A recent Deloitte Touche Tohmatsu Limited (DTTL) / Forbes Insights survey of more than 300 executives across the globe reveals the paramount importance of managing reputation risk for a company’s long term success.
In the “2014 Global Survey on Reputation Risk – Reputation@Risk,” a majority of companies, though confident their reputations were strong overall, expressed concern over risks that may emerge to tarnish reputations that have been built over decades. Indeed, only 19% of all companies surveyed awarded themselves an “A” grade for their ability to manage risk.
Read more – Reputation Risk Leading Company Concern in 2015.
I would like to add to the sentiments from this article, as I believe any organization can improve their “grading” just like a student can improve their grade with hard work and effort.
Psychologists believe that Awareness precedes Behavior change. So in order to improve your organization’s grading, start with this formula and apply it to the business.
Change == D+V+S+C
For change to happen a business has to:
– Be dissatisfied with its present state
– Have a clear Vision of where it wants to go
– Take the necessary steps to get there
– Create enough energy (or tension) to overpower the COST required (in terms of money, time and energy) to make the change happen
Covey talks about starting with the end purpose in mind. Where the organization sees itself to be is vital. In today’s environment change happens so quickly that organizations are often caught napping. Innovation needs to be a crucial value in any organization if it wants to stay abreast of change.
In terms of Reputation Risk, it is important to remember that:
– Reputation is an organization’s most important asset and most volatile risk;
– Your Vision should be to become an Admired Company;
– A Starting point would be to raise the levels of awareness about Reputation Risk in the organization. The way to do that is through learning experiences such as my Reputation Risk Management Master Class