Issues management a necessity in reputation stakes
Business plans today are becoming littered with motherhood corporate reputation objectives that create an issues management nightmare for an organisation and its Board.
This is highlighted in the sporting sector with claims of putting the 'best team' on the pitch and in the corporate world with delivering 'shareholder value', or being a 'good corporate citizen'.
When issues emerge which tests these objectives, corporate reputation can suffer. This is because corporate reputation is, in essence, what people expect from a company.
We also know that because reputation can be successfully measured through how it engenders positive support from stakeholders it also drives business results.
In an environment where up to 97% of companies believe they are competitive in a reputation economy, Boards need to be aware that in setting a key objective which can impact on corporate reputation, they must take into account all the issues surrounding the objective if it is to be achieved.
In fact, Board can no longer make decisions without regard to public and stakeholder perceptions.
Failure to do so puts the operations of an organisation at risk, as well as the communication process in seeking to achieve the objective and preserve the corporate reputation.
The consequences of the failure to do so is the spiraling emergence of other issues, KPI’s not being delivered, corporate cultures being eroded and the corporate objective not being met.
A good example is Australia losing 7 of its last 10 Tests in cricket.
Cricket Australia’s objective is to produce 'the best teams, players and officials in the world'. The objective is flawed because it opens up too many questions on how to determine or measure ‘the best' or when it will be achieved.
To reverse this trend, communication professionals, as the gatekeepers of corporate reputation, must have a well-defined risk assessment and issues management process in place that is understood by all parties, including the Board.
In fact, managing and mitigating risks (reputation risk management) should be second only to enhancing a business vision or strategy in today’s business environment.
The risk assessment plan must take into account all the issues surrounding an objective and, in turn, the issues management plan must have the strength, rigor and capability to ensure the communication processes can maintain or enhance a corporate reputation.
A cohesive issues management strategy in managing a reputation today is not an option, but a necessity. It is the basis of building trust, respect and support from stakeholders and, most importantly, it provides the foundation for sustainable reputation management.