8 commerce germany February 2009

When tough economic times hit, thetemptation is for companies toonly focus on maintaining profitsand margins. The problem, how-

ever, is that by doing so, they emerge with noclear purpose and uncertain performance. If acompany has a clear purpose, it cansupport and guide top managers as they make strategic decisions and lead their organizationsthrough the tough times. A com-pany’s purpose can guide a businessas it seeks to sustain financial per-formance during difficult economictimes.

Finding the Balance

However, a corporate reputationsurvey among 200 leading execu-tives and opinion makers in 11 European mar-kets (Belgium, Denmark, France, Germany, Italy,Netherlands, Norway, Spain, Sweden, Switzer-land and the U.K.) finds striking a balancebetween purpose and performance as one of themain corporate challenges today and in thefuture. Nearly three in five respondents see a ten-sion in focusing on both.

It is in a company’s interest to ensure thatboth CEOs and shareholders are aware of thesymbiotic relationship between purpose and per-formance – and that one is not pursued at theexpense of the other. Sixty-two percent of therespondents believe that CEOs must find a way

to strike the right balance. But along with share-holders, CEOs are viewed as the principal barri-ers to this development.

A vast majority of respondents – 90 percent– believe that purpose is more important todaythan it was five years ago and that there is amuch greater level of scrutiny of the purpose,vision and values of a company now than there

was five years ago. There is also a high level ofconsensus – 81 percent – that no business sur-vives without considering its impact on the widerworld.

Sixty-nine percent of respondents believecompanies that effectively balance purpose andperformance are seen as role models in business,that is, a guide for other companies to follow.Sixty-one percent believe such a company wouldbe a valuable partner, and 58 percent would rec-ommend such a company as a good employer.Forty-three percent strongly agree they wouldsupport a company if it were to come under pub-lic pressure.

Defining the Narrative

Communication clearly plays a crucial role ineffectively conveying the purpose and perform-ance story to different stakeholders. Knowinghow this information is perceived by stakehold-ers is fundamental to communicating purposeand performance. Companies should analyze thelevel of understanding and appreciation of a pur-pose and performance statement among differ-ent stakeholders.

They should not only compare the resultswith management’s own expectations anddesires but also benchmark them against com-petitors or industry standards. The collected qual-itative and quantitative data will enable a com-pany to redesign purpose and performance con-tent and identify the most effective ways of com-municating purpose and performance strategiesto different stakeholders.

A more detailed report can be obtained fromBurson-Marsteller free of charge. Please contactAndré Wigger. ����

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c o v e r s t o r y

Burson-MarstellerBurson-MarstellerBurson-MarstellerBurson-MarstellerPurpose and Performance: Driving Corporate Success

in Tough Economic Times

André Wigger, Director, Corporate Communications, Burson-Marsteller GmbHE andre.wigger@bm.comW www.burson-marsteller.de

Communication is key in conveying the purposeand performance story

Source: iStock