Feedback.Take Control of Earnings Releases Shareholders may influence corporate reputation, as described in July's "Can CEOs Defend Corporate America's Image?," but many companies cede control of their investment message to Wall Street analysts. Vision and strategy have been subordinated to guidance and targets. Take a company's most wide-reaching financial communication, the quarterly earnings release. Most cater to the spreadsheet needs of Wall Street opinion leaders to the exclusion of other stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . CEOs and investors both want a longer-term view not driven by quarterly earnings. Yet you would be challenged to find an earnings release that gives investors simple reasons to invest or stay the course. With new disclosure standards, investors have more information but less understanding. CEOs should take a cue cue, n a stimulus that determines or may prompt the nature of a person's response. cue Psychology Any sensory stimulus that evokes a learned patterned response. See Conditioning. from American presidents
The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. and liquidity head-on. When CEOs reconnect with investors, reputation can be built on a solid footing. Lisa J. LaMagna Managing Partner LaMagna Communications Montauk, N.Y. Reputation vs. Image It shouldn't take comments from the Federal Reserve chairman about "conceptual assets" and the bankruptcy of some of our largest companies to realize the importance of a corporation's reputation. Beth Snyder Bulik, in her article, "Can CEOs Defend Corporate America's Image?" (CE: July 2002), correctly assessed that today's corporate chiefs are, as a group, concerned about their companies' respective reputations. However, being concerned about one's reputation and taking action to recreate, maintain or build a company's identity are very different things indeed. A company must live its brand promise--that which a company promises to deliver to its stakeholders. Reputation and image follow from there. A company's brand is not just a symbol or name, but the culmination of communications and experiences that a customer receives from every contact with a company. To truly succeed and drive profitability, the brand must drive the business strategy. And the employees must live the brand promise. The companies led by CEOs who "get it" will succeed. Craig Barrett Craig Barrett may refer to:
CEOs surveyed in Bulik's article, cited negative media coverage and unethical unethical said of conduct not conforming with professional ethics. behavior as the two biggest threats to reputation. Here's an interesting thought: Deal with the No. 2 threat (which is controllable), and the No. 1 threat could be minimized. No company would list "unethical behavior" as a core value. Nor would it instill in·still v. To pour in drop by drop. in  stil·la tion n. in its employees a drive to behave dishonestly. If a CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and the employees of the company identify a brand promise, articulate it clearly and act upon it, they will truly live up to their potential--and make a bottom line difference in the company's performance. No company is perfect. The media will always flock to the negative. But the CEO of a company that is true to its brand promise can rest better at night knowing employees are not relying on the company's reputation. Nina Duseja and Susan Kirchner Managing Partners Identity 3.0 Chicago, III. Wanted: Corporate Promise Keepers Promise Keepers is an international Christian organization for men, based in Denver, Colorado, United States, self-described as "a Christ-centered organization dedicated to introducing men to Jesus Christ as their Savior and Lord, helping them to grow as Christians". While Russ Banham's article, "The Whole Truth" (CE: July 2002), outlines several useful ways to measure and disclose business results, CEOs should also recognize that their corporate value statements provide an important yardstick of company performance and management credibility. Prominent companies vow on their Web sites to behave responsibly as corporate citizens, deliver profitable growth and empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems employees. Simultaneously, they are restating financial results, scaling back business plans and announcing layoffs. CEOs should make sure that long-term corporate values are in sync with short-term realities. Otherwise, the clash between promises and actions can raise serious doubts about a company's credibility at a time when strong relationships with customers, investors and employees are crucial to success. The management team should honestly assess its corporate values, obtain feedback from key customers and employees and then reassert reassert Verb 1. to state or declare again 2. reassert oneself to become significant or noticeable again: reality had reasserted itself Verb 1. these values in all communications. Executives also should practice the values they preach preach v. preached, preach·ing, preach·es v.tr. 1. To proclaim or put forth in a sermon: preached the gospel. 2. . For instance, they should forgo travel perks perk 1 v. perked, perk·ing, perks v.intr. 1. To stick up or jut out: dogs' ears that perk. 2. To carry oneself in a lively and jaunty manner. and share support staff if their company promises to reduce costs and increase profitability for shareholders. Corporate values are not platitudes and wishful thinking wishful thinking Psychology Dereitic thought that a thing or event should have a specified outcome . They are tangible commitments against which all companies should be measured. Daniel J. Marcus Managing Partner Marcus Associates Westport, Conn. Nothing to Hide? Tell the World Thank you for the great straight-shooting suggestions in the August 2002 editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : "Four Tips That May Keep You In Office." But you forgot one extraordinarily important tip: Get out and tell everyone your company's good news! Shareholders have shown they won't tolerate cooked books, rubberstamp boards and half-baked promises. So if you've worked hard to deliver on your promises, aren't in bed with the board and can't cook to save your life, put your best foot forward and tell the world what you're doing right. Just announced great earnings? Be ready to tell that TV reporter why the numbers were so good, armed with lists of successful initiatives. Hatching expansion plans? Be prepared to explain to the local newscaster why your plans are sound and how the anticipated growth will benefit the company and the economy. Not comfortable talking with the media? Get comfortable! Practice doing interviews in real settings, such as TV or radio studios, and rehearse re·hearse v. re·hearsed, re·hears·ing, re·hears·es v.tr. 1. a. To practice (a part in a play, for example) in preparation for a public performance. b. in front of the mirror. Get a media coach if you can't do it alone. If you have nothing to hide, tell the world. Dan Sondhelm Partner and Vice President SunStar Investor Relations Investor relations The process by which the corporation communicates with its investors. Alexandria, Va. The Subtleties of Leadership "The Top 20 Companies for Leaders" article in the June issue was quite interesting. I would have preferred, however, to read some definitions of leadership so that I could see if the executives were thinking along the same lines. As a consultant in the human performance domain, it's been my experience that leadership is often translated as high potential, head-of-the-class behavior. I've found that the individuals may be managing well, but they're not necessarily inspiring others to achieve. I have worked with high potentials. Often, they perform well yet do not lead people. What happened to leaders being out front, challenging processes, innovating and inspiring co-workers and encouraging others to learn and experiment? There is more to leadership than coaching and mentoring. Thank you for pointing out that it is actions that really make the difference. I would hope that leadership is more than positional. Think how high-performing a company could become if everyone were encouraged to express leadership qualities. Madaline Walter Manager Accenture Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Kan. Send letters for publication via email to ssherwood@chiefexecutive.net or via mail to The Editor, Chief Executive magazine, 110 Summit Ave., Montvale, N.J. 07645. |
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