Warren Buffet once famously said that it takes 20 years to build a reputation and five minutes to ruin it, and if you think in those terms, you will do things differently. So what can companies do differently to prepare themselves to withstand the turbulence of those five minutes? At the end of 2013 there will be 1.4 billion people in the word with a smart phone. The internet and social media offer an immediate outlet for consumers to access company behavior and, in turn, drive the dialogue. This obviously creates many challenges for companies, but every point of engagement with stakeholders is an opportunity to move beyond trust and elevate their brands in a way that will sustain them in uncertain times. Think of this as building reputational equity.
Stakeholders today are empowered, connected, and influential, and expectations for transparency are unrelenting. Social media platforms and the rise of the internet have shifted the power from the corporate office to its external audiences. In decades past, companies issued corporate statements and press releases and were able to move on to the next issue. But audiences today are complex and connected, and stakeholders now possess the tools and platform to drive the debate—either positive or negative. With the flick of a finger, anyone with a mobile device can access information about companies and easily share their opinions and experiences, thus opening a global dialogue about corporate practices. Technology has blurred boundaries; an issue in India may influence behavior in Canada. And it does not take large numbers. Research has shown that just 20 users of Facebook, a social media outlet with 500 million subscribers, are enough to move the needle and launch a new movement.
A company that wants to move beyond trust, and become what we at APCO have termed “Champion Brands,” must embrace and engage these unique actors in both the developed and emerging markets. APCO has developed a comprehensive framework that encapsulates what we know through our decades of research and synthesizes some of the best thinking on branding from over the last 20 years. The resulting framework maps out four key elements—Alignment, Attachment, Authenticity, and Advocacy—that are directly linked to building a Champion Brand.
- Alignment: Understanding and exceeding societal expectations is an essential first step, but not sufficient on its own.
- Authenticity: Building upon the foundation work of the Arthur Page Society on Authentic Enterprise and the transparency and ethical standards a company must hold at its core. This is the extent to which the company aligns its activities with its stated business objectives and its business objectives with its vision and values. Say what you mean, mean what you say, and do what you say. This builds trust, but we need to move beyond trust
- Attachment: Building a deeper emotional connection with the brand that not only establishes loyalty, but triggers consumers’ positive behavior. Corporate communications often overlook the power emotion can play in forging bonds with key audiences.
- Advocacy: Measuring how well a company applies its assets and expertise to advocate on behalf of the needs of society and stakeholders. Distinct from corporate social responsibility campaigns, in this model companies demonstrate advocacy when the very nature of their business adds value to society.
Each of these components is sequential, and companies must master the first level before achieving strength at the next. Advocacy stands at the core of a Champion Brand, explaining why you are in business in a way that works in common cause with your key audiences. It means acting on shared values and building your business while improving the society at large. This will ultimately allow companies to move beyond trust and truly elevate their brands in a way that is sustainable for the future.
In today’s inter-connected world, simply gaining trust will not be enough to withstand the fallout of those critical five minutes or to build your business in an increasingly competitive world. Every company has a bad day, which makes it essential to move beyond trust with their consumers, allowing them to prosper and endure in both good times and bad.
Margery Kraus is founder and CEO of APCO Worldwide. APCO has measured nearly 600 of the world’s largest public and private corporate brands. To find out how your company rates or to know more about building a global Champion Brand, contact her at mkraus@apcoworldwide.com.
This article was originally published in the Diplomatic Courier's January/February 2014 print edition.
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Moving Beyond Trust
January 13, 2014
Warren Buffet once famously said that it takes 20 years to build a reputation and five minutes to ruin it, and if you think in those terms, you will do things differently. So what can companies do differently to prepare themselves to withstand the turbulence of those five minutes? At the end of 2013 there will be 1.4 billion people in the word with a smart phone. The internet and social media offer an immediate outlet for consumers to access company behavior and, in turn, drive the dialogue. This obviously creates many challenges for companies, but every point of engagement with stakeholders is an opportunity to move beyond trust and elevate their brands in a way that will sustain them in uncertain times. Think of this as building reputational equity.
Stakeholders today are empowered, connected, and influential, and expectations for transparency are unrelenting. Social media platforms and the rise of the internet have shifted the power from the corporate office to its external audiences. In decades past, companies issued corporate statements and press releases and were able to move on to the next issue. But audiences today are complex and connected, and stakeholders now possess the tools and platform to drive the debate—either positive or negative. With the flick of a finger, anyone with a mobile device can access information about companies and easily share their opinions and experiences, thus opening a global dialogue about corporate practices. Technology has blurred boundaries; an issue in India may influence behavior in Canada. And it does not take large numbers. Research has shown that just 20 users of Facebook, a social media outlet with 500 million subscribers, are enough to move the needle and launch a new movement.
A company that wants to move beyond trust, and become what we at APCO have termed “Champion Brands,” must embrace and engage these unique actors in both the developed and emerging markets. APCO has developed a comprehensive framework that encapsulates what we know through our decades of research and synthesizes some of the best thinking on branding from over the last 20 years. The resulting framework maps out four key elements—Alignment, Attachment, Authenticity, and Advocacy—that are directly linked to building a Champion Brand.
- Alignment: Understanding and exceeding societal expectations is an essential first step, but not sufficient on its own.
- Authenticity: Building upon the foundation work of the Arthur Page Society on Authentic Enterprise and the transparency and ethical standards a company must hold at its core. This is the extent to which the company aligns its activities with its stated business objectives and its business objectives with its vision and values. Say what you mean, mean what you say, and do what you say. This builds trust, but we need to move beyond trust
- Attachment: Building a deeper emotional connection with the brand that not only establishes loyalty, but triggers consumers’ positive behavior. Corporate communications often overlook the power emotion can play in forging bonds with key audiences.
- Advocacy: Measuring how well a company applies its assets and expertise to advocate on behalf of the needs of society and stakeholders. Distinct from corporate social responsibility campaigns, in this model companies demonstrate advocacy when the very nature of their business adds value to society.
Each of these components is sequential, and companies must master the first level before achieving strength at the next. Advocacy stands at the core of a Champion Brand, explaining why you are in business in a way that works in common cause with your key audiences. It means acting on shared values and building your business while improving the society at large. This will ultimately allow companies to move beyond trust and truly elevate their brands in a way that is sustainable for the future.
In today’s inter-connected world, simply gaining trust will not be enough to withstand the fallout of those critical five minutes or to build your business in an increasingly competitive world. Every company has a bad day, which makes it essential to move beyond trust with their consumers, allowing them to prosper and endure in both good times and bad.
Margery Kraus is founder and CEO of APCO Worldwide. APCO has measured nearly 600 of the world’s largest public and private corporate brands. To find out how your company rates or to know more about building a global Champion Brand, contact her at mkraus@apcoworldwide.com.
This article was originally published in the Diplomatic Courier's January/February 2014 print edition.
