You know you have a major reputational challenge when stories about your company or sector migrate from the business pages to the news pages and then onto the front pages.
When these stories are then picked up by high profile TV topical news quizzes, to quote Will Smith’s character in Bad Boys II, ‘sh**s got real.’ And it has got very real for the water sector.
Currently, the sector is in an incredibly challenging predicament, and no quick fixes or clever spin can erase the widespread negative opinions customers have about their water company. Real solutions to these deep-rooted problems are the only path forward. Reputations can only recover once sustained customer and environmental improvements have become the norm. This will be a long journey.
Having spent some time in this sector, I have witnessed these challenges first-hand. The blame has understandably been placed on the water companies, though regulators and successive governments, which were meant to oversee water policy and regulation, have also been rightly criticised.
While reflecting on past mistakes is understandable, the only way to fix these problems is to look forward and refocus on delivering workable long-term solutions.
However inconvenient this truth is, water companies cannot and should not do this on their own. Collaboration is required amongst various stakeholders including landowners, developers, regulators, Government (national and local) environmental groups, shareholders, and most importantly of all customers.
The issues that need addressing are neither simple nor isolated. Sewage in our rivers is clearly a critical issue, but so is flooding, climate change mitigation, leakage, developing new water resources, and the overall health of the ageing water and waste assets that provide this vital service. Questions of regulation, ownership, dividends, and executive remuneration also demand attention. Given the long lifespan of water and waste assets, sustainable, long-term solutions are the only sensible option.
As dull as this may sound, the only way forward is to convene a group of key stakeholders to address these issues, agree solutions and prioritise what needs to be done. And most importantly they need to determine the best funding mechanisms and regulatory frameworks required to deliver the plan they produce. Ideally, this is a commission of some sort set up by Government and led by an independent Chair who has the skills to convene and to achieve alignment on the way forward. The Government must then turn the recommendations into action…quickly.
While this may look like another talking shop, understanding the full scope of these challenges is essential. Right now, there is not enough knowledge and understanding in one place that can deliver the right long-term solutions.
Yes, this work should have been undertaken years ago, but it was not, and we owe it to future generations to develop a sustainable plan now.
The depressing thing is I am not sure there is an appetite to undertake a detailed review. The majority of those engaged in this debate are struggling to move from a backwards-looking discussion on who is to blame, to a forward-looking one that delivers sensible and workable solutions. Right now, there seems to be little political will to treat this issue with the seriousness it demands. Saying you will increase fines, go after dividends and executive pay, and even imprison CEOs are all good headline grabbers, but none of these will meaningfully address the challenges we are all so worried about.
The water sector is facing major challenges, and needs serious people to have serious conversations very quickly.
Cavendish has a strong track record of leading effective communications and behaviour change campaigns, managing reputations, delivering effective stakeholder engagement and community consultation programmes.
We work closely with our clients and their technical consultants across the water sector. To find out how we can support your business through the challenges and changes facing the sector, please visit here.
