Restoring reputation and trust after a time of crisis

There's a saying in Corporate Affairs: never waste a good crisis.

But the reality is that a reputational crisis can have serious and lasting consequences for an organisation, from the loss of revenue and partnerships, market share, customer loyalty, employee morale, and social responsibility.

That makes reputation recovery critical and time-sensitive in restoring credibility, confidence, loyalty, and value after a crisis.

An organisation's reputation is one of those intangible concepts that vital for its survival and success in the long term, but rebuilding it is not easy.

It's no different to interpersonal relationships, and we can recognise how long it takes to build trust, compared to how quickly that trust can be destroyed.

However, it is possible to rebuild.

Assess the damage and identify the root causes of the crisis

The first step to rebuilding reputation after a crisis is to assess the damage and identify the root causes.

Sometimes this is obvious, and sometimes there's a difference between an incident and what has resulted in a crisis situation.

By that, I mean, there can be an incident of significance, but the way in which it's handled is what leads to the actual crisis.

I deliberately don't want to name any organisations but consider some of the significant data breaches Australia has experienced recently - the reputation crisis experienced by one of those companies, in particular, was more related to the way in which it was handled from the point beyond the breach, rather than the breach itself.

Data and feedback is important to measure the extent and impact of the reputational damage on an organisation and its stakeholders, while the factors and events that led to the crisis can help determine how it transpired.

Because understanding what went wrong and how can prevent it from happening again.

Some of the questions you can ask yourself in this are:

• What was the nature and scope of the crisis?
• How did it affect your organisation’s image, trust, and performance?
• How did it affect your stakeholders’ perceptions, expectations, and behaviours?
• What were the main sources of information and communication about the crisis?
• How did your organisation respond to the crisis?
• What were the strengths and weaknesses of your response?
• What were the lessons learnt from the crisis?

Communicate with transparency and empathy

Communicating with transparency and empathy is critical in rebuilding reputation.

That begins with acknowledging the crisis and apologising sincerely to those affected by it.

That's an important note because we can often confuse an apology and culpability as synonyms - and they're not.

If a tragedy strikes a friend, you saying, "I'm so sorry", is in no way implying you were responsible for the tragedy - you're simply empathising and supporting.

Providing accurate and timely information about the situation and the actions taken to resolve it is another crucial step, as it helps to provide clarity and address any questions or concerns that stakeholders and the media might have.

Some quick tips to communicating with transparency and empathy:

• Be honest and open about what happened and why.
• Express regret and remorse for the harm caused by the crisis.
• Explain what you are doing to fix the problems and prevent them from recurring.
• Provide regular updates and feedback on your progress and outcomes.
• Listen actively and respectfully to your stakeholders’ feedback and complaints.
• Respond promptly and politely to their inquiries and requests.
• Demonstrate care and concern for their well-being and satisfaction.

Take corrective and preventive actions

Now, we've all heard the saying "talk is cheap".

And, when beginning the rebuilding of an organisation's reputation, there will be a healthy dose of cynicism and scepticism from customers, colleagues, and the community - as there should be.

Because if there's one thing that provokes a good old Aussie eyeroll, it's a corporate mouthpiece talking a good game with no substance behind it.

That's why the critical third step to rebuilding reputation is to take authentic and genuine corrective and preventive actions.

Effective solutions need to be implemented to fix the problems caused by the crisis and prevent it from recurring, because people can forgive a mistake (if it's handled correctly, of course), but they will very rarely forgive the same mistake occurring twice.

The demonstration of accountability and responsibility for mistakes and consequences is vital.

This can include open collaboration with relevant authorities and experts to ensure compliance and quality standards, and requires the monitoring and evaluation of progress and outcomes.

Consider some of these suggestions to 'correct and prevent':

• Conduct a thorough investigation into the causes and effects of the crisis.
• Implement changes or improvements in your policies, processes, systems, products, or services.
• Provide training or education for your staff or customers on how to avoid or handle similar situations in the future.
• Establish or revise your contingency plans or protocols for dealing with potential crises.
• Seek external assistance or advice from professionals or consultants on how to improve your performance or reputation.
• Report or disclose your findings or actions to relevant authorities or regulators.
• Measure or audit your results or impacts against your objectives or standards.

Rebuild trust and relationships

Reputation rests on the foundations of trust and relationships between an organisation and its customers, colleagues, and the communities it deals with.

Engagement with these stakeholders is critical in restoring trust and loyalty, which can be achieved through regular updates and feedback throughout the recovery process.

Sometimes, it might be necessary to offer compensation or incentives to those affected by the crisis.

However, rebuilding trust and relationships is more about looking forward than it is looking back.

It is important to give the period of acknowledgement and accountability the time it needs but, at a certain point, it's equally important to begin moving on, otherwise the perception can fast become one of entrenched failure and damage.

It's important to highlight positive stories and testimonials from stakeholders, and to call-out successes along the way.

The tone here is important, because it cannot convey arrogance or a sense of burying the past under a rug, but instead needs to showcase genuine progress and change through social proof and endorsements from credible sources.

Some of the strategies could be:

• Invite or involve your stakeholders or customers in your recovery process or decision making.
• Provide value-added services or benefits to your stakeholders or customers.
• Reward or recognise your loyal or supportive stakeholders or customers.
• Solicit or share positive feedback or reviews from your stakeholders or customers.
• Feature or celebrate your success stories or achievements with your stakeholders or customers.
• Leverage or partner with influential or reputable individuals or organisations that can vouch for your credibility or quality.
• Get out of your organisation's bubble and participate or contribute to social causes or initiatives that align with your values or goals.

Enhance reputation and value proposition

After restoration comes enhancement: reinforcing an organisation’s mission, vision, values, and goals.

Any organisation that has established a positive reputation at some point prior to a crisis clearly has its strengths, achievements, innovations, and contributions.

So, it's important to promote these unique positives by building believe and culture that create advocates, who extend beyond the walls of an organisation.

Quick wins can be gained through positive content and publicity that showcases - subtly, and implicitly - and organisation’s brand identity, personality, and what it stands for.

Enhancing a reputation can look like:

• Reaffirm or communicate your organisation’s purpose, vision, values, and goals to your stakeholders and customers.
• Highlight or showcase your organisation’s capabilities, expertise, experience, and excellence.
• Innovate or introduce new products, services, features, or solutions that meet or exceed your stakeholders’ or customers’ needs or expectations.
• Differentiate or distinguish your organisation from your competitors by highlighting your unique value proposition or competitive edge.
• Create or distribute positive content or publicity that reflects your organisation’s brand image, voice, tone, and style.
• Be open and accessible by engaging or interacting with your stakeholders and customers through various channels and platforms such as social media, blogs, podcasts, webinars, events, etc.

Reputation recovery is not only essential for an organisation’s success after a crisis - it's essential for its survival.

An organisation's reputation is a reflection of its relationship with its stakeholders and, if that relationship has been undermined in some way, rebuilding it in a rapid timeframe becomes critical.

Doing so isn't easy, but it is possible.

Rebuilding reputation after a crisis is not easy, but it is possible.

That said, prevention is often better than a cure, so here's a few considerations that could help avoid a crisis altogether:

• Monitor and manage your online reputation regularly and proactively.
• Anticipate and identify potential risks or threats to your reputation and mitigate them accordingly.
• Build and maintain strong relationships with your stakeholders and customers and listen to their feedback and suggestions.
• Cultivate a culture of transparency, accountability, integrity, and excellence in your organisation.