Proactive Enterprise & Brand Image Risk Management

How an Organization can Manage the Risks posed by Viral Media to its Image and Brand
Ashutosh Agrawal

Bad News Travels Fast and damage is done

before one could react
Negative Opines Caught Off-guard, Denial Delayed Response Irreversible Damage to Public Perception

Public Space

Organization

Organization

Public Space

Real-life Cases

A leading Personal Care Brand

A leading NGO turned tables on it by parodying its internet campaign to highlight palm trees destruction in Africa.

One of the Worlds Largest Retailers

A Sportswear Co.

Learnt it hard way when hate campaigns against it threatened to stir up a social boycott.
Suddenly found itself in dock over unsustainable practices of its suppliers.

Viral Media is the Arena where various

parties interact, exchange and exert influence
Employees morale drops after reading negative opinions about their company in public sphere. Prospective employees research on the companies before applying. A suppliers news is quickly associated with the buyer co. Regulators opine on the industry issues & legal recourse

A consumer checks internet for product reviews. An existing customer posts comments on product.

NGOs/Activists post comments, videos, run campaigns to direct public attention

Competitors put out misleading information

Proactive Approach is Key to manage

the risks to enterprise and brand image
Make changes to way company does its business

Steering committee analyzes trends, patterns, hot spots and formulates action plan.

Mashing up various information sources throws up underlying patterns, hot spots, trends and provides warning in advance...

Influence public opinion 3

Process the data using advanced analytics to derive information & inference

Search public domain and extract content related to the company, product, processes & partners.

Extracting Business Intelligence

is made possible by advances in Information Technology (IT)

Search in Text & Images Advanced technologies search in audio and video Coverage to all media sources

Analytical Depth
Bayesian Inference Engine provides artificial intelligence capabilities

Cloud computing provides ondemand access to high computing power Avoids CapEx in hardware & software infrastructure

Coverage Breadth

Mashups combine information & aid human intuition

Computing Power

A Framework to Derive Insights

from gathered business intelligence to formulate action plan
Organized: NGOs, Regulators, Competitor, Activists Unorganized: Customer, Employee, General Public ....

Toxic Waste Supplier Sweat Shop Employee Discontent Customer service complaint ..

Compensation Sense of contribution Acknowledgment Publicity Retaliation

Scientific Evidence Public Sentiment Polling Data Expert/Reputed opinion Product & process redesign

Blog, Social Communities Webcast Newspapers Interviews Conference ....

Reputation Networks, contacts, allies Critical information Access to decision makers ..

(ia)3 Framework Source: Dr. David Bach, IE Business School, Madrid

A Sustainable Action Plan is all about

doing Good & spreading good Truths
Hard Measures
Examples:
Switch to sustainable suppliers Change process to eliminate toxic chemicals

Soft Measures Examples:

Tweak the brand messaging Redesign the marketing campaign

Redesign product to facilitate recycling

Improve Operations to reduce carbon footprint Action Speaks for Itself

Formulate a PR exercise on CSR

Respond to online public complaints. Start talking to your customers/ stakeholders before someone else starts talking to them.

Pre-empt Risks to Enterprise Image & Brand

Building a Business Case is important

to get management buy-in for the initiative
How to measure chance/intangible benefits like potential risks, losses avoided ?

Past Incidents
Real life cases of goodwill asset impairment, litigation costs, insurance costs, stock erosion and revenue losses

Market Behavior
Difference between Market Value (stock market) and Book Value (on balance sheet)

Accounting
Intangible assets like Goodwill, Brand and others are quantified on balance sheet.

Analytical Models
Various models are available to measure enterprise image and reputation.

Beyond Risk Management it enhances

the ability to sense the shifts in the external environment & act proactively
Viral Media holds a wealth of information on how business environment Is changing

Market Environment

Changes in consumer behavior, preferences New customer segments etc.. . Eg: DIY (Do It Yourself) Trends

Logistics Trends Distributions Changes Supply Trends Eg: Collaborative outsourcing

Competitors actions New Entrants New substitutes .. Eg: Kindle and virtual book store

Demand Shifts

Value Chain Shifts

Competition Shifts

Non- Market Environment

Changing political alignments Popular sentiments . Eg: Labor or Conservative New Processing techniques Disruptive technologies Eg: Cloud computing Impending regulations .. Eg: Shift towards process quality assurance New emerging markets Growth rates and economic indicators Eg: Rise of Africa Demographic trends Social activism Society behavior .. Eg: Concern for environment

Political Shifts

Technology Shifts

Regulatory Shifts

Economic Shifts

Social Shifts

Prepare for Unpredictable and

volatile business future effectively
Identify Opportunities
Sense changes in consumer preferences Recognize the policy shits and impending regulations and participate in their formulation Learn about the emerging best practices in the industry Learn what drives top talent in career selection Identify emerging business destinations

Reduce Risks
Avoid adverse public opinions and bad press by proactive actions Keep tab on public perception of value chain partners and their actions Recognize when brand is being assailed in public and protect brand equity Reduce legal risks and litigation costs Protect marketing campaigns from counter campaigns

The price of inaction is steep and Cos cannot afford to ignore and gamble

THANK YOU
Please refer the published paper Proactive Enterprise & Brand Image Risk Management for more information.
Author welcomes comments/bouquets/brickbats Mobile: +91 7709 010 449 Email: aagrawal.imba2009@alumno.ie.edu Blog: www.frontiers2explore.blogspot.com Twitter: www.twitter.com/A_Agrawal