It seems that some things never change. The capacity of organisations, big and small, continually to make the same reputational and communication mistakes, for one.
The recent turmoil at the top of the UK’s Co-operative Bank and the catalogue of blunders, bad management and sheer incompetence (not to mention the personal peccadilloes of its former Chair, the Rev Paul Flowers) all reinforce the sense that we’ve heard all the excuses before and yet little changes.
And once again a huge amount of media and PR effort is being expended to retrieve the good ‘reputation’ that has been lost. But, to quote Warren Buffett: “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” In the case of the Co-operative Bank it was a reputation for ethical dealing that went back 145 years.
Surprising, then, that so many organisations and institutions still often appear more concerned with protecting their organisational image than with putting in place the long term measures that would equip them to cope successfully with the problems they face. So when the Co-operative Group tries to repair its tarnished reputation as an ethical organisation, but begins by cutting grants to charities and employing a high-powered firm of lobbyists, it shouldn’t be surprised that its reputation takes another hit.
Enduring reputations (as the Co-op once knew) are built on actions, not on clever PR, lobbying or marketing. A good reputation is created by people or organisations when they act in ways that benefit others — and the news that they are doing these good things becomes spread among a wider audience.
That’s why building, maintaining and repairing a good reputation is intimately linked with good, honest, straightforward communications. As Socrates said: “The way to gain a good reputation is to endeavour to be what you desire to appear.”
There is no substitute for doing the right things consistently, communicating what is being done, keeping your ‘stakeholders’ informed, telling the truth (not attempting a quick PR ‘fix’) and building trust and credibility over the long term. It’s a lesson the Co-operative Group — and any other organisation tempted to follow its example — would do well to learn.