Rio Olympics

‘Over-Exaggerating’ the Truth

Disgraced U.S. Olympian swimmer Ryan Lochte lost three endorsements, standing as a stark example that reputations take years to earn can be tarnished in an instant, especially when you lie about being robbed at gunpoint.

Disgraced U.S. Olympian swimmer Ryan Lochte lost three endorsements, standing as a stark example that reputations take years to earn can be tarnished in an instant, especially when you lie about being robbed at gunpoint.

Need a case example of how lying can cost you dearly? Look no further than Olympic gold medal swimmer Ryan Lochte whose fabricated story about an armed robbery in Rio led to the loss of four prime endorsements by Speedo, Ralph Lauren, skin care firm Syneron-Candela and Japanese mattress maker airweave.

Lochte reportedly earned $2.3 million annually from his Olympic swimming sponsorships leading up to the 2012 Olympics in London, according to The Washington Post. One expert estimates Lochte's lifetime lost earnings from the four dropped sponsorships could be as much as $20 million.

In an interview with NBC’s Matt Lauer, Lochte took responsibility for the incident involving three other U.S. Olympians following a night of reverie that took a pit stop at a Rio gas station. Lochte admitted he was intoxicated and damaged a bathroom door. He was less definitive about other damage in the bathroom.

Lochte, who returned his hair to its normal shade of brown, also admitted “over-exaggerating” his encounter with a security guard who pulled his gun and pointed it at him. Lochte initially said he and his fellow swimmers were yanked from a cab and robbed at gunpoint. Now, he says, the guard confronted them after hearing loud noises in the bathroom and drew his weapon after Lochte acted aggressively. Lochte claims he was still drunk when he spun his robbery story.

While Lochte managed an apology to Brazil for not telling the truth, Brazilian authorities and news media are understandably not satisfied. Lochte’s untruthful tale touched a nerve in a country highly sensitive about its chronic crime rate. They correctly note Lochte only confessed to lying after surveillance camera video showed what really happened – or didn’t happen.

Intermixed in his apology, Lochte said some of the right things. But probably not enough of them. For one, he failed to say how it would make the situation right. That would require more than paying to repair the damage. It might take an act of attrition or a contribution to a cause dear to the heart of Brazilians. (Speedo said the company is donating $50,000 of Lochte’s fee to Save the Children, which will direct the money to add Brazilian children.}

Ralph Lauren removed Lochte's image from its website congratulating U.S. Olympians it sponsored. The company said Lochte’s deal was for the 2016 Olympics and wouldn’t be renewed.

The U.S. Olympic Committee has warned that punishments may lie ahead for Lochte.

At age 32, Lochte’s Olympic career is probably over anyway. His actions, which he described as “immature,” have put a serious dent in his reputation as well as his pocketbook. In the trade, he would be called “damaged goods.” Self-inflicted damaged goods.

Lochte may recover his reputation, and we sincerely hope he does take steps to do that. But his actions and prevarications are a stark reminder that reputation matters – and take only a few seconds to blow up.

Actions Speak Louder Than Reputations

When your actions, reputation and reality don’t align, you are courting trouble. Actions guided by values speak louder than reputations based on puffery and promises.

When your actions, reputation and reality don’t align, you are courting trouble. Actions guided by values speak louder than reputations based on puffery and promises.

Your reputation should shadow your reality, not precede it. When reputation gets out in front of reality, you are courting scrutiny to see whether the two match up – and scorn when they don’t.

Remember, actions speak louder than reputations. Actions guided by solid values enhance reputations.

It is all about the difference of earning a reputation versus projecting a reputation. There are tangible dimensions to an earned reputation as opposed to the airy lightness of a projected reputation.

A useful exercise is to measure the gap between your reputation and your reality. This gap analysis can affirm an earned reputation or expose a hot-air projected reputation. If the perceived gap between reputation and reality is significant, you have a credibility problem.

“Effectively managing reputational risk begins with recognizing that reputation is a matter of perception,” according to a Harvard Business Review article. “When the reputation of a company is more positive than its underlying reality, this gap poses a substantial risk. Eventually, the failure of a firm to live up to its billing will be revealed and its reputation will decline until it more closely matches the reality.”

“To bridge reputation-reality gaps, a company must either improve its ability to meet expectations or reduce expectations by promising less,” the HBR article continues. Some companies panic and resort to financial tricks, sleight of hand or outright fraud to mask the gap, which can result in an even greater fall. Think Enron.

Because your reputation is your most valuable asset, managing your reputation should be a top priority. Reputation management should be based on actions, not promises. Actions to build or defend your reputation should center on actions that align with your core values and who you want to be.

When clients ask me about how to respond to a crisis situation, I advise to start by thinking about the organization's core values and let them be the guide for action. If you say your customers come first, then act like it when responding a crisis that may put customers at risk. If you say you want to be a good neighbor, then act like a good neighbor.

A brand promise – such as healthy, locally sourced fresh food – is only as good as the actions to fulfill that promise. Chipotle discovered the hard way that a brand promise rings hollow unless you ensure that locally sourced fresh food is also healthy food.

One of the best ways to earn a reputation is by solving other people’s problems. Another reputation-burnishing effort is to undertake steps that eliminate problems down the road, as Tillamook Cheese did when it chose to eliminate use the growth hormone rBst in its dairy herds.

The 2016 presidential election has highlighted reputations and realities that are out of sync. Jeb Bush was deemed the GOP frontrunner before winning a single primary. He raised millions of dollars in campaign contributions on the basis of his reputation, but when the voting started, his reputation imploded. He became the proverbial hollow suit.

Democratic presidential nominee Hillary Clinton has campaigned as highly competent, but she has been tagged for her handling of classified emails on her private server as extremely careless. GOP nominee Donald Trump touts himself as a winning businessman despite a record of bankruptcies, failures and a continuing lawsuit alleging fraud by Trump University. Not surprisingly, a majority of voters view both Clinton and Trump as either untrustworthy or unfit.

The 2016 Olympics in Rio offer some sterling examples of men and women who have paid the price and earned their glory in the pool, on the track and in other venues. Some Olympic stars have to live up to their reputations, while most Olympians earn their own reputations based on their performance. Some win medals. Others compete and never get to the award podium. Still others are indelibly imprinted on our memories because of their actions.

In an instant after their legs tangled, they fell to the track and helped each other up, Abbey D'Agostino of the United States and Nikki Hamblin of New Zealand earned a reputation as true Olympians. (Photo Credit: AP Photo/David J. Phillip)

In an instant after their legs tangled, they fell to the track and helped each other up, Abbey D'Agostino of the United States and Nikki Hamblin of New Zealand earned a reputation as true Olympians. (Photo Credit: AP Photo/David J. Phillip)

Abbey D’Agostino, a 24-year-old Dartmouth graduate, and New Zealand’s Nikki Hamblin were total strangers before running the 5,000-meter race in Rio. Twenty minutes into the race, their legs crossed and both fell to the track. Instead of worrying about their medal chances, the two women helped each other to their feet and hobbled to complete the race, finishing far behind other competitors. In an instant, they showed their true mettle by reflecting the traditional Olympic spirit of good sportsmanship.

Two days earlier, in the men’s 10,000-meter race, Mo Farah fell after his feet and got tangled with Galen Rupp’s. Perhaps sacrificing his own medal chances, Rupp slowed down to be sure Farah, his friend and long-time training partner, was okay. Farah gave him a thumbs up and went on to win his second consecutive Olympic gold medal in the event. Rupp put his values and his actions ahead of his reputation, and by doing so he ended up enhancing his reputation.

Gary Conkling is president and co-founder of CFM Strategic Communications, and he leads the firm's PR practice, specializing in crisis communications. He is a former journalist, who later worked on Capitol Hill and represented a major Oregon company. But most importantly, he’s a die-hard Ducks fan. You can reach Gary at garyc@cfmpdx.com and you can follow him on Twitter at@GaryConkling.