New Delhi: President A P J Abdul Kalam today (Nov 22, 2004) said competitiveness, failure management and ethical standards were among the five essentials for building an institution with a strong brand name. "First component of building a brand organisation is design capability, which takes 60 per cent of the time in creating a product. Companies must recognise the importance of design capability as components like quality are built at this stage," he said while inaugurating 33rd IFTDO World Conference and Exhibition on Value Creation and Human Development.

He said a company to be competitive has to take care of three elements - what it produces should be cost effective, it should be of quality and reach the market on time.

Management of a company, which seeks to enjoy a strong brand name, should have a management that can manage organisational transformation, he said.

"As people take over as head of companies, they should keep in mind its core competence before driving change. They should recognise the strengths and pride of people working in the organisation and build on them," Kalam said.

The President said leaders of organisations should be able of manage failure by taking responsibility. Giving the example of how Former ISRO Chief Satish Dhawan managed the failure of satellite launch vehicle in 1979 and follow it up with successful launch a year later, Kalam said when the launch failed he took the blame and when it was successful he gave credit to others of the team.