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REPUTATION
MANAGEMENT
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Management Extra
REPUTATION
MANAGEMENT
First published 2005 by Elsevier Ltd
References 96
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Activities
Activity 1 Assessing current attitudes 4
Activity 2 The wish image 11
Activity 3 Valuing the organisation 17
Activity 4 Handling complaints 23
Activity 5 Deciding whether to use an agency 31
Activity 6 Assessing brand values 40
Activity 7 Branding and attitudes 43
Activity 8 Communicating the brand 48
Activity 9 Managing the internal image 55
Activity 10 House journals 63
Activity 11 Managing change 69
Activity 12 Press releases 78
Activity 13 Ethical analysis 85
Activity 14 Establishing a crisis team 91
Figures
1.1 Hierarchy of information sources 2
1.2 Components of attitude 3
1.3 Creating a reputation 6
2.1 Comparison between adding value and maximising profits 15
2.2 Deciding which tasks to contract out 27
2.3 Establishing a brief 29
3.1 Commodity products versus branded products 37
3.2 Brands as a contact point 38
3.3 Strategic functions of brands 39
3.4 Co-ordinated and unco-ordinated messages 43
3.5 Levels of signs in brands 46
4.1 Issues to consider in designing a house journal 62
4.2 Providing information about change 66
5.1 Publicity, PR and press relations 73
5.2 Elements of good crisis management 88
Tables
1.1 Different images 10
2.1 Reasons for sponsorship 19
2.2 Types of complaining behaviour 22
2.3 Choosing a PR consultancy 27
2.4 PR evaluation methods 30
2.5 The evaluation research process 31
4.1 Internal versus external marketing 53
4.2 Tasks for improving staff perception of the organisation 54
4.3 The hierarchy of organisational needs 59
5.1 Tools of PR 75
5.2 Criteria for successful press releases 76
5.3 Elements of the mission 82
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Series preface
Series preface
‘I hear I forget
I see I remember
I do I understand’
Galileo
xi
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Introduction
xiii
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1 Image and reputation
Image and reputation are closely related but they are not the same.
Here are two aspects that help explain the difference:
Image Reputation
Is built Is earned
You have to create and promote A reputation is something you gain over
an image. It is very much something time through your actions. It is very much
you build to show others. what people see in you.
Is a cost Is an asset
You pay to create it and you pay to Reputation has a direct link to the bottom
project it.The more image-conscious line because organisations with good
your market, the more it may cost. reputations are likely to attract more
customers. It will also act as a buffer.
Direct experience
Organisation-generated
information
Reputation and image both affect the attitudes that people hold
towards an organisation. An attitude can be described as a tendency
to behave in a certain way towards something. A person’s attitude to
an organisation might, for example, affect whether they would
apply for a job or buy goods.
Figure 1.2 shows how attitudes are formed from three elements:
2
1 Image and reputation
Affect Cognition
Feelings about Knowledge about
the organisation. the organisation.
Image Reputation
ATTITUDES
Conation
Intended behaviour. Response
to the organisation based on
knowledge and gut feelings
Activity 1
Assessing current attitudes
Objective
Use this activity to analyse the attitudes of your colleagues and friends
towards the organisation. You can use the organisation you work for or
another organisation with which you are associated – a club or hobby
society would work just as well for the purposes of the exercise.The
objective of this exercise is to enable you to evaluate current attitudes
within the organisation; in many cases, this will indicate how attitudes
need to be changed. In cases where the attitudes might be deemed to be
appropriate, the exercise should help you consider ways to maintain
those attitudes in the longer run.
Task
Using the matrix provided, analyse the attitudes of your colleagues
towards the organisation. You can use the same matrix to analyse the
attitudes of outsiders (for example, friends or family members) in order
to make comparisons between insiders’ attitudes and outsiders’
attitudes. You will, of course, need to ensure that people’s answers
are brief!
4
1 Image and reputation
Feedback
5
Reputation Management
Each member of staff has the power to work well or badly, each
shareholder has the power to affect the share price, each customer
has the power to buy or not to buy. More importantly, each
stakeholder has the power to make or break the organisation’s
reputation simply by saying or doing the right things, or the wrong
things, when dealing with those outside the organisation. Therefore
reputation management starts with the stakeholders. These include:
♦ employees
♦ shareholders
♦ customers
The media
Reputation
Customers’ experience
of the organisation
Employee
behaviour
the key players whose needs must be met, and should seek to
establish a good reputation with those people.
In practice, organisations acquire reputations rather than develop
them. While it may be possible to re-establish a better reputation (or
at least a more appropriate one) this is likely to be off-putting to
some stakeholders, even if it is attractive to others. In practice,
managers are unlikely to be creating a reputation from scratch –
they are much more likely to be tinkering with the organisation’s
existing reputation to make it more attractive to some people, or to
make it more explicit to the stakeholders. Ensuring that all
stakeholders are aware of the reputation that the organisation has is
important since the reputation feeds on itself.
profitable, but each group will have a very different view on how
these outcomes are to be achieved.
A particular problem is that of meeting the needs of different market
segments while maintaining a consistent image. For example,
British Airways (BA) needs to appeal to business-class and first-class
passengers because these people are the most profitable segment of
the market. This means that BA aircraft have been adapted to
provide fully reclining seats in business class – in effect, a bed for
each passenger. For intercontinental travel, this has to be a major
selling point for business travellers, as anyone who has tried to sleep
on an aeroplane can testify. The downside is that this means less
space on the plane for economy passengers, and since many
intercontinental economy-class passengers are backpackers and the
like, this causes a problem for BA’s future reputation. Backpackers
are seen as a long-term investment by airlines, since they are
typically students spending a year travelling before going to
university – in other words, they are the future business-class
travellers.
Stakeholders’ interests are becoming increasingly important in the
age of accountability. Failure to take account of stakeholder needs
not only damages the organisation’s reputation, but can also lead to
lawsuits or other direct action. Other sections in this book examine
ways of avoiding these outcomes.
Types of image
1 Mirror image.
2 Current image.
3 Wish image.
4 Corporate image.
5 Multiple image.
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Reputation Management
Mirror image How we think others see us. Sometimes this image is the result
of self-delusion
Corporate image The image of the organisation, rather than the images of
its brands
Multiple image The many images put forward by the individuals working within
the organisation.These may or may not be co-ordinated
successfully
Company uniforms
Many American organisations like to present a single corporate
image by requiring staff to wear company uniforms. IBM had a
corporate uniform for its salespeople (blue sports jackets and
grey slacks) up until the 1960s, when a revolt by its French staff
caused the company to rethink – but even now, IBM salespeople
tend to have a similar appearance. Most IBMers wear dark suits
or trouser suits, white shirts or blouses, and conservative ties –
although there are no formal rules about this any more, people
tend to conform to the company norm.
This is not the only occasion when the French have refused to
go along with an American company’s plans to make them wear
uniforms. Disney laid down strict guidelines on the appearance
of its staff (even those who are not appearing as Mickey Mouse).
It requires men to wear their hair short and women to wear their
hair tied back. At Disneyland Paris the company met with a flat
refusal to accede to this requirement and was forced to back
down.
Sony put its workers in company uniforms shortly after the
company was formed. At the time, post-war clothing shortages
meant that many employees were coming to work in the rags of
their army uniforms. Akio Morita thought it would improve
morale if the workers were better dressed, so he did a deal to buy
a bulk supply of jackets and trousers. An unexpected spin-off
from this was that because executives and workers were dressed
alike, there was a marked increase in company solidarity.
Presumably French workers would have revolted against this
as well!
Activity 2
The wish image
Objective
Use this activity to find out what the organisation’s wish image is.The
purpose of this exercise is to assess whether the wish image is realistic
and attainable, and (in conjunction with the previous activity) to make
a comparison between what the organisation wishes its image to be,
and what its actual image is.This will enable you to consider ways of
closing the gap between what is wanted and what already exists.
Task
Using available corporate documents, determine what the wish image
of the organisation you work for is. You should be able to define this in
terms of the components of attitude: cognition (knowledge and
thoughts about the organisation), affect (feelings about the
organisation) and conation (intended behaviour towards the
organisation).
This wish image is unlikely to tally exactly with the actual image of the
organisation and there may be differences in the image the organisation
wishes to generate among different groups. If this is the case, there is
scope within this activity to analyse and record separately for each
group.
Typically, the wish image will be contained in such documents as the
mission statement, the vision statement, shareholders’ annual reports,
corporate advertising, corporate press releases and, occasionally, in
internal memoranda.
Use the table provided to record your analysis of the documentation.
Document What the organisation What the organisation How the organisation
would like people to would like people to would like people to
believe about it feel about it behave towards it
11
Reputation Management
Feedback
♦ Recap
More @
References
97