SITUATION: For years, Kimball International was known throughout the world for its magnificient pianos. But times had changed. The company had transformed, extending its product lines into many types of office, institutional and residential furniture, and into new fields, such as anti-lock braking systems, keyboards and other electronic devices. What didn't change was Kimball's approach to business - that the employee was a valued partner in the entire manufacturing and distribution process. The company wanted to convey the importance of this long-term approach to business, particularly because fiscal year earnings had been disappointing.
SOLUTION: The annual report team - management, an outside design firm and Mozaic - produced the theme "Heartland Values, Global Impact." The book highlighted the company's core values - among them persistence toward goals and prudent management of resources. The shareholders' letter stressed emphasis on long-term value creation, rather than quarter-by-quarter knee-jerk reactions to the constantly changing business climate.
RESULTS: Kimball's message was well-received among investors and employees, and its longer-term focus was recognized. Within eight weeks, the stock was trading about 20 percent higher than its close on September 8, 1998.
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