During its 25th anniversary last year, the International
Association of Business Communicators (IABC) tapped a new full-time
executive and moved forward with a plan to deliver more
services--especially through electronic channels--to the group's
12,500 members in the United States and dozens of other countries.
At last week's IABC conference in Dallas, we spoke with incoming
chairman Don Bruun and Elizabeth Allan, IABC's president and CEO,
about the group's priorities and the challenges facing organizational
communicators.
Bruun, public relations manager at Computing Devices
International, Minneapolis, stressed that in his term he will focus on
carrying out IABC's business plan, which defines IABC's role as an
organization helping members to "produce superior results" through
communication. (IABC, 415/433-3400)
What are the priorities of IABC's business plan?
Bruun: To help our members produce superior results through
communications--that is the essence of our plan.
In addition to continuing with existing programs and services, there
are three priorities: to develop a common view of the communicator of
the future, to develop the infrastructure for our IABC electronic
community, and to develop [information] content so that IABC's
products and services can help members fulfill their role.
Beyond these priorities, will you have any personal goals or missions?
Bruun: I want to continue to develop IABC as a knowledge-based
association. Secondly, IABC needs to adopt a focus on continuous
improvement [of products and the processes through which it operates].
Third, we need to look strategically at growth [in members, services,
new markets].
What will be the role of the communicator in 10 years?
Allan: Ten years is way too far out to look. We're focusing on the
next few years. We think people will shift to being facilitators of
communications.
They will have to be coaches, trainers and communicators.
Communicators will need an understanding of psychology and sociology,
because CEOs are starting to ask, 'Who [on my staff] can help me
change behavior?'.
Two years ago IABC proposed--and dropped--an increase in dues, which
have not changed since 1989. Are there any plans to raise dues?
Bruun: No. It's too early to tell about next year's budget, which
will not be prepared until August.
Allan: Our balance sheet remains positive. We have $1 million in
reserves. We continue to seek revenue from non-dues sources.
What is IABC's board doing to stay in touch with the chapters?
Bruun: In February, IABC began 'Interact '96,' a program for
directors to meet with as many chapters as we could, to bring
information about IABC and start a dialogue. [Editor's note: To date,
59 chapters have been visited worldwide.] This program will continue
in 1997, and has produced recommendations which have been acted upon.
What has been the response to IABC's Web site?
Allan: The site, Boulder, Colo., to analyze the reasons for the low
awareness and apparent low interest in the company, and to suggest
remedies.
Audit Reveals Communications Deficit
The first step taken by CTA was to conduct a communications audit
of stock brokers, financial analysts and fund money managers, to
determine their perceptions of ODS and its stock investment value.
The analysis revealed that little was known about the company by these
key audiences.
An analysis of ODS' practices for communicating with the
investment community showed that ODS was doing little beyond the
minimum required by the U.S. Securities and Exchange
Commission--essentially just issuing annual and quarterly reports.
There were no meetings or briefings held with the investment
community.
One of the first steps in the program was a direct mail piece to
4,000 brokers, financial analysts, investment portfolio managers and
the media. The mailer briefly described ODS and gave several reasons
why its stock was a good investment, and included a reply card for
those requiring more information.
Marketing Annual Report
Another tactic taken was to use the com- pany's annual report as
a marketing tool. Up until 1994, the com-pany's report had featured
unexciting photos of its hardware, and utilized pale, "sterile"
colors, said Shirley Thompson, president of CTA.
The report for the company's 1994 fiscal year, issued in May 1995
featured bright colors and more expensive graphic production. To add
to the readability and accessibility of the report, photographs were
larger than in the past, and included captions and callouts.
Probably the most significant part of ODS' program was an
increase in information flow to the investment community and the
media.
Starting in 1994 and continuing through 1995, the company worked
with CTA to arrange conference calls with analysts and portfolio
managers when quarterly earnings were announced. The company never
had done this befoe. In addition to these quarterly events, company
executives went on the road to meet these same audiences. This was
the first time that ODS executives ever had met face to face with
portfolio managers.
Using an attached reply card, 7 percent of those contacted
requested more information--with about one-half of these individuals
or organizations eventually making stock purchases.
The more attractive 1994 annual report helped to create interest
in the company and its stock, according to comments received by ODS
and CTA.
The goal of increasing institutional holdings of the company's
stock was met handily: by October 1995 the number of institutional
stockholders had jumped from 22 to 51, with the number of shares held
soaring from 1.5 million to nearly 6.5 million. At this time, the
company's stock price had risen 292 percent from its year-earlier
mark.
ODS' market capitalization--the value of stock held by
shareholders--increased from $149 million in October 1994 to $585 one
year later.
CTA president Thompson said financial performance during this
time period was of the "same complexion" as before the stepped-up
investor relations program was begun--suggesting that much of the
impact on stock price and holdings was due to the IR program.
(Thompson, 303/494-5472)