With the advancement of the internet and the proliferation of
devices that can quickly access the internet and share multimedia
content, the world has undergone a radical transformation. The
strategies that companies of times past used to corner the market and
repair their brand image after a gaffe by one of their spokesmen have
become obsolete. In the fast moving world of today, customer attrition
can happen in a few days, and you could end up with a company that was
worth millions of dollars at the beginning of the week filing for
bankruptcy at the end of the week.
One of the biggest headaches facing chief executives of big brand businesses is how to keep their brand equity increasing in value, instead of diminishing with every news cycle. These chief executives are faced with the problem of performing adequate emergency triage for brands hemorrhaging value, at risk of or committed to avoiding it. The chilling stories of Uber and Cablevision raise questions about the best strategies for the emerging future.
Uber is one of the hottest companies that are threatening to completely annihilate the current old school model of taxi operators. However, in the past few months, the company has been embroiled in a negative press tailspin that has significantly dented the company brand and image. The aggressive combative persona of the CEO is coming to define the brand. This may or may not serve them in the long run. Will it win the brand loyalty when they most need it?
By attacking a journalist and harshly labeling authentic critics, the company's executives have successfully managed to alienate many observers and some of their client base. It seems that a desperate Twitter powered public relations exercise has only served to make things worse than they already were. Clearly, the company is fooling around with a strategy that may be ill suited for the emerging future in the long run. For now it providing a media spectacle to generate free press. It finds mixed reactions at a time where a growing public needs companies and company executives to be held accountable for their actions as evidence of change.
Cablevision is another company that has faced significant negative backlash for punishing an employee who spoke out against wrongdoing and discrimination by another employee. The employee who spoke out ended up getting fired while the other one ended up only with a slap on the wrist. To add insult to injury, the management of the company has been found guilty of denying a section of employees their rightful pay raise and right to join a labor union so that they can have a voice to speak for them. If this had been in the years before the internet, social media and the smartphone, then cablevision would have gotten away with it. As it stands now, the company has a lawsuit in court, while its consumer base has significantly shrunk following the revelation of what has been happening behind the scenes.
There are indications it is another symptom of another industry in trouble. Suddenlink is another example discussed in an upcoming book on connecting the dots to discover leading edge solutions. It is that companies commitment to an approach that has undermined customer trust even more by increasing ad campaigns. There are times when more marketing makes the relationship with customers mirror an abuser deflecting when confronted with feelings about their behavior. How much is it worth to avoid people cringing in response to your brand?
From these three examples, it is clear that many companies do not have the best strategies for growth and public relations. What is needed is something more than a simple public rebranding or a public relations band aid. People want to see real change in the running of the company.
Nowhere is this more true than industries with devastating environmental impacts. The coal industry has garnered increased attention as reports came to light citing severe violations that have gone unresolved. This only touches on a bigger issues of how chief executive officers shape company cultures, practices and value. The value of the product has to factor in the costs, tangible and otherwise, of delivering it.
Innovation is about more than technology. An evolution in understanding of value and risks is also part of that journey. Consider that impact of customer law suits flooding in against Uber or its partners as am expression of logical public response to the CEO. Here are two clues to help you in your forward thinking about solutions and how to make outside box thinking practical. One, broader understanding of innovation is key to success. Two, Diversity encourages innovation. Bonus tip- Lack of mental model flexibility here is a primary reason that most get it wrong. Now you have a choice to make.
One of the biggest headaches facing chief executives of big brand businesses is how to keep their brand equity increasing in value, instead of diminishing with every news cycle. These chief executives are faced with the problem of performing adequate emergency triage for brands hemorrhaging value, at risk of or committed to avoiding it. The chilling stories of Uber and Cablevision raise questions about the best strategies for the emerging future.
Uber is one of the hottest companies that are threatening to completely annihilate the current old school model of taxi operators. However, in the past few months, the company has been embroiled in a negative press tailspin that has significantly dented the company brand and image. The aggressive combative persona of the CEO is coming to define the brand. This may or may not serve them in the long run. Will it win the brand loyalty when they most need it?
By attacking a journalist and harshly labeling authentic critics, the company's executives have successfully managed to alienate many observers and some of their client base. It seems that a desperate Twitter powered public relations exercise has only served to make things worse than they already were. Clearly, the company is fooling around with a strategy that may be ill suited for the emerging future in the long run. For now it providing a media spectacle to generate free press. It finds mixed reactions at a time where a growing public needs companies and company executives to be held accountable for their actions as evidence of change.
Cablevision is another company that has faced significant negative backlash for punishing an employee who spoke out against wrongdoing and discrimination by another employee. The employee who spoke out ended up getting fired while the other one ended up only with a slap on the wrist. To add insult to injury, the management of the company has been found guilty of denying a section of employees their rightful pay raise and right to join a labor union so that they can have a voice to speak for them. If this had been in the years before the internet, social media and the smartphone, then cablevision would have gotten away with it. As it stands now, the company has a lawsuit in court, while its consumer base has significantly shrunk following the revelation of what has been happening behind the scenes.
There are indications it is another symptom of another industry in trouble. Suddenlink is another example discussed in an upcoming book on connecting the dots to discover leading edge solutions. It is that companies commitment to an approach that has undermined customer trust even more by increasing ad campaigns. There are times when more marketing makes the relationship with customers mirror an abuser deflecting when confronted with feelings about their behavior. How much is it worth to avoid people cringing in response to your brand?
From these three examples, it is clear that many companies do not have the best strategies for growth and public relations. What is needed is something more than a simple public rebranding or a public relations band aid. People want to see real change in the running of the company.
Nowhere is this more true than industries with devastating environmental impacts. The coal industry has garnered increased attention as reports came to light citing severe violations that have gone unresolved. This only touches on a bigger issues of how chief executive officers shape company cultures, practices and value. The value of the product has to factor in the costs, tangible and otherwise, of delivering it.
Innovation is about more than technology. An evolution in understanding of value and risks is also part of that journey. Consider that impact of customer law suits flooding in against Uber or its partners as am expression of logical public response to the CEO. Here are two clues to help you in your forward thinking about solutions and how to make outside box thinking practical. One, broader understanding of innovation is key to success. Two, Diversity encourages innovation. Bonus tip- Lack of mental model flexibility here is a primary reason that most get it wrong. Now you have a choice to make.
