Tuesday, November 25, 2008

Beware of Knee-Jerk Budget Cutting

Ted Pincus, founder of The Financial Relations Board, as well as a finance professor at DePaul University and a business columnist for the Chicago Sun-Times, recently published a paper on the deepening financial mess. It appeared on the O'Dwyer's PR website. While Pincus doesn't offer much hope for a quick fix by the incoming Obama administration, he does conclude with a cautionary tale for anyone considering cutting their PR budgets to save money in the short-term.

Pincus writes:

"I sense that the short-sightedness of old has been replaced by a new recognition that a reputation — the most prized asset of all in the long run — cannot be turned on and off with the flick of a budget, and can only be protected by the one specialist who knows how to achieve sustainability."

Sure times are tough. But if you want to be ready to blast out of the gate when the inevitable economic revival comes, make sure you keep your good reputation intact. And remember the words of Warren Buffet who once famously said, "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."

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