Is Your Company Perception Proof?
by Dick Dyer, APR

Though this story is prompted by recent articles about the Enron, Worldcom, and other debacles, this column intends to dig deeper than that and ask readers to think about how these stories affect them. Two particular questions I will ask: How are you making your company/organization (yes, non-profits have to worry too) perception proof? Do you really mean what’s in your mission statement?

If anyone doubts that perceptions drive the day, they don’t have any money invested in Wall Street. Every day we witness the mad dash to sell stocks because one company in one market sector is “uncovered for overstating profits” or some similar faux pas. Why do we, like a pack of lemmings, take off in a crowded run because one or two companies fail to meet individual expectations? This is not about logic; this is group psychotic behavior based entirely on the perception that if one company does it, they will all do it. And, we think we are all such mavericks—out there on our own making our decisions. Enough of that.

The major point of all of this is that every company/organization is at risk. Remember the Boy Scouts and United Way? Their issues—perceptions—were just as serious. They were based on real serious issues, but the entire organization was not bad.

Conversely, the pressures of continuing to perform cause otherwise good people to mis-state what they are doing—exaggerate results and otherwise create the wrong perception in the minds of analysts and buyers of the product or services. This too, must stop if we are to regain trust—the all-important factor in our success. The perceptions we create must be based on sincere value of our customers, stockholders and stakeholders! As Ian Percy of Visionary Oasis puts it, “If this [shareholder value] is the main reason your business exists, consider expanding into pornography and drug trafficking. That’s where the real money is.” Do we only mean shareholder value in monetary senses? What do we mean by the words we all write in our mission statements? Can we back up those words in actionable terms?

I have written before regarding what I feel is serious erosion in our culture of philanthropy in this country. Do we really care about that donor when we pay someone (who doesn’t care) to call these potential donors at all hours and callously ask them for money?

The trust erosion because of unsupported perceptions of caring for our customers and stakeholders is enormous. PR Reporter recently quoted two polls to demonstrate this erosion of trust.

The first, Golin/Harris’s recent benchmark survey of more than 700 Americans, “Trust in American Business,” found that 69% of Americans say there is a crisis of trust and confidence in the way we do business in America.

The second, Brookings Institute research concludes, “Public trust in the federal government, which rose significantly after September 11, has fallen back almost to pre 9/11 levels. As confidence in government leaders goes down, so does trust in government.”

Obviously, trust erosions and perceptions of trust are eroding in America.

One non-profit organization I worked with a few years ago had an extensive paid membership list, but the only time they contacted members was to ask for money/donations. Did they really demonstrate “shareholder value?” Once I advised them to take the time to call those members and converse with them about organizational goals, recent activity, etc., and the checks started flowing into the organization’s mailbox voluntarily. Guess what they are doing now with their membership?

Louis Rukeyser in his July issue of Wall Street says, “What we need is not just new rules and more bureaucrats, but a return to a sense of honor in the accounting profession and in corporate America generally.” He is obviously referring to what the accounting firms are wrestling with across America, but he is also speaking to the rest of the corporate world. I am adding emphasis to the non-profit world as well.

What can you do?

1. Assess whether your mission statement is demonstrated in action. Don’t just pay lip service to this—make sure you truly do care about your customers/stakeholders through demonstrated actions. Everybody says they care, but few can demonstrate that through action.


2. Survey employees and ask them two questions: What is our company known for? What does it stand for? Answers will reveal how close internal employee communications come to creating the actionable perception that your mission statement espouses.


3. Survey community members who should know about your organization—ask the same two questions in #2.


4. Compare the two surveys and develop specific strategies to close the gaps. Note: my experience has found that internal perceptions and external perceptions are typically gaped by a margin of 2:1.

We don’t have to be blindsided by the headlines of companies/organizations similar to ours getting into trouble with their stakeholders. You can and should do something to perception proof your organization.

Dick Dyer operates his own public relations firm in Winthrop, Maine. He enjoys hearing from readers on column ideas and/or questions they would like pursued within this column. You can reach him by email dyerapr@fairpoint.net or by phone at (207) 512-2217.