Drivers of Reputation

Organizations can actively plan and build a good reputation. The five drivers of reputation provide the foundation.

Business wisdom says that businesses are built overnight, but reputations are earned over time. Building a reputation can be as much a part of the strategic plan as growing market share or increasing net income.

Distinctiveness

Good reputations have distinctiveness in the minds of consumers and other important audiences. Dell is the easiest way on the planet to purchase a customer computer for personal or business use. Amazon sells a larger selection of books than any bookstore. Apple's Macintosh is the personal computer of choice for graphic designers and artists.

Focus

How many times have companies gone from superstars to also-rans by trying to do too much for too many people? They lost their focus. Good reputations have a focus that is unwavering and uncompromising. Southwest Airlines has one class, one kind of airplane, and a singular commitment to the customer. The company is also one of the few airlines not in serious financial trouble.

Consistency

In its 2004 Spin Report, Towers Perrin found most employees believe their companies are more honest with analysts and customers than with employees themselves. This lack of consistency can destroy a company's reputation. Consistency of action and communications with all stakeholders is one of the driving forces behind a positive reputation. Sam Walton driving the same pickup truck sent a message of consistency. CEOs who spend as much time in the field as they do in the boardroom send a message of consistency. Companies that resolve customer issues quickly and take steps to ensure they don't happen again send a message of consistency.

Identity

Johnson & Johnson could have fallen apart when the Tylenol crisis struck in 1982. It might have if not for the one-page Johnson & Johnson credo, which starts out, "We believe our first responsibility is to the doctors, nurses, and patients, to mothers and fathers and all others who use our products and services." This 60-year-old credo gives Johnson & Johnson an identity that serves as a moral compass for its actions. What are the chances that Enron had a similar credo?

Transparency

Speaking of, Enron is singularly responsible for elevating the importance of "transparency" in the English language. Transparency was once used primarily when referring to an overhead projector. Today, transparency is the driving force behind sweeping new federal legislation and shareholder lawsuits. Even the IRS, the classic non-transparent bureaucracy, has made strides in becoming more transparent. Great reputations have always upheld a sense of transparency.