Filling your Reservoir of Goodwill
We live in Austin, Texas and, every couple of years, we suffer an extreme drought. Luckily, the Colorado River runs through Central Texas and is dammed up in multiple places, creating a series of lakes or reservoirs that cities can draw upon during those dry spells. However, replenishing these reservoirs takes time, even when there is heavy rain, and it's easy to run into trouble if a dry spell drags on for too long.
I used this analogy often when I talked with clients about reputation management. We're seeking to help companies build a sound reputation and create a reservoir of goodwill in case things go wrong.
Seth Godin has shaped my thinking about reputation and goodwill and I particularly like this definition he uses.
Reputation is what people expect us to do next. It's their expectation of the quality and character of the next thing we produce or say or do.
The important thing is that these expectations are built over time and are based on your actions, not what you say. Similarly, creating this goodwill reservoir requires a consistent, sustained series of positive activities over time. But like the reservoirs in Texas, these supplies of goodwill can run dry if you are only using up goodwill and aren't replenishing it.
Do you need a reservoir?
When you have a situation where you get sideways with public expectation, it's this reservoir of goodwill or positive impression that people have of your organization that gives you the room to maneuver, to tell your story and to make amends. During these difficult times is when your investment in building and managing your reputation really pays off. Otherwise, you are going to want to draw from the reservoir only to find out that it's run dry.
Take two companies: BP and Starbucks. Two very different companies in entirely different industries but, side-by-side, they provide a useful contrast.
Starbucks has developed a reservoir of goodwill over time. They treat their employees well, address social issues swiftly, and when they make a mistake, are forthright and honest about the challenges that they face and commit to fixing things. You may not agree with everything that Starbucks stands for but there is no doubt of their dedication to their beliefs.
BP, on the other hand, made limited attempts to develop this reservoir of goodwill for years. So when it needed to draw upon that reservoir after the Deepwater Horizon tragedy - which was the third most severe incident the firm had in less than a decade - there was no goodwill there. Since then, the company has done fantastic remediation work along the Gulf of Mexico, but this work started from a position of having a goodwill deficit. So their goodwill is being expended as soon as it is generated.
Irrespective of their industries and how you feel about each company, the most significant difference here is that one firm, Starbucks, was filling up their reservoir consistently, well before they ever needed it. Conversely, BP didn't start building until the flood hit and had no reservoir to rely on when they needed it most.
How do you fill your reservoir?
However, just saying you need to develop this reservoir in advance isn't enough.
The Four As provide a roadmap to create a stable, reliable foundation for building an excellent reputation.
Awareness: Who are you? What do you stand for?
Assessment: What do others think of you? How do you measure it?
Authority: Have you gone through a risk framework and are the top levels of your company bought in?
Action: Once you've gone through the other steps, it's time to get to work. This is the top level.
Working through these four levels will ensure that an organization understands what it stands for and how it's viewed. This provides the foundation for building a lasting reputation.
Fill your reservoir before the dry spell
We think it is critically important for organizations to stand for something, to build a solid reputation and to create expectations of positive behavior and high quality. But building that reputation takes time and consideration. So use our Four As for Reputation Excellence to guide you. Pull the most appropriate levers, the ones that are most true to who you are. That's going to let you make a positive impact on the groups that matters to you most and to fill your reservoir of goodwill.
Just make sure you do this before a dry spell hits.
To prepare, we’ve developed some key questions and thought starters:
Awareness
What does your organization currently stand for, and how is it perceived by your stakeholders?
How aligned are your stated values with the actual behaviors and actions demonstrated within your organization?
Are there any areas where there might be a disconnect between your intentions and how you are perceived?
Assessment
How do you measure the perception of your organization's values and reputation among your stakeholders?
What are the key indicators or feedback mechanisms you can use to gauge the effectiveness of your values in shaping your organization's reputation?
How can you gather honest and objective feedback from both internal and external stakeholders to assess your reputation accurately?
Authority
Have you established a risk framework and obtained buy-in from the top levels of your company to ensure alignment with your values?
Are your leaders actively championing and embodying the organization's values in their actions and decision-making? Can you see if showing up in how they lead client engagements?
How can you foster a culture of accountability and responsibility among your leadership team to uphold your organization's values?
Action
Based on the awareness and assessment of your values, what specific actions can you take to further strengthen your organization's reputation and goodwill?
How can you integrate your values into daily operations and decision-making processes to ensure consistency and authenticity - both with your team and clients?
What initiatives or programs can you implement to actively communicate and reinforce your values both internally and externally?
Long-term sustainability
How can you ensure that your values and reputation-building efforts are sustained over time, rather than being seen as a one-time initiative?
What strategies can you employ to continually fill your reservoir of goodwill, even in times of relative stability?
How can you embed the values and reputation-building mindset into the DNA of your organization to create a lasting impact?
