the mount vernon report spring 2011

8/7/2019 The Mount Vernon Report Spring 2011

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Michael Yaremchuk MD is one of the world’smost gifted plastic surgeons. (Full disclosure:Dr. Yaremchuk, who leads the Boston Center,

a world-renowned plastic surgery center located inBoston, is a client.)

I once asked Dr. Yaremchuk if he was aware of theworld’s rst full face transplant, an amazinglyintricate surgical procedure performed for the rst

time in March of last year. The ever understatedYaremchuk, who is the chief of Craniofacial Surgeryat Massachusetts General Hospital, said he had notperformed the particular procedure, but that he hadtrained the doctors who did perform it. When Mikeis not reconstructing trauma victims’ faces and skulls,he is engaged in the art of renewing former beauty.He brings people back to a near-natural aestheticperfection through cosmetic surgery.

Dr. Yaremchuk is pioneering a new technique toeliminate crow’s feet around the eyes, and it’s not thetypical face lift approach. He says people don’t getcrow’s feet primarily because of stretched or saggingskin, but more because of the deterioration of orbital bones below the eye. The solution, it appears, is to build up this area with surgical implants and, voila –no wrinkles.

Dr. Yaremchuk improves what we see by improvingthe structure. The same rules apply to a reputationmakeover. Certainly there are supercial techniquesthat can mask or cover up old mistakes and reputationerrors (big and small). But the best way to restore areputation is to look at and reform the underlying

structures and practices that led to the problemsthat caused the reputational loss in the rst place.

Another lesson of reputation management learnedfrom the plastic surgeon and complementary practiceof dermatology is the precaution of asking the reason“why” before you attempt any makeover or change.CEOs and other executives are often unhappy withthe way they and their companies are viewed in theoutside world. Some even have a victim complexwhere they believe they are misunderstood, not thatthey need to reform or change their behavior. This

myopic view can be fatal for a reputation. So, a candidself-assessment is recommended before attemptingany makeover.

It is also useful to determine whether the changesyou seek are more a matter of hygiene. You know –making sure your teeth are clean and straight andyour hair is well groomed or that your wardrobe ismatched to the culture you are leading. For corporate

reputation, hygiene means you want to make sure youhave addressed the basics: your website is in order,your customer service desks are answering the phoneson time, your customer complaints are looked upon asopportunities to win customers for life and not viewedas drudgery. Make sure everybody smiles and thecorporate environment is uplifting and motivating.Walk around your company building – you will pick up the vibe, good or bad.

It is also useful at the outset of a reputation makeoverto decide whether you seek little changes or a com-

plete transformation. The former is easier to do, butthe latter is really about major reassessment andrecalibration of business strategy. In some cases, thiscan take years. But, if the organization can learn toembrace change, then that is the rst step to yourreputation recovery and renewal. First, you mustrecognize that you want reputation to become a coreconcern for the enterprise. Address the underlyingstructural problems affecting your reputation and itspositive aspects will shine through.

This issue of The Mount Vernon Report addresses thecore aspects of a reputation makeover and how you

can leverage your reputation for corporate success.The next time you are tempted to take a quick x to areputation problem, look rst to the underlying cause.Then, and only then, can you make the necessarychanges for reputation improvement.

Peter Morrissey can be contacted at [email protected] Excellence Blog: morrisseyco.com/blogTwitter: @Morrissey_Co



In some cases, it might be obvious that an organi-zation needs a makeover (think BP after the oilspill, Merck after the Vioxx incident). But, in somecases, in many cases, in fact, it is not that obvious.

You may believe your organization is in a good place

– you realize continued year-over-year growth, youremployee turnover rate is low, things feel stable. But, if your reputational assets are underutilized, that goodplace could be a much better place.

As red-blooded Americans, we all believe in the freemarket – just because I make a dollar, that does notmean there is a dollar less for you to make. You canthink about reputation the same way; the pie is not anite size. If you look at yourself and you don’t seean Apple or a Johnson & Johnson, you could. (If youare not leading, your goal should be to be at or nearthe top quartile in your industry.)The important thing to rememberis that it’s not a zero sum game;audiences don’t have a limitedamount of trust.

We nd that most managementteams fall into two categories:Those who believe their productspeaks for itself, and investing inreputation is a mutuallyexclusive strategy; or

Those who believe theiraudiences are already aware, andthe current state/status quo isgood enough.

There is no reason that every company with a greatproduct should not have a corresponding world-class reputation, like Nike, The Red Cross, or Ashoka.But, unless an organization has objective evidencethat they are regarded as a world-class entity by allstakeholders (including potential stakeholders), theirresources for constructing and maintaining reputationare underutilized.

If broad audiences know about and support the greatwork you are doing, you can do even more of thatwork. A few examples of great enterprises that I amwilling to bet most of you are unfamiliar with:

cu wk s (cws) – This Boston- based non-prot has been in business for more than130 years, but remains largely unknown. They donoble, important work – helping low-income Bostonresidents nd the path to self-sufciency. CWS trainspeople for hospitality and service work, helps them

secure jobs, and then grow in those jobs. In recentyears, CWS has placed more than 400 graduates in jobs with local restaurants and hotels.

Z m – Zoll (NASDAQ: ZOLL) isheadquartered in Chelmsford, Mass. and employs

approximately 1,600 people. The company has solid brand recognition and a strong, positive reputationwithin its niche in the medical device industry andamong its investors, but broader recognition is limitedThe company possesses an excellent opportunity toposition itself as a thought leader through leveragingits unique product LifeVest, and signicant industryand leadership expertise.

20x200 – I just learned about this myself when I askeda colleague for an idea for this piece. 20x200 is essen-tially an online art gallery. Jen Bekman, its founder,

opened the “gallery” in 2003with the mission of supportingemerging artists and collectors,and making art available foreveryone. 20x200 has gainedtraction in print media andonline, and will hopefullycontinue to build awareness.

For organizations that needa makeover, it’s critical torecognize that existing reputa-tion is both an asset (something

you can derive value from) andalso a liability (a makeover is nota do-over – you can’t start fromscratch).

Consider what organizational strengths exist – whatyou can, and should, capitalize on. The next challengeis identifying the hurdles that have stood in the way(or prevented you from establishing the reputationyou believe your organization could have) and theweak links (or the things that are undermining yourreputation). Where are the barriers and vulnerabili-ties you can address now, to proactively eliminate the

need for another makeover in the future? It’s alsoimportant to consider that the more you make your-self over, the harder is it to maintain credibility.Trust is a hard thing to win, and even harder tomaintain. BP’s attempt to go from “British Petroleum”to “Beyond Petroleum” is a perfect example of amakeover lacking substance. A makeover is authentic and effective only when acompany’s actions support its words, when it issincere. While this example may be cliché, it is

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Trust is ahard thing towin, and even

harder tomaintain.

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The last decade showed the rise, fall and recov-ery of many reputations. When looking back,one cannot help but notice that the particular

entities in question have, with time, experi-enced a plateau in negativity if not a complete imagerecovery. This begs the question, if reputations arecyclical and all one needs to recover is time, what isthe purpose of reputation management?

According to the Harvard Business Review , 70 to 80percent of market value comes from hard-to-assessintangible assets such as brand equity, intellectualcapital and goodwill; thus organizations are especiallyvulnerable to anything that damages their reputations.However, recent reputation news has proven thatmany companies do not regard their reputations with

this level of respect.

In my brief time in the reputation communicationeld, I have observed three reputation categories:those entities that are in self-inicted crisis; entitiesthat make a calculated dip into their reputationreserves for bottom line improvement or controversialnewsworthiness; and those that seem to just not care.

In the rst category, it is safe to say that inevitablyall businesses or industries run into a predicament.Be it an ethical gaffe, a merger or acquisition, or anyother destructive path, every business will face the

fate of their reputation at least once. In this scenario,the value of a reputation makeover is priceless. Take,for example, the American automobile industry. Fordecades it has experienced a declining reputation based on its supposedly poor quality cars. But at theturn of the bailouts and nancial decline, companiessuch as GM and Chrysler did the work to rise againas America’s transportation sweethearts. According toCNNMoney , GM recently withdrew its applicationto the Department of Energy for a $14.4 billion loan,citing a promising nancial position – one which mayhave resulted from GM’s timely customer pursuit andincentive programs after Toyota’s reputation blunder.

The second category includes those who purposefullytake the risk, dipping into their established reputationpool for the sake of their bottom line or newsworthy

controversy. For example, consider Groupon’s recentSuper Bowl advertisement blunder. This is a riskystrategy, and as with all risky propositions, there aregreat gains and losses to be had. The reputationrepercussions are still rolling in: Groupon CEOAndrew Mason has had to issue not one but twoformal apologies and pull the $3 million televisionadvertisement; the soon-to-be-public company hastarnished relations with Tibet and China; andGroupon has left the door wide-open for deal-of-the-day competitor LivingSocial, which recently accepteda $175 million investment from Amazon. That is oneexpensive reputation calculation.

Lastly, there are industries which by nature of theirsize or service, seem to maintain a dichotomy of continued operations and poor reputations. Thesewould include utilities companies (Unitil), telecommunications (AT&T), public services (MBTA), and evensome religious institutions (the Catholic Church) –industries where customer service and managementseem to be mere suggestions. No matter how muchwe complain about rising energy bills, poor cellservice or crowded bus rides – we depend on theseorganizations and therefore decrease their sense of urgency to x themselves.

So what is the purpose of reputation management?Reputation is neither nature nor nurture, but a strate-gic combination of the two which requires brands to be cognizant of and actively participate in their ownprograms. While you may be able to stick your head inthe sand and survive, you will most certainly get moreout of your brand if you are engaged.

~ Shannon MullenTwitter: @shanmul

cliché for a reason – consider Johnson & Johnson afterthe Tylenol capsule poisoning episode (way back inOctober 1982). The company made itself over based ondeftly managing this crisis. Johnson & Johnson madecustomer safety top priority, and as a mother, they’vewon my trust.

Last year, Johnson & Johnson pulled kids’ Tylenol

products off the shelves due to safety concerns, andI’ve been buying generic ever since. Every time I needa new bottle, I hope the Tylenol products will be back.The surprising part has been nding that I trust Johnson & Johnson so much that, when those prod-

ucts do reappear, I’ll switch back without a secondthought. I know the delay is due to safety, and I trust Johnson & Johnson to get it right.

Successfully managing your reputation and leveragingyour assets takes time and attention, much likemanaging an investment portfolio; your assets willnot leverage themselves. It might be interesting to ask

yourself now: where does my organization fall – good better or best? Where could we be?~ Megan Pag

Twitter: @meganmpag

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William Shakespeare wrote:

“Reputationis…oftgotwithoutmerit,andlostwithoutdeserving.”

A few centuries later, George Bernard Shaw said:“Myreputationgrowswitheveryfailure.”

The wit of playwrights aside, reputation can be a trickyissue, subject to the expectations of both time and place.As prevailing cultural attitudes shift over time, and as we jet set from east to west and back again, sometimes we’releft confused as to the proper way to behave.

However, as “relative” as reputation might seem, there arerules that you can follow to protect your reputation, no

matter the decade, century, country or planet you mightnd yourself in.

1. Understand yoUr peer groUp’s valUes

One of the easiest ways to tarnish your reputation is toinsult your peers, those whose opinion matters most to you.Understanding your peer group’s values will save you fromcommitting a dangerous faux pas. For instance, beforeentering a meeting with Japanese businessmen, an Ameri-can executive should spend some time going over Japanese business etiquette. Something as simple as pouring yourown drink is seen as offensive in Japan, so familiarity with

local customs is invaluable. By the same token, an olderexecutive should be familiar with the cultural sensitivities of younger employees. Politically incorrect language that mayhave own in past decades will likely be alienating now,and might even offend someone. Being conscientious of thecurrent culture will save you from earning a bad reputationwith your business partners, employees and customers.

2. don’t let popUlar opinion hold yoUrrepUtation hostage

The ebb and ow of popular opinion is as unpredictable asthe weather, but that doesn’t mean your behavior or your

reputation needs to shift with the wind. Establish areputable modus operandi and stick to it – more oftenthan not, the public will appreciate your consistency evenif they may not agree with you. Take, for example, DonaldTrump: we may not like his hairstyle or even his realitytelevision shows, but he was able to endure multiple bankruptcies and other controversies to remain a symbolof wealth and prestige. Even “The Donald” has learned thattruth trumps hyperbole and puffery.

By trying too hard to t in, you risk losing what makesyour reputation so valuable: you. People may not alwaysunderstand you, but they will respect you if you stick toyour guns rather than ip op.

3. don’t be fooled into wearing theemperor’s new clothes

In other words, do what you think is right, not what youthink is fashionable. If you’re gullible enough to wear theavor of the week fashion without knowing anything aboutit and without seeing its aws (perhaps it doesn’t work onyou), you lose your credibility. Anyone whose great aunthas tried to give them a “st pound” is familiar with how“keeping up with the Joneses” can turn ugly. If the threepiece suit is still working for you, don’t ditch it. Chancesare, if you’ve created a successful style for yourself, otherpeople will follow and you might just nd yourself the new

trendsetter. It is always better to have the reputation of aleader rather than a follower.

These rules will support a solid reputation, not only in thehere and now but in the future as well. If your reputation isresilient to both time and place, then you won’t ever needa reputation makeover, and that’s the best place to be. Theclassic never goes out of style. So just relax and do whatmakes the most sense given your surroundings. Nothing isworse for your “look” than trying too hard to do the wrongthing!

~ Doug FloraTwitter: @DSFlora

r e p U t at i o n a d v i s o r

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The Mount Vernon Report™

is published and copyrighted 2011 by Morrissey & Company, an independent reputation communications rm headquartered at 6 Edgerly Place, Boston, MA 02116. Permissionto copy and distribute is granted, provided that full attribution is given to Morrissey & Company. Further commentary or response to any of the topics discussed in this issue is welcome and should bedirected to 617-523-4141 or via e-mail to [email protected]. Printed on recycled paper. In an effort to conserve natural resources we have altered the format of The Mount Vernon Report to omit the useof an envelope. Design: Neville Design, Braintree, MA

Morrissey & Company6 Edgerly PlaceBoston, MA 02116

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the mount vernon report spring 2011

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