It takes years to build a positive corporate reputation -- it takes days to bring it down

They say that Rome wasn’t built in a day, and we believe that reputations aren’t either. But the difference is that Rome did not fall in a few days, like a corporate reputation can as the result of a crisis. Just ask Arthur Andersen, Enron, or CGI Group, the firm that built the troubled ObamaCare website. A recent survey of CEOS found that reputation was their number one strategic risk.
The most damage to a reputation occurs from the first few media stories that are filed that eventually form the bedrock of opinion on the situation. So if you are scrambling to pull your crisis team together while journalists are writing their first round of stories, you are already losing the battle, as it's very hard to change the tone later.
We believe that all businesses should have a crisis plan in place – knowing who to contact internally (key corporate decision makers signing off on the crisis strategy and how to reach them at any time) and external audience communication responsibilities developed for clients, regulators, elected officials, recruits and general influencers.
But without a doubt, the most important element in managing a crisis is handling the press, and this includes having prepared answers to common scenarios worked out in advance. The reason for this preparation is that when a reporter calls, sometimes you will only have two hours to respond, or give the dreaded “no comment.” Working out responses to anticipated questions in advance at your leisure guarantees a better result.
Since we are walking down the road of famous sayings, let’s also throw out one more: an ounce of prevention is worth a pound of cure. This is spot on when it comes to crisis communications. Already having positive relationships with key journalists and influencers (as part of a CEO communications program – see our section on this under services) is invaluable in managing a crisis. These relationships bring a level of trust, allowing you to work the issue on background and off the record. Not favors, but the ability to tell and shape your story, providing better clarity.
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.”
Warren Buffett
Warren Buffett
We have successfully managed numerous crisis/reputational issues on five continents, including in the US, UK, Iran, Japan, Colombia, Hong Kong, Italy, the Netherlands, Canada, China and the Philippines. These have included:
"John stands tall in times of PR crisis, when many others would wilt and is the very best in crisis management, and in minimizing unfair press exposure. John is simply outstanding at what he loves to do."
Edmund Russ
Former Chief Marketing Officer
Grant Thornton LLP
"John and I have worked on many high profile crisis situations over the years. He works extremely well with us, recognizing the important business and legal interaction in crisis situations. He works tirelessly and creatively with a legal team to meet our eventual trial needs and to help us deal with the immediate demands of press and public officials to protect the company’s reputation and ongoing business."
Margaret "Peggy" Zagel
Principal, River Road Consulting LLC
Former Chief Legal Officer, Grant Thornton LLP
- Parmalat
- Refco
- Countrywide
- Winstar
- Arthur Andersen/Andersen Consulting split
- Numerous Arthur Andersen shareholder suits
- IRS Tax Shelter Investigation
- Shooting at the McClurg Court Center
- The Taste of Chicago
- Negative US Regulatory Inspection Reports
- US Regulatory Action
- US Senate Inquiry
- SEC Disciplinary action
- FCPA Charges
"John stands tall in times of PR crisis, when many others would wilt and is the very best in crisis management, and in minimizing unfair press exposure. John is simply outstanding at what he loves to do."
Edmund Russ
Former Chief Marketing Officer
Grant Thornton LLP
"John and I have worked on many high profile crisis situations over the years. He works extremely well with us, recognizing the important business and legal interaction in crisis situations. He works tirelessly and creatively with a legal team to meet our eventual trial needs and to help us deal with the immediate demands of press and public officials to protect the company’s reputation and ongoing business."
Margaret "Peggy" Zagel
Principal, River Road Consulting LLC
Former Chief Legal Officer, Grant Thornton LLP