The Reality Gap Analysis ToolDeveloped for McDonald’s (1995 and 2003)by Mike Love

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The need to “do things differently”

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A few reputation challenges for McDonald’s…

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What people think, say and do ….

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Influences business outcomes

• Sales and profitability

• Stock price performance

• Selling and managing franchises

• Supply-chain relationships

• Employee recruitment and retention

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It’s not what they think, but why they think it that matters most

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Reputation health-check

• Identifying and tracking challenges to our desired reputation

• Annual, monthly and weekly research using existing brand, employee and opinion leader research tools plus the new Stakeholder Audit

• Determine if negative reputation earned by the reality or false perception

Engagent

Ahead of the game

InformedAdvocacyCriticism rebuttal

Ethics, values and Purpose

Policy & principles

Familiarityand

favourability

“Licensed to operate”

EngagementSatisfactionAdvocacy

Stock Performance

Leadership confidence

Trust

ProductsQSCVSales

Secret dinerBrand Monitor

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Negative perceptions*

LitterAnimal WelfareFood sourcing

Environmental sustainabilityObesityLabour

Local planning Obesity

PlanningObesityLabour

Experience fails to live up

to promises

Poor stock performance

Trust

BoringMore choicePoor service • Customer concerns

focus on QSCV delivery and new competition

• Non-customer leaders concerns focus on issues policy and practices

* Summary of research tools findings: Brand Monitor, Stakeholder Audit, Secret Diner, Employee Satisfaction

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The 5 “Ps” Model

People

PrincipleVision, values& ethics

PurposeBusiness plan &Corporate purpose

PromiseBrand, advertising,promotions,communication

PeopleLeadership

EngagementAdvocacy

PracticeCustomer service,Supply chain relationships

• The differences between any of the five make Reality Gaps

• Reality Gaps are perceptions of difference between what is thought, said and done

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The Reality Gap Analysis Tool*

* Tool devised 1995 for McDonald’s UK, revised and re-launched for McDonald’s Europe 2003

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“You PR people need to fix this!” If we don’t like what people are

saying about us, do we need to fix communication first?

Have we communicated the reality poorly, or is the negative perception accurate?

If we don’t like an accurate negative perception, is the first challenge a communication or a business problem?

Is the solution to communicate or change – and then communicate?

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Fixing the reality, changing perceptions

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Listen first,then talk.