Managing Reputation in a Global Downturn

MANAGING REPUTATIONIN A GLOBAL DOWNTURNIN A GLOBAL DOWNTURNHill & Knowlton Middle East Corporate Reputation Watch 2009Hill & Knowlton Middle East Corporate Reputation Watch 2009

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KEY FINDINGS

Identify and plan for business risks, listen carefully to stakeholders and communicate openly: these are just some of the lessons that Gulf-based companies can take from the global

Less than a fifth (18 per cent) thought their company had put out the right level of information to the media about the crisis.

the lessons that Gulf based companies can take from the global economic crisis.

At the peak of the crisis this year, Hill & Knowlton and Real Opinions conducted a study involving more than 250 Gulf-based business leaders who were facing the challenge of managing in a time of turmoil The results are revealing

The survey findings also underscore the importance of thorough research in a rapidly changing market.

More than half of the senior executives surveyed (54 per cent) did not feel they had enough information about the global financial crisis and its impact on their businessmanaging in a time of turmoil. The results are revealing.

Only one in six (16 per cent) of the senior executives surveyed said they had a plan fully in place to deal with the economic crisis. Only a quarter (26 per cent) strongly agreed that their organisation is well prepared to deal with a crisis if it occurs.

financial crisis and its impact on their business.

While 89 per cent felt that it is important to have research data on how a company’s stakeholders would react to news of a crisis, only half (52 per cent) said their organisations have this kind of research data.

However, of those executives whose organisations were prepared, more than three-quarters (77 per cent) said having a plan in place helped their company manage the downturn.

An overwhelming majority (85 per cent) of respondents agreed h i i i i h l i

ABOUT THE STUDYThe online survey of 254 C-suite level employees (CEO, CFO, CIO or similar position) was conducted from 25 February to 25 March 2009.

that communication is either extremely important or very important during a crisis.

Yet only 36 per cent of executives believed their organisation had enough resources fully in place to manage communication of difficult messages – for example, profit downgrades or staff

The survey respondents were based in the UAE, KSA, Bahrain, Kuwait, Qatar and Oman.

© 2009 Gulf Hill & Knowlton WLL and Real Opinions Ltd Base (C-Suite level employees in GCC): 254

g gretrenchments – during a crisis.

1

Q: Do you feel that you have received enough information about the global financial crisis and the impact on your about the global financial crisis and the impact on your business?

45.42% 47.92%

6.67%

Yes, I feel that I understand what has happened and the

implication for my business

No, I feel there is conflicting information and the situation is

not clear

No, I did not feel that the situation was clearly

communicated to me


implication for my business not clear communicated to me

2

Q: As the global crisis unfolded, did you feel that you had access to all the information you needed?access to all the information you needed?

65.11%

22.13%

12.77%

Yes fully Only partly Not at all


Yes, fully Only partly Not at all

3

Q: Do you think that your organisation put out the right level of information about the impact of the crisis on your level of information about the impact of the crisis on your organisation for EMPLOYEES?

3493%

44.98%

34.93%

17.03%

3.06%

Yes fully Only partly No not at all Don't know


Yes, fully Only partly No, not at all Don t know

4

Q: Do you think that your organisation put out the right level of information about the impact of the crisis on your level of information about the impact of the crisis on your organisation for CUSTOMERS?

37.99%

24.45%26.20%

11.35%




5

Q: Do you think that your organisation put out the right level of information about the impact of the crisis on your level of information about the impact of the crisis on your organisation for SHAREHOLDERS?

37.12%

27.07%

21.40%

14.41%




6

Q: Do you think that your organisation put out the right level of information about the impact of the crisis on your level of information about the impact of the crisis on your organisation for the MEDIA?

32.31%30.57%

18.78% 18.34%




7

Q: Is your organisation holding back on releasing positive news to the media as it is felt the timing is wrong to make news to the media as it is felt the timing is wrong to make such positive announcements?

50.22%

33.39%

16.59%

Yes No Don't know


Yes No Don t know

8

Q: Did you have a crisis and issues plan in place that helped deal with this significant market downturn?helped deal with this significant market downturn?

50.22%

16.16%20.52%

13.10%




9

Q: Do you feel that having a crisis and issues plan in place helped deal with the situation?helped deal with the situation?

47.79%

29.65%

%

15.49%

7.08%




10Base (C-Suite level employees in GCC with a full

or part crisis and issues plan in place): 168

Q: Overall, how important or unimportant do you think communication and media management is during a communication and media management is during a crisis?

39.38%

46.02%

10.62%

2.21% 1.77%

Extremely important

Very important Slightly important Not important Don't know


important

11

Q: Which of the following statements BEST describes your current approach to EXTERNAL communications?your current approach to EXTERNAL communications?

31.98%28.38%

24.32%

9 91%9.91%

5.41%

Do nothing and wait to see what

happens

Monitor and react only when absolutely necessary

Maintain ongoing communications

Increase communications to get the company message across

None of the above


necessary message across

12

Q: Which of the following statements BEST describes your current approach to INTERNAL communications?your current approach to INTERNAL communications?

25 00%

35.45%

27.73%25.00%

10.00%

1.82%

Do nothing and wait to see what

happens

Monitor and react only when absolutely necessary

Maintain ongoing communications

Increase communications to get the company message across

None of the above


necessary message across

13

Q: Do you think you had enough resources in place to manage communication of these difficult messages manage communication of these difficult messages within your organisation?

35 91%

45.91%

35.91%

10.45%773%7.73%




14

Q: Do you generally trust companies that say nothing when faced with bad news announcements?when faced with bad news announcements?

53.18%

35.45%

5.45% 5.91%




15

Q: Please indicate your level of agreement with the following statement:following statement:“Rumour and speculation occurs when an organisation does not release information to the media in a timely fashion.”

60.09%

32.11%

5 05%5.05%1.38% 1.38%

Strongly agree Slightly agree Neither agree nor disagree

Slightly disagree Strongly disagree


disagree

16

Q: Please indicate your level of agreement with the following statement:following statement:“It is important to be seen as proactive in a time of crisis.”

60.83%

30.88%

7.83%

0.46% 0.00%




disagree

17

Q: Please indicate your level of agreement with the following statement:following statement:“It is important to research how stakeholders would react in a time of crisis so communication is targeted effectively.”

54.84%

36.41%

7.83%

0.46% 0.46%




disagree

18

Q: Please indicate your level of agreement with the following statement:following statement:“In the absence of information people are more inclined to think the worst.”

61.93%

28 44%28.44%

734%7.34%1.38% 0.92%




disagree

19

Q: Please indicate your level of agreement with the following statement:following statement:“My organisation is well prepared to deal with a crisis if it occurs.”

38.71%

26.73%

21.20%

9.68%

3 69%3.69%




disagree

20

Q: Please indicate your level of agreement with the following statement:following statement:“Stakeholder sentiment is vital to business interests, particularly in a crisis.”

53.67%

37.16%

6.42%6.42%1.83% 0.92%




disagree

21

Q: Faced with bad news announcements, who do you generally think should be the spokesperson?generally think should be the spokesperson?(Please select all that apply)

45.34%

32.15%

18 65%

9.32%

18.65%

1.61%

Chairman CEO Sector Head Communications Manager

No one (make no comment)


Manager comment)

22

Q: Have you or your organisation formally communicated internally or externally about the current economic internally or externally about the current economic downturn?

54.84%

26 27%

13.36%

26.27%

5.53%

Yes internally Yes externally No not at all Don't know


Yes, internally Yes, externally No, not at all Don t know

23

Q: Does your organisation have research data which will provide guidance on how your key stakeholders would provide guidance on how your key stakeholders would react to a crisis affecting your organisation?

33.49%

18.60%

26.05%

21.86%




24

Q: Generally, how important or unimportant do you think it is to have research data on how your key stakeholders is to have research data on how your key stakeholders would react to news of a crisis affecting your organisation?

49.30%

22 33%22.33%17.21%

8.37%2.79%

Extremely important

Very important Slightly important Not important Don't know


important

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FOR MORE INFORMATION

Brian ShrowderDirector, Crisis & TrainingGulf Hill & Knowlton WLL

PO Box 50653DubaiUnited Arab Emirates+971 4 334 4930

brian shrowder@hillandknowlton [email protected]


Managing Reputation in a Global Downturn

Business

gulf hill knowlton wll

global crisis

csuite level employees

real opinions

right level of information

economic crisis

global financial crisis

cent of executives