Brand Resilience: Managing Risk and Recovery in a High Speed World Jonathan Copulsky Deloitte Consulting LLP Chief Executives’ Roundtable Series Lubbock, Texas Wednesday, October 16, 2013

Copyright © 2013 Deloitte Development LLC. All rights reserved. 1 Brand reputation is more precious and precarious than ever True and false information spreads like wildfire in the vast and interconnected social media landscape and even the most venerable brands can be leveled in a flash – by disgruntled customers, competitors, even employees

Copyright © 2013 Deloitte Development LLC. All rights reserved. 2 What happens when brand value and brand fragility grow simultaneously? Brand value Brand fragility Heightened importance of brand trustworthiness Willingness to consider alternatives when brands prove unworthy

Copyright © 2013 Deloitte Development LLC. All rights reserved. 3 Case in point: Tiger Woods 2009 The seven publicly held companies that had sponsorship deals with Tiger Woods lost $12 billion in market value in the month after Woods’s mishap The PGA suffered a 50% decline in viewers during the time Woods was on leave from the Tour

Copyright © 2013 Deloitte Development LLC. All rights reserved. 4 Guerilla attacks come from all fronts Inside Your BordersOutside Your Borders Customers Competitors Suppliers Reviewers Brand Front-Line Employees Senior Executives Brand Ambassador Finance/Pricing

Copyright © 2013 Deloitte Development LLC. All rights reserved. 5 Learning from the experts

Copyright © 2013 Deloitte Development LLC. All rights reserved. 6 Learning from the experts

Copyright © 2013 Deloitte Development LLC. All rights reserved. 7 7 steps for managing brand risk and recovery PlanPrepareExecute

Copyright © 2013 Deloitte Development LLC. All rights reserved. 8 7 steps for managing brand risk and recovery The Enemy Within  Product and service quality, functionality, and safety  Corporate social responsibility  Leaks of valuable and/or embarrassing information  Employees behaving badly Beyond your Borders  Bad product or service reviews  Problematic suppliers and partners  Brand licensing issues  Competitors  Corporate gadflies and ideologues 1.Assess internal and external brand risks

Copyright © 2013 Deloitte Development LLC. All rights reserved. 9 Define a clear “mission” Create a purposeful and sustained outreach program Ensure employee ownership of the mission 2.Galvanize your brand troops 7 steps for managing brand risk and recovery

Copyright © 2013 Deloitte Development LLC. All rights reserved. 10 Sentiment Analysis Persistence and Latency Signal Intelligence 3.Develop and deploy your early warning systems 7 steps for managing brand risk and recovery Sphere of Influence

Copyright © 2013 Deloitte Development LLC. All rights reserved. 11 Fire Drills Action Triggers Response Vehicles Damage Assessment Strategies for the Three R’s* Roles and Responsibilities Brand Shock Occurs * Repentance, Remediation, Rectification 4.Prepare to repel the inevitable attacks 7 steps for managing brand risk and recovery

Copyright © 2013 Deloitte Development LLC. All rights reserved. 12 Brand Defense 2. Describe what happened 3. Assign investigative team 4. Focus on cause and prevention, not blame 6. Assign ownership 7. Track progress 8. Review incident log regularly 1. Log incident 5. Formulate recommendation(s) 5.Learn and adapt 7 steps for managing brand risk and recovery

Copyright © 2013 Deloitte Development LLC. All rights reserved. 13 “How am I doing?” “CompStat” 6.Measure and track brand value and impact 7 steps for managing brand risk and recovery Voice of customer data Social listening Systematic brand value tracking Brand part of integrated risk management Brand Resilience Measurement Journey

Copyright © 2013 Deloitte Development LLC. All rights reserved. 14 Build a plan for gaining popular support into your brand resilience program Make efforts to systematically identify brand advocates and allies Pay particular attention to grievances your brand advocates have Be prepared to use advocates to help respond to brand shocks 7.Cultivate your brand ambassadors before your next brand meltdown 7 steps for managing brand risk and recovery

Copyright © 2013 Deloitte Development LLC. All rights reserved. 15 Assess (Internal + External) Brand Risks 2 Galvanize Your Brand Troops 3 Develop (And Deploy) Your Early Warning Systems (Prepare to) Repel (The Inevitable) Attacks 4 5 Learn and Adapt 6 Measure and Track Brand Value and Impact 7 Cultivate Your Brand Ambassadors Before Your Next Brand Meltdown 1 7 steps for managing brand risk and recovery

Copyright © 2013 Deloitte Development LLC. All rights reserved. 16 Contact information Jonathan Copulsky Deloitte Consulting wwww.brandresilience.com

Copyright © 2013 Deloitte Development LLC. All rights reserved. 17 About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2013 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limitedwww.deloitte.com/aboutwww.deloitte.com/us/about