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The Power of the Brand
Staying Relevant in an Ever-Changing Environment




                                      Jim Knight
My Brand
21 years
The Set List


•  Internal Branding - Employee
   Philosophy

•  External Initiatives

•  Brand Reinvention – Staying
   Relevant

•  Top Take Aways - Handout


             @KnightSpeaker
Brand Culture

            Member Experience



             Employee Behaviors


•    Shared Mission
•    Value-Orientation
•    Beliefs, Experiences
•    Standards, Procedures, Processes
Types of Brand Environments


              Attractive          Can Hire the              You Hire Under     Staff & Managers
            Place to Work        Best Available                Pressure             Bail Out



    Bonus &                                       Leaders                             Sales & Profit
Financial Results                                                                    Targets Missed

                    Virtuous Circle                                   Vicious Circle
Beat Sales &                                      Hire Staff                            Visitor Rate
Profit Targets                                                                              Slow


      Raving Fans                     Builds Morale         Morale & Culture       Nobody is Talking
        Return                         & Culture             Disintegrates            About You

                       Great Member                                    Member Experience
                        Experience                                        is Anemic
3C Employees
•  Your company is only as good as the care &
   attention you provide to ensure each employee has:

          –  Strong Competence
          –  High Character
          –  Embodies the Culture
Hard Rock - Original Staff


•  46 employees in the first Cafe (London 1971)

•  Original Servers had to be 30+ year old
  women

•  Guest-obsession was innate & unparalleled
       ü Southern hospitality mind-set (mom)
       ü Consistent standards
       ü Attention to detail
       ü Sense of urgency
Today’s Workforce

•  Individuality is a priority
•  Risk-takers
•  Visual learners
•  Short attention spans
•  Technology savvy
•  Socially-conscious
•  Want to do meaningful work

        This profile affects
  6/14/12  everything!
Think Differently
Hire Only Rock Stars…
             Not Lipsyncers
     •  You must differentiate
yourselves from the rest to survive
  •  Unique individuals = unique
           experiences
Top Ways to Keep the Brand Relevant

1.   Hire only rock stars, not lipsyncers
Staff Recruiting Ads
Staff Interview Guides
•  3-interview process for every
   staff-level potential hire:

   Interview #1 - Any Manager
   Interview #2 - Department Manager
   Interview #3 - General Manager


•  Managers each use a different
   Interview Guide

•  How managers communicate with
   each other on the potential employee
   – creating consistency
Training Materials




Design Principles
•    Comic-book style - photos & graphics
•    Less text / words
•    More bullet points, where possible
•    Lots of generous white space
•    Consistent font types & sizes
•    Humor, where appropriate

     THINK: Airline Safety Card
Social Media & Technology
           Digital/Social Media




        Twitter             Photos




                                     SMS




                          Location
        Review             Based
         Sites
                  Blogs
The New Generation
                                        Digital Natives (Generation Z)




Completely distinct from all prior generations, they require a
  change in how we communicate. They prefer:

•  Receiving info quickly from multiple sources - parallel
  processing & multi-tasking

•  Processing pictures, sounds & video before text

•  Learning that is relevant & instantly useful

•  Instant gratification & rewards…and fun
Audience Response Systems        22333   Poll4.com


     Phone Text: 22333
                                 ######
OR
     Web/Laptop: www.Poll4.com
Audience Response Systems        22333   Poll4.com


     Phone Text: 22333
                                 ####
OR
     Web/Laptop: www.Poll4.com
Technology is now 100% interwoven into our daily lives.
Top Ways to Keep the Brand Relevant

1.   Hire only rock stars, not lipsyncers

2.   Communicate to employees in the language they dream
Statistics That Don’t Lie


The Gallup Organization:


  •    Surveyed more than 2 million employees at 700
       companies worldwide, over a 25-year period

  •    Found that immediate supervisors are the single largest
       influence on an employee’s decision to quit (or stay)



        People join brands, they leave individuals.
“At the end of the game, the King and the Pawn
                   go back into the same box.”

                                - Italian proverb
Emotional Bank Account
•  Like credit unions, relationships are based
on trust
•  The more deposits, the better the interest
& health of the member account
•  Big withdraws (or too many) could
result in the account going dry
Mentorship is the New Training
Managers need to harness their
   leadership skills:

 •    Don’t hoard information -
      look for opportunities to
      teach others

 •    Always give the ‘why’ behind the ‘what’

 •    Provide ongoing/consistent feedback

 •    Get veteran, long term employees involved in all
      initiatives – Create an Army of Giants
“The best time to plant a tree is 20 years ago.
       The second best time is today.”
                                   - Chinese proverb
Top Ways to Keep the Brand Relevant

1.   Hire only rock stars, not lipsyncers

2.   Communicate to employees in the language they dream


3.   Create an army of giants & love the ones you’re with
Hard Rock Incents Staff Like They’re
Rock Royalty
•  Individuality relished
•  High Volume = $$$$
•  401 K – 50% match
•  Pins – ongoing recognition
•  Philanthropy is a part of our DNA
•  Growth - good internal promotion rate
•  Travel – trainers open up global properties
•  Unprecedented Access – to rock artists & memorabilia
•  Rolex watch – 10 years of service
•  Harley Davidson – GM of the Year
Employee Expectations
If employees were volunteers, would we treat them differently?

20 years ago           10 years ago             Today

Money                Work / life balance   They want it all!

Showed up, did       Started keeping an    They bail at the drop of
the job & then       eye open for a        a hat - usually because
went home            better job            of poor leadership

Happy to have        Started really        Attorney’s phone # is
a job                suing companies       on speed dial

Tolerated            Responded well to Only loyal to those
authoritative “old   those that just said that inspire, teach &
school” managers     “thank you”          develop with
                                          compassion
Today’s Workforce

                             Develop
          Thank
                               me.
           me.

                                         Inspire
                                           me.




Talk to                        Don’t
 me.                           yell at
                                me.
Meet Some Rock Stars
Think About This:

•  The Rolling Stones – arguably one of the
   world’s greatest Rock‘n’Roll bands
•  Outstanding music & musicianship
•  Haven’t had a hit song since 1989

•  Still the top grossing act
   when they go on the road
•  Album prices: US $12-$16
•  Concert ticket:   US $150-$1,500

•  Being at the Show:    Priceless

•  People are willing to pay the
   price for the show…because of
   the show
For Most, It’s a
Pretty Cool Job…
For Others, It’s a
Lifetime Commitment.
Top Ways to Keep the Brand Relevant

1.   Hire only rock stars, not lipsyncers

2.   Communicate to employees in the language they dream


3.   Create an army of giants & love the ones you’re with


4.   Incent employees like they’re rock royalty & treat them
     like volunteers
C    + Guest                                Profitable
     Experience                               Growth
BU   •  Great Service      •  Clean


RL
     •  Quality Product    •  Safe
     •  Cool Environment   •  Fun



AT
     •  Price/Value


     + Employee                              Promotable
NU   Experience                                People

DR
      •  Money               •  Leadership
      •  Benefits            •  Fun
      •  Recognition         •  Clean

 E    •  Growth Opportunity •  Safe
VALUES    What you Say you will do

+
    METHODS   What you actually Do




= BRAND CULTURE
C    + Guest                                Profitable
     Experience                               Growth
BU   •  Great Service      •  Clean


RL
     •  Quality Product    •  Safe
     •  Cool Environment   •  Fun



AT
     •  Price/Value


     + Employee                              Promotable
NU   Experience                                People

DR
      •  Money               •  Leadership
      •  Benefits            •  Fun
      •  Recognition         •  Clean

 E    •  Growth Opportunity •  Safe
Top Ways to Keep the Brand Relevant

1.   Hire only rock stars, not lipsyncers

2.   Communicate to employees in the language they dream


3.   Create an army of giants & love the ones you’re with


4.   Incent employees like they’re rock royalty & treat them
     like volunteers

5.   Do the things you say you will do (Values + Methods =
     Brand Culture)
Historical Timeline

1971-1995   No Competitors for 25 years


1996-2003   Dark Days (Negative Sales)
            -  Competition (Theme Restaurants)
            -  Guest Confusion (Food Quality & Price)
            -  9/11
Artist Association
           Q: What celebrity/personality do you most commonly
                            associate with the Hard Rock brand?
                  Most Associated With Hard Rock By Age Segment


18 to 20     21 to 24      25 to 34        35 to 44      45 to 54   55 or older




 ? ?                          ?              ?              ?          ?
Historical Timeline

1971-1995   No Competitors for 25 years


1996-2003   Dark Days (Negative Sales)
            -  Competition (Theme Restaurants)
            -  Guest Confusion (Food Quality & Price)
            -  9/11

2004        Brand Reinvention & Cultural Focus
•  Brand Guidelines

•  Brand Identity
Public Print Ads
Public Print Ads
Public Print Ads
Physical Menu



                 Current Direction




Old Approach
Table Top Design



                      Current Direction




Old Approach
Food & Beverage




Old Approach
               Current Direction
Merchandise Store




Old Approach – Counters & Cubbies




                 New Approach –
          Open-Floor ROCK SHOPS
Merchandise –
                                   In-Store Displays
Old Approach




               Current Direction
Merchandise –
               Window Displays



                  Current Direction



Old Approach
Video Screens


                               Current – Flat Plasma Screens


Old – Hospital-Like Monitors
Live Music




Old – Regular, Local Unknown Musicians
                                         Current – Fewer, but Premium
                                                           Experiences
Memorabilia



                 Current Direction



Old Approach
Memorabilia



                              Memphis Cafe - Current




Memphis Cafe - Old Approach
Memorabilia



                                San Diego Cafe - Current




San Diego Cafe - Old Approach
Guests Interaction with
                 Memorabilia
                  Enhanced Experience –
                         w/ Technology



Old Experience
Building Design



Old Approach – reflective of
Classic Rock themed restaurant
Building Design

Current Direction –
    •  trendy
    •  comfort-focused
    •  technology-driven
    •  lifestyle-oriented
    •  unique spaces
Building Design


Current Direction – unique design
elements:
            •  music-oriented
            •  local nods
Historical Timeline

1971-1995   No Competitors for 25 years


1996-2003   Dark Days (Negative Sales)
            -  Competition (Theme Restaurants)
            -  Guest Confusion (Food Quality & Price)
            -  9/11

2004        Brand Reinvention & Cultural Focus

2005-2011   Record Sales & Profits
Move at the Pace of Society’s Culture
STAKEHOLDERS           COMMUNITY




TECHNOLOGY            COMMUNICATION
Top Ways to Keep the Brand Relevant

1.   Hire only rock stars, not lipsyncers

2.   Communicate to employees in the language they dream


3.   Create an army of giants & love the ones you’re with


4.   Incent employees like they’re rock royalty & treat them
     like volunteers

5.   Do the things you say you will do (Values + Methods =
     Brand Culture)

6. Move at the pace of society’s culture – be open to change
Seth Dechtman
                   1-877-245-8692
             seth@thespeakeragency.com



Jim@KnightSpeaker.com


@KnightSpeaker


Jim Knight


Jim Knight

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The power of the brand nebrcul[2]

  • 1. The Power of the Brand Staying Relevant in an Ever-Changing Environment Jim Knight
  • 3. The Set List •  Internal Branding - Employee Philosophy •  External Initiatives •  Brand Reinvention – Staying Relevant •  Top Take Aways - Handout @KnightSpeaker
  • 4. Brand Culture Member Experience Employee Behaviors •  Shared Mission •  Value-Orientation •  Beliefs, Experiences •  Standards, Procedures, Processes
  • 5. Types of Brand Environments Attractive Can Hire the You Hire Under Staff & Managers Place to Work Best Available Pressure Bail Out Bonus & Leaders Sales & Profit Financial Results Targets Missed Virtuous Circle Vicious Circle Beat Sales & Hire Staff Visitor Rate Profit Targets Slow Raving Fans Builds Morale Morale & Culture Nobody is Talking Return & Culture Disintegrates About You Great Member Member Experience Experience is Anemic
  • 6. 3C Employees •  Your company is only as good as the care & attention you provide to ensure each employee has: –  Strong Competence –  High Character –  Embodies the Culture
  • 7. Hard Rock - Original Staff •  46 employees in the first Cafe (London 1971) •  Original Servers had to be 30+ year old women •  Guest-obsession was innate & unparalleled ü Southern hospitality mind-set (mom) ü Consistent standards ü Attention to detail ü Sense of urgency
  • 8.
  • 9. Today’s Workforce •  Individuality is a priority •  Risk-takers •  Visual learners •  Short attention spans •  Technology savvy •  Socially-conscious •  Want to do meaningful work This profile affects 6/14/12 everything!
  • 11. Hire Only Rock Stars… Not Lipsyncers •  You must differentiate yourselves from the rest to survive •  Unique individuals = unique experiences
  • 12. Top Ways to Keep the Brand Relevant 1. Hire only rock stars, not lipsyncers
  • 14. Staff Interview Guides •  3-interview process for every staff-level potential hire: Interview #1 - Any Manager Interview #2 - Department Manager Interview #3 - General Manager •  Managers each use a different Interview Guide •  How managers communicate with each other on the potential employee – creating consistency
  • 15. Training Materials Design Principles •  Comic-book style - photos & graphics •  Less text / words •  More bullet points, where possible •  Lots of generous white space •  Consistent font types & sizes •  Humor, where appropriate THINK: Airline Safety Card
  • 16. Social Media & Technology Digital/Social Media Twitter Photos SMS Location Review Based Sites Blogs
  • 17. The New Generation Digital Natives (Generation Z) Completely distinct from all prior generations, they require a change in how we communicate. They prefer: •  Receiving info quickly from multiple sources - parallel processing & multi-tasking •  Processing pictures, sounds & video before text •  Learning that is relevant & instantly useful •  Instant gratification & rewards…and fun
  • 18. Audience Response Systems 22333 Poll4.com Phone Text: 22333 ###### OR Web/Laptop: www.Poll4.com
  • 19. Audience Response Systems 22333 Poll4.com Phone Text: 22333 #### OR Web/Laptop: www.Poll4.com
  • 20. Technology is now 100% interwoven into our daily lives.
  • 21. Top Ways to Keep the Brand Relevant 1. Hire only rock stars, not lipsyncers 2. Communicate to employees in the language they dream
  • 22. Statistics That Don’t Lie The Gallup Organization: •  Surveyed more than 2 million employees at 700 companies worldwide, over a 25-year period •  Found that immediate supervisors are the single largest influence on an employee’s decision to quit (or stay) People join brands, they leave individuals.
  • 23. “At the end of the game, the King and the Pawn go back into the same box.” - Italian proverb
  • 24. Emotional Bank Account •  Like credit unions, relationships are based on trust •  The more deposits, the better the interest & health of the member account •  Big withdraws (or too many) could result in the account going dry
  • 25. Mentorship is the New Training Managers need to harness their leadership skills: •  Don’t hoard information - look for opportunities to teach others •  Always give the ‘why’ behind the ‘what’ •  Provide ongoing/consistent feedback •  Get veteran, long term employees involved in all initiatives – Create an Army of Giants
  • 26. “The best time to plant a tree is 20 years ago. The second best time is today.” - Chinese proverb
  • 27. Top Ways to Keep the Brand Relevant 1. Hire only rock stars, not lipsyncers 2. Communicate to employees in the language they dream 3. Create an army of giants & love the ones you’re with
  • 28. Hard Rock Incents Staff Like They’re Rock Royalty •  Individuality relished •  High Volume = $$$$ •  401 K – 50% match •  Pins – ongoing recognition •  Philanthropy is a part of our DNA •  Growth - good internal promotion rate •  Travel – trainers open up global properties •  Unprecedented Access – to rock artists & memorabilia •  Rolex watch – 10 years of service •  Harley Davidson – GM of the Year
  • 29. Employee Expectations If employees were volunteers, would we treat them differently? 20 years ago 10 years ago Today Money Work / life balance They want it all! Showed up, did Started keeping an They bail at the drop of the job & then eye open for a a hat - usually because went home better job of poor leadership Happy to have Started really Attorney’s phone # is a job suing companies on speed dial Tolerated Responded well to Only loyal to those authoritative “old those that just said that inspire, teach & school” managers “thank you” develop with compassion
  • 30. Today’s Workforce Develop Thank me. me. Inspire me. Talk to Don’t me. yell at me.
  • 31. Meet Some Rock Stars
  • 32. Think About This: •  The Rolling Stones – arguably one of the world’s greatest Rock‘n’Roll bands •  Outstanding music & musicianship •  Haven’t had a hit song since 1989 •  Still the top grossing act when they go on the road •  Album prices: US $12-$16 •  Concert ticket: US $150-$1,500 •  Being at the Show: Priceless •  People are willing to pay the price for the show…because of the show
  • 33. For Most, It’s a Pretty Cool Job…
  • 34. For Others, It’s a Lifetime Commitment.
  • 35. Top Ways to Keep the Brand Relevant 1. Hire only rock stars, not lipsyncers 2. Communicate to employees in the language they dream 3. Create an army of giants & love the ones you’re with 4. Incent employees like they’re rock royalty & treat them like volunteers
  • 36. C + Guest Profitable Experience Growth BU •  Great Service •  Clean RL •  Quality Product •  Safe •  Cool Environment •  Fun AT •  Price/Value + Employee Promotable NU Experience People DR •  Money •  Leadership •  Benefits •  Fun •  Recognition •  Clean E •  Growth Opportunity •  Safe
  • 37. VALUES What you Say you will do + METHODS What you actually Do = BRAND CULTURE
  • 38. C + Guest Profitable Experience Growth BU •  Great Service •  Clean RL •  Quality Product •  Safe •  Cool Environment •  Fun AT •  Price/Value + Employee Promotable NU Experience People DR •  Money •  Leadership •  Benefits •  Fun •  Recognition •  Clean E •  Growth Opportunity •  Safe
  • 39. Top Ways to Keep the Brand Relevant 1. Hire only rock stars, not lipsyncers 2. Communicate to employees in the language they dream 3. Create an army of giants & love the ones you’re with 4. Incent employees like they’re rock royalty & treat them like volunteers 5. Do the things you say you will do (Values + Methods = Brand Culture)
  • 40. Historical Timeline 1971-1995 No Competitors for 25 years 1996-2003 Dark Days (Negative Sales) -  Competition (Theme Restaurants) -  Guest Confusion (Food Quality & Price) -  9/11
  • 41. Artist Association Q: What celebrity/personality do you most commonly associate with the Hard Rock brand? Most Associated With Hard Rock By Age Segment 18 to 20 21 to 24 25 to 34 35 to 44 45 to 54 55 or older ? ? ? ? ? ?
  • 42. Historical Timeline 1971-1995 No Competitors for 25 years 1996-2003 Dark Days (Negative Sales) -  Competition (Theme Restaurants) -  Guest Confusion (Food Quality & Price) -  9/11 2004 Brand Reinvention & Cultural Focus
  • 47. Physical Menu Current Direction Old Approach
  • 48. Table Top Design Current Direction Old Approach
  • 49. Food & Beverage Old Approach Current Direction
  • 50. Merchandise Store Old Approach – Counters & Cubbies New Approach – Open-Floor ROCK SHOPS
  • 51. Merchandise – In-Store Displays Old Approach Current Direction
  • 52. Merchandise – Window Displays Current Direction Old Approach
  • 53. Video Screens Current – Flat Plasma Screens Old – Hospital-Like Monitors
  • 54. Live Music Old – Regular, Local Unknown Musicians Current – Fewer, but Premium Experiences
  • 55. Memorabilia Current Direction Old Approach
  • 56. Memorabilia Memphis Cafe - Current Memphis Cafe - Old Approach
  • 57. Memorabilia San Diego Cafe - Current San Diego Cafe - Old Approach
  • 58. Guests Interaction with Memorabilia Enhanced Experience – w/ Technology Old Experience
  • 59. Building Design Old Approach – reflective of Classic Rock themed restaurant
  • 60. Building Design Current Direction – •  trendy •  comfort-focused •  technology-driven •  lifestyle-oriented •  unique spaces
  • 61. Building Design Current Direction – unique design elements: •  music-oriented •  local nods
  • 62. Historical Timeline 1971-1995 No Competitors for 25 years 1996-2003 Dark Days (Negative Sales) -  Competition (Theme Restaurants) -  Guest Confusion (Food Quality & Price) -  9/11 2004 Brand Reinvention & Cultural Focus 2005-2011 Record Sales & Profits
  • 63. Move at the Pace of Society’s Culture STAKEHOLDERS COMMUNITY TECHNOLOGY COMMUNICATION
  • 64. Top Ways to Keep the Brand Relevant 1. Hire only rock stars, not lipsyncers 2. Communicate to employees in the language they dream 3. Create an army of giants & love the ones you’re with 4. Incent employees like they’re rock royalty & treat them like volunteers 5. Do the things you say you will do (Values + Methods = Brand Culture) 6. Move at the pace of society’s culture – be open to change
  • 65. Seth Dechtman 1-877-245-8692 seth@thespeakeragency.com Jim@KnightSpeaker.com @KnightSpeaker Jim Knight Jim Knight