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Group’s Business Result as Major KPI

Group’s Business Result as Major KPI
30.03.2015

What are the principles, on which an efficient (under Ukrainian conditions) corporate reputation management system should be built? 


Currently, the country faces a total confidence crisis; its reason is the lack of communication at all stages of changes: from development to introduction. Reputation means a continuous honest dialogue: from the start of a project to its final implementation; it does not only mean information about the results. It is not enough for people to be informed; they want involvement in decision-taking; they want to understand objectives and terms of their implementation.


It is not only in Kyiv, but in all regions of the country. We should not forget about regional media, which is the only source of information for many people. Population should be involved in reforms, and involvement may only appear when people are united with common values.

Values, corporate culture and a management system are the basis on which a company’s reputation is built. We, Corum, determined five values that are most important and congenial to the Group. They were generated and are shared by all members of the board. We are aimed at the result and its achievement in the most efficient way. 

At the same time, we are just to others and honest to ourselves. We are all a united business team.

 

Reputation means systematic work aimed at achieving a certain business result; it does not mean activity for activity.

Communication is based on honesty and transparency, whatever threadbare it can sound. And the main thing is proactivity. You should build your work in such a manner that you will not need to fight a fire; you should work to prevent it.   

 

What is the target reputation that your Group is trying to achieve in the eyes of your key target stakeholders?  

We live and work during the globalisation era. If yesterday you could divide stakeholders into different target audiences, then now everything is so mixed up and crossed over that you will not be logical to do it. Employees can read news about their company, share their opinions about the company’s operation in social networks; customers can write their feedbacks and impressions there, too.

 

The government receives information from the same source. Target reputation for us means a reliable partner to implement mining turnkey projects.

 

We are building it at all levels. 


What major KPI do you use to assess reputation quality management?  

The Group’s business result is our major KPI. Reputation cannot exist without it. Communications are the service component of business, an instrument for efficient achievement of the company goals. And we do not measure efficiency by determining the Group’s net promoter score (NPS) from our key customers and employees; we also conduct reputation research and reputation audits.


Could you give an example of your Group’s successful communication with any of your target audiences (ideally, a reputation risk of the previous year, which the Group coped with)?  

I suppose that communication with the employees and customers during the armed conflict in East Ukraine can be the brightest example under the current circumstances.

 

When active military actions started in Donetsk Region, where we have four plants, we organised transportation of the employees and their families to Kharkiv, Kryvyi Rih and Kyiv. In late August, the Group lost three of six of its Ukrainian facilities: Donetskgormash, Donetsky Energozavod and Gorlovsky Machine-building Plant.


Under these circumstances, our objective was to retain customers and orders related to these facilities. What did we do? We maintained regular relations with the employees and customers, explained what had happened and what we did to stabilise the situation through various channels: managers held meetings with customers; members of our Group’s board met with managements of customer companies.  

We sent letters containing action plans and information of the steps taken to eliminate the risks: we relocated manufacture of our products from the lost plants to other facilities of the Group, formed a reserve of spare parts at our consignment warehouses, increased production efficiency and did many other things.


To prove our words, we invited our customers to visit our facilities in Kryvyi Rih and Kharkiv, demonstrating them our new assembly sites. For those who could not come, we took videos and actively used Yuotube and Skype, took photos of the products so that our customers could see the stage of manufacture of their orders.

We did have several delays in equipment shipment. But owing to regular communications with customers, we did not lose any contract. And all our actions can be expressed in one rule: treat your partners as you want them to treat you.


Interviewed by Mykola Martynov


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