Scott L. Hazan
Chair of the Insolvency and Creditors' Rights Practice
Otterbourg, Steindler, Houston & Rosen PC
New York
Prevention Is the Best Approach
It's important to understand how damaging reputational crises can be ("What's a Reputation Worth?" May). But the real story is how to prevent them.
Seventy percent of the value of the average company is intangible. This is because processes, knowledge, and networks (all considered intangible by accountants) are the core drivers of competitive success — and reputation.
Managing reputation starts with managing these intangibles. That's why we say reputation is the new bottom line.
Mary Adams
Founder and Principal
I-Capital Advisors
Winchester, Massachusetts
Choice Offerings
After the worst market crash and economic pullback in decades, this year there has definitely been renewed interest in providing some form of [retirement-focused] financial education to employees — as both a value-added benefit and to better meet a plan sponsor's 404C ERISA requirements ("Sea Change," April). The article deftly points out the angst of employers as they attempt to understand what resources and tools will get the best response and not promote a conflict of interest. There is, in fact, a huge disparity in how employees respond to such offerings, due to lack of time, job insecurity, market fear, and uncertainty as to whether the resource provided will even make a difference.
This means that there should not be just one generic education resource offered. People differ in the level and form of service they desire. A "one size fits all" approach is not likely to be effective. While I do applaud HR directors for taking the initiative to provide some form of advice, there needs to be better across-the-board education for plan sponsors and HR directors to vet what forms of advice are available, including specific feedback on program elements. Many companies fear that offering more than one source of financial education will create confusion or conflicts of interest, but in fact offering a full menu of phone, online, and onsite resources allows employees to gravitate to the tool or resource that best meets their goals and personalities.
Jon W. Ulin
Ulin Financial Group Inc.
Boca Raton, Florida
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