Companies like Hi-Rel Corporation have utilized this delineation recently by leasing E-Z MRP system for manufacturers with more than 500 parts. According to Jerry Stouffer, “It made sense given our cash flow and I would recommend E-Z-MRP to other small manufacturers because support is excellent and product is easy to work with.”

Stouffer did suggest that manufacturers looking for a customer relations management module should look at something else. However he was impressed with, “…How fast it (E-Z-MRP) calculates our requirements. I have 800 items in database and it only takes 20 seconds.”

Phil McCutchen Marketing Manager, VCG, Inc.

In light of recent corporate scandals, from Enron and Global Crossing to those of once trustworthy mutual funds, is it any wonder that more people are asking, "Can I trust this company enough to do business with them?" But trust issue isn't just relative to buyers of your products and services, its vitally important to employees as well. Impacting their retention and performance in very real ways.

According to a survey of 1,200 workers by global consulting firm Watson Wyatt, forty-four percent of American workers say top managers and executives are sometimes dishonest, and 40 percent say same of co-workers. Meanwhile, 51 percent of workers say companies too often 'spin' truth when talking to them, according to a separate survey of 1,000 Americans by Towers Perrin, another global consulting firm.

The lack of trust contributes to weaker ties between workers and companies for which they work, which in turn has a significant impact on corporate profitability. How much, you ask? Well, three-year total return to shareholders is almost three times lower at companies with low trust levels than at companies with high trust levels, according to Watson Wyatt's WorkUSA 2002 survey.

When you add loss of employee trust to unethical business practices to bursting of 'dot-com' bubble and recession of past few years, response is natural. Shell-shocked consumers and business-buyers alike are taking a measured look at a companies' reputation before making a purchase or investment. That's where RQ comes in.

What is RQ?

RQ is a new term, for 'Reputation Quotient'. The term RQ was coined by Dr. Charles Fombrun, Professor Emeritus of Stern School at NYU and founder of Reputation Institute (www.reputationinstitute.com). Dr. Fombrun has done extensive research with companies around world to understand roles that their reputations play in their success.

He has learned that most successful companies, and those that can endure great challenges, all have one thing in common: Strong reputations, or high RQ.

According to Christopher Foss of Reputation Institute, "It's common knowledge that a good 50 percent of most companies' market value is made up of what accountants call intangible assets that are not on balance sheet. Assets like knowledge capital, like brand itself, relationships with vendors. And reputation is one of those intangible assets. But if you view reputation as a magnet that has ability to attract resources that are crucial to bottom line, degree to which you have a strong reputation or don't is going to definitely affect your ability to attract resources and to do well financially."

The four principals of your company RQ

The research conducted by Dr. Fombrun indicates that there are four key principals of reputation quotient: