My job takes me around to many corporates where I address them on reputation management. That is my keynote.
Sadly not many government departments or even state-owned agencies or companies invite me to give talks. Go figure.
One of my favourite topics in reputation management is speculation. The other day I was addressing a mining company and they were worried about what their stakeholders, and especially the markets are going to react to a speculation that the CEO is about to resign. If there is one thing you should know about the markets is that they are cruel.
They can slaughter you even when you are on the right wicket, what more when you are fumbling your way through life. Ask anyone who has dabbled in any kind of trading.
Before I could give advice to the executives of the mining company, I asked them a simple question: “Is the CEO resigning?”
The answer was not instant. I was not expecting it to be. Call it experience. You know why, it is because one of the things that come naturally to human beings is to avoid reality, especially if that reality is likely to hurt.
In the instant that they were still pondering to answer me, I told them that I got my answer, which was that the CEO was going to resign.
I was wrong. When they finally gathered their wits to tell me, I found out that the CEO, 52-years-old, was sickly and was considering slowing down.
Two things came out of this. First, I clearly made an ass of myself by speculating and even more so, by speculating wrongly. Secondly, the company withheld important information that led me to speculation.
I was mad at them, not so much for making me look like an idiot. I do that for myself without prompting. How else do you explain that I continue to support AS Roma football club in Italy in spite of their internalised habit of underachievement?
I was mad because they allowed for the most dangerous thing to happen in reputation management: speculation. Once your stakeholders have speculated, the truth is always late.
Imagine if your partner found out that you went to dinner behind their back with another man or woman they have always suspected you were dating, only to find out that you were actually meeting this person because you wanted to ask them to tell your partner that you have just been diagnosed with a life-threatening disease and you do not know how to deliver the news yourself.
In fact let’s turn it around. Imagine if your partner found out after all the speculation and anger that you actually met the other man or woman to tell them that you just made a lot of money from investments and you want the most exciting ideas on how to break the news with you.
In either situation, your truth will be too late. In fact, there is still a chance that your partner will accept your truth, but still hang on to their speculation, their suspicion or their fears that you are cheating.
Which brings me to the events of yesterday afternoon when President Jacob Zuma announced that he had “removed” Nhlanhla Nene from his position as finance minister.
The President did not tell the country and the world why he did this. I add the world because finance ministers more than other ministers are important at home as they are all over the world where we do business or trade.
So what happened straight after the announcement without explanation? The whole world went into a frenzy in speculation of why Nene was “removed”. All sorts of conspiracy theories were fashioned out by the second.
As matters currently stand, no one for sure, not the analysts, not the media, not the opposition parties, knows precisely why Nene was removed. It could very well be that he asked for it, for whatever reason. But we do not know.
And when we do not know, we speculate. Because like our life partners, the standing of a finance minister is very important to us. We want to know how they are doing, what they are doing, with whom, why they are doing it and if possible, what they plan to do tomorrow.
As we speak, the rand hit the R15 to the US Dollar. The country has developed serious indigestion and somewhere there are even signs of depression.
The cherry on top is that all negative speculation has spilled over to hate talk, doubt and ridiculing of Nene’s replacement David van Rooyen. Whether or not he is the right replacement for Nene, that also is a matter of speculation.
But this article is not about Van Rooyen. I am also holding my breath and frantically trying to know who is.
President Zuma’s choice not to take us into confidence has had the same effect as the silence of the mining company I addressed the other day. It got the markets reacting (irrationally) angry on the basis of speculation.
When he finally comes out with the reason (call it truth) of this move, it will be too late. The rand will still be on the ground. The country will still be reeling from the speculation.
But even worse, speculation, like unturned cement, may have hardened and the truth may no longer matter. And that’s not a speculation.
Recent Comments