By: D. Bruce Johnston, President, DBJ Associates

Today’s announcement that Putnam twitter.com/putnamtoday, and their CEO, Bob Reynolds twitter.com/robertlreynolds will begin to twitter advisors and shareholders to keep them informed of events at the firm and with their investments should be roundly applauded by the investment management community.  At a time when the industry is in need of senior leadership to blaze a trail to earning back advisor and investor confidence this certainly sends a positive signal.

The move signals to the industry and Putnam shareholders and advisors that their interests come first.  It also says that Putnam fully grasped the situation they were in, and set-out to craft and execute on a plan that would restore shareholder and investor confidence while protecting those shareholder assets they had been entrusted with.

And what a great way to signal your back then by signaling the industry that your firm understands and grasps the power of new technology; understands how to use it and understands that it will provide a competitive advantage.

Putnam certainly is exhibiting an understanding that not only do customers have the power to access, consume, customize and forward information, they can do it however, wherever and whenever they want.  By actively listening, watching, gathering and learning from their customers they will be able to convert this information into customer advocacy, brand building and inspire loyalty much quicker than traditional methods.

Next move is their followers.  And remember the old adage: “If you’re not leading the pack, the view doesn’t get any better.”