Posted tagged ‘brand’

You cant be given a brand you have to earn it

06/12/2011

Bodyproject contributes to a Reputation Institiute blog:

My company works with complex organisations to help them protect and promote their reputation and I entirely agree with Elliot.

We find the best way of thinking about this is to make an analogy with an individual.

I find that in terms of an individual form the essence of your genetics, behaviours, way you look and speak and act is acquired from what influences your conception to where you live to what you eat, what experiences you have etc. It is hugely complex.

There are three elements to reputation and therefore brand. First – identity. Of course this can be influenced and is almost entirely in your control (i.e the ‘almost’ is somewhat dictated – you cant wear a skinny t shirt if you are overweight, your accent may be influenced by were you are brought up etc) but you can learn and change and shape your whole identity. As also can organisation through its brand, key messages, 4Ps -products (and service), promotion and placement and price etc.

The second is image – the reverse of identity – how others perceive you. Far more difficult to control but you can choose how you promote your identity i.e. if you bully someone they may not have a very good image of you – to say the least. Again organisations can tackle this aspect of their brand through the way they deliver customer service, the insights they receive, the experiences they deliver.

But the hardest aspect of brand and why Elliot is so right is that of personality. I sum this up as actions speak louder than words. It doesn’t matter how many strap lines, lovely logos and values an organisation espouses, what you do speaks far more loudly than what you say.

So many consultants can help shape all this through coaching, mentoring, reflecting back, cajoling etc but ultimately brand is something you give rather than what you are given.

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Reputation – why it matters and how you can manage it

09/11/2010

“…Reputation, reputation, reputation! Oh, I have lost my reputation! I have lost the immortal part of myself, and what remains is bestial…”

William Shakespeare Othello. ACT II Scene 3.

Later this month, the Chartered Institute of Management Accountants (CIMA) will publish a report by Leslie Kossoff entitled: “Reputation – why it matters and how you can manage it.”

In the weeks leading up to publication, Bodyproject will be debating the role of reputation in relation to high performance and growth.  Bodyproject’s Advanced Stakeholder Management (ASM) methodology supports organisations in protecting and promoting reputation.  In this first article we look at the importance of reputation and its critical role within successful organisations.

CIMA President, George Glass, recently drew a parallel to a famous beer commercial when he said: “Management accountants add value to the corporate parts other accountants cannot reach.”  It’s an interesting thought and not before time that a key business profession realises that they have further to go in adding value than their role suggests by also considering the value attributed to reputation.

In our opinion there are three dimensions to business success: performance, growth and reputation.  The first two dimensions are tangible, measurable and therefore manageable.  They are the bastions of traditional accounting defined by the elements that make up book value and can be measured by the strength of the balance sheet.  The third dimension, reputation, is different.  It is almost wholly intangible, difficult to measure and therefore very difficult to manage.

And yet, reputation’s value and consequent potential liability is great, almost infinite in some respects.  Whilst book value and traditional accounting is one way of valuing a business, it misses the true value that makes up a business’s intellectual capital – the goodwill that creates the absolute value that is often only realised during a sale but may be severely damaged or enhanced at almost anytime.

Mario Simon, the Managing Director of American market research company Millward Brown Optimor illustrates this when he says: “In 1980 almost 100 per cent of the value of an average Standard & Poor’s 500 company consisted of tangible assets such as chairs, factories and inventory.

“That figure is now more like 30 or 40 per cent – the rest comes from intangible value, about half of which is attributed to brand.

“It is not a stretch to say that for many companies brand is their single biggest asset.”

So, it is hardly surprising that reputation is now being recognised as increasingly the most critical dimension of success.  High growth and performance are vitally important but equally so is the protection and promotion of reputation.

So what exactly is reputation and how does it differ to brand?

Brand is often defined as the ‘corporate promise’ that it is assumed that the organisation has some control over, whilst reputation is more a way stakeholders perceive the organisation.

Chris Fill, co-author of Managing Corporate Reputation, describes brand as: “how a company wants to be seen and is all about the corporate promise. Reputation is entirely a stakeholder perception over time.

“Stakeholders will make an assessment of how well the organisation has performed against the brand’s promise.”

In our view reputation is not that simple to define and its lack of tangibility makes it a difficult proposition for people to understand.  Reputation is made up of three component parts:  identity, image and personality.

Identity is similar to the corporate promise in that it is almost wholly controlled by the organisation and is ostensibly what it says about itself through its brand, advertising, products and services etc.   Image is the reverse opposite – the perceptions of its stakeholders.  The third aspect is that of personality – often this can be viewed of how well the identity and image match up but actually is more like the state of reality in which the organisation exists.  It is actually the organisation’s true self as opposed to the rather different realities created through identity and perceived through image.

This is hugely complex and is deeply swathed in all sorts of philosophy and psychology.  But if organisation leaders do not intellectually grasp its importance then they risk their performance and growth.

When Kraft Food Inc bought Cadburys they were buying a company with a book value of £4bn.  They actually paid more like $11.9bn.  The element of ‘goodwill’ or intellectual capital was a huge proportion of the value of that acquisition.  The battle for the sale was hard fought and included a massive aspect of reputation with over 94% of the British population reporting through a YouGov poll that they were aware of the sale.  For the harsh corporate Kraft it all came as a shock.  When they went on to sell a factory, against promises made during the sales process, their reputation was badly hit and ended with them apologising to the British Parliament.

In fact the Kraft Foods Chief Executive Irene B Rosenfeld in the lead up to the sale recognised the importance of reputation and its link to the intrinsic value of intellectual capital when she wrote to the UK Government’s business secretary stating: “(she understood) the concerns of the UK government and I can again assure you of our intentions to proceed with sincere respect for Cadbury’s heritage, people and identity.”

On her recent visit to the UK she jokingly said that she had been surprised at the role of the Crème Egg in British culture.  No joke really when that product alone has estimated brand value of £45m.

David Haigh, CEO of brand valuation consultancy Brand Finance, explains the value of reputation in relation to brand when he says: “Brands affect all audiences or all stakeholder groups – from customers to staff and financiers.

“If the brand is highly regarded then they behave in a more favourable way towards the organisation, which then drives up its value.

“For each of the audiences of an organisation there is the same broad set of criteria – functional delivery, image and conduct – by which they judge whether it’s a good brand or not.”

At Bodyproject, we try to look at the entire role played by performance, growth in concert with reputation.  We no longer think that book value is an adequate judgement of value and that competitive advantage is derived solely from the tangible aspects of doing business.  It is the management of stakeholders and the integration of marketing communications as a ‘hard’ discipline alongside accounting and legal that the true difference is seen.

The Kossoff report will make vital reading and what is most important is that it is being published by CIMA.  Reputation has long been associated with the ‘softer’ professions such as public relations and marketing but it is time that its role is recognised at every boardroom table.  Because, no matter how good your performance, no matter what your growth aspirations are you will only be as good as your reputation.

In our next article to be published week commencing 15th November we will consider in more detail one of the components of reputation – identity.

For more information about Bodyproject and our Advanced Stakeholder Management methodology that helps organisations promote and protect reputation call 0151 709 2288 or e-mail nicktaylor@bodyproject.co.uk

Advanced Stakeholder Management aids recovery!

05/08/2010

“…If you grow slowly and strongly, you will be around for a long time…”

Edwin Booth Chairman Booths Supermarkets

Business has never been harder, but in some sectors there is an increasing understanding that the only way to recover and even survive is through continued investment and growth.

The Chartered Institute of Public Relations (CiPR) latest ‘state of the industry’ research reports a marked increase in PR budgets with professionals expressing confidence in terms of the health of the PR industry and growth expectations.

A host of areas are predicted for growth in the coming year, with key ‘ones to watch’ being online reputation management, crisis management and strategic planning.

Bodyproject, a niche consultancy based in Liverpool, that pioneers an Advanced Stakeholder Management (ASM) methodology, believes that those businesses that want to succeed and grow are continuing to invest to protect and promote their reputation.

Nick Taylor, owner of Bodyproject comments: “The strength of the balance sheet is clearly a major factor but more and more companies are understanding that the true value of their business is tied up in their intangible assets and intellectual capital.

“Those businesses that continue to invest and take a strategic approach to managing their reputation are also the ones that are expressing optimism that they can trade their way through the recession”

Bodyproject is seeing a great deal of interest in the ASM methodology from businesses that are growing, increasing employment, achieving more sales, reducing costs and demonstrably becoming profitable.

Nick continues: “I am convinced that to be successful in business you have to go beyond the traditional aspects of stakeholder management around the protection of reputation and brand.

“Our ASM methodology is an innovative strategy seeking to integrate the management of stakeholders into core business with visibility and control from senior leaders and board level rather than solely the preserve of PR, marketing and communications departments.”

Businesses achieving direct commercial advantage understand the essential elements of stakeholder relationships, including the development of a better brand image, additional market insight, increased flow of new product and service ideas, improvement of internal business processes, better insight into consumer behaviour, new marketing channels for company products and services, and early warning of potential risk and crisis.

What price good customer service?

14/07/2010

“…One of the deep secrets of life is that all that is really worth doing -
is what we do for others…

Lewis Carol

It is a fact that good customer service seems to be getting very difficult to achieve.  In an average week we are subjected to customer service that stretches from the woefully inadequate to the quite frankly appalling.

Take my week.  I visited the Post Office in Liverpool to join a line of fifty people waiting to be served by four people who were sullen and fed-up.  They moved around slowly with shoulders slumped and everything was depressing.  No eye contact – they just looked beaten and dejected.   The up-sell at the end of the transaction for travel insurance and mobile top ups was so unconvincing.

Then there is transport, as an example, waiting for a late Easyjet and hearing monotone announcements about late inbound aircraft and apologies for any inconvenience this may cause.  Northern Rail also used the same bland statement when my train was delayed.  Then, standing in a Tesco store, about to close, seeing the duty manager frantically searching for the script to use on the public address system.

In contrast take my milkman who always has a smile and chats freely as he collects the money, a difficult task as he has to be up in the early hours to do a hard job against stiff competition from the supermarkets.  Then he has to spend an evening door knocking.  Of course we can now pay the dairy by direct debit and manage our account online, but interestingly, He tells me few are taking up the option as they like to chat to him!

Take my local charity arts centre (www.citadel.org,uk) managing a full house of rock fans and people mobbing the bar and yet five people serving multi-tasking pouring multiple drinks, taking money, engaging numerous customers.

Take Café Nerro employees in my local store who never fail to smile, engage and ride out their company dictated barista up-selling to talk to customers and keep the line moving servicing lots of customers at once.

So what is the difference?

Well it comes down to natural communication, no scripts, no standardised wordings just plain courtesy, common sense and engagement.  Of course there are added complexities like having a good employer and job that is fulfilling.  But the difference is stark and I am now making my choices based on this service.  Bodyproject believes organisations are all about people and that people offer the best service when the organisation treats them as adults and allows them the freedom to express themselves.  I hope that, sooner rather than later, all organisations will take a deep long look at themselves and get their customer service sorted out.  If my local art centre and local milkman can do it then surely the likes of the Post Office, Tesco and rail companies can sort it – or can they?