Then when it's too late, companies find that the loss of reputation in a perhaps unexpected area will have a huge impact on the overall perception of the firm. Three recent such crises could have been prevented as the problems were predictable.
First, BAA's poor performance in managing Heathrow airport in the wake of the latest security scare; second, the management failure exposed at BP by the oil spill from its pipeline at the Prudhoe Bay field in Alaska; and third, the ICC's error in using a controversial umpire to preside over the England vs Pakistan cricket test match, resulting in a farce following a ball tampering charge and Pakistan's temporary refusal to play on.
The best prepared companies will be those that build in regular processes and systems in which all top leaders feel responsible for reputational issues and do their utmost to prevent potential crises.
Source: Business Life, FT
Stefan Stern on Management
Review by Morice Mendoza