Managing Reputation in a Global Downturn

MANAGING REPUTATION
IN A GLOBAL DOWNTURN
Hill & Knowlton Middle East Corporate Reputation Watch 2009

0

KEY FINDINGS
Identify and plan for business risks, listen carefully to Less than a fifth (18 per cent) thought their company had put
stakeholders and communicate openly: these are just some of out the right level of information to the media about the crisis.
the lessons that Gulf-based companies can take from the global
Gulf based
economic crisis. The survey findings also underscore the importance of thorough
research in a rapidly changing market.
At the peak of the crisis this year, Hill & Knowlton and Real
Opinions conducted a study involving more than 250 Gulf- More than half of the senior executives surveyed (54 per cent)
based business leaders who were facing the challenge of did not feel they had enough information about the global
managing in a time of turmoil The results are revealing
turmoil. revealing. financial crisis and its impact on their business
business.

Only one in six (16 per cent) of the senior executives surveyed While 89 per cent felt that it is important to have research data
said they had a plan fully in place to deal with the economic on how a company’s stakeholders would react to news of a
crisis. Only a quarter (26 per cent) strongly agreed that their crisis, only half (52 per cent) said their organisations have this
organisation is well prepared to deal with a crisis if it occurs. kind of research data.

However, of those executives whose organisations were ABOUT THE STUDY
prepared, more than three-quarters (77 per cent) said having a The online survey of 254 C-suite level employees (CEO, CFO,
plan in place helped their company manage the downturn. CIO or similar position) was conducted from 25 February to 25
March 2009.
An overwhelming majority (85 per cent) of respondents agreed
that communication iis either extremely iimportant or very
h i i ih l The survey respondents were based in the UAE, KSA, Bahrain,
important during a crisis. Kuwait, Qatar and Oman.
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
g g
retrenchments – during a crisis.

© 2009 Gulf Hill & Knowlton WLL and Real Opinions Ltd 1 Base (C-Suite level employees in GCC): 254

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

47.92%
45.42%

6.67%

Yes, I feel that I understand what No, I feel there is conflicting No, I did not feel that the
has happened and the information and the situation is situation was clearly
implication for my business not clear communicated to me


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

65.1
1%

22.13%

1 77%
2.

Yes,
Yes fully Only partly Not at all


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

44.98%

34.93%
34 93%

17.03%

3.06%

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


organisation for CUSTOMERS?

37.99%

26.20%
24.45%

1
1.35%

Yes,
No not at all Don t
Don't know


organisation for SHAREHOLDERS?

37.12%

27.07%

21.40%

1 1%
4.4

Yes,
No not at all Don t
Don't know


organisation for the MEDIA?

32.31%
30.57%

1 78%
8. 18.34%

Yes,
No not at all Don t
Don't know


Q: Is your organisation holding back on releasing positive
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
Don't know


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

50.22%

20.52%
11
6. 6%
1 10%
3.

Yes,
No not at all Don t
Don't know


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

47.79%

29.65%

15.49%

7.08%
%

Yes,
No not at all Don t
Don't know

Base (C-Suite level employees in GCC with a full
© 2009 Gulf Hill & Knowlton WLL and Real Opinions Ltd 10 Base (C-Suite and issues plan in place): 1
or part crisis level employees in GCC): 254
68

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

46.02%
39.38%

10.62%

2.21% 1.77%

Extremely Very important Slightly important Not important Don't know
important

© 2009 Gulf Hill & Knowlton WLL and Real Opinions Ltd 1
1 Base (C-Suite level employees in GCC): 254

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

31.98%
28.38%
24.32%

9.9
99 1%
5.41%

Do nothing and Monitor and react Maintain ongoing Increase None of the above
wait to see what only when communications communications to
happens absolutely get the company
necessary message across


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

35.45%

27.73%
25.00%
25 00%

10.00%

1.82%

Do nothing and Monitor and react Maintain ongoing Increase None of the above
wait to see what only when communications communications to
happens absolutely get the company
necessary message across


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

45.91%

35.9
35 91%

10.45%
7.73%
773%

Yes,
No not at all Don t
Don't know


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

53.18%

35.45%

5.45% 5.91%

Yes,
No not at all Don t
Don't know


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

60.09%

32.1
1%

5.05%
5 05%
1.38% 1.38%

Strongly agree Slightly agree Neither agree nor Slightly disagree Strongly disagree
disagree


“It is important to be seen as proactive in a time of crisis.”

60.83%

30.88%

7.83%
0.46% 0.00%

disagree


“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


“In the absence of information people are more inclined to think the worst.”

61.93%

28.44%
28 44%

7.34%
734%
1.38% 0.92%

disagree


“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


“Stakeholder sentiment is vital to business interests, particularly in a crisis.”

53.67%

37.16%

6.42%
1.83% 0.92%

disagree


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

45.34%

32.15%

1 65%
8.65%
8

9.32%

1.61%

Chairman CEO Sector Head Communications No one (make no
Manager comment)


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

54.84%

26.27%
26 27%

13.36%
5.53%

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


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

33.49%

26.05%
21.86%
18.60%

Yes,
No not at all Don t
Don't know


Q: Generally, how important or unimportant do you think it
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%
1 1%
7.2

8.37%
2.79%

Extremely Very important Slightly important Not important Don't know
important


FOR MORE INFORMATION

Brian Shrowder
Director, Crisis & Training
Gulf Hill & Knowlton WLL

PO Box 50653
Dubai
United Arab Emirates
+97 4 334 4930
1
brian.shrowder@hillandknowlton.com
brian shrowder@hillandknowlton com


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