Reputation is the Shadow of Character

Our character goes deeper than our reputation to be the truth of who we are.  This idea of character as the core of our being is not only about people, but applies equally well to companies. The reputation of a company is largely captured by its brand and can be manipulated, but in order to understand the truth of a company you have to understand its values. While a company’s reputation weighs heavily on the choices people make about where they shop and work, it is the company’s values, as manifested in the experiences it provides, that determine whether they will be loyal and advocate on behalf of the company.

Company Character

Philosophers study the nature of truth, and one of their most studied truths is the nature of character. As Aristotle put it, character “…reveals moral purpose, exposing the class of things a man chooses and avoids doing.” Character carries with it the obligation to do good things on behalf of others.

These ideals apply equally to all companies as indicated by the fact that millenials partly base their decisions of where to buy and to work on a company’s reputation for doing good things. This cornerstone of being a force for good is what rises up to bite a company’s leaders whenever stakeholders sense that they are being mistreated. The force for good is most tested when a company has power relative to its stakeholders such as when it is a sole provider, controls pricing information, etc. Trustworthiness provides the context for the importance and value of company’s character, as trust determines whether a company’s stakeholders will believe and perpetuate its reputation.

Excellence as Character

Excellence is often on the minds of leaders as they discuss standards, quality, “The Brand” or how to win the battle for customers. However, these discussions are often sidetracked by meaningless mumblings about “wowing customers” and “exceeding expectations.” What is a “wow” to one customer may very well be “ho-hum” to another. Much the same can be said for exceeding customer (or employee) expectations, as different people have different expectations.

Like character, excellence is an internal topic as leaders have to commit to the standards, quality and brand they intend before they can make them the “truth” of their customers’ experiences. If the standards are high enough and the ability to meet them is consistent enough, then, by definition, many customers will be wowed and have their expectations exceeded in the long term. This internal dialogue about excellence is the stuff of management philosophy (i.e., defining the “truths” of a company) as it answers the question of moral purpose and the choices of what a company will stand for, as well as what it will not stand for. That’s because values determine the tenor of the dialogue, what will actually be done about it and whether a company will have the reputation (and brand) it wants to have.

A reputation for excellence is a powerful competitive advantage to a company. Nonetheless, leaders rarely spend the time it takes to understand just what it means and how it can be achieved. As a consequence, they should not be surprised that excellence eludes them to dull their company’s reputation and the uniqueness of its brand.

Getting Started

Early in the history of our company, my partner and I defined “enterprise excellence” as earning a reputation for human goodness, flawless execution and being best-in-class. One of the nifty things about this definition is that it applies to any form of enterprise – whether for profit or not for profit. Another quality that we liked is that it applies to all stakeholders.

All people want to be treated as though they belong and have significance. In a nutshell, that is the outcome of moral behavior and human goodness. People also expect that what is promised to them is exactly what they receive. What is important here is not the level of the promise made, but whether it is kept. Thus, belonging and significance is no more the province of those who can afford anything than it is that of those who can afford very little. In a sense, excellence is not in the nature of the promise made, but in the consistency of promise keeping.

Excellence is not something to be claimed; rather it is a meaning attributed to a company by its stakeholders. If you buy into this perspective, then the question is how do you earn such a reputation? While the answer is clear, it is never easy, as people know the difference between a claim of excellence and the real deal when they experience it even if they have no idea of how it was achieved.

Excellence starts with the intention to be excellent, followed closely by defining what excellence means and then ensuring it through standards and methods of flawless execution. Where character comes into this equation is through the values of a company’s leaders and its culture. Without these two catalytic ingredients, excellence will not be achieved.

Habits

Three habits will put a company on the path to excellence: vision, strategy, and measurement.

The first habit – vision – brings a watchmaker’s eye to the details of what a company’s leaders mean by excellence. This vision cannot be a one-liner or dwell exclusively on customers. Simply put, without excellence for employees, suppliers and investors, there will be no excellence for customers. Part two of this habit is never-ending teaching of what the vision is, why it is important and how it will be achieved.

The second habit – strategy – is about the “how” of achievement. For the many of us who are ADD leaders, this is the most difficult habit as the proof of strategy is in the details of execution. Strategy has to do with how flawless execution of stakeholder experiences is ensured. (I include branding as a part of this habit as it serves to filter the strategic choices made through the values of a company’s leaders.)

The third habit – measurement – is the final exam of a company’s intention to excel, as it answers two critical questions:

• How are we doing?
• How do we improve?

Measurement is the leader-philosopher’s touchstone as it tells the truth of achievement of a company’s excellence. Are the outcomes you intended, the outcomes achieved? Is the integrity of the company’s brand being protected? Good measurement adds the substance of clear direction to the drive for excellence.

Finally

While mediocrity is at its best with very little effort, excellence takes lots of work and the choice to excel. That choice is made by a company’s leaders. They have to choose to deliver excellence and to ensure that their standards for it are high enough to qualify as excellence in the eyes of the company’s stakeholders. It is in this sense that Aristotle’s observation that “excellence is a habit” can put people on a path to personal and corporate excellence.

This is no small choice as a company always has a reputation. The question is whether it will be the reputation its leaders want and are proud to have as an extension of their character. In the final analysis, pride in what has honorably been accomplished may be the most important accomplishment of all.