We’re looking for companies with courage. Not ones with timid managers who think the world is going to end next week, but ones with faith in their business, a belief that their products are the best they can be and confidence in the future.

Clearly as good managers they must be cautious and careful in what they do, have a clear vision of where they want to get to and plan accordingly.

Despite the sentiments of the Federal Member for Lilley, the Australian economy is not in great shape and business is going through a very difficult time and many are suffering.

The biggest problem that is affecting decision making is a massive lack of confidence which is causing management to delay decisions, where if they thought it through, they may well not do.

Campanies need more courage

I have had two recent examples, admittedly with companies that are Australian subsidiaries of international organisations. One had a European head office and the other US, but the result was the same. A freeze on all expenditure and not surprising marketing and PR are among the easiest to cut, particularly by managers who are aren’t really certain what those aspects of the business really do for them.

It is interesting that in both cases a well-directed PR program had the strong recommendation of the Marketing Department, but the result was the same. No budget.

Clearly the management in those two examples did not take the advice of a reasonably successful business founder called Bill Gates who said, “If I was down to my last dollar, I would spend it on PR”.

There has long been a theory that it is cheaper to increase market share in a business downturn at the expense of your competitors through intelligent well targeted promotional activities, including PR. I assume that this presumes their competitors cut their spending.

So the question I raise in my blog is: Have you heard of this theory? If so, are their any case histories or statistics to support the theory?

-Dennis Rutzou