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Archive for June, 2009

 

U.S. Reputation in Crisis: Does Obama Have a Plan?

Sunday, June 14th, 2009

Dr. Charles J. Fombrun is founder and Chairman of Reputation Institute, a private research and advisory firm based in New York, and a former Professor at New York University's Stern School of Business.

The U.S. is in a profound reputation crisis. The prestige of the world’s most powerful democracy, its leaders, its financial sector, and its largest companies are at an all time low. To address this reputation crisis calls for a comprehensive recovery plan. Although local economic investments, tax cuts, and a financial bailout of many companies, industries, cities, and states will be necessary components of such a plan, they will be far from sufficient. They must be matched by a dramatic change in the national conversation, and complemented by a set of targeted initiatives designed to capitalize on the wave of optimism and hope that have carried Mr. Obama into the White House. Only in this way can the United States rebuild the mistrust that consumers here and abroad now have of the U.S., its leaders, and its institutions.

Clearly trust in the U.S., its leaders, and its institutions is now sorely lacking. It explains the now tarnished reputations of once revered institutions such as Goldman Sachs and Morgan Stanley. It also explains the sudden disappearance from the corporate landscape of respected companies like Bear Sterns, Merrill Lynch, Lehman Brothers, and Washington Mutual. And it’s a costly process: In 2008, over $382 billion in market value evaporated with the demise of these four corporate titans alone.

If the U.S. today is in a reputation crisis, it is because we have consistently failed to fulfill the expectations of our key constituencies around the world. In doing so, we have lost not only the trust and support of the American public, but also the respect and admiration of the international community. The recovery plan we need from the Obama administration must go far beyond the ones Congress has passed. It must address how the U.S., its leaders, and its institutions will rebuild our damaged reputation capital by living up to the promises we have made to our global stakeholder community.

Dr. Fombrun is the author of numerous books, including the path-breaking best-seller Reputation: Realizing Value from the Corporate Image, first released by Harvard Business School Press in 1996. Dr. Fombrun has published hundreds of articles in leading management journals, and is the creator of reputation management systems used by many companies around the world.

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Highlights from RI’s 13th Annual Conference- 30 May 2009/Day 3 Continued

Tuesday, June 2nd, 2009

Rob Jekielek, Principal Consultant at Reputation Institute New York, highlights the plenary sessions of Dr. Janet Dukerich (University of Texas) and Dr. Marlena Fiol, (University of Colorado at Denver, Graduate School of Business Administration,  from Day Three of Reputation Institute’s 13th International Conference on Corporate Reputation, Brand, Identity and Competitiveness in Amsterdam, the Netherlands (28-30 May 2009)

This morning’s Plenary included two great talks on Identity.

What makes people proud to be associated with an organization? People say “I was an IBMer for 13 years” with pride. Would people say the same thing about working at Halliburton? And how would either identification change people’s behavior? In the first of the two talks Dr. Janet Dukerich (University of Texas) focused on these types of questions by looking at Multiple Professional Identities in Hospitals.

Her overall premise is that having a strong identification with a hospital system leads to support of that system (such as referring patients to a specific system over competing systems, and speaking well of the system).

Additionally, and just as importantly, Dr. Dukerich looked at the attractiveness of both a system’s identity (What does this system stand for?) and image (What do people say about it?) in determining the strength of identification. Dr. Dukerich’s research shows a positive relationship between the attractiveness of a system’s identity, external image, and strength of organizational identification. In addition, strong organizational identification was positively related to the support indicators listed above.

As with much identity and reputation research this finding reinforces the essential idea of perceptions about an organization being closely linked to how people act towards an organization. In addition, Dr. Dukerich’s findings re-iterated the need for recognizing that there are multiple identity targets in organizations and some may be in conflict with each other. So, it is essential to have a deep understanding of both what an organization stands for as well as how people think others see the organization.

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Why do people have very strong, polarized opinions about certain people and organizations? Ask people what they think about Wal-Mart or George W. Bush and it is certain that your will get many emotional responses. This is what Dr. Marlena Fiol, (Professor of Strategic Management, University of Colorado at Denver, Graduate School of Business Administration) looked at in her talk on Managing Intractable Identity-Reputation Conflicts These intractable identity conflicts are those where each group involved has framed a very emotional cause for its existence, often explained in polarizing stereotypes, with success seemingly only possible at its adversary’s demise.

Dr. Fiol’s specific research focuses on these conflicts in the relationship between doctors and hospital administrators in the U.S. The key means to resolve these types of conflicts, Dr. Fiol argues, is decoupling That is, recognizing that the ‘other’ is not all bad, ‘we’ are not all good, and there are areas of mutual interest. Her preliminary results indicate that the process of decoupling (at a specific medical center where her research was conducted) showed a decrease in complaints from both sides, a decrease in how ‘painful’ the work environment was perceived to be, and an overall increase in satisfaction.

To conclude, Dr. Fiol argues, that if an organization’s Reputation enhancement initiatives seem to be failing, one of the key things to look at is the identities that may be threatened. So, it is essential to decouple and acknowledge other organizations’ identities before attempting to project an organization’s own positive image. This is a key take-away for practitioner’s who are a) building a strategy for enhancing reputation with its stakeholders (you need to have a deep understanding of what your stakeholders expect before engaging) or are b) seeing poor results from existing initiatives (stop and confirm that your engagement has a primary focus on stakeholder expectations rather than just what you want to project).

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