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...
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„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
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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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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.