Delegate everything but your reputation

International research which shows levels of trust have plummeted around the world in the last year, reinforces our own predictions that in 2015 leaders must take the reins on reputation.

The study* shows that trust is evaporating, with business and government institutions taking the biggest hit. As a continuing international trend, it should concern business and political leaders.

In its simplest terms, trust is what makes someone decide to work with, buy from, talk to, or recommend one organisation over another. We choose people and organisations we trust over those we don’t.

Trust is almost synonymous with reputation – it’s pretty hard to have one without the other. A good reputation means you are trusted. It means your opinion is sought and heard because you are seen as credible. In a crisis, it means you’re more likely to be believed, given the time to address the issue(s), and, if necessary, forgiven.

Crucially, reputation is something we can directly influence, and by building reputation, you determine whether or not you are trusted. Leaders who delegate their reputation down are both taking a chance and missing an opportunity.

Research published recently by the Ipsos Reputation Council explored how and where reputation is usually managed by organisations across the world. It found that only about a quarter of the organisations they spoke to placed formal reputation management with a senior leader such as a CEO.

We know from our own research into reputation management that while boards and senior executives regard reputation as one of their most important assets, many also admit it’s not given regular attention at board meetings.

In our experience, the strongest reputations are led from the top.

Inspiring leaders who know the value of reputation, and invest in it, will stir their teams to follow suit. These are leaders who also recognise that their own reputation is intrinsically linked with their organisation’s brand.

Many aspects of reputation management are created internally – a clear sense of what is right and wrong; an ability to act quickly to build stakeholder and customer experiences; a strong “radar” relating to issues; investment in building management and operational capability; and processes that support all of the above.

In 2015, we need leaders who do not shy away from reputation management, who are constant ambassadors for their brand in what they say and how they behave, and who inspire their teams to embody the values of their organisation. We need leaders who lead by example.

* 2015 Edelman Trust Barometer

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