Narrowing the credibility gap, or, managing the art of the promise

Citation

Anderson, C. (2006), "Narrowing the credibility gap, or, managing the art of the promise", Strategic Direction, Vol. 22 No. 2. https://doi.org/10.1108/sd.2006.05622baf.008

Narrowing the credibility gap, or, managing the art of the promise

Narrowing the credibility gap, or, managing the art of the promise

Anderson, C.Ivey Business Journal, (Canada), July/August 2005, No. of Pages: 9

Purpose – To consider how organizations can systematically manage the gap between what they say and what they do, known as “promise management”. Design/methodology/approach – Observes that this is a problem for all organizations, including the best and most ethical companies. Draws on the example of Royal Caribbean Cruises Ltd (RCCL), showing how a series of inappropriate business practices undermined the company’s value proposition. Highlights the importance of engaging employees in decision-making, observing that micromanagement through a hierarchy is impossible in a complex and fast-changing business environment. Notes that technology has given employees and others unfiltered access to information, resulting in unprecedented levels of scrutiny and accountability of corporate promises. Emphasizes the importance to companies of being able to trust and rely upon the people who will ultimately execute corporate promises. Findings – Describes each stage of the Promise Management Cycle. States that the “art of the promise” involves creation of an actionable business promise; development of corporate-wide promise management architecture; and culminates in a continuous process of promise affirmation, as stakeholders evaluate the gap between strategic intent and actual business practice. Illustrates this cycle with reference to the transformation of the Thomas Cook Group between 1995 and 1998, stating that this was based on a clear statement of strategic intent to which every business practice could be systematically connected. Describes how RBC Financial Group benefited from efforts to assess promise affirmation. Originality/value – Predicts that the ability to evaluate and formally manage corporate promises will become one of the most important management sciences.Style: General reviewISSN: 1481-8248Reference: 34AT193

Keywords: Business ethics, Employee involvement, Feedback, Public relations, Stakeholder analysis