Bulletin No. 24 | November – December 2004

REMARKS FROM THE EDITOR

Every CEO and board with whom the editor has talked has placed a high importance on achieving a good corporate reputation. Executives and directors know that a good reputation allows them to attract more capital, gain a higher multiple of their stock, enhance their recruiting efforts, improve employee satisfaction and attract customers. However, executives misunderstand how reputations are achieved and maintained, and as a result, are likely rely too heavily on corporate advertising and events organizing, while at the same time not doing enough on reputation building activities with stakeholders.

Why do companies fail to achieve their desired reputation? Some argued that the problem is related to a given situation. Others would argue to the inadequate funding for marketing and corporate advertising, or poor execution by their marketing or public relations staff or agencies. Whatever the excuse, it seems to vacillate between seeing the company as a victim of circumstances, or blaming internal staff for their inability to tell and convince others of the message.

Corporate reputation is by-product of good positioning, once the heart of strategy. Positioning looks at how a company is perceived, how its want to be perceived, what actions, resources and organizational changes are needed to close the gap. When companies do not achieve the reputation they believe they deserve, there often is considerable blame placed on the marketing and public relations organization.
In fact, many companies with good investments and solid corporate professionals in communications fail to achieve good reputations.

While importance of corporate brand advertising and public relations is indisputable, it is a mistake to look into these activities as the primary vehicles to drive reputation. Reputation can be diminished rapidly if the essence of doing public relations is ignored considerably.

We would like to thank our clients, sponsors, partners and selected individuals who participate in our activities for 2004. Without your supports, we remain nothing!

Best wishes,

Elizabeth Goenawan Ananto
Editor

TIPS OF THE MONTH

Change Triggers

• There are conditions and situations under which change is most likely; these should be considered triggers that acts as early warnings and can alert a company to the need of heightening its analytic and planning efforts.
  These triggers are usually caused by:
• Internal organizational change, in mission goals, objectives
• External change, in markets, technological developments, or condition and status of competitors and their offerings.

The following ten tips might allow you to recognize impending change internally and externally before changes happen beyond your control

1. Decide who, in each of your functional or structural area, is best able to scan the internal and external environments
2. Decide, to whom report on early signals of change should be addressed
3. Appoint someone, in a supervisory level, is best able to authorize a response to warnings of change
4. Evaluate the most efficient way to communicate needed changes
5. Decide what processes needed to react to early warnings of change
6. Decide when to give immediate response to early  warnings of change
7. Appoint a person, who can be assigned to coordinate your recommended responses to upcoming changes
8. Decide who is the best to implement those recommendations
9. Select the best and effective negotiator and spokesperson to represent your area when response to upcoming change requires the cooperation of other organizational units
10. Anticipate what can be done to recruit support among management and non management personnel for the changes proposed

(Source : How To Initiate and Manage Change, M. Silberman)