Long Version – 2,900 words
Image as a Part of Corporate Strategy:
Building Reputation and Results for Any Business
By Tom Gable
The major national media regularly rank the most admired corporations in America,
listing the core values that helped them gain fame. Is the effort just the business
equivalent of selecting most popular in the high school yearbook? Or should companies
and organizations concern themselves with image and reputation?
Definitely the latter. Studies over almost two decades show that intangible assets such as
reputation may well provide companies with a more enduring source of competitive
advantage than its patents and technologies. Reputation speeds growth on the way up and
protects against crisis or criticism should fortunes or the economy reverse or intrude. But
it’s not hype or spin. Companies, institutions and organizations can’t simply claim
leadership or the top ranking in quality, technology, community commitment or other
attribute. Achieving the desired position and enduring reputation requires investing in
your image strategically over time and providing ongoing proof of principle – walking
the talk.
Charles Fombrun, in his book, Reputation, notes that achieving prestige requires a longterm outlook toward building competitive advantage. His studies showed that companies
develop winning reputations by both creating and projecting a set of skills that their
constituents recognize as unique. Achieving uniqueness requires routine actions that
demonstrate credibility and earn the trust of key constituents, Fombrun notes. Studies by
Fombrun and others (Leslie Gaines-Ross, CEO Capital; Ronald J. Alsop, The 18
Immutable Laws of Corporate Reputation) show that the most respected companies built
their reputations by developing practices that integrated economic and social
considerations into their competitive strategies. They not only do things right, to quote
Fombrun, they do the right things.
A reputation develops from a company’s uniqueness and identity-shaping practices that
lead multiple constituents to perceive the company as credible, reliable, trustworthy, and
responsible. The best companies, organizations and institutions become strategic and
visionary about how they want to be known one, two and three years from now and
beyond. They build image into their corporate strategy, then develop the culture and
operating practices that bring the reputation to life for all its target audiences, turning the
name and brand into a valuable asset with everyone it touches.
The results? A strong image and positive reputation have a positive impact on growth
versus peers in profit margin, employee morale, community goodwill, investor support,
relationships with vendors and suppliers and overall organizational pride. Publicly traded
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companies enjoy higher price earnings multiples than their competitors are also
buttressed by reputation on the downside based on trust and respect developed over time.
How to get there? It’s not a one-shot or one-year or even two-year program. Based on
extensive, ongoing research and experiences working for a wide range of clients for more
than three decades in good, marginal and bad times, eight key areas emerged that provide
a foundation any company can use to incorporate image as a part of its corporate strategy.
1. Analyze the Competition
How do you want to be known over the next two to five years? What do you stand for?
Do you own a category or niche? Do you have competitive advantages? Can you clearly
differentiate against the competition?
For a quick exercise, Gable PR recommends creating a competitive matrix. List your
firm’s name and those of your key competitors across the top of consecutive columns in
an Excel spreadsheet or Word table. Then, in separate boxes below the names, put in each
organization’s tag line in one box, descriptive clauses (usually found in the first
paragraph of a news release) in another, news release boilerplate language (the “about”
paragraph in a release) in another, and any other key words or positioning statements you
feel should be included. This gives anyone the ability to scan across a row and see the
array of claims, exuberant copy, hyperbole and largely empty claims.
Does everyone sound alike? Do they claim leadership? Do they provide proof? Can any
of the claims be substantiated? What’s there? More importantly, what’s not there?
Use this to start brainstorming on your points of differentiation. For added entertainment,
hide the names at the top, pass out the matrix to your cohorts and see how many of the
organizations can be identified (we created a 11 column matrix for a technology client
and the CEO could only identify his company, which turned out sounding particularly
daft versus some of the others; and a real estate developer, given a similar challenge,
identified two of eight).
Empty claims abound. Our research of news releases issued over Business Wire and PR
Newswire over a one week period showed that more than half of all companies claimed
to be a leader in their industry or niche. Few provided validation. A significant number
inflated the news with pompous, self-serving quotes where they inevitably said how
excited they were to report this latest achievement (for examples of lame quotes, check
out the story at www.gablepr.com/news_center.html in the Insights/Tips section).
2. Establish Core Values, Positioning
With the research done, brainstorm internally on what the company wants to stand for
over time – its desired positioning above all others. Then, determine the three or four core
values that are the foundation of what the organization stands for – its differentiating
elements (i.e. culture of the highest integrity, quality construction, technological
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innovation, shareholder return, hiring the best and brightest, giving back to the
community, investing in innovation, solving unmet medical need, etc.).
Can you truly be identified as a leader? If not, think about the proprietary processes or
other differentiator. Michael Porter of Harvard, in his landmark book, Competitive
Advantage, talked about differentiating along the entire chain of value a company or
organization provides to its many constituents. Examine every link in a chain. What
attributes of each can demonstrate value and help you stand out from the competition? If
quality is your differentiator, how does that play in each link? This creates great PR
opportunities. You can promote the quality of each link and its accomplishments. Then,
wherever people turn, they are seeing evidence of your reputation as it grows. As Porter
noted, you tangibilize the intangibles.
Once you’ve arrived at these pillars of your image and reputation, candidly assess
whether you can provide supporting evidence – proof of principle -- for these core values
over the next three to five years. If the answer is yes, press on. If not, reevaluate.
3. Target External Audiences
Make a list of your multiple target audiences and think about how each receives its
information and the most influential channels of communication. This will be important
to building a strategic plan to reach each with consistency, not just with compelling
messages but with actions that support your position.
Building reputation with multiple audiences is mandatory. Audiences, no matter how
narrow, don’t operate in isolation. A landmark book, Diffusion of Innovations, by Everett
Rogers, of Stanford, analyzed the introduction of innovative products and technologies.
He found the most successful build communications channels and relations with the
leadership of each constituency, or network. These leaders, in turn, communicate to their
personal networks. With science, technology and other narrow fields, the networks often
overlap at the top, buzz builds and reputations grow. We come to judge companies by
what we hear from trusted sources – the media, peers, informal and formal networks,
influential leaders through the community, an industry or a region.
In one highly successful case, Gable PR built credibility for a new technology among the
academic leaders in the field prior to commercial introduction. The next step was to
educate the most important media covering the emerging industry. They were pointed to
the academicians for validation. Subsequent media coverage and reputation among the
academic community provided validation to the investment banking community, which
then invested significant capital in the company on the way to a successful IPO with a
higher valuation than the company’s peers.
The same multifaceted approach has been used successfully in building reputations and
supporting growth for new biotech companies, research institutions, scientific
applications, software products, professional and financial services firms and in crisis
communications.
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4. Create a Compelling Vision, Evocative Messages
How do you communicate with consistency to each while constituency while building
image and relationships in the process?
From the core values and targeting, determine how you want to be known with each and
then begin creating the foundation for an integrated messaging strategy. Most
organizations waste a lot of time talking to themselves and creating vision and mission
statements that appeal to internal audiences. To test your statement, read it to a couple of
business acquaintances or outside advisors. If you get either dead silence, quizzical
expressions or howls of laughter, go back to the drawing board.
For external audiences, create a 30-second to 60-second elevator pitch. Imagine you are
in an elevator with a potential investor, editor, customer or congressman you want to
influence. Can you deliver a compelling message? Assume a short building. Summarize
vision, position, points of differentiation, where the market is going, why you are
wonderful and next steps (for a free outline on how to create an elevator pitch, email
tom@gablepr.com with “Elevator Pitch” in the subject line).
Then, delve into the company lore to find real stories that bring your vision, position and
core values to life. According to Dan Hill, Ph.D., in his book The Body of Truth, good
stories connect with your audiences and enhance corporate branding. Telling real stories
with passion and personality can help differentiate an organization. Companies build an
emotional aura around themselves, Hill notes, and “by going deeper and wider, a
company can hold off the competition and get closer to consumers.” Think about mining
every nook and cranny of your corporate labyrinth for stories that provide supporting
evidence for the desired reputation and your core values.
5. Draw the Strategic Road Map
Creating an enduring image and reputation doesn’t just happen. It requires a disciplined
approach similar to building a great skyscraper or an award-winning new community. Set
the vision and then develop a master time line over the next two years to begin bringing it
to life. Use project management software or other tools to plot your plan and essential
elements. Ramp up strategically. Build the solid foundation of core values, and then
determine how the evidence will roll out consistently and with creativity and personality.
You’ve identified the target audiences and analyzed their critical dates and known events,
plus their major sources of information.
Then, add the key company and industry milestones and other proofs of principle, such as
new product launches, media or analyst tours, grand openings, analyst reports, published
studies, sales milestones, corporate milestones, breaking ground on a new facility,
announcing results of important medical research projects, and presentations to major
conferences, to name a few. Analyze what’s there, then the flip side: what’s not there?
What is missing? Brainstorm on how to take the plan to an even higher level.
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When looked at in the macro, individual elements can be orchestrated to create
significant image momentum. Leverage one activity or milestone against the others, such
as using positive media relations to impact analyst relations, analyst relations to impact
shareholder relations, and timing these activities in advance of a major trade show with a
new product introduction or release of new research data. Then repeat over time.
Promote your core values. Don’t just send things out to different targets; build
relationships. Determine how to involve strategic partners or others in building the image
through joint ventures. Schedule advertising, direct marketing, e-mail marketing and
additions to all your social marketing outlets to impact just after a media relations blitz.
This isn’t an ego trip for the CEO and generating media clips to show the grandkids. It’s
about being human, telling stories, and bringing an organization to life in new and
creative ways. Culture can be another differentiator. Is it collegial, innovative, and quirky
in a positive way? The heart and soul of an organization can become a powerful
differentiator. The people bringing these attributes to life among multiple constituencies
become ambassadors to further build the organizations’ reputation and long-term
relationships.
6. Assemble the Tactical Tool Kit
Programs need to be segmented to hit each channel and then implemented with the
specific tools best suited to driving results. These can include internal relations and
communications, media relations, community relations, corporate contribution programs,
social networking (Blogs, YouTube, FaceBook, etc.), special events, trade show and
conference programs, cause marketing, direct marketing, e-mail marketing, advertising,
Web sites, collateral material, guerrilla marketing and other tactics. To reach narrow
segments usually requires more direct, personal approaches while consumers and
investors can be influenced best through media relations.
7. Dare to Be Measured
Establish key metrics to measure how the image builds according to plan. Start with
quantitative and establishing what will be important to your organization, such as
tracking the trends in numbers of releases, amount of coverage, speeches made, seminars
held, blog postings, hits to the Web site versus historical patterns, calls to 800 numbers,
email requests for information, daily stock volume, stock price versus your peers and
whatever other measures are appropriate. Watch trends in each area on a regular basis to
see if adjustments to plan are required.
That’s raising the noise level. A tougher but more important measurement: qualitative
analysis at regular intervals to determine if the positioning is getting through and helping
move the reputation in the desired direction. This involves analyzing the content of media
coverage, correspondence, blogs and other sources. Conduct a baseline analysis when the
program is launched, then can measure progress at least once ever 12 months and
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preferably every six months. This allows for more rapid course correction should the
program not be evolving as planned.
Another consideration: share of voice. Are you rising above the competition in amount of
positive coverage? Some companies with huge budgets spam the world with news
releases yet end up with little share of voice because the messages don’t get through.
With creative thinking, walking the talk, telling good stories and pursuing a policy of
hype-free communications, even smaller companies can rise above the clutter and
cacophony generated by the behemoths. In our experience, small, creative, nimble,
intelligent companies with solid core values, compelling stories and personality can grab
attention and market share against the biggest companies in the world.
In one instance, a start-up digital microwave company launched a new product in an
existing spectrum that caught the two dominant companies (combined 80 percent market
share) by surprise. The founders had personalities and they chose to pursue a reputation
based on technological superiority and speed to market with a substitute innovation for
what existed and was more costly. They selected their first customers based on cachet
and name value – the dollar sales didn’t matter, the stories that supported the desired
reputation did. They introduced the new product as press conference with a magic theme
where they blew up a model of a competitor’s product to reveal their product inside – at
one-fiftieth the size and hours of installation required versus days. Long story short: the
technology was superior (proof of principle), the founders interesting (they soon became
viewed as visionaries in the field) and the reputation grew (the company gained market
share, went public and even irritated the market leaders, who wrote defensive letters to
trade journal editors complaining about coverage of the new company).
In another case, a small medical device company with a new concept for a portable
oxygen system sought a reputation as an innovator and technological leader to drive
sales. Through public relations, a steady stream of positive patient stories and personality
features, it went from zero to more than 50 percent market share in 18 months against a
division of a billion-dollar company. It established many metrics to track progress,
analyzed and brainstormed regularly on new approaches to outflank the competition.
8. Ongoing Reality Checks
Beyond the metrics, organizations need to conduct ongoing reality checks of their
messaging to make sure they are communicating with their different constituents, not just
themselves. Another test: are you stuck in jargon land? How do your messages compare
against respected competitors or companies you admire in other niches? Do the core
values and central themes come through in all that you do? Or are you just adding to the
volume of hype, jargon and unsubstantiated claims of leadership? Analyze and adjust as
needed to ensure you are being true to your image and reputation.
The Bottom Line
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In summary, incorporating image as a part of corporate strategy and investing in
reputation management requires a diligent, strategic approach. The approach needs to be
creative, consistent, targeted, and factual in support of an organization’s long-term
business and marketing plans. Investing in a quality image and the steps it takes to get
there has been proven to provide an ongoing return that organizations can measure in
many ways, from internal pride to the bottom line (and maybe reaching the top of a few
lists of the most admired and successful).
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NOTE: Tom Gable (tom@gablepr.com, founder and CEO of Gable PR, has been in
the PR profession for more than 30 years. A former financial journalist and Pulitzer
Prize nominee, he is author of The PR Client Service Manual and a frequent speaker
at national conferences and teleseminars on jargon-free public relations, creativity,
strategic reputation management and crisis communications.
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