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Partner Allan Dunlavy explores how your ride-sharing rating can help you understand reputation.
Reputation is the currency that underpins every transaction, opportunity, and relationship.
As Warren Buffett famously said:
“We can afford to lose money. Even a lot of money. We cannot afford to lose a shred of reputation, because you don’t get it back”.
It’s a sentiment that is even more relevant now than we he said it.
This is because the landscape has changed. In today’s fast-moving world, news is no longer shaped solely by seasoned journalists with editorial guidelines. Instead, information is often driven by bias, algorithms and questionable motives - and increasingly by those lacking expertise and with no editorial guardrails. This is the reality we must navigate, where reputation is both fragile and invaluable.
Reputation as a strategic advantage
Buffett’s perspective is clear: reputation is the most valuable asset for any organisation or individual. It’s something you need to invest in and protect. Yet, too often, reputation only gets attention during a crisis. It’s seen as something to work on reactively in defence, rather than proactively, to gain a strategic advantage and mitigate future risk.
The real question isn’t just “How do we protect our reputation?” but also “How can we build and develop it to unlock new opportunities?”
Reputation is influenced by both information (whether true or not) and subjective perceptions. Sometimes, your own actions lead to reputational risks; other times, events outside your control or someone else’s reputation can impact yours.
Consider your Uber rating. This is nothing more than a numerical reputation score based on a combination of every interaction you’ve had since you first downloaded the app. Many feel their score is unfair or subjective, shaped as much by the driver’s mood as by your own behaviour. Did you chat too much? Were you too quiet? Did you leave the driver waiting, or was it simply a bad day for them?
Reputation, like your Uber score, is shaped by countless factors. Some within your direct control, others not but you still have the ability to influence.
A ‘bad Uber reputation’ - a lower score – has consequences. It can mean longer waits, worse cars, and even self-fulfilling cycles of negative experiences. It’s a vivid example of how reputation, even when subjective, has real-world consequences.
Yet, reputation can – and should - be managed proactively. Take Taylor Swift, who turned disputes with her former label into opportunities by re-recording her albums, engaging in philanthropy, and boosting local economies. Her actions show that reputation management isn’t just about protection, it’s about shaping a positive narrative to enable success.
Managing reputation risks and opportunities
For clients, reputation brings both risks and opportunities. Threats within your control such as personal conduct, business integrity, and media engagement, can be actively managed. Monitoring personal and business associations, scrutinising business dealings, and maintaining a positive digital profile are essential steps.
Others lie beyond your control: whistleblower allegations, investigative journalism, legal disputes, data leaks, and geopolitical shifts, all amplified in an increasingly polarised world. Even though you cannot control these directly, you can identify and be aware of them. Take steps to mitigate these risks and influence them and how they may impact your reputation.
Here, having a crisis-ready team and a robust management plan is vital. Being prepared means responding with speed, clarity, and confidence.
Reputation management isn’t just about avoiding risk - it’s about owning the narrative before others do so that you can mitigate future risk and create new opportunities.
That means a clear strategy, a resilient online profile, and trusted advisors. When reputation, privacy, and security align, they become powerful strategic assets.
As Charlie Munger reminds us, every evaluation should begin with understanding risks - especially those tied to reputation. Build in a margin of safety, avoid questionable characteristics, and ensure proper compensation for risks. Know that you reputation can be a valuable asset – perhaps your most valuable asset - that you need take time to build and maintain and be careful how you use your reputation capital.
Reputation isn’t static. It’s active, evolving, and something you must continue to invest in to ensure you’re in the best position for success.
Neglected, reputation becomes a liability: managed well, it unlocks opportunity.
Partner Allan Dunlavy is a trusted adviser to high-profile individuals, families, family offices, and global businesses navigating and preparing for high-stakes challenges and opportunities. He leads Schillings' US office and delivers holistic and practical counsel, particularly to clients in the United States, and Central, Latin and South America.
