Reputational Damage Exists

Reputational damage is the loss to financial capital, social capital and market share resulting from damage to a firm's reputation. This is often measured in lost revenue, increased operating, capital or regulatory costs or the destruction of shareholder value.

This can be a huge incident or something minor. But it all centres on the reputation a client or prospect has of an organisation. Either way we can see a loss of business or even just the opportunity of it. We see many examples of this every day with brands or celebrities where they speak out of turn and the odd comment can cost them dearly.

A Bad Experience

I often compare this to how job seekers feel. It is no secret that the recruitment process in 2024 is well and truly broken. Imagine if you applied for a new role at your dream company, who got in touch initially and then never replied, or led you through a multiple stage interview process with gaps of weeks before the next stage. How would you feel? Would you want to interview with them again? Probably not. The same is true in business.

Same with Bids

If you have previously been introduced to a business or submitted a poor proposal, they may have made up their opinion about you on that first submission. Hence, the adage of "you don't get a second opportunity to make a first impression". A written business proposal is as important if not more so as any in-person meeting. It is a permanent written document, which can be referred back to over time.

Most business opportunities come in cycles especially where it is high-value work such as through a bid or proposal. If you have previously bid but it was unsuccessful, what changes have you made to your next submission? This is important.

Changes

As the saying goes: "If there are no changes, there are no changes."

If your next submission with the same company is the same as the previous versions, not only with no changes but also potentially the same mistakes (even worse). Where will the difference lie?

There has to be some improvement because there could be a fairly major reason why you were not selected. If you are not making improvements within your business and with the relations of those you wish to work with, no progress is being made. If that organisation has a poor view of your organisation, the reputational damage has been made and as such there is no point making further bids.

Who You Know

The days of "it's who you know", "back handers" and "sealed envelopes" are generally behind us. I have had comments in the past from older colleagues along the lines of "what was wrong with the good old days" in relation to the above?! The very point of the bid process is to avoid these very problems. This is one of the great things about the bid process, the fact that it is largely impartial. It is about what it is written down and while relationships play a part, they are not always the leading factor.

However, some organisations do still go back to their network to think about who they know in terms of influence for winning a contract. Instead of considering the work which needs to be completed in order to give their team the best opportunity. There are no short cuts. Meaning that the reputation who have and image you represent as a business is more essential than ever.

The Incumbent Period

The very nature of the incumbent period is such that when an opportunity has not been won, that organisation understands who has and why. The next task is to consider this opportunity as a future win if the right steps are taken. This includes understanding the time frame, the best approach is to consider developing that relationship around half way through the contract to give you the best opportunity for success in the future.

Demonstrate your Values

The problem with not being selected for a contract renewal is often down to the actions of your team. Clients are always interested in quality of service above everything else. This is why we never lose an opportunity on price alone, and why there is so much emphasis on quality and social scores. There is no point having the cheapest price if there is no element of quality or service, it would rather defeat the point.

Many organisations after a contract win, have the idea, that they don't need to try anymore. Where this attitude exists, the business win is short whereas long term relationships are kept through good service and quality of care. Consider how long it takes and the effort involved to win a contract? Do you want to risk losing that due to poor business management? Always demonstrate the values you offer as a business for ultimate success.

Next Steps

Always make sure to lead and operate your business by staying true to your values. This is ultimately how you win or lose business. The reputation you create for your organisation can come from many areas - your marketing & branding, your people, service, reliability etc. Building a strong brand and business comes from operating from a place of excellent leadership, understanding your customers and their needs, in order to execute a quality service every single time.

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