Defining and managing reputation risk

Recommendations

Info

Reputation risk management lessons for SNCF As a result of the negative perceptions surrounding the service change, SNCF’s reputation deteriorated from 2010 to 2011, with an overall drop of 13 points taking its reputation from average to weak in the eyes of the public. The two dimensions that were affected the most were Products/Services and Innovation, with a drop of over 12 points each. The change in perception clearly shows that the public did not perceive the service change to be positive even though SNCF had spent a lot of money communicating this change. The public also lost faith in the Governance and Citizenship aspect of SNCF where there was a drop of almost 12 points in one year. Although SNCF communicated a lot about the service change it was not perceived to be open and honest about this, and people did not fully understand or believe the message. The overall support for SNCF dropped across the board on all behaviours. Now, almost 25% of the general public would definitely NOT recommend, say something positive about or give the company the benefit of the doubt in a crisis. This loss of support was very damaging and has left the company with a steep challenge as it tries to turn around the business. 24 Airmic Technical
Reputation risk case study: Job Losses–Research In Motion: Job Cuts Amid Instability Company details: RIM researches, designs, manufactures and sells wireless communications products, services and software. Incident and consequences: With 12 million subscribers in 2007, RIM was Canada’s most profitable company. However, after the launch of the iPhone in June of that year and Google’s Android in 2008, the media and public attention shifted to these products, while RIM’s innovation attempts such as the BlackBerry Storm and the BlackBerry Torch fell short on expectations, causing RIM to lose the lead in the smartphone market. Additionally, the late launch of its iPad-like tablet, the PlayBook, was considered by analysts to be a specific failure. In 2011, as the company lowered its revenue forecast, it also announced a cut of about 11% of its workforce, eliminating 2,000 jobs across all functions worldwide in an effort to save money in the increasingly competitive smartphone and tablet market. However, the company lacked a strong enough technology roadmap to rely on and to assure employees that these job cuts were a solution that would provide the company with some stability. The following year didn’t provide much stability for the company. In September 2011, the company’s BlackBerry service suffered a massive network outage, impacting millions of customers for several days. The outage occurred as Apple prepared to launch the iPhone 4S, causing fears of mass defections from the platform. On 22nd January, 2012, the two CEOs and founders of the company resigned and, in March, the company reported its first net loss in years, resulting in an announcement in June of an additional 5,000 job cuts. This second job cuts announcement happened at the same time as RIM announced a delay of at least six months to the launch of the much anticipated BlackBerry 10 platform. In such a scenario, both rounds of job cuts addressed an immediate need to save on costs, but did not address competition or provide any sense of stability to stakeholders inside and outside the company. 25 Reputational Risk Guide 2015
Page 1: Defining and managing reputation ri
Page 4 and 5: Introduction The objective of the g
Page 6 and 7: Reputation Institute defines reputa
Page 8 and 9: Reputation Institute describes a re
Page 10 and 11: Table 1: The seven dimensions drivi
Page 12 and 13: The current reputational risk lands
Page 14 and 15: Section 2: Managing reputational ri
Page 16 and 17: Table 2: The reputation risk manage
Page 18 and 19: Section 3: Reputation Institute - R
Page 20 and 21: % who would recommend to others Agr
Page 22 and 23: Reputation risk case study: Service
Page 26 and 27: % who would recommend to others Agr
Page 28 and 29: Appendix 1: Reputational risk manag
Page 30 and 31: Appendix 2: Reputational risk dimen
Page 32 and 33: Appendix 3: Reputation risk managem
Page 34 and 35: The link to reputational risk manag
Page 36: 6 Lloyds Avenue London EC3N 3AX Ph.

Defining and managing reputation risk

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?