From our Human Research & Development Laboratory
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Can your reputation weather a nasty storm?
What's a Reputation Set Point?
A “reputation set point” is my term for the level of reputation
enjoyed by an organization or an individual as measured
over a length of time. It is like the rhythm of your heart. It is
also what social scientists call human "resiliency" when
referring to people who are more resilient than others to
crises and critical incidents.
A set point can change: It can go up and stay up, go down
and stay down, or react to an event and then quickly return
to where it was before. Organizations have reputational set
points and so do individuals, especially those in high profile
careers or professions like athletes, movie stars, politicians,
and CEOs.
The current strength of a Reputation Set Point determines
how well it reacts to a sudden crisis. A very high set point
means the organization is very healthy in terms of trust and
confidence, it recovers quickly from bad news, and it will
likely remain strong into the future.
Reputation Set Point Facts
Core Factors of a High Reputation Set Point
Organizations that have a high Reputation Set Point
demonstrate the following key factors:
We can work with you to both measure your current
Reputation Set Point among key stakeholders and to
enhance that set point through very targeted and
experience-proven interventions and actions.
A “reputation set point” is my term for the level of reputation
enjoyed by an organization or an individual as measured
over a length of time. It is like the rhythm of your heart. It is
also what social scientists call human "resiliency" when
referring to people who are more resilient than others to
crises and critical incidents.
A set point can change: It can go up and stay up, go down
and stay down, or react to an event and then quickly return
to where it was before. Organizations have reputational set
points and so do individuals, especially those in high profile
careers or professions like athletes, movie stars, politicians,
and CEOs.
The current strength of a Reputation Set Point determines
how well it reacts to a sudden crisis. A very high set point
means the organization is very healthy in terms of trust and
confidence, it recovers quickly from bad news, and it will
likely remain strong into the future.
Reputation Set Point Facts
- The higher the Reputation Set Point the lower the
impact of a crisis. - The higher the Reputation Set Point the shorter the
duration of the crisis. - The higher the Reputation Set Point the less
negative the impact on public opinion.
Core Factors of a High Reputation Set Point
Organizations that have a high Reputation Set Point
demonstrate the following key factors:
- A long history of exceptional service.
- The provision of am essential public need.
- Open, honest, and frequent communication of
actions to both internal and external audiences. - Little or no competition in its product or service.
- A high level of of public and employee trust.
We can work with you to both measure your current
Reputation Set Point among key stakeholders and to
enhance that set point through very targeted and
experience-proven interventions and actions.
The big myth about reputations
“A reputation takes years to build
and can be lost in a matter of hours.”
“A reputation takes years to build
and can be lost in a matter of hours.”
| Company "A" enjoyed a high level of public trust that stretched over decades. It delivered its services in an effective manner and had high levels of employee engagement. When a major crisis struck the company, a crisis involving ethical behaviour and effective leadership, the company took a small hit (measured through public, employee and client surveys as well as news media content-impact analysis). But it very quickly rebounded, drawing from its significant bank of "reputational capital." When a similar crisis hit Company "B" it had a moderate Reputation Set Point. It's reputation took a beating that was more severe and longer than Company "A." It eventually recovered its position and status, but not to the heights enjoyed before. Company "C" had a low Reputation Set Point when a crisis involving questionable corporate social responsibility hit it. It had nothing to draw on. Employee engagement was already low and public and customer opinions of the company were poor. The crisis hit hard, deep and quick. Company "C" never came close to recovering, which created a crisis in itself. |