11/01/02
Now more than ever, technology companies must prove viability in every way
By Deb Hagen, Vice President, Text 100 Public Relations
Former Surgeon General Koop emphasized the importance of reputation when he said: "It takes years to build a reputation and just seconds to destroy it." Reputation is one of the most valuable assets of any organization. A good one is priceless. A bad one can cost a company untold amounts in lost sales and crisis management. These things are true in any business climate. But this is not just any business climate.
Corporate accountability is the issue du jour, with employees, investors and the media each examining every aspect of a company under the microscope. You can't pick up a newspaper, magazine or turn on the TV or radio without hearing about the woes of corporate America: lay-offs and closures followed by corporate scandals, eroding trust and sagging employee confidence. These events can decimate a corporation's reputation and ultimately affect product sales, partnership contracts, recruitment and of course stock price. Have you bought any Martha Stewart Living Omnimedia Inc. stock or recommended any joint media work with the company since June? In all business environments, and especially in difficult ones, organizations must take proactive measures to preserve their standing. What can companies do to restore trust and manage their reputations? First let's take a look at some of the challenges technology companies face today:
Shrinking media targets
There are tremendous obstacles to proving viability and building market share, not the least of which is the fact that the avenues to do so are shrinking by the day. Corporate spending is down dramatically. Publications once thick with advertisements and stories are so thin now you can almost carry the entire stack in the side pocket of your laptop bag. As we all know, less advertising means less editorial space and fewer journalists covering larger beats and more companies. This makes it even more difficult for a company to rise above the noise and effectively communicate its story to audiences.
Eroding corporate trust
The onslaught of media exposés on corporate scandal and accounting fraud have tainted the public's view of the entire technology sector. The onus is on corporations and the communications professionals that support them to combat the misconception that corporate America is corrupt and can't be trusted. Proactively tell your company's story and address negative perceptions in the marketplace head-on. We won't see any improvement in the trust department until investors start believing companies are delivering real value and running clean businesses.
Fear and uncertainty
Finally, all companies are dealing with a tremendous amount of fear and uncertainty internally and externally. Corporate downsizing, terrorism, the "War on Terror," and the overall state of the economy coupled with the declining stock market have taken a toll on the country's corporate employees. With warnings of future attacks, threats of more corporate layoffs and retirement investments dwindling, fear is at an all time high. Senior communications executives are challenged with guiding employees through turbulent times and building powerful internal allies to grow their business and present positive spokespeople to the marketplace.
This climate is driving some executives to lie low until the storm blows over. While it may seem the safest route, it's just the opposite. Lying low enables competitors to position - or more accurately - deposition your company. It also provides no guidance on what to say or how to handle questions your employees and executives receive from countless unofficial spokespeople - customers, partners, candidates and community members who influence your reputation every single day. If you want a good corporate reputation when we emerge into a healthier market, you should be paying attention to some few basic tenets of reputation management right now.
- Be honest and show real value. Now is not the time to "spin." If you've got bad news, talk about it honestly. If you have good news, share it - but don't hype it. Talk in terms of benefits to your constituencies. Amazingly, some folks still think hype will work. It won't. Companies need real customers, real products and services, and real revenues to prove value to customers and investors.
- Focus on performance and set reasonable milestones. Counsel your executive team to focus communications on company performance, setting realistic goals that they know they can meet. Then make the commitment public by sharing carefully selected key milestones in your internal and external communications.
- Choose a direction and stick with it. Consistency is key to creating a healthy following among employees and public audiences. Your communications must make it obvious your executive team is committed to their plan for the long term. Companies that waiver will find their audiences growing more and more jaded as they anticipate the next "flavor of the month."
- Do what you say you will. It's remarkable what you can accomplish by following this simple rule. Once you've lost trust, it is very difficult to rebuild it. You can build and even repair a reputation and regain trust on your ability to deliver on your promises.
- Celebrate milestones - even the small ones. Once you start hitting your milestones, prove momentum by consistently, factually communicating your progress. Celebrate your accomplishments with employees, communicate them to your investors and customers and take them public through the media and analyst communities.
- Invest in corporate communications. The more work you invest in corporate communications, the more strides you make in building and managing your reputation. According to a survey on managing reputation conducted by the Council of PR Firms, expenditures on corporate communications and positive reputation are interconnected.* When high income Americans were asked how they would behave with respect to a company they viewed as a winner, 58 percent said they would be very likely to buy that company's products. Make a commitment to build your reputation with a well planned and executed corporate communications strategy and you will reap the rewards of a positive reputation - even in challenging times.
< back
