On the 2nd September 2010 I made a point in a blog post Discuss. Dissect. Decide that Reputation is a mission – critical task and is of such importance that it should be included in every meeting’s agenda and be included as a must in the Company Learning & Development Training Calendar – as a must and not an elective.
My point and reservations have now been vindicated through some interesting research by a company ReputationInc .
Here are the main facts they discovered by examining the curriculums of the leading Executive MBA programs identified by the Financial Times. They were looking to see how reputation was incorporated into the course work.
- 1 in 5 leading EMBA programs teach none of the 10 core reputation disciplines
- Just one of the 50 leading EMBAs has ‘Reputation’ as a core module
- Communications & relationship building skills are taught in less than 20% of programs
- Government & policy relations is covered by fewer than 1 in 5 EMBA program
- Governance and ethics is the most popular reputation discipline being taught to business leaders today (no surprise there)
ReputationInc cites McKinsey research that found that one-half of global CEOs say managing external affairs is one of their top-three priorities. Yet one fifth of the world’s top 50 global Executive MBA programs do not offer any training in the core disciplines of reputation management.
They report that the missing disciplines include CSR, stakeholder engagement, government relations, communications, and reputation management strategy.
More worrying still, just two of the top 50 business schools surveyed offer a dedicated reputation module and 80% offer no training on either public affairs or external communications – the two core “hands-on” skills executives need to build reputation. “The results reveal a frightening gap between the reputation skills business leaders must possess in 2012 and the cursory attention they get in the traditional executive MBA.”
The programs with the highest ranked scores for including reputation are Henley Business School, Essec/Mannheim, and the University of Texas at Austin: McCombs.
I also agree with this statement: “On this evidence, companies and shareholders should be concerned that Executive MBA programmes risk creating ineffective business leaders who leave academia without the skills to actively manage the precious asset of corporate reputation,” said John Mahony, CEO, ReputationInc. “Reputation management skills are vital for today’s CEO who sets the tone and mood for a corporation and must lead from the front in communicating the purpose of the brand and its value to society.
Many managers are not born ready to meet this challenge and will benefit from coaching and confidence building in reputation, something today’s Executive MBA courses fail to adequately provide.”
The problem though is that it is not just MBA modules that lack this, but also Director training programs, Government Officials training, town councillors development programs and Internal Learning & Development programs that suffer from this lack.
The research clearly shows that training in managing external relationships is mandatory for all executives (Again a vindication that my Stakeholder Reputation Management course has filled a very important gap these past few years)
It is my belief that the problem is derived from the past where it was believed that Reputation was naturally an extended PR & Communication function and discipline. And, although communication forms and integral part of the discipline, there is now a realisation that Reputation Management requires advanced systemic thinking skills and thorough understanding of intangible issues, reputation and strategic business drivers.
The report goes on to say that “These findings should be a red flag to corporate affairs directors and those responsible for leadership development in global corporations. Knowingly or not, next generation leaders will be under-prepared
to steward their company’s corporate reputation in the coming decade.”
This statement just reminded me of the conversation in 2010 I had with the Learning & Development Manager of an international bank when they were considering my Stakeholder Reputation Management program for internal use. He was of the opinion that it was not a must, but should be an optional elective for senior executives.
How these words will haunt now. If only the financial services community understood that importance. Just perhaps there may have been less Reputation Damage.
As Warren Buffett, the world’s most astute investor have said many times: “It takes 20 years to build a reputation and five minutes to ruin it, and if you understand this YOU WILL DO THINGS DIFFERENTLY”
Funny though that most managers miss the last part of the quote. The research quoted above shows how important understanding this difference is.
The missing difference in the MBA programs – “ If I do this, or make this decision, will it harm my (own) or my company’s reputation?”
Understanding this difference is vital in an Era where Reputation is the New Bottom Line.