You only get one reputation

Put a piggy bank on your desk and call it your visible reputation. Ask yourself every day and with every decision whether you are investing or withdrawing from your reputation, so that one day you do not find yourself reputationally bankrupt.  

The majority of business leaders believe reputation will be a bigger driver of business performance than margin in the next five years, according to the Signal AI “State of Corporate Reputation and Business Performance” report for 2022. In a South African context, there is a strong likelihood that this figure is significantly higher.   

 We live in a hyper-everything world, where information spreads at lightning speed and judgments are made in the blink of an eye, where the news cycle has become the news cyclone,  where woke is the new lens and reputation has become significantly more complex than ever before. So while we’ve agreed for some time now that, whether you’re an individual or a company, your reputation can make or break you, the time has come to really think about it as front and centre.  

 At the core, it’s about building trust, in our actions and not just our words — that adage that you behave yourself into a reputation rather than communicating yourself into it. The latest report by reputation data company RepTrak© says that organisations are getting better at communicating who they are, but are still demonstrating weakness in fulfilling broader reputation goals. The promise companies make is becoming stronger, but they are becoming less adequate at fulfilling them. This is where we should worry, and worry deeply. Why are companies — and their leaders in particular — still struggling to do what they say? 

 It is the greatest juxtaposition of the modern business. We should all be asking the hard questions that trigger the change we’ve been told about.  

 For individuals, reputation is built on actions, words and behaviour. It’s about being honest, trustworthy and respectful. It’s about delivering on your promises and treating others with kindness and integrity. Your reputation is not just about what you do in public but also about how you conduct yourself in private. In this digital age, where every moment can be captured and shared, even the smallest misstep can have far-reaching consequences. It’s the same for companies and their leaders.  

 The first thing most of us do when we meet someone for the first time or hear about a new company, is to Google them, looking for reviews, testimonials and any other information that helps us form an impression. That impression will be heavily influenced by the reputation they have established. 

In the case of companies, this comes with accelerated expectations and deeply exponential impact. In an increasingly competitive marketplace, a strong reputation can be the only differentiator. Consumers want to do business with companies they trust, and a positive reputation is a key lever in building that trust.  

 The challenge is a two-fold, Google one. First, we may only see the bad. For those of us who studied statistics, we already understand how a lack of balance in volume is amplified in the extreme and only makes the issue worse (not just appear worse). The second is that what “good news” exists may be shallow and self-serving (effectively just reinforcing problem number one). This, sadly, is not a communications problem.  

 The Financial Times recently published an article about companies needing to appoint a “chief political officer”. The intent is probably correct, but the emphasis is on the wrong word. Perhaps it should instead be a “chief reality officer” — because if your optics are only political your solutions will be too.

Even better, let’s refine it to “chief reputation reality officer”, and then empower this person to get things done, not just write the statements about the intention to do so.  Empower them to implement programmes of action and delivery; to own the strategy and then own the delivery. Empower them to implement accountability, to deliver clear, measurable and real results at board level. Empower them to own the reality and be the voice and heart of an organisation that keeps it real rather than just drinking its own cool aid.  

 While it’s always essential to be mindful of your reputation, it’s equally important to remember that you can't control what others say or do. You can’t control the rumours or false information that may circulate. However, you can always control your own actions and how you respond (or don’t) to these new-age challenges. By consistently demonstrating your values and acting with integrity, you can build a reservoir of goodwill that can help you weather any storm. Quite simply, it’s time to close the gap meaningfully. Time to rethink how organisations become more accountable for what they do and not just for what they say.

 RepTrak© reports that in 70% of cases, media scores (how a company is reported on in the media) are a leading indicator of the directionality of companies’ perception reputation scores in the following period of one to three months.  This alone is a powerful argument for any organisation to ensure that it is actively engaging in reputation management programmes that are action and delivery focused and that generate a bank of real news based on real action. 

 It ends in one clear space: the reality check on your own reputation management. Are you saying, or are you doing? Are the results real, or just projected? Is there leadership alignment and commitment? How can you do better?  

Look at your piggy bank and make sure you are not left reputationally wanting.  

The big take-out: Your reputation can make or break you. 

Liesl Williams is the managing partner at Razor Cape Town.