S&P threatens to cut the U.S. credit rating
Tom Dougherty, CEO – Stealing Share
21 April 2011
But how valuable is its rating, really?
This week saw a swift drop in the stock market as Standard & Poor’s (S&P) threatened to cut the U.S. credit rating amid talks that the debt ceiling will not be increased possibly resulting in the U.S. defaulting on their loans.
“In the case of S&P, its consumers have granted them what appears to be more permission leeway than is granted to the average brand.”
It was the effect that this statement had on the stock market that hammered home the concept that when it comes too the permissions of a brand, the job of maintaining those permissions is much easier when a large amount of trust is unquestioningly granted by the customer.
With regards to S&P, it was not that long ago that they told investors that mortgage backed securities were an AAA investment. This has since proved to be quite the contrary. At the end of the day, no one has a crystal ball and they are much like a weatherman who tells you it will be sunny and it rains or there will flurries and it blizzards. The rating system from S&P is only their opinion based on a variety of factors they have deemed to be important. And like with the weatherman, we continue to tune in, to listen and to dress accordingly.
In most instances, once a brand wrongs its target audience, maintaining and recovering the permission that the brand once possessed becomes a difficult, sometimes impossible, task.
There is a team trust exercise in which a person falls back into the arms of their teammates. It is an exercise in which you only need to be dropped once to lose trust forever. In the case of S&P, its consumers have granted them what appears to be more permission leeway than is granted to the average brand. S&P needs to acknowledge this granted tolerance and remember that, while it has permission now, the village eventually did let the wolf get the boy who repeatedly made a fool of them.
Our brand Tom Dougherty, CEO - Stealing Share 2 June 2020 Right now. OUR brand matters most of all. These are the strangest of times — none like I can ever remember or could have imagined. And I can’t help but feel the world is cascading into an...
Black Lives Matter Tom Dougherty, CEO - Stealing Share 1 June 2020 Brands surprisingly respond to Black Lives Matter, sensing change Few institutions are more wary of diving into the ocean of social issues than corporate America. So it was surprising and...
HBO Max arrives Tom Dougherty, CEO - Stealing Share 28 May 2020 HBO Max finally arrives, and what it says about streaming’s future Because we're all being shut in to prevent the spread of COVID-19, streaming TV is booming. And new services are popping up...