(MENAFN- PRovoke) In the first of a series of articles looking at the impact of the Covid-19 pandemic on various industry sectors and practice areas, PRovoke Media interviewed several experts in reputation management about what they have seen, and what they expect to see going forward.
Participating in the discussion:
- Mike Clement, managing partner, Strait Insights
- Chris Foster, president North America, BCW
- Roman Geiser, CEO and managing partner, Farner (Switzerland)
- Kelly Jankowski, managing director of corporate reputation, MSLGroup
- Sandra Macleod, group CEO, Echo Research (UK)
- Robyn Sefiani, chairman and CEO, Sefiani Communications Group (Australia)
- Mark Shadle, managing director of global corporate, Zeno Group
- Micho Spring, chair of the global corporate practice. Weber Shandwick
Paul Holmes: What has been the impact in terms of reputation management?
Chris Foster: Many clients have had to adjust the tonality away from direct product or program promotion messaging to a more balanced message about their mission and its relevance in a Covid-19 era. Many organizations are focused on communicating about what they are doing to support their staff, customers and the community at large. Communicating in today's environment needs to be done in a way that's authentic to an organization or brand within the context of the Covid-19 response and recovery.
At the same time, while government and the news media remain very credible, we are seeing employees turning to employers as an increasingly more trusted source of information for issues that are important to them. So clear, compassionate and helpful employee communications are critical.
Mark Shadle : We are just beginning to see the impact of corporate actions and communications on reputation, with traditional and social media applauding the goodwill of some companies and calling out others as 'tone-deaf. It started with employee communications, with initial communications focused on what corporations were doing to protect their own employees and then evolving to what those companies are doing to contribute to the world outside.
The smarter companies see the worries and concerns of their stakeholders and address them head on. The full impact on reputation from all of this has yet to be felt.
Micho Spring: The key drivers of corporate reputation in this crisis are employees, their perception of how companies treat them, keep them safe, put them ahead of profits, reflect their values and inspire them by being part of the solution. As our research shows , employers who are communicating this effectively are seeing higher levels of trust.
Sandra Macleod : We asked our advisory board members five simple questions about the crisis, and we found that visible leadership is key: very active internal communications, daily updates and briefings/reminders. The way a company will treat and support its employees will be vital to its reputation.
Roman Geiser: Taking a recent study by the Reputation Institute as an early indicator, CSR-measures and workplace/internal communications were key drivers in corporate reputation. Also here in Switzerland, companies were generally seen acting in solidarity with society and taking their part in curbing the impact of the pandemic. In crisis situations individuals turn to their employer to seek guidance and our clients responded to it fast and with the right tonality.
Kelly Jankowski : With the entire world operating in a way that is not business as usual, actions are speaking louder than words and relevance is being built by being people first. This has to be authentically backed by the commitments companies are making to their own employees, which are driving consumer perception more than ever before. Many leaders have demonstrated a deep and profound commitment to people through their response, but going forward the challenge is how to keep that compassion at the forefront as business realities require harder decisions about operations.
Robyn Sefiani : CEOs are talking frankly, personally, empathetically and authentically, which is a refreshing change from the over-engineered, highly scripted interviews of the past. And the public is responding positively. This is a change that will hopefully continue beyond the current crisis. And major corporations are collaborating for the greater good that we've not seen before.
As communicators, we're all rapidly adapting to the new way of doing things. The media is so saturated with Covid-19 and financial hardship there is little room for anything else. The use of webcam video, webinars, Zoom and social and digital content to inform employees, customers, investors and other stakeholders is coming to the fore. And there is still an important place for news agenda surfing to provide informed commentary, with companies sharing their expertise and experience with others.
PH: What have been the priorities in terms of communications over the past few weeks?
CF : There is some very pragmatic information that companies need to convey to employees related to office closures, Covid-19 response, employee benefits and new policies in this time period. However, brands are also filling a void and providing people with understanding and compassion. We've also seen a dramatic increase in the frequency and variety of CEO and leadership communications.
MSh : Employees have been the number one priority for all of our clients—inform them, protect them, support them. We've seen a progression from crisis communications about the initial impact of the pandemic to more communications about how to adjust to a new reality that involves extended work from home, stay-at-home orders.
The real tension in the last two weeks is knowing how and when to act, especially for brands wanting to communicate to the marketplace or execute some campaign activation. We have been using a simple acronym as a decision filter: A-B-C-D.
The A is the Action, and specifically asking why the company wants to do something now, at this moment. B is for Benefit, asking who really benefits from the post, promotion, or announcement, recognizing it should not be self-serving. C is for Credit, asking who is getting the credit for the action, noting that this is not the time to chase headlines, but also acknowledging that its fine to demonstrate goodwill internally and build employee confidence. And the D is for Decision-Making, prompting the client to make sure whatever action is planned that it has support beyond marketing, including corporate communications, investor relations and others.
RG : The main priority was the safety and health of employees, closely followed by business continuity measures…. More often than not, attention therefore shifted from marketing to crisis communication and to internal communications.
MSp : Employee health and safety come first, along with providing the emotional support and guidance that employees need. Second are corporate efforts to support communities and society more broadly.
Mike Clement : Many communications functions are siloed both within formal communication functions and other functions such as investor relations or marketing. This crisis and every crisis demands unification of effort. Your leadership should be naming a single communications czar reporting to your crisis response team. This isn't just a big company problem. Even small companies have 'many communicators. A crisis is a time for command and control management. Name a communications commander.
SM : A permanent crisis management paradigm will reign externally for quite a while at least until the end of the wave, i.e. sometime late this year or early next year.
Long after it's all over, people will remember how companies acted during this unprecedented moment in time. Not just 'what' they did, but 'how' they behaved. This is the moment to demonstrate actively and compassionately the truth behind statements such as 'people first / people are our greatest asset .
PH: Are there companies that have done a particularly outstanding job in responding?
SM : I have been so heartened to hear of companies like Diageo, AB-InBev, LVMH, and Formula 1 teams like McLaren turning their skills and resources to provide needed sanitation and/or equipment to the hard-pressed medical services, along with the major food retailers in adapting opening times and offerings for the vulnerable and those in the front line—this is where leadership, innovation and inspiration meet to show what can be done.
MSh : Some sectors should be applauded, especially the global technology companies who showed up early with financial resources but who also led the way in offering support for non-full-time workers. The manufacturing companies who are retooling their plants to make masks, hand sanitizers, scrubs and other products offer a wonderful model for how business can fill a need that government cannot. Some retail companies erred by not closing their operations early enough. As we have told clients, the conversation will quickly change from the 'reasons we are closing to defending 'why we think we should stay open.
MSp : The good news is that many companies are responding to the situation well. Employers seem to be getting high marks in general from employees. In our latest research, 73% of employees expressed confidence in how their employers are handling the outbreak. We're also seeing brands step up with creative efforts to address needs—such as our client Pernod Ricard, which worked quickly to repurpose facilities around the world to produce much-needed hand sanitizer.
CF : Lots of companies are doing well and lots are making mistakes. We've all learned quite a lot in this time period, so it's also been a time of failing fast and learning daily. I think Microsoft has done a very nice job: they also have a product that we all need to work effectively while remote. Apple closed stores. LVMH converted three of its perfume manufacturing facilities to produce hand sanitizer. Our client Bank of America has pledged $100 million to support communities impacted by the pandemic. Companies are trying to help in any way they can. I've been impressed with quite a few organizations over the last month.
RG : Within Switzerland's pharma sector Roche Diagnostics can be pointed out for their great effort in increasing the testing-capabilities and gaining government applause for it. Swiss super market chain Migros re-launched a previously scrubbed social-shopping app to support neighbourly help for the elderly, who should not be going to the supermarket themselves. Swiss network provider Salt offered reduced rates for new contracts 'to stay in touch with loved ones or offered their kids pay-TV product for free during the time that schools are closed.
RS : Australia became internationally famous (or infamous) for panic buying and stockpiling of toilet paper when the Covid-19 threat hit our consciousness. There were fights in supermarket aisles and empty shelves. It's now being rationed, along with other essential items. In response, corporate communications from our two major supermarket chains Coles and Woolworths has been frequent and reassuring. In particular, Woolworths CEO Bradford Banducci has been highly visible, letting Australians know we have enough food (and toilet paper) for everyone, and that aggressive behaviour will not be tolerated. He also made a generous offer to the CEO of Qantas after two-thirds of the airline's staff were stood down: inviting Qantas employees to take up jobs stacking supermarket shelves and providing customer service at Woolworths.
MC : A number of national advertisers have begun to do exactly what needs to be done in all communications. These smart communicators are expressing empathy and support from their capabilities, not hawking product. In time, we must return to messages that drive revenue to help drive our economy and the health of our individual enterprises.
PH: What are the major communications challenges once the recovery begins?
RG : Communication challenges begin now, that the first immediate crisis response is through. Firms must communicate on how they plan to carry on with their business, before the reality of an economic downturn really settles in. The major challenge now is to communicate confidence, that either business can commence remotely or on online platforms or that customers can be brought back, once the lock down loosens. Explain what measures are being taken to protect the long term survival of an enterprise. These communication efforts cannot wait until recovery begins, but should start now to prepare a swift recovery.
CF : The recovery is not going to be a moment in time. It will be phase three of the Covid-19 era. We will see thing slowly evolve: people will slowly return to work, local governments will begin to relax the guidance on gathering in bars and restaurants, larger ad buys will begin to return slowly. The concern from a communications standpoint is that brands will need to be very respectful of where everyone is psychologically as we come back to a new normal.
We will need to monitor and understand how things are going to change and make sure to position clients with care. Covid-19 has really accelerated the future of work, the importance of larger societal purpose and employee engagement as a mission-critical function within businesses. Things will definitely change, but it's going to be a process that will play out over some time.
MSh : For management in a recovery, it will be all about articulating a new plan that conveys vision and confidence. It cannot be a back-to-business narrative. Entire markets have been redefined, some sectors will consolidate, mergers and acquisitions will emerge, and stakeholders will be looking to leaders for deliberate action plans. Clarity of vision and bold actions will be rewarded. Employees will want to know the future of their jobs.
MSp : Our research shows Americans are concerned about job security. Employers will be challenged to communicate how they're making decisions about returning to work. They'll also need to address how the workplace will change as we remain vigilant to a second wave.
PH: How will this impact the PR business short and long term?
MSh : In the short term, PR professionals will need to be even more diligent about insisting on facts and rigor in communications to internal and external stakeholders. Management and brands will become anxious with inaction and feel a strong urge to seize the moment, take the microphone and fire up the marketing machine. There are right ways to do this—and wrong ways. We have to be the voices of responsible behavior that is sensitive to the crisis around us.
In the long term, as vulnerabilities have been exposed, we will see a call for more crisis preparedness, as well as a need for corporate transformation work as companies retool for new markets in recovery.
CF : Communications could not be more important right now. We are counselling CEOs and leadership teams on how to communicate with all of their audiences, from employees to customers to investors. Other businesses are experiencing crises and challenges we are helping them to navigate through. We are working closely with clients to communicate through the now and to plan and prepare for the next. This is one of the most important times in history for smart, thoughtful and encouraging communications.
RG : In the short term, we expect turnover to be reduced by somewhere between 10 and 20%, as we see many campaigns or event related communications activities cancelled or delayed. On the other hand, we see the willingness to take necessary action, to bring business back up to speed. For example some tourism regions have announced major campaigns after Covid-19, and public transport providers plan for campaigns to gain back passengers trust in (possibly crowded) trains. Change management, restructuring, and internal communications are areas where we expect business to increase soon.
RS : As communicators, we're all rapidly adapting to the new way of doing things. The media is so saturated with Covid-19 and financial hardship there is little room for anything else. The use of webcam video, webinars, Zoom and social and digital content to inform employees, customers, investors and other stakeholders is coming to the fore. And there is still an important place for news agenda surfing to provide informed commentary, with companies sharing their expertise and experience with others.
The challenges? There are many. We're all having to be adaptable, flexible, agile, innovative, try new ways of doing things, be relevant to clients in different and meaningful ways. Charles Darwin said 'It is not the strongest or most intelligent who will survive but those who can best manage change. And so it will be for our profession.
SM : This will be the end of business as usual. For example, why should we commute to offices? Can we be more productive at home? Which of the activities we are currently giving up will we have to return to? How else might we live our lives? The situation prompts big questions that will surface as the immediate task of getting through this period of infection with as few casualties as possible. In the long-term, I can't believe we are going to go back to business as usual. Purpose, caring for people, our communities and wider society, will be require communications to not just be the messenger, but be the supporter of a wider action plan and narrative throughout the organization. Otherwise, what's the point?
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