As a postscript to Martin Vogel’s blogpost here last week about our shock at realising that we weren’t properly communicating to our clients the strength of our commitment to what we do, here’s a reflection on what led to this epiphany. I think this was a long time coming but, for me at least, our recent meeting with the very impressive but self-effacing Andy Street, CEO of John Lewis, had a lot to do with it. When preparing for the meeting I was puzzled to find that the John Lewis Partnership defines its chief purpose as “the happiness of all its members, through their worthwhile and satisfying employment in a successful business.”
Ever since the ancient Greeks, self-awareness has been a central theme of Western philosophy and literature and there’s now scientific evidence to show that it’s essential to human health and flourishing. Recent corporate reputational crises suggest that we should now apply this understanding to organisations as much as individuals.
It seems that no organisation’s reputation is safe these days, however highly regarded it may be. Recent reputational crises have come about under the watchful – and often judgemental – eye of the media which now seems embroiled in a crisis of its own with current allegations of ‘phone-hacking at News of the World.
The response to corporate reputation-shredding varies from heads rolling and internal inquiries to calls for structural and regulatory reform of whole industries, as with banking. Any and all of this may well have its place but in the end no reform, however radical, is likely to have impact unless organisations ask some fundamental questions about their values and core purpose and how these are expressed in practice. Whenever reputational damage occurs it’s usually because there’s been some critical break in the link between stated values and behaviour. And that can only be because either there is knowing hypocrisy being practised or – much more likely – because in some key sense the organisation has lost its way and lost its sense of its true self.