Taking Brand Initiative How Companies Can Align Strategy, Culture, and Identity Through Corporate Branding Mary Jo Hatch, Majken Schultz Foreword by Wally Olins ffirs.indd iii 1/11/08 7:55:32 PM ffirs.indd ii 1/11/08 7:55:32 PM Taking Brand Initiative ffirs.indd i 1/11/08 7:55:31 PM ffirs.indd ii 1/11/08 7:55:32 PM Taking Brand Initiative How Companies Can Align Strategy, Culture, and Identity Through Corporate Branding Mary Jo Hatch, Majken Schultz Foreword by Wally Olins ffirs.indd iii 1/11/08 7:55:32 PM Copyright © 2008 by Mary Jo Hatch and Majken Schultz All rights reserved Published by Jossey-Bass A Wiley Imprint 989 Market Street, San Francisco, CA 94103-1741—www.josseybass.com No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.wiley.com/go/permissions Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages Jossey-Bass books and products are available through most bookstores To contact Jossey-Bass directly call our Customer Care Department within the U.S at 800-956-7739, outside the U.S at 317-572-3986, or fax 317-572-4002 Jossey-Bass also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books Library of Congress Cataloging-in-Publication Data Hatch, Mary Jo Taking brand initiative : how companies can align strategy, culture, and identity through corporate branding / Mary Jo Hatch, Majken Schultz.—1st ed p cm Includes bibliographical references and index ISBN 978-0-7879-9830-1 (cloth) Corporate image Corporate culture Branding (Marketing) I Schultz, Majken II Title HD59.2.H38 2008 658.8'27—dc22 2007049669 Printed in the United States of America first edition HB Printing 10 ffirs.indd iv 1/11/08 7:55:33 PM Contents Foreword ix Preface xiii Introduction xvii Part One: The Basics 1 What Is Corporate Branding? The Value of Brands 21 Who Are You? 45 Diagnosing Your Corporate Brand 67 Part Two: Managing Corporate Brands 93 Managing Corporate Brands as Organizations Grow The Influence of Employees and Their Cultures 125 Through Stakeholders’ Eyes 149 Part Three: Pulling It All Together 95 175 Aligning Vision, Culture, and Images 177 Getting into Enterprise Branding: Catching the Third Wave 203 v ftoc.indd v 1/11/08 8:30:59 PM vi ftoc.indd vi CONTENTS Glossary of Key Terms 231 Notes 233 References 247 The Authors 251 Index 253 1/11/08 8:30:59 PM For our daughters, Jennifer Cron and Julie Junge-Jensen fbetw.indd vii 1/11/08 8:34:24 PM fbetw.indd viii 1/11/08 8:34:24 PM babout.indd 252 1/11/08 8:53:38 PM Index A Aaker, D., 33–34, 36–37 Acquisitions and mergers, effect of, 55, 56, 84, 87–91 Adbusters, 160 Adidas, 47 Admiration, and corporate reputation, 37, 38 Advantage, and brand value, 34 Advertising campaigns: building corporate equity with, example of, 217–219; and corporate social responsibility, 164, 166; in the renewal stage, example of, 120–121 AFOLs (Adult Fans of LEGO), network for, 192, 193 Alignment: achieving, 227; challenge of, 67; importance of, 15; and managing corporate brands, 43; movement toward, depiction of, 201, 202; revealing, 211; during the start-up phase, 95; tightening, over time, 178; tools for assessment of, 81–84 See also Vision-Culture-Image (VCI) Alignment Model Alignment gaps See Misalignment Alliance strategy, 167–168 Altima, 27 Alvar Alto vase, 88 Ambassador Program, 162 American Marketing Association, 26 Amsterdam Marathon, 135, 136 Anthropology, 208, 228 Anti-corporate Web sites, 158, 160 AOL, 87, 91 Apple, 8, 22, 29, 33, 38, 39, 95, 156, 158, 222 Arla, 30 Arne Jacobsen chair, 88 Arrogance, 116 Askildsen, T., 162–163 Aspen Ski Company, 149–150 Assessment tools, 81–84 Asset valuation models, 31, 32 Assets, selling off, 194 Associations, and brand value, 34, 225 Aston Martin, AT&T, 32, 60 Atkin, D., 22, 27 Audi, 24 Autonomy crisis, 97, 98, 113 Awareness: and brand recognition in multicountry and multicompany mergers, 89; and brand value, 34; increasing, 52, 71 Axios, 107 Ayling, R., 4, 5, 6, 7, 10, 15, 76–77 B Bailey, S., 105 Balance, 57, 65, 111, 139, 222, 224–226, 227, 229 Balenciaga, 105 Bang & Olufsen (B&O), 72–74, 223 Barbie, 178 Barilla, 195 Barnes, J., 198 Bell Labs, 60 Belonging and differentiation, brand value and, 21, 22–26, 29, 38–39 Big One, The (film), 173 Bimmerfest, 23, 156 Bionicle, 181 Blair, T., 6, 10 BMW, 8, 22–23, 24–25, 28, 33 Bonding, and brand value, 34 253 bindex.indd 253 1/11/08 8:55:05 PM 254 INDEX Bono, 104 Book value, explaining the difference between market capitalization and, 40 Bowerman, B., 21, 109–110 Brand Academy, 212 Brand activation and renewal programs, rise of, 205 Brand Ambassadors, 144, 223 Brand architecture, 8, 187–188 Brand authenticity, maintaining, 226–227 Brand communities: described, 155–159; disseminating information through, 159–160; enhanced focus on, 199; and identity shift, 196; increased participation in events of, 207; interacting with, example of, 160–163; involving, 192–193, 198, 199, 201; managing the involvement of, issue of, 172 Brand confusion, 205 Brand credibility, surveillance in regard to, 162 Brand, defined, 26 Brand design responsibility, 212 Brand development, using crossfunctional teams for, in the renewal stage, 119–123 Brand equity: ensuring, 130; growing, example of, 52–54 Brand Equity model, 33–34 Brand equity theory, 33–35 Brand execution, 199–202 Brand extensions: legacy of, 111–113; and the LEGO Group, 182, 183; managing, during growth, 113–114 Brand fans See Brand communities Brand House, 213, 214, 220 Brand identity, origins of, 8, 9, 10 Brand loyalty, 34, 227 Brand organization, new, 188–189 Brand overextension, 113, 114 Brand performance, measuring, assessment tools for, 81–84 Brand promise, stakeholders holding companies to their, 173 Brand Pyramid, 34 Brand recognition, lack of, in multicountry and multicompany mergers, 89 Brand re-launches, in the renewal stage, example of, 120–121 Brand School, 144, 189–191, 193–194, 211 bindex.indd 254 Brand symbolism: awareness of, greater demand for, 208; described, 26–31; embedding, 135; leadership in tune with, importance of, 222; perversions of, 160; and sense of belonging, 22; studying, and its meanings, 40–42; understanding, benefit of, 224–226 See also Symbolic entries Brand tracking, 165, 212, 219 Brand turnaround, 121–123 Brand valuation models, 31–33, 36–37 Brand value: aspects of, 21–42; associations and, 34, 225; earning, importance of, 217; increasing, example of, 71, 161; and misalignment, 76; sources of, 21, 22–26, 150, 225 Brand-based organizational learning, 146 Brand-based performance assessment, 143 Brand-based recruiting, 143 Brand-based team building, 145 Brand-based thinking, management supporting, 210–211 Brand-based training, 144 Brand-based volunteering, 144–145 Brand-focused cross-functional teams, use of, 118–119 Branding campaign, example of, 52–54 Branding cycles, 177–202 Branding questions, 78–79 Brand-monitoring systems, 191 Branson, R., 85, 86, 98, 111–112, 114, 126 Brauhaus movement, 72 Brent Spar, 61, 63 BrickFests, 162, 192, 197 British Airways (BA): and corporate branding issues, 3–7, 10, 14–15, 16; diagnosis involving, 75–77, 86; and the influence of employees and culture, 138; and third-wave branding, 220, 223–224; and VCI alignment issues, 200, 201, 202 British Petroleum (BP), 145, 163, 172–173 British Railways, 85 British Telecom, 86 Brooks, R., 149 Brown, A., 63 Buick, Bureaucracy: effects of, managing corporate brands under the, 114–123; formalization leading to, 98; move 1/11/08 8:55:05 PM INDEX toward, 99; stages prior to, managing corporate brands in the, 109–114 Burning Man gatherings, 36 Business disciplines, looking beyond, 208–209 Business restructuring amid brand building, 193–194, 199 Business Week, 31 C Cadillac, Cash flow analysis, 32–33 Central questions, continually addressing the, importance of, 80 Centralization, 98, 217, 219–220 Change and stability, balancing, dilemma of, managing the, 221 “Changing Diabetes” program, 83, 167–171, 213, 214, 216 Changing Diabetes World Tour, 168–169 Chevrolet, Christiania Bank og Kredittkasse, 89 Christiansen, O K., 179–180, 183 Chrysler, 87, 91 Cingular, 60 Citizenship, and corporate reputation, 37, 38 Clinton, B., 106, 170 Co-branding, use of, example of, 52–53, 54, 110 Coca-Cola, 30, 32, 33, 40, 157, 177 Cole Hahn, 110 Collaboration, 117, 198, 215 Collective identity, influencing, 50 Collective need for self-esteem, dysfunction of the, 63 Collectivity phase: and brand extensions, 113; described, 97, 98; managing corporate brands through the, up to the formalization stage, 109–114 Collins, J., 67, 68 Commitment of employees See Employee loyalty Communication: one-sided, avoiding, 57; patterns of, siloed, 114–115, 117; two-way, 50–51, 207, 210 See also Organizational identity conversation Communication specialists, making better use of, 209 Community, Education and Direct (CED) business unit, 199 bindex.indd 255 255 Community identities, brands embedded in, 36 Complexity of corporate brand management, 201–202 Compromise, trap of, avoiding the, 223 Confusion, internal, 189, 200, 205 Consumer behavior research, 35–36, 37, 42 Consumer identities, brands embedded in, 35 Consumer-focused branding, 204 Consumer-generated viral marketing, 159–160 Contadina tomato sauce, 35 Continuous change, inevitability of, 227 Control: internal, tight, issue of, 172; maintaining, and sharing leadership, balancing, managing the dilemma of, 222–223; pitfalls of, avoiding, 225–226; quest for “cool” and issues of, 159–160 Control crisis, 97, 98 “Cool hunting,” 59, 159–160 Cooley, C H., 48 Cooperative activities, 164–165 Core values: restating, 185–186, 187; strategy based on, 200 Corporate Brand and Reputation Tracker, 83 Corporate branding: aspects of, 3–19; components of, 29; as dynamic, 227–228; including, in the strategic vision, success in, indicator of, 215–216; interdisciplinary nature of, 208–211; versus product branding, consideration of, 4–10; three waves of, 204–208 See also Brand entries and specific aspects of corporate branding Corporate Branding and Responsibility (CBR) function, establishing, 216 Corporate branding function, creating, example of, 212–216 Corporate Branding Unit, 167, 212–213, 214, 215 Corporate Brand Initiative (CBI), 203, 211 Corporate brand management See Managing corporate brands Corporate culture: defined, 231; strong, 16 Corporate equity, building, example of, 216–219 1/11/08 8:55:05 PM 256 INDEX Corporate Equity unit, establishing a, 217–218 Corporate identity, pioneer of, 29 Corporate mind-set, 204–206, 207 Corporate reputation: award-winning, maintaining a, 166; defined, 231; ensuring brand equity and, 130; factors contributing to, 37, 38; fear of damaging, 171; formation of, 226; for hypocrisy, risk of, 163; improving, example of, 172; tools for measuring, 165; tracking, 83 Corporate social responsibility (CSR), 104–109, 155, 163–166, 172, 208, 210, 215 Cost cutting, 6, 118, 122 Costs: escalation of, 200; legacy, impact of, 193; reductions in, focus on, 194–195 Crawford, F., 125 Creativity, 129, 186 Crest, Crises, 97–98 Criticism, continually monitoring and responding to, importance of, 64 Cross-functional teams (CFTs), managing corporate brands with, 117–123, 188, 205–206, 211, 214–215 Cultural fit: ensuring, 210; and recruiting, 17 Cultural integration, company-wide, in multicountry and multicompany mergers, 91 Cultural traditions: resistance due to, 5–6, 14 See also Organizational culture Culture change: embedding corporate brand in, 134–135; leadership in, 135–139; linking, to corporate branding, examples of, 134–141; sparking conflict in the LEGO Group, 182; stakeholder engagement and, 170; theory of, and aspects of, 131–133; using financial success to pressure for, 71, 72 Culture jamming, 160 Cultures See Corporate culture; Organizational culture Customer loyalty, 16, 17, 23–24 Customer service training, corporatewide, Customer-based valuation approach, 34–35 Cybercity, 100 bindex.indd 256 D Daimler, 87 DaimlerChrysler, 87, 91 Danish flag, 30 Day Birger & Mikkelsen, 105 Decentralization, 98, 219–220 Decline stage, 97, 98 Delegation phase: and brand extensions, 112–113; described, 97, 98; managing corporate brands through the, up to the formalization stage, 109–114 Dell Computer Company, 153–154 Dell, M., 153–154 Devil Wears Prada, The (book and film), 40 Diagnosing corporate brands: aspects of, 67–91; and “values confusion,” 184–185 Dialogue, using, as an assessment tool, 81, 82 Differentiation: attempt at, example of, and misalignment of vision and culture, 69–72; and belonging, brand value and, 21, 22–26, 29, 38–39; and brand value, 34; lack of, 59, 60 Dilemmas: handling, with paradoxical management, 223–226; meeting, type of thinking needed for, 229; types of, facing the, 219–223 Discovernursing.com, 164–165 Disney, 32, 177 Dissonance, built-in, example of, Diversity: building, into organizational culture, 103; embracing and emphasizing, on the exterior but not the interior, example of, 4–5; in the marketplace, in multicountry and multicompany mergers, 89–90 Dolce & Gabbana, 105 Dow Jones Sustainability World Indexes, 149 Downsizing, 3, 84, 194 Dukerich, J., 46 Duracell, Dutton, J., 46 Dysfunctional companies, lessons learned by, 63–64 Dysfunctional organizational identities, 55–63 E eBay, 104 Economical differences, issue of, in multicountry and multicompany mergers, 88 1/11/08 8:55:06 PM INDEX Eddington, R., 7, 15 Edun, 104 Eli Lilly, 170, 173, 216 Embedded vision, culture, and image, example of, 112 Embedding mechanisms, 136–137 Embedding new meaning, 133, 134, 135, 136–137, 138 Emotional effects: accounting for, 34, 35; benefiting from, example of, 200; ignoring in economic analyses, 33, 46; indicators of, 38 Emotional factors, contribution of, to corporate reputation, 37, 38 Employee loyalty, 16, 17, 126 Employees: culture backing, 210; influence of, and their cultures, 125–146; preparing, for organizational changes, 201; putting your brand behind your, 127, 142, 147, 210, 229; sending, to Brand School, 144, 189–191, 194; status of, as stakeholders, 146 Employer brands: creating, mistake of, 141–142; rise of, 205 Enron Corporation, 63–64 Enterprise mind-set: branding entering into an, 203; described, 206; maintaining an, 173; perspective of an, defined, 231; in third-wave branding, 204, 207, 229 Entrepreneurial start-up phase: alignment during the, 95; examples of founder effects on corporate brand during, 100–109; first crisis in the, 97–98; managing corporate brands following the, and before bureaucracy sets in, 109–114 Ersbøll, C., 167, 212–213, 214, 215 Esteem, and corporate reputation, 37, 38 Ethics, code of, in brand communities, 157–158 Ethnographic research, 40–42, 133, 191–192 Euromoney, 91 Events and routines, assessment of, 82 “Evolution and Revolution as Organizations Grow” (Greiner), 97 External branding responsibility, 212 External stakeholders: outreach to, 49–50, 53; possibility of bringing, into the branding process, 147; relationship between an organization and, identity theory, 47–48; responsibility for involving, 188 bindex.indd 257 257 F Facilitations, conducting, example of, 139–141 Fads, changing identity to fit, 59 Feedback: collection and dissemination of, system for, developing, 62; positive, receiving, 129–130, 226 Feelings: and corporate reputation, 37, 38; employee, building symbolic images of, example of, 190–191 Financial Times, 5, 105 First-wave branding, 204, 205, 207, 208 Flextronics, 194 Flickr, 162 Ford, 8, 32 Ford Bronco, 156 Ford Escort, 24 Formalization phase: described, 97, 98; managing corporate brands up to the, 109–114 Fortune, 149 Founder effects: examples of, on corporate brand creation, 100–109; issue of, 95–96, 98; other factors replacing, 99; on shifting organizational identity, example of, 195 Founder story, rediscovering the company’s, 170–171 Fournier, S., 35, 36 Fragmentation, 50, 78, 85, 99, 114, 117, 182, 201, 202, 209 France Telecom, 71 Freeman, R E., 151 Freud, S., 63 Friis, J., 100–101, 102, 103–104 Functional specialists, making better use of, 209 Future, anticipating the, by celebrating the past, 228 G Galidor, 185 General Electric (GE), 32 General Motors (GM), Ghosn, C., 117–118, 119, 120, 121, 122 GI Joe, 178 Gillette, GlaxoSmithKline, 173 Global and local, balancing, dilemma of, managing the, 220–221, 229 Global Compact, 107 Global corporate brand management, 86 1/11/08 8:55:06 PM 258 INDEX Global cross-functional team (CFT), appointing and designing a, 214–215 Global economic development, knowledge in, 208 Global RepTrak, 195 Globalization: and internal fragmentation, 99; responding to, example of, 3–4 Globerunner program, 134–135, 137–138 GMC Truck, Google, 33, 107, 158 Governance, and corporate reputation, 37 Green, C., 126 Green, S R., 192 Greenpeace, 61, 149, 150 Greiner, L., 96, 97, 98, 99, 112, 114, 221 Gridiron (Kerr), 131 Growth of organizations See Organizational growth GTR, 119 Guardian, Gunther, M., 149 Gupta, S., 34–35 H Hammett, K., 104 Harley Community Rides, 156 Harley-Davidson, 156 Harper’s Bazaar, 105 Harry Potter play kits, 181 Harvard Business Review, 97 Harvard Business School, 130 Hass, L., 141 Hatch, M J., 13, 15, 24–25, 51, 58, 75 “Having a Baby Changes Everything” campaign, 218–219 Helios Awards Program, 145 Hewson, A., 104 Honda, 120 Hooliganism, 158–159 Hubris, sense of, example of, 182 Human identity formation, 48, 49 Human resources (HR) practices: branding, ideas for, 141–146; outsourcing, issue with, 210 Human resource specialists, making better use of, 210 Human symbol, of organizational culture, 224 Hummer, Hutchison Microtel, 69–72, 139 bindex.indd 258 Hyper-adaptation: avoiding, 226; described, 57, 58, 59–60; examples of, 113, 116; and the LEGO Group, 182; lessons of, 64 I IBM, 32 Iceberg metaphor, 131, 132, 133 Identity: brand, origins of, 8, 9, 10; community, 36; consumer, 35; corporate, 29; individual, 29, 31, 36, 42, 48, 49 See also Organizational identity Identity dynamics, 47–48, 49 See also Organizational identity conversation; Organizational Identity Dynamics Model Illuminati II, 106, 107, 108, 109 Imitation, waves of, 59 Individual identities: brands embedded in, 29, 31, 36, 42; formation of, 48, 49 Infectious Diseases Institute, 155 Infiniti, 41–42, 122 ING Group, 127, 134–135, 136, 137–138 Ingwersen, P., 105, 106, 107, 108–109 Innovation: and corporate reputation, 37; integrating for, 197, 198; possible areas of, identifying, research for, 41 Institutionalized listening, 126 Integration: achieving, through the VCI model, 78; breakdown in, 114; cultural, company-wide, in multicountry and multicompany mergers, 91; cycle of, 178, 179, 180, 197–199; importance of, across functions, 77; including people with skills in, 209; responsibility for, 188; in second-wave branding, 206 Integrity, 129, 163 Intel, 32, 52–54 Intel Core Duo, 54 Intel Core II, 54 Interbrand, 31 Interdisciplinary-minded, 208–211, 229 Interfunctional approach, 205, 207 Internal branding responsibility, 212 Internal confusion, 189, 200, 205 Internal control, tight, issue of, 172 Internal dialogue, encouraging, 189 Internal fragmentation, 99 Internal stakeholders, status of employees as, 146 International Diabetes Foundation (IDF), 167, 168 1/11/08 8:55:06 PM INDEX Interpretation: and the organizational identity conversation, 55; role of, in brand value, 28, 29, 30, 35, 36, 38, 39, 40 Involving cycle, 178, 179, 180, 189–196 iPod, 8, 38, 39 Ivory, J Jaguar, Jake McKee’s LEGO Blog, 192–193 Jobs, S., 95, 222 JOGA, 158–159 Johnson & Johnson Campaign for Nursing’s Future, 164–166 Johnson & Johnson Credo, 127, 128–129, 130, 164, 166 Johnson & Johnson (J&J): and brand value, 28; and the influence of employees and culture, 127–130; and stakeholder engagement, 155, 163–166; and third-wave branding, 208, 211, 216–219, 220, 221 Joost, 104 Jordan, M., 110 Jorgensen, M J., 107 K KaZaA, 101 Kelleher, H., 16, 17, 18 Kellogg, 177 Kerr, P., 131 KGOY (“kids getting older younger”) trend, 181 Kimberly-Clark (K-C), 149, 150 Kingo, L., 212, 214 Kleenex, 149 Knight, P., 21, 109–110, 173 Knudstorp, J V., 162, 193, 194, 195, 196, 197–198, 199, 200 Knutsen, A., 73 Kozinets, R V., 35–36 Krarup, T., 90 Kristiansen, K K., 183–184, 187, 197 Krogh, A., 170 L Layoffs, 194 See also Downsizing Leadership: changes in, effect of, 55, 56, 84; and corporate reputation, 37; in culture change, 135–139; need for, bindex.indd 259 259 97; sharing, and maintaining control, balancing, managing the dilemma of, 222–223; in tune with brand symbolism, importance, 222 Leadership crisis, 97–98 Learning, organizational, brand-based, 146 Legacy costs, 193 LEGO CITY, 196 LEGO Club, 162, 196 LEGO Digital Designer, 198 LEGO DUPLO, 181, 196 LEGO Factory, 162, 198 LEGO fans, 155–156 LEGO Group: and brand value, 41, 60; and brand-based training, 144; growth of the, managing corporate brand during the, 113–114, 115, 116; and stakeholder engagement, 152–153, 157, 160–163; and third-wave branding, 211, 221, 222, 222–223; and VCI alignment issues, 177–202 LEGO Hobby Train, 162, 198 LEGO Media, 115–116, 222 LEGO Mindstorms NXT, 196, 198 See also Mindstorms robotics LEGO Spirit, 146 LEGO TECNIC, 181, 196 LEGO User’s Group Network (Lugnet), 155–156, 162, 192 LEGOLAND, 182, 194 Lehman, D R., 34–35 Lehman, T., 192 Levi Strauss, 105 Levy, S J., 28, 29, 38 Liberal arts and humanities, people trained in, being open to, 208–209 Linares, J., 86 Linguistic differences, issue of, in multicountry and multicompany mergers, 88 Lippincott & Marguiles (Lippincott Mercer), 122 Listening: institutionalized, 126; to the marketplace, 191–192; power of, 228; practicing, means of, 228–229 See also Organizational identity conversation “Living the brand”: example of, 127–130; meaning of, 142 Local and global, balancing, dilemma of, managing the, 220–221, 229 Logo display, creating consistency in, 54 1/11/08 8:55:06 PM 260 INDEX Looking-glass self, 48, 50 Loyalty: brand, 34, 227; customer, 16, 17, 23–24; employee, 16, 17, 126 Lugnet (LEGO Users’ Group Network), 155–156, 162, 192 M Ma Bell, 60 Mac users, 156, 158 MacPulse, 156 Madonna, 60 Makerere University, 155 Management: paradoxical, 223–226; trust and credibility of, building, 194 Managing corporate brands: complexity of, 201–202; dilemmas of, coping with, 219–226; final advice on, 227–229; first step toward, 65; foundation for, 47, 226; globally, 86; and organizational theory, 43; as organizations grow, aspects of, 95–123; roles and responsibilities for, unclear definition of, issue of, 188; second step toward, 65 Mannesmann, 71 Mapping, stakeholder, 151–153 Margulies, W., 204 Market behavior, and brand value, 33–34 Market capitalization approach, 31–32, 35, 40 Market entry, new, effect of, 84–86 Market trends, obsessed with following, 59, 60 Marketing mind-set, 204, 207 Marketing models, 33–35, 46–47 Marketing specialists, making better use of, 208 Marketplace: diversity of the, 89–90; listening to the, 191–192 Markets and Products (M&P) business unit, 199 Marlboro, 8, 32 Marlboros cigarette, Marshall, C., 3, 10, 15 Martinson, J., Maxima, 119 McDonald’s, 8, 32 McEnroe, J., 110 McKee, J., 192–193 Mead, G H., 48, 49 Meaning: determining, stakeholders’ role in, 28, 29, 30, 39; increased, in third-wave branding, 207–208; new, bindex.indd 260 embedding, 133, 134, 135, 136–137, 138; and organizational culture, 131–132, 133, 134; and the organizational identity conversation, 55, 225; role of, in brand value, 28, 29, 30, 35, 36, 38, 39, 40, 225; studying brand symbolism and, 40–42; subtleties of, importance of the, 227; that demands a response, 172–173; trying to control, pitfalls of, avoiding, 225–226 MEGA Bloks, 181–182 Mercedes, 32 Mergers and acquisitions, effect of, 55, 56, 84, 87–91 Merita, 89 Metaphor for culture, 131, 132, 133 Microsoft, 32, 40 Milan heritage, 40 Millward Brown, 34, 191 Millward Brown’s Brand Pyramid, 34 Mindstorms robotics, 161, 193, 196, 198 Misalignment: anticipating gaps leading to, 84–87; and brand value, 76; decreases in extent of, 201, 202; due to growth, 96; ongoing, 76; of strategic vision and organizational culture, 69–72, 74, 84, 85, 86–87, 138, 182; of strategic vision and stakeholder images, 72–74, 83–84, 86, 138; three sources of, 75; of vision, culture, and images, 5, 6, 14, 45, 46, 55, 56, 76, 96, 201 Mission statements, rewriting, example of, 183–184 Moore, M., 173 Moral responsibility, greater sense of, 229 Morality, of brand communities, 157–158 Motivation, 76, 129–130, 226 Movistar, 116 Multicountry and multicompany mergers, 87–91 Multiculturalism, cultivating, 229 Multifunctional approach, 204–205, 207 Muniz, A., 156 Murdoch, R., 104 Music, listening to, for practice, 228–229 Muslims, offending, 30 N Nakagawa, J., 41–42, 122 Narcissism: described, 57, 58, 61–63; examples of, 113, 116; lessons of, 1/11/08 8:55:07 PM INDEX 63–64; risk of falling into, 222; self-esteem without, 226 National rebranding, Nationalistic stereotypes, issue of, 89 Negotiation, 133 Nestlé KitKat, New and old, balancing, dilemma of, managing the, 221–222 New brand architecture, 187–188 New brand organization, 188–189 New culture, aligning a, with images and vision, issue of, 85–86 New market entry, effect of, 84–86 New meaning, embedded, 133, 134, 135, 136–137, 138 New values, mechanisms for embedding, 136–137 Nigerian government, 62, 63 Nike: and brand value, 21; and corporate branding issues, 7–8; growth of, managing corporate brand during the, 109–111, 113, 114; and organizational identity, 47; and stakeholder engagement, 158, 159, 160, 172–173; and third-wave branding, 223 Nike Town, 111 9/11, 18 Nissan, 26–27, 41–42, 117–123, 211 Nissan Sedans, 118 Noir, 104–109 Noir Foundation, 109 Noir–Illuminati II, 106, 108, 109 Nokia, 32, 88 Nordbanken, 89 Nordea, 87–91, 224 Nordström, L G., 90 Novo Nordisk: and brand value, 39–40; and the influence of employees and culture, 127, 139–141, 144–145; and measuring brand performance, 82–84; and stakeholder engagement, 155, 166–171, 173; and third-wave branding, 208, 211, 212–216, 220, 221 Novo Nordisk Way of Management (NNWoM), 139, 140, 141, 212, 213 NovoMix, 212 NovoRapid, 212 O Objective measures, using, as well as qualitative data, 82–83 O’Guinn, B., 156 bindex.indd 261 261 Old and new, balancing, dilemma of, managing the, 221–222 Olins, W., 29 One-sided communication, avoiding, 57 Orange brand, 70–71, 72, 85, 138–139 Organization, importance of, 211–219 Organization theory, need for, 43 Organizational culture: aligning stakeholder images with, 53–54; analysis of, 188; assessment of, 81, 83; backing a corporate brand with, example of, 127–130; backing employees, 210; and balancing old and new, dilemma of, managing, 221–222; bringing strategic vision into the mix with stakeholder images and, 65, 151, 227; and change, 131–133; contributions of stakeholders to strategic vision and, 166–171; controlling, difficulty of, 133; conversation between stakeholders and members of, 50–51, 226; defined, 231; elements of, 67; embedded, example of, 112; emergence of, 99; exemplary, example of, 17–18; facilitating alignment of, with strategic vision, example of, 139–141; growing gaps between, and vision and images, 182; and growth, 96; human symbol of, 224; and the identity conversation, 55; indicator of a gap between vision and, 185; influence of employees and their, 125–147; and managing corporate brands, 43; metaphor for, 131, 132; and misalignment of vision, images, and, 5, 6, 14, 45, 46, 55, 56, 76, 96, 201; in multicountry and multicompany mergers, 88–89; new, aligning, with stakeholder images and vision, issue of, 85–86; and organizational identity, 50; preparing, for organizational changes, importance of, 201; role for, 123; of Skype, 102–103; of Southwest Airlines, 16–18; supportive, 200; in the VCI model, 11, 12, 13, 16, 68, 75, 80, 90, 178; when vision does not align with, 69–72, 74, 84, 85, 86–87, 138, 182 See also Culture and Cultural entries Organizational growth: change that accompanies, 96; effect of, on organizational identity, 55, 56; managing corporate brands during, 95–123; stages of, 97–99 1/11/08 8:55:07 PM 262 INDEX Organizational identity: assessment of, 81; balancing, 65; creation of, 43, 45; and cultural change, 138; defined, 231; determining, aspects of, 45–65; dysfunctional, 55–63; as the foundation for corporate brand management, 47, 226; fully functioning, 211; gaining insight to, through brand communities, 159; growing brand equity by expressing, example of, 52–54; having no strong sense of, 59; integrating, cycle of, 178, 179, 180, 197–199; knowing your, importance of, 45–47, 229; merged, failure in, 87; muddled, 205; in multicountry and multicompany mergers, 88; organizational culture and, 50; reconsidering the question of, 184–185; research on, looking into, 42; shifting, example of, 195–196, 201; of Skype, 102; theories of identity and, 47–48, 49; in the VCI model, 11, 12, 13, 68, 75, 80, 90, 178 Organizational identity conversation: balancing the, 57, 111, 139, 222, 224–226; bringing strategic vision together with the, 67, 68; and confronting subcultures, 117; controlling the, 56–57; described, 49–51; disruption in the, 77, 78; early version of the, 96, 228; healthy, 191; imbalance in the, 57, 58, 113; improving the, 161; involving Skype, 102; learning to listen and respond in the, example of’, 160–163; ongoing, facilitating, 84; provoking an, example of, 53–55; respect for the, example of, 200; separating out the, problem with, 141–142; shift in the, 206 Organizational Identity Dynamics Model: alignment problem in the, due to silos, 77, 78; breakdown in the, 57, 58; and the case of Madonna, 60; combined with the VCI model, 67, 68; communication depicted in, 51; imbalance in the, 60, 61, 64 Organizational learning, brandbased, 146 Organizational narcissism, defined, 63 Organizing cycle, 178, 179, 180, 186–189 Outsourcing, 6, 107, 194, 195, 210 bindex.indd 262 P Pampers, Paradoxical management, handling dilemmas with, 223–226 Partnership map, 171 Past, celebrating the, anticipating the future by, 228 Pathfinder, 119 PC users, 156 Pentium Processor, 54 Perceived relevance, and brand value, 34 Performance: and brand value, 34; during branding cycles, 193, 196, 200; and corporate reputation, 37; enhancing, 229; as an indicator, 215–216 Performance assessment, 81–84, 143 Perry, M., 118, 119–120, 121, 122 Pfizer, 154–155, 163 Pfizer Global Health Fellows, 155 Philip Morris, Phillips, 73 Pinillos, A A., 116 Planning horizon, extent of the, 9, 10 Platform company, creating a, 195–196 Platinum Councils, 153, 154 Plurality, producing, 229 Poe, E A., 108 Political differences, issue of, in multicountry and multicompany mergers, 88 Pontiac, Porras, J., 67, 68 Port Authority of New York and New Jersey, 45–46, 47, 50 Positioning, performing the, relying on corporate brands for, 22 Post start-up, 109–114 Prada, 40 Primary embedding mechanisms, 136–137 Privatizations, effect of, 3, 86 Proctor & Gamble, 8, 204 Product and services, corporate reputation and, 37, 38 Product branding: versus corporate branding, consideration of, 7–10; rise of, 204 Psychographic research, 41–42 Q Qualitative studies, using data from, as well as objective measures, 82–83 Quality, and brand value, 34 1/11/08 8:55:07 PM INDEX R Radical strategic change, effect of, example of, 84–85 Rainbow Warrior, 61 Rankin, O., 217 Rational effects, accounting for, 34, 35 Rebranding: getting used to the idea of, 189; and hyper-adaptation, 60; lacking alignment, 14, 200; managing, during growth, 122; and new market entry, 86; problems with, example of, 4–7 Recruiting: brand-based, 143; cultural compatibility in, 17; linking brand slogans to, 23 Red Spider, 186 Red-tape crisis, 97, 98 See also Bureaucracy Reebok, 47 Renewal stage, 97, 98, 117–123, 134, 221, 228 Reorganization for third-wave branding, 211–219 RepTrak, Global, 195 RepTrak model, 37 RepTrakPulse tool, 37–38 Reputation See Corporate reputation Reputation Institute (RI), 37–38, 83, 166 Re-re-rebranding, 60 Resistance to change, examples of, 5–6 Resolution, trap of, avoiding the, 223–224 Responsibility: placement of, 9, 10; unclear definition of, issue of, 188 Riis, J., 214 Rituals and traditions, brand communities creating, 156–157 Role modeling, influence of, 137, 190, 224 Roles, unclear definition of, issue of, 188 Rolex, 28 Ronaldinho, 160 Rosenfeld, C., 167, 168 Rosenfeld, K., 168 Royal Dutch, 30, 61–62, 63 Ryberg, A., 106, 107 S Saab, 8, 156–157 Sacred heritage, propensity to protect a, 157 Samsung, 59 bindex.indd 263 263 Sanofi-Aventis, 170, 173, 216 Sara-Wiwa, K., 62 Saturn, Schein, E., 131, 132, 133, 135, 136 Schendler, A., 149 Schultz, H., 99 Schultz, M., 13, 15, 51, 58, 75, 197 Scope and scale, and corporate vs product branding, 9–10 Secondary embedding mechanisms, 137 Second-wave branding, 204–206, 207, 208 Security, sense of, the past providing a, 228 Self-efficacy, contributing to, 130 Self-esteem: collective need for, dysfunction of the, 63; enhancing, 130; level of, determining, 226 Self-monitoring, 158 Sharman Networks, 101 Shell, 30, 61–62, 63 “Shift_” campaign, 120, 121 Sigurdsson, M., 102, 103 Silence, 131 Silink, M., 168 Silo mind-sets: ability to overcome, competitive strength dependent on the, 123; avoiding, 77–80; bureaucracy bringing, along with subcultures and turf wars, 114–123; formation of, 99 Six Sigma, version of, 118 Skyline, 119 Skype, 100–104, 109 Sociology, 208 Soerensen, L R., 214 Sony, 73 SONY, 185 Southwest Airlines, 15–19, 143, 221 Speedmark design, Stability and change, balancing, dilemma of, managing the, 221 Stakeholder capitalism, era of, 206 Stakeholder culture, and the identity conversation, 55 Stakeholder dialogues, 153, 154 See also Organizational identity conversation Stakeholder engagement: aspects of, 149–174; benefit of, 229; increased, 206, 207 Stakeholder feedback, collection and dissemination of, system for, developing, 62 1/11/08 8:55:07 PM 264 INDEX Stakeholder images: aligning a new organizational culture with vision and, issue of, 85–86; aligning, with organizational culture, 53–54; assessment of, 81, 82, 83; attempting to control, 222; of BMW, 23; bringing strategic vision into the mix with culture and, 65, 151, 227; changing strategic vision to reconnect with, example of, 73–74; and cultural change, 138, 182; defined, 231; different, responding to, dilemma in, 220; embedded, example of, 112; enhancing, 226; growing gaps between, and vision and culture, 182; and managing corporate brands, 43; and misalignment, 5, 6, 14, 45, 46, 55, 56, 76, 96, 201; in multicountry and multicompany mergers, 88–89; organizations seeing themselves reflected in, 50, 226; of Southwest Airlines, 16–18; tapping into, key to, 215; in the VCI model, 11, 12, 13, 16, 68, 75, 80, 90, 178; when vision does not align with, 72–74, 83–84, 86, 138 Stakeholder involvement, meaning of, 154 See also Stakeholder engagement Stakeholder Surveys, use of, 81 Stakeholder theory, 151–155 Stakeholder-organization conversation See Organizational identity conversation Stakeholders: communicating new meanings to, 138; contributions of, to strategic vision and organizational culture, 166–171; controlling of, avoiding the, 56; and creating organizational identity, 43, 45; cycle of involving, 178, 179, 180, 189–196, 200; defined, 231; early conversation between founders and, 96, 98, 99, 102, 153–154, 228; impact of centralization and decentralization on relating to, 220; improvisational way of listening to, 229; inspiring action on the part of, 208; learning to listen and respond to, example of, 160–163; mapping, 151–153; neglecting, 204; outreach to, 49–50; point of view of, understanding and appreciating the, importance of, 64; role of, in determining meaning, 28, 29, 30, 39; status of employees as, 146; and the three waves of branding, 205, 207 See also Brand communities; External stakeholders bindex.indd 264 Standardized methodologies, using, 217 Star Wars play kits, 181 Starbucks, 99 Starkey, K., 63 Start-up stage See Entrepreneurial startup phase Stating cycle, 178, 179, 180, 184–186 Stereotypes, nationalistic, issue of, 89 Strategic change, radical, effect of, example of, 84–85 Strategic vision: aligning a new organizational culture with, and stakeholder images, issue of, 85–86; assessment of, 81, 82, 83; basis of a leader’s, 225–226; bringing, into the mix with culture and image, 65, 151, 227; changing, to reconnect with existing customer images, example of, 73–74; contributions of stakeholders to organizational culture and, 166–171; defined, 231; elements of, 67; embedded, example of, 112; facilitating alignment of organizational culture with, example of, 139–141; growing gaps between, and culture and images, 182; including corporate branding in the, success in, indicator of, 215–216; indicator of a gap between culture and, 185; integral role of, 227; and managing corporate brands, 43; and misalignment, 5, 6, 14, 45, 46, 55, 56, 76, 96, 201; in multicountry and multicompany mergers, 89; returning to the founder’s original, example of, 195; reworked, constantly referring to, 201; role of, 67–68; shifting, expression of a, example of, 4; of Southwest Airlines, 16–18; in the VCI model, 11, 12, 13, 16, 68, 75, 80, 90, 178; when organizational culture is misaligned with, 69–72, 74, 84, 85, 86–87, 138, 182; when stakeholder images not align with, 72–74, 83–84, 86, 138 Subcultures: and bureaucracy, 114–123; confronting, example of, 116–117; and the LEGO Group, 182, 186, 189; mismatch between, 72; in multicountry and multicompany mergers, 87, 89, 91; spinning off into, 85, 87, 99 Successful corporate brands, model for, 11–13 Swatch, 28 Swedish snow tire, 88 Swoosh, 21, 160, 173 1/11/08 8:55:08 PM INDEX Symbol: defined, 26, 39; human, 224 Symbolic approach, 21, 31, 36, 131–132, 206–207, 208–209 Symbolic effects: ignoring in economic analyses, 33, 35; indicators of, 38 Symbolic images, building, of employee feelings and perceptions, example of, 190–191 Symbolic value: consideration of, 36–40; enhancing, 225; importance of, 26; models detached from, 35; source of, 150 Symbolism of brands See Brand symbolism T TakeAction!, 144–145 Target audience, 9, 10 Team building, brand-based, 145 Teams, cross-functional, managing corporate brands with, 117–123, 188, 205–206, 211, 214–215 Tele2, 101 TeleDanmark, 86 Telefónica, 86 Telefónica Spain, 86, 116–117 “Tell Shell” system, 62 Testosterone (Pinillos), 116 Thatcher, M., 5–6 Third-party endorsements, 172 Third-wave branding, getting into, 203–229 Tide detergent, 8, 35 Time Warner, 87 Time Warner/AOL, 87, 91 Top 100 Coaching Circle, 144 Top 300+ (managers), 144 Touch-points, defining, 153 Toy of the Century Awards, 177 Toyota, 32, 120 Training, brand-based, 144 See also Brand School Traps, avoiding, 223–224 Trends, obsessed with following, 60 Triple-bottom-line reporting, early adopters of, 215 Trump, D., 41 Trust: and corporate reputation, 37, 38; in management, building, 194 Trustmark, overseeing the, unit established for, 217–218 TRW, 125 Turf wars, 114–123, 200 Turnover, 199–200 bindex.indd 265 265 240Z, 119 Two-way communication flow, 50–51, 207, 210 Tylenol, 130 U U2, 104 UN Resolution on Diabetes, 168 Uncertainty, 133, 185 Unibank, 89 Unifunctional approach, 204, 205, 207 Unilever, 204 “Unite for Diabetes” campaign, 168, 170, 173 United Bimmer Community, 156 United Nations (UN), 106, 167, 168, 169 University of Copenhagen, 170 V Value of brands See Brand value Values: core, restating, 185–186, 187; new, embedding, mechanisms for, 136–137; strategy based on, 200 “Values confusion,” diagnosing, 184–185 Value-Up Pilots, 118 VCI alignment model See Vision-CultureImage (VCI) Alignment Model Viral distribution, 173 Viral marketing, consumer-generated, 159–160 Virgin, 8, 85–86, 98, 109, 111–113, 114, 126, 142 Virgin Atlantic, 112 Virgin Brides, 112 Virgin Direct, 112 Virgin Express, 126 Virgin Megastore, 112 Virgin Records, 111 Virgin Trains, 85, 112 Virgin Wine, 112 Vision-Culture-Image (VCI) Alignment Model: achieving integration through the, 78; addressing the three central questions of the, importance of continually, 80; anticipating gaps in the, 84–87; assessment of, 83; branding cycles within the, 177–202; closing gaps in the, example of, 87–91; culture side of, managing the, 127; described, 11–13; different gaps in, during multicountry and multicompany mergers, 90; effects of a gap in one part of the, 74, 75; elaborated, 67, 68; and 1/11/08 8:55:08 PM 266 INDEX Vision-Culture-Image (VCI) Alignment Model: (Continued) the entrepreneurial start-up phase, examples of, 100–109; and explaining “founder effects,” 95–96, 100; growing gaps in the, example of, 182; insight provided by the, 46; interrelationships between the gaps in, example of, 75–77, 138, 201, 202; link between employee motivation and, 129–130; and mismatch between subcultures, 72; organizational identity conversation influencing, 51, 139; and the post start-up, pre-bureaucracy stage, 109–114; sources of misalignment in the, 75; stakeholder contributions to, 166; success story supporting the, 15–19 See also Alignment; Organizational culture; Stakeholder images; Strategic vision Visual identity, incorporating a new, example of, Vodafone, 71 Volunteering, brand-based, 144–145 Volvo, 28 Walsh, W., Watts, P., 62 WCRS, 70 We-ness, feeling of, sharing a, 156 Wikipedia, 158 William J Clinton Foundation, 170 Wired Magazine, 198 Wolff-Olins (WO), 69–70 Woods, T., 160 Workforce reduction, massive See Downsizing Workplace factors, in corporate reputation, 37 World Diabetes Day, 169 World Diabetes Foundation (WDF), 167, 168, 170 X Xterra, 27, 119 Y Yin-yang dualism, 106, 108–109 Yorkshire Post, Young & Rubicam, 177, 191 Young Leadership Program, 168 YouTube, 160, 162 W Wal-Mart, 150, 185, 196 Walmart-blows.com, 158 bindex.indd 266 Z Zennström, N., 100, 101, 102, 104 1/11/08 8:55:08 PM ... PM Taking Brand Initiative ffirs.indd i 1/11/08 7:55:31 PM ffirs.indd ii 1/11/08 7:55:32 PM Taking Brand Initiative How Companies Can Align Strategy, Culture, and Identity Through Corporate Branding... Basics 1 What Is Corporate Branding? The Value of Brands 21 Who Are You? 45 Diagnosing Your Corporate Brand 67 Part Two: Managing Corporate Brands 93 Managing Corporate Brands as Organizations Grow... Corporate Brands Differ from Product Brands BA’s rebranding problems were complicated Before taking a more disciplined look at what went wrong, it’s worth considering what a corporate brand is—and