ABSTRACT

In an age of over-optimization, and marketing and communications cost-cutting, “soft stuff”

such as brand management, press relations, crisis communications and the like are often
shelved or discarded in favor of “just-in-time” strategies.
 Poet Robert Burns is widely credited with the phrase, “The best laid plans of
mice and men often go astray.” Relating this phrase in a business context, it
Reputation Management
stands to reason no matter how much a company orchestrates activities and
executes its battle plans—high-impact mistakes happen. However, in an age of

– Not Needed Until It’s Needed

over-optimization, and marketing and communications cost-cutting, “soft stuff”
such as brand management, press relations, crisis communications and the like
Originally
are oftenpublished in MarketingProfs,
shelved or discarded July 19,
in favor of “just-in-time” 2010Indeed,
strategies.
reputation management isn’t needed … until it’s needed.

In an article from “The Observer,” John Naughton wonders in amazement at

how society ever managed without the Internet. Naughton ponders a world
without Google, Skype, instant messaging, and online bank accounts. And while
the Internet has created boom for most of us, the rise of social media hasn’t been
sweet ambrosia for all companies.

In fact, with social media and Internet technologies, now company decisions and
actions are mostly public, including those of front-line employees. Now, actions
that happened last week, last night, or 10 minutes ago can be broadcast across
the globe in seconds, creating very dangerous challenges for company branding
and reputation efforts.

In the Financial Times article “Perils of a Tarnished Brand,” authors Morgen

Witzel and Ravi Mattu notice that even the most scripted and orchestrated
product launches can go haywire. And even when “best-intended” marketing
plans are well-executed, companies can be exposed to the ramifications of their
daily operational and strategic decisions (e.g., Google in China and BP). “What
affects reputations, in turn affects brands,” the authors point out.

Every employee is a brand ambassador, and brand management is no longer

simply the purview of marketing managers. Even the best branding intentions
can go awry when actions don’t back up corporate speak, say Witzel and Mattu.
Of larger concern however, is marketing cost-cutting trends in the name of
efficiency that potentially leave brands and reputations exposed.

Robert Mabro, Honorary President of Oxford’s Institute for Energy, describes

this problem in a letter to the Financial Times. He writes, “(Companies) no longer
want to employ specialists in soft matters, such as political issues and the like.
When an accident occurs, they find themselves hopelessly unprepared. This of
course (ends up) destroying shareholder value!” Moreover, economist John Kay
sums up the problem quite succinctly, “Yesterday’s cost-savings are so often
today’s corporate crisis.”

One potential solution is for companies to invest more in “softer matters” like
brand, reputation, crisis and risk management. Undoubtedly, some of these
considerations are tough to justify in an age of narrow return on investment
marketing calculations such as cost per lead.

However, Internet and social media technologies that transmit events, news and
crisis accounts—at the speed of light—aren’t going away. To succeed in such an
environment, companies must invest in the softer functions mentioned above
even when “payback” doesn’t appear imminent.

It’s difficult to forecast all types of crises that could occur. A much better plan is
preparedness. Is your company up for the challenge?

Related: Financial Times “It Pays to Expect the Unexpected“

Fortune 500 marketer Paul Barsch writes about the intersection of

marketing, mathematics, globalization and technology. Find more of
his columns at Boundaryless Marketing.