Month: May 2020

As COVID-19 spreads around the globe, it is reshaping attitudes toward the public and private sectors. Governments are expanding their role, regulating businesses, directing health efforts and supporting laid off workers. Companies are struggling to stay afloat, grappling with the challenges of reopening and complying with the “new normal” of safety protocols and regulations.

How are citizens responding to these shifts? Not surprisingly, they are placing their trust in whoever helps them weather the storm. In most countries, that is the state. According to a survey of 13,200 people in 11 countries, trust in government is up 11 points to 65 per cent globally, the highest level in twenty years. Government trust increased by double digits in six of 11 markets, including the UK (24 points), Canada (20 points), Germany (19 points) and South Korea (16 points).

As confidence in the public sector rises, trust in the private sector has waned. Fifty per cent of respondents believe business is failing to put people before profits, 41 per cent say they are not adequately protecting workers and customers, and 46 per cent say they are letting down suppliers and customers by denying them flexible payment terms. While 47 per cent believe national political leaders are doing an outstanding job tackling the crisis, only 29 per cent believe that CEOs and business leaders are doing the same.

The message to business is clear: if you are not part of the solution, customers will not trust you. And if they do not trust you, they will not stay loyal to you. An earlier poll by the same firm found that 65 per cent of Canadian respondents said a company’s pandemic response will have “a huge impact” on their likelihood to continue purchasing that brand. Seventy-one per cent said putting profits before people would result in those brands “losing my trust forever.”

Companies therefore need to develop a “trust strategy”, to both retain and build trust through the different phases of the pandemic. This can involve multiple elements, including aligning themselves with trusted actors, like government and health officials, contributing to fighting the pandemic by producing goods or supplying services, and ensuring the safety and support of employees and customers by supplying PPE, raising wages or minimizing the spread of disease.

Early examples of successful trust strategies included breweries like Minhas and perfume makers like LVMH, that both pivoted from their core business to making hand sanitizer. They included companies like Lululemon that closed stores yet kept employees on the payroll, and grocery giants like Loblaws that raised the pay of their employees. They included social media companies like Facebook that matched donations for COVID-19 relief, and tech companies like Microsoft that provided free Teams subscriptions to facilitate working from home.

But smaller businesses – indeed, every business – can develop a trust strategy and find ways to contribute. Restaurants can host “Social Distance Dining Nights” where part of the profits help the local food bank. Tech companies can partner with local school boards to get computers for low income students. Fabric suppliers can offer remnants free to clothing manufacturers to produce non-medical grade face masks, which in turn could be given to shoppers when entering local retail stores.

Good deeds must not happen in a vacuum, however. A successful trust strategy includes a well thought out communications plan to showcase how your company is solving, not profiting from, the current crisis. And they must strike the right tone. Empathy is critical but messages cannot appear manipulative. If a business claims it is “there for you”, it must offer concrete proof, not empty words.

Communications must also respect customers’ circumstances, which may now include less disposable income or greater fears for their financial future. Promotions which appear insensitive, or appeal only to the privileged few, can generate backlash, particularly on social media. Remember that while monetary incentives may get customers in the door, trust will keep them coming back.

The right trust strategy is critical and so is the right partner to develop it. This exercise need not be reserved for big businesses alone. Some strategy firms offer blueprints or toolkits that can be adapted to smaller firms for modest cost. In this highly competitive landscape, investing in the right strategy can literally be the difference between making it, or not.

As lockdowns end, people will want to resume as much of their “pre-pandemic” life as possible. That will include patronizing businesses and brands like yours. But customers need to feel that you are on their side. They need to trust that your environment and products are safe. Employees need to feel good about returning to work, and that their employer cares about their well-being. The right trust strategy will allow you to navigate the new business landscape with confidence – and come out stronger on the other side.

This article was originally published in the Toronto Star on May 10, 2020.

Fingers crossed, as the peak of the pandemic fades into Ontario’s rear-view, Queen’s Park has begun to turn its attention to the perhaps even more challenging task of reopening the economy. The province, along with governments the world over, has laid out a framework to guide the crucial next phases of recovery and taken the first cautious steps on the way.

For most leaders, this pivot comes at a time of personal political strength. Prime Minister Scott Morrison of Australia has earned a 25 per cent bounce in his approval rating; U.K. Prime Minister Boris Johnson is up 18 points; Angela Merkel up by 14. Prime Minister Justin Trudeau has gained somewhere between seven and 16 per cent, depending on the poll.

Provincial leaders have also fared very well. While Quebec Premier François Legault now enjoys near-Stalinist levels of popular support at 96 per cent, Ontario Premier Doug Ford is not far behind at 83 per cent.

For Premier Ford, there are, I think, two factors at play: the first is that politics is a game of expectations, and he is exceeding old expectations of both his capability and his performance like a golden buzzer contestant on “America’s Got Talent.” Countless times I have heard committed opponents of Ford acknowledge that he is delivering an authentic and highly competent response to this crisis.

The second is that in every crisis, regardless of the quality of the response, leaders benefit from an effect that political scientists call “rallying around the flag,” which occurs during a crisis when voters are reluctant to criticize their government and instead give them the benefit of the doubt.

The common error leaders benefitting from this effect make is to mistake the temporary sugar high of support during the event for enduring support after the event. It’s a mistake because the evidence suggests they are judged by how they come out of the crisis and not by how they managed in the thick of it. In short, it’s a bounce, not a summit.

Just ask former premier Ernie Eves. After enjoying a significant boost in his approval ratings for managing through the SARS crisis and the 2003 blackout, Eves called an October election that year. He entered into the race with a commanding double-digit lead, which evaporated by election day, resulting in Dalton McGuinty’s Liberals sweeping into power (Disclosure: I was co-chair of the Eves campaign.)

This pattern repeats itself again and again. During the Iran hostage crisis, President Jimmy Carter saw his approval rating jump 26 per cent. But in bungling the long-term handling of the crisis, Carter ended up losing the 1980 presidential election to Ronald Reagan.

In June 2017, U.K. PM Theresa May, holding a 21-point lead and seeking to capitalize on her party’s grip on the Brexit file, confidently called a snap election. The result? She blew her majority and was returned to power with a weakened minority propped up by the fringe DUP. May’s miscalculation and the ensuing debacle prolonged the Brexit crisis.

Already, there are rumours in Ottawa about Liberals considering a fall election. But in addition to the logistical and practical nightmare of campaigning in the midst of a pandemic, the party should read history.

It is far too soon to declare Mission Accomplished when it comes to COVID-19. After all, a long road to recovery — in both public health and economic terms — remains ahead.

But political performance to date has not been for naught. In Ford’s case, his persona and presence are reinforcing the covenant he made with his voters when they elected him in the first place. He has also won a second chance with many other voters who had written off his government but now see the same qualities of leadership that his supporters have long endorsed. By focusing resolutely on the recovery still to come — in both substantive policy and communications terms — the premier stands to build on this strong foundation.

For both Trudeau and Ford, the political challenge will be to continue to remind voters of what they liked about what they saw during the crisis, as the hard, gruelling, unrelenting work of recovery continues.

Executive Chairman Jaime Watt joins Vassy Kapelos to discuss the ongoing Conservative Party of Canada leadership race and how it has been impacted by COVID-19.

This article was originally posted on LinkedIn on May 6, 2020.

This month, Canadian provinces start hanging out the “open for business” signs. From retail stores in Quebec to restaurant patios in Manitoba, golf courses in Alberta to garden centres in Ontario, thousands of companies are welcoming back their customers. Each province has its own list, rules, and timetable, depending on how well it is “planking the curve” of COVID-19. And entrepreneurs face unprecedented challenges, as they consider how to comply with government strictures and still stay afloat.

Many business owners are confused or crying foul, about rules that complicate service or disadvantage certain firms. Manitoba, for example, does not permit gatherings of more than ten people. But how does this affect a restaurant? Are servers counted among the ten, even though they are not always present on the patio? Until May 8, Ontario’s garden centres were limited to curbside pickup and delivery. Yet grocery stores, some of which also sold plants, could have customers walk through and smell the roses. Why the double standard?

And even if businesses follow the rules, how do they reassure clients that it is indeed safe to return? Medical professionals, many of whom can now resume their practices, face an uphill battle. Because of this pandemic, hospitals have seen a dramatic drop in emergency room visits. If people are not seeking help for serious issues including heart attacks and appendicitis, are they really going to get in the dentist’s or optometrist’s chair for a routine cleaning or eye exam?

And then there are employees. Unless they feel their workplace is safe, many may not report back. Some unions, such as the United Food and Commercial Workers’ union, which represents employees at the Cargill meat processing plant in Alberta, have sought stop work orders. In other cases, workers may choose to remain on CERB or student aid rather than risk workplace exposure to the virus. Labour now commands a premium, even though business income is down.

In this new environment, your business needs to do more than just reopen. It needs a reopening strategy. You need to anticipate the expectations of your customers and employees. You need creative thinking to outperform the competition — just because coffee shops can open does not mean clients will patronize your coffee shop. You need to know what will draw them in – and what risks might be keeping them away.

Think of the debate around masks. Will mandatory masks make customers feel safer in your establishment or simply put them off? Already two grocery chains, T and T and Longo’s, have announced that shoppers will need to cover their faces. Should your business follow suit – and if so, what will the protocol look like? Will clients be expected to purchase masks if they don’t have one? Will they be physically turned away if they refuse?

As with every successful strategy, the key is information. With it, you can avoid costly mistakes like a public relations disaster or spending on unnecessary precautions. Thorough research, including focus groups, polling and analysis, can help shape your road map to recovery. But how do you obtain this information, particularly if you are a small to medium sized business already closely watching your bottom line?

That is where strategy and public affairs firms can provide a distinct advantage. Because they work with clients across a variety of industries, public affairs firms can conduct multi-sector research which is cost-effective and comprehensive. They can tease out the information for a specific business without losing sight of the big picture. They monitor trends in government and the private sector which impact your industry. They can connect you with other firms or institutions looking for partnerships which could benefit your business in the short or long term. They can advise you on how to best engage your employees so they feel safe on their return to work – and choose to stay on the job.

This type of strategic thinking is also crucial for supply chain management, which can make or break your reopening strategy. The worst possible move is to over-promise and under-deliver. Getting back to garden centres, many of their websites in Ontario feature plants which are not yet available, due to backlogs in the supply chain. To keep money coming in the door, a company could offer incentives—such as free delivery or bonus items—for customers who pre-purchase certain products. This would set them apart from the competition, as well as avoid frustrating customers who assume the products are already in stock.

Finally, it is crucial to remember that reopening is not a one-shot deal. What works one week may not work the next, and your business must have the agility to pivot as the pandemic runs its course. You need strategies for today but also for tomorrow, including contingency plans in case you are forced to close shop again for a second wave of the virus. The right advisors can help navigate the “new normal”, keep your bottom line healthy and ensure your customers and employees are safe. Everyone can use a hand as we stay apart – but move forward – together.