Sending messages without a signature is not what one would call etiquette correct. Surely when we are mailing to each other in a limited set of participants where everyone knows another person quite well, having a signature can be an excess. But once we are talking about business communications having a proper signature becomes a must.
That’s when we get why we need Word to be a default editor for composing Outlook messages.
How do we setup a signature
For personal needs we do the following
In this example Office Outlook 2003 and Office Word 2003 are covered
1. Launch Outlook and choose Tools|Options to open the Options dialog box
2. In the Options dialog box switch to the Mail Format tab
3. In the Message format select HTML from the Compose in this message format drop-down list
4. Check the Use Microsoft Office Word 2003 to edit e-mail messages
5. Under Signature select account to be which you want the signature be assigned to
6. Click Signatures button and click New button to create the signature.
7. Enter a name to set how you wish signature to be listed in the list of signatures. This is needed to differentiate between signature is you have several signature. I recommend naming convention to be FirstName LastName [Type][Lang] where the stands for the signature type and is used to differentiate between corporate and personal signature. Lang designates the language of the signature what is useful if you work with multilingual customers. So name it to be named as John Doe [Corp][EN], John Doe [Corp][DE], etc
8. If it’s your brand new signature and you have no previously created signatures there, select Start with a blank signature and click Next
9. While in the Signature text box click Advanced Edit to launch Microsoft Office Word
10. When Word will start, type your signature, format it accordingly to confirm personal preferences or corporate rules
11. Save changes to the edited document

There is a nice demo on how to create, apply formatting to bring some elegance to it, and manage profiles by switching between signatures if you have say your corporate and personal signatures.
Inserting signature in a message
Signature Management with Outlook Profiles in Domain environment
Sign off simply in Microsoft Office Word

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