Star, List of the Day, Rob O'Connor

1) Must Have Logo2) Must Act Overwhelmingly Serious3) Must Have Ridiculous Album Concepts4) Must Write Songs About Extraterrestrials/Medieval Times5) Must Write Songs About Rocking

6) Must Have Ridiculous Stage Props7) Must Eventually Play Amusement Park Amphitheatre8) Must Wear Leather9) Must Replace Drummer Regularly10) Must Have Long Hair

Answer the

“

U2 - Beautiful Day lyrics

Why

you

do what you do?

do

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Citigroup Mission Statement

„Any problem in the world can be solved by dancing.“

„Losing my virginity was a career move.“

They‘re Relevant

Because they all answer the question...

Why they do it

Who they inspire

How to be amazing

What their story is

Rockstar Reputation

Why

Who

How

What

Reputation Leadership

Okay Steve, now what do I do with

this Rock Star Reputation stuff on Monday morning?

1. Be Relevant.2. Be Inspiring.3. Be Amazing.

4. Tell a Great Story.

THANK YOU!© 2010 Steve Loepfe www.blog.loepfe.ch

© 2010 Steve Loepfe

blog.loepfe.ch

Stichwort Spitzenruf - Wo drückt der Schuh?4

www.spitzenruf.ch/countdown

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1. Prepare for potential problems.

2. Develop a crisis management process.

3. Plan your messaging, align structures.

4. Analyze and monitor your constituencies.

5. Provide as much certainty as possible.

Relevance of Communication Channels(Changes Past 3 Years, US CEOs)

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Question: Compared to three years ago, how has the influence each of the following information sources has on a company’s

business changed?; n = 200 CEOs; Source: BM/PRWeek CEO Survey, November 2009

Word of Mouth

Trade Media

Trade Blogs

WSJ/DJ

CNN

all News (pm)

NYT

Forbes

Business Week

all News (am)

Fortune

Time

Newsweek

0 12 24 36 48 60

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16

23

24

24

26

26

29

38

44

50

54

60

Jack Woltz in The Godfather (1972)

«And a man in my position can't afford to be made to look ridiculous!»

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Source: «A Comparison of Advisory Processes in Private Banking» © 2008 Arvetica/Bernet & Partner

For Reputation‘s Sake:People First – Client Second – Bank Third

Lessons for Leaders, Paul L. Gerhardt

«After all, nobody owns a customer.»

BTW...

Inspiring leaders encourage follwowers, not fans. Fans will follow you over a cliff. Followers will tell you before it‘s too late.