WEEKEND TODAY Singapore. English., © 2008 MediaCorp Press Limited

Despite a company’s best efforts, crisis situations will crop up. No brand, no matter how strong or reputable, is immune to problems. How a brand manages the crisis will determine if it regains the trust of its customers.

I must say that DBS surprised me with its response to the High Notes affair. Based on how the bank initially reacted when the crisis started — slowly and cautiously — I thought they were going to take the “don’t-blame-us-we-didn’t-force-them-to-buy” route.

And DBS would not have been in the wrong, technically, to take such a position because investors have to be responsible for their own actions. However, this has nothing to do with who is right or wrong.

I am approaching this issue from a different perspective. Brands, as we know, are fragile things. Brands take years to build but can be destroyed overnight. From the branding point of view, perception is reality.

It doesn’t matter what you say the brand is. All that matters is what people perceive your brand to be. Here’s what I think DBS can do in order to repair any
damage that has been done:

1. Don’t Deny The Problem Or Responsibility

This will only make things worse. In a case that involves so much of investors’ money — $103 million in all— the company must be seen as taking quick and decisive steps to solve the immediate problem. DBS was quick to hold sessions with investors, although some of these sessions were difficult and acrimonious due to the high level of anxiety among the investors. It removed the managers found guilty of misrepresenting High Notes. It will also compensate investors but not for the full amount, which in my opinion is the right thing to do; investors will have to bear some responsibility as well. What DBS did will go some way towards restoring confidence in the brand.

2. Put A Face To The Problem

Companies under fire need to have someone as the key contact point for the public and the media. And that person cannot be a junior employee. The person DBS has put forward to face the angry investors is Mr Rajan Raju, who heads the bank’s consumer banking business. That shows that DBS is taking the matter seriously. In the High Notes case, even a person carrying the title of vice-president might be perceived as too junior.

3. Communicate!

DBS must not only take the correct steps but also be seen taking these steps. It’s an issue of perception. So it is important to communicate these moves to all stakeholders — both internal and external. There has been no lack of communications on DBS’ end. This effort must continue unabated.

4. Take Steps To Prevent A Recurrence

I was heartened to read a news report where DBS chairman Koh Boon Hwee said that the bank has taken a hit and will have to work very hard to earn the trust of its customers once again. Mr Koh also said the bank will implement safeguards to ensure that a similar incident does not happen in the future. The only thing left to do now is to make sure that the employees of the bank follow these steps faithfully — in both the good times and the bad.

5. Let Time Heal The Wounds

The next thing to do is to let time do its thing. You have to let enough time pass for the pain to go away — it ultimately will.

6. Track The Brand’s Progress

A brand tracking exercise carried out every six months over the next three years will provide clues as to whether the DBS brand has emerged from this unfortunate incident weaker or stronger in the minds of its customers. And remember, all that matters in branding is how people perceive DBS.

So, what about the recent retrenchment exercise for which DBS was heavily criticised? Well, that has to do with how people view DBS as an employer — but that’s another story for another time.

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