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Corporate Identity

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I've used this presentation across a range of audiences, and it works pretty well all the time. I've tried to cover here the entire CI process, particularly with its linkages to business strategy.

Published in: Business

Corporate Identity

  1. 1. Corporate Identity and Reputation Live the Image.
  2. 2. <ul><li>What do Wipro, Tata Group, Modi Group, Videocon, Britannia Industries, Aditya Birla Group, Dr. Reddy’s and ICICI have in common with Accenture, Citigroup, Computer Associates, Novartis, GlaxoSimthKline, “Monday” and Pepsico? </li></ul>© Arvind Lodaya, 2002
  3. 3. Format <ul><li>This presentation is intended as an interactive session. </li></ul><ul><li>It will frequently posit a number of ‘truisms’ that are not necessarily true. </li></ul><ul><li>You are expected to be alert to these, engage with them, and challenge them whenever & however you like. </li></ul><ul><li>The format of engagement is: </li></ul>© Arvind Lodaya, 2002 Agree Disagree Discuss
  4. 4. Image <ul><li>After years of denial, virtually every organisation today is keenly aware of the tremendous impact of image on its immediate and long-term success. </li></ul>© Arvind Lodaya, 2002
  5. 5. <ul><li>However, most companies regard image as frontage & not having any connection with the rest of the organisation. </li></ul><ul><li>This may give them short-term gains, but these are rarely sustainable in & of themselves. </li></ul>© Arvind Lodaya, 2002
  6. 6. <ul><li>Today, we know that neglecting the backend can severely jeopardize the front end, and even sets up the chance of backlash. </li></ul>© Arvind Lodaya, 2002
  7. 7. <ul><li>Hence, Image is not like make-up: it needs to be ‘true’ through and through. </li></ul><ul><li>To achieve a desired image (and accrue its benefits), organisations must “live” it. </li></ul>© Arvind Lodaya, 2002
  8. 8. Positioning <ul><li>For years, companies were happy to fashion themselves after someone else, usually a leading company in their own field. </li></ul><ul><li>They were happy to follow. Which is fine, because there were many customers for follower goods, few companies altogether, and no pressure to grow. </li></ul><ul><li>Not any more. </li></ul>© Arvind Lodaya, 2002
  9. 9. <ul><li>Rising competition and picky customers are forcing them to differentiate themselves from competition in meaningful ways. </li></ul><ul><li>We now know that finding and building on one’s own & unique strengths is a faster and easier route to sustainable competitiveness: “Find yourself. Then be yourself.” </li></ul>© Arvind Lodaya, 2002
  10. 10. Analyzing Image <ul><li>Image exists in the minds of an organisation’s stakeholders. </li></ul><ul><li>It is best understood by the “Five Blind Men and the Elephant” story, where random parts define the whole for each ‘audience’. </li></ul>© Arvind Lodaya, 2002
  11. 11. <ul><li>Image is formed from some or many out of the following: </li></ul><ul><ul><li>Intended communication (“claims, propaganda”) </li></ul></ul><ul><ul><li>Unintended communication (“revealed between the lines”) </li></ul></ul><ul><ul><li>Word-of-mouth reputation (“buzz, media reports”) </li></ul></ul><ul><ul><li>Transaction and post-transaction experience (“expectation versus delivery”) </li></ul></ul>© Arvind Lodaya, 2002
  12. 12. <ul><li>The sources of image are many and diverse—not all can be tracked down. </li></ul><ul><li>Many of these occur outside our sphere of control. </li></ul>© Arvind Lodaya, 2002
  13. 13. <ul><li>The only way to ensure a degree of consistency and predictability is to minimize contradictions between claims, performance and people’s perceptions or experiences. </li></ul><ul><li>And yet, retain a value that is unique, special and meaningful to the customer. </li></ul>© Arvind Lodaya, 2002
  14. 14. <ul><li>The starting point of this could well be to downsize intents &/or claims so as to match on-the-ground capabilities & performance. </li></ul>© Arvind Lodaya, 2002
  15. 15. © Arvind Lodaya, 2002 Find & build your own strengths, but don’t make claims you can’t deliver on. Let customers perceive your strengths in a memorable & meaningful manner. Perform / Deliver better than what your customers expect from you.
  16. 16. Corporate Identity <ul><li>Corporate Identity is an enterprise-wide control process to define, attain & maintain a desired positioning & image in the minds of its internal & external stakeholders. </li></ul>© Arvind Lodaya, 2002
  17. 17. <ul><li>Historically, Corporate Identity originates from flags, ensigns, emblems, uniforms and heraldry – visual systems (Olins: “traditions”) that signified a specific group of people, their values, beliefs and purpose. </li></ul><ul><li>It identified “us” and, by implication, “them.” </li></ul>© Arvind Lodaya, 2002
  18. 18. <ul><li>Today, it still performs essentially the same function. </li></ul><ul><li>However, it has moved beyond the purely visual in its scope & influence. </li></ul><ul><li>It is slowly expanding into every area & aspect of an organisation, auditing and aligning it with the stated purpose and positioning. </li></ul>© Arvind Lodaya, 2002
  19. 19. <ul><li>In its early days, CI was an extension of advertising – and addressed customers, shareholders & the media – i.e. external stakeholders. </li></ul><ul><li>Today, CI is a strategic consulting discipline and addresses internal stakeholders as equally critical audiences for & players in the production of positioning & image. </li></ul>© Arvind Lodaya, 2002
  20. 20. <ul><li>Its contemporary end objective remains exactly the same as in medieval times: winning, retaining & propagating. </li></ul><ul><li>That is, “achieving the organisation’s fundamental objectives” and “persuading the world about its value.” </li></ul>© Arvind Lodaya, 2002
  21. 21. Identity in business <ul><li>Globalization: conveying value across cultures </li></ul><ul><li>Market shifts: keeping up to speed with the consumer (if not actually ahead of her) </li></ul><ul><li>Technological transformations: challenges of new media & new work paradigms </li></ul><ul><li>Competition/Differentiation/Positioning shifts: retaining relevance and distinction </li></ul><ul><li>Organisational Restructuring & change: reflecting new values, unifying & motivating teams </li></ul>© Arvind Lodaya, 2002
  22. 22. <ul><li>Consolidation & Diversification: strengthening equity, providing flexibility for growth </li></ul><ul><li>Mergers & Acquisitions, Divestments: avoiding depletion of perceived value </li></ul><ul><li>Joint ventures & Strategic alliances: creating synergy between two strong entities </li></ul><ul><li>Privatization & Deregulation: redefining role & purpose in changed rules </li></ul><ul><li>Increasing costs of communication: getting more from less </li></ul>© Arvind Lodaya, 2002
  23. 23. Some top CI players*… <ul><li>Worldwide: </li></ul><ul><ul><li>Landor </li></ul></ul><ul><ul><li>Wolff Olins </li></ul></ul><ul><ul><li>Lippincott & Marguelies </li></ul></ul><ul><ul><li>Enterprise IG (WPP group) </li></ul></ul><ul><ul><li>Interbrand </li></ul></ul><ul><li>Indian: </li></ul><ul><ul><li>NID </li></ul></ul><ul><ul><li>R+K </li></ul></ul><ul><ul><li>Preeti Vyas Gianetti </li></ul></ul><ul><ul><li>Shining Strategic Design </li></ul></ul><ul><li>… not a definitive list! </li></ul>© Arvind Lodaya, 2002
  24. 24. CI in India <ul><li>In the last decade, a number of Indian organisations have undergone a change in their corporate identities. </li></ul><ul><li>This coincided with: </li></ul><ul><ul><li>globalisation of the Indian economy; and </li></ul></ul><ul><ul><li>arrival of foreign advertising agencies via tie-ups with their Indian counterparts. </li></ul></ul><ul><li>The impact of these remains unclear. </li></ul>© Arvind Lodaya, 2002
  25. 25. The case of Air-India <ul><li>In the ’80s, the top management of Air-India decided to go in for a more international and modern identity. </li></ul><ul><li>They appointed Landor for the task. </li></ul><ul><li>Landor recommended dropping the Maharaja and adopting a ‘Sun’ emblem. </li></ul>© Arvind Lodaya, 2002
  26. 26. © Arvind Lodaya, 2002
  27. 27. <ul><li>However, this was widely resented by both employees and passengers, and eventually revoked totally. </li></ul>© Arvind Lodaya, 2002
  28. 28. The case of BA <ul><li>British Airways was facing a barrier to growth because it was perceived as being too ‘British’ </li></ul><ul><li>It adopted a new global & multicultural CI hoping to redress this perception </li></ul>© Arvind Lodaya, 2002
  29. 29. © Arvind Lodaya, 2002
  30. 30. <ul><li>This however led to severe alienation of its core customers – British businesses </li></ul><ul><li>They have since settled for a dual mix </li></ul>© Arvind Lodaya, 2002
  31. 31. Branding India initiative <ul><li>Early in 2002, the Ministry of Tourism announced a competition to brand India using a logo and a descriptor of not more than 4 words </li></ul><ul><li>They cited ‘Malaysia: Truly Asia’ and ‘Amazing Thailand’ as examples of what they hoped to achieve </li></ul><ul><li>The ‘Incredible India’ campaign was launched around 2004 </li></ul>© Arvind Lodaya, 2002
  32. 32. © Arvind Lodaya, 2002
  33. 33. Identity & culture: du Guy, Hall et al. © Arvind Lodaya, 2002 identity/difference: identification production representation regulation consumption
  34. 34. The Identity Process <ul><li>Visionary/Leadership brief </li></ul><ul><li>Market/Competition audit </li></ul><ul><li>Communications audit </li></ul><ul><li>Stakeholder perceptions audit </li></ul><ul><li>Define corporate purpose, values & positioning </li></ul><ul><li>Design visual structure, elements & system </li></ul><ul><li>Enterprise-wide CI application, systems alignment & ownership-building </li></ul><ul><li>Internal & external launch </li></ul><ul><li>Feedback, fine-tuning and SOP/manual </li></ul>© Arvind Lodaya, 2002
  35. 35. © Arvind Lodaya, 2002 Audit & benchmark actual performance & value delivered; identify unique competitive attributes & strengths Compile positioning, intents, strategy Is posi- tioning within scope of delivery? Audit perceptions Does posi- tioning exploit unique strengths? Does positioning reflect strategy? Do percep- tions reflect posi- tioning? Do percep- tions reflect actual quality? Do perceptions reflect value-add? Audit communications for efficacy in conveying claims & intents to intended audiences Redefine positioning to reflect performance, unique strengths and intents in the competitive context Audit organisation for its capability and preparedness to deliver against positioning Restructure organisation & communications for maximum efficacy in delivery & conveyance of positioning in competitive context END
  36. 36. Identity tools: EFH’s ORD © Arvind Lodaya, 2002 External Layer: Visible to everyone “ SYMBOLS” 1 st -Level Inner Layer: Visible to everyone who interacts with it “ RITUALS” 2 nd -Level Inner Layer: Visible only to people who deal closely with it “ ROLE MODELS” “ CORE VALUES”
  37. 37. <ul><li>In 1997, Hofstede published a controversial but important cross-cultural comparative study. He later added a fifth dimension to the above four: ‘Long- versus Short-Term Orientation’ </li></ul>© Arvind Lodaya, 2002
  38. 38. Identity categories <ul><li>Product </li></ul><ul><li>Concept/Technology </li></ul><ul><li>Ambience/Experience </li></ul><ul><li>Communication Media </li></ul><ul><li>Personalities </li></ul><ul><li>Behaviour </li></ul>© Arvind Lodaya, 2002
  39. 39. Identity structures <ul><li>Monolithic (fully centralized) </li></ul><ul><ul><li>“ ABC” universally </li></ul></ul><ul><li>Endorsed </li></ul><ul><ul><li>“ ABC” holding company </li></ul></ul><ul><ul><li>“ ABC” + “KLM,” “NOP,” etc. division/SBU titles </li></ul></ul><ul><ul><li>“ ABC” + “DEF,” “GHI,” etc. product/brand lines </li></ul></ul><ul><li>Branded/Autonomous (fully decentralized) </li></ul><ul><ul><li>“ ABC” holding company </li></ul></ul><ul><ul><li>“ EFG,” “HIJ,” etc. division/SBU titles </li></ul></ul><ul><ul><li>“ PQR,” “STU,” etc. product/brand lines </li></ul></ul>© Arvind Lodaya, 2002
  40. 40. Identity core constituents <ul><li>Organisational self-definitives: </li></ul><ul><ul><li>Shared (global) vision, mission, objectives & values </li></ul></ul><ul><ul><li>Strategy & Positioning (internal & external stakeholders) </li></ul></ul><ul><li>Name </li></ul><ul><li>Descriptor </li></ul><ul><li>Style, tone, demeanor, structure – manifested via the “gestalt” (configuration/arrangement & inter-relationships) of Logo/Symbol, Colours, Fonts, Graphic elements </li></ul><ul><li>Structure </li></ul>© Arvind Lodaya, 2002
  41. 41. Perceptions audit <ul><li>Size/ Market Share </li></ul><ul><li>Performance/ Quality/ Reliability </li></ul><ul><li>Knowledge of own domain </li></ul><ul><li>Technology Leadership/ Pioneership </li></ul><ul><li>Innovativeness/ Creativity </li></ul><ul><li>Flexibility </li></ul><ul><li>Punctuality/ Speed </li></ul><ul><li>Commitment to Customer Success </li></ul><ul><li>Prestigious/ Exclusive </li></ul><ul><li>Knowledge (of customer’s business) </li></ul><ul><li>Global Capability </li></ul><ul><li>Bargain/ Best Price </li></ul><ul><li>Value (price:performance) </li></ul>© Arvind Lodaya, 2002 <ul><li>The perceptions audit uses benchmarks drawn from the intents & objectives, and category & generic positioning attributes, such as these: </li></ul>
  42. 42. Communications Audit © Arvind Lodaya, 2002 <ul><li>Linear & lateral audit: </li></ul><ul><li>Visual Consistency </li></ul><ul><li>Narrative Consistency </li></ul><ul><li>Credibility </li></ul>Product A,B,C… Division A,B,C… Corporate Literature Promotions Advertising Direct Mail Retail/PoS Stationery Signage Vehicles …
  43. 43. 5S+2 model: McKinsey © Arvind Lodaya, 2002 Shared Vision, Mission, Values Structure Skills Staff Strategy Systems Style
  44. 44. Positioning guidelines <ul><li>Representative of the organization’s strengths </li></ul><ul><li>Relevant to its consumers &/or essential function &/or value delivery </li></ul><ul><li>Conveyable & conveyed to all relevant audiences </li></ul><ul><li>Sustainable against competitive threats over time </li></ul>© Arvind Lodaya, 2002
  45. 45. Typical identity objectives <ul><li>Improving external image </li></ul><ul><li>Improving internal communications </li></ul><ul><li>Raising corporate visibility </li></ul><ul><li>Strengthening share value </li></ul><ul><li>Communicating change/ new strategies </li></ul><ul><li>Providing flexibility for growth </li></ul><ul><li>Integrating two companies </li></ul><ul><li>Creating goodwill (during troubled times) </li></ul><ul><li>Resolving brand structures </li></ul><ul><li>Defining overall positioning </li></ul>© Arvind Lodaya, 2002
  46. 46. Ensuring effectiveness <ul><li>Strategy is effective only if the organisation itself is managed effectively to support it. </li></ul><ul><li>This implies that all elements of the organisation must support and enhance the competitive advantage that the strategy seeks to achieve. </li></ul>© Arvind Lodaya, 2002
  47. 47. 10 effectiveness tips (Ind) <ul><li>Take a long-term perspective </li></ul><ul><li>Set clear, preferably quantified objectives </li></ul><ul><li>Ensure CEO & senior management are committed to the programme </li></ul><ul><li>Ensure that the identity strategy complements the corporate strategy </li></ul><ul><li>Don’t change for the sake of change – leave well enough alone </li></ul>© Arvind Lodaya, 2002
  48. 48. <ul><li>Involve employees </li></ul><ul><li>Pay attention to implementation & details </li></ul><ul><li>Put appropriate people & systems in place to ensure sustainability </li></ul><ul><li>Propose complementary recommendations for change </li></ul><ul><li>Set up evaluation norms </li></ul>© Arvind Lodaya, 2002
  49. 49. Cynicism <ul><li>Brands have become the pre-dominant sponsors of all communication we see today, leading to fatigue </li></ul><ul><li>Consumers are becoming skeptical about brands, and about big business in general </li></ul><ul><li>This presents a challenge to big business, and an opportunity to small business </li></ul><ul><li>What will the future of brands be like? </li></ul>© Arvind Lodaya, 2002
  50. 50. <ul><li>On the other hand, ‘identity’ has become an ever more complex phenomenon, and turned into a fundamental crisis for many individuals </li></ul><ul><li>The internet has dramatically reconfigured our ideas about community </li></ul><ul><li>My recommendation for the future of brands is: let brands become the hubs of future communities—in the real sense of the term </li></ul>© Arvind Lodaya, 2002
  51. 51. Brand Communities <ul><li>“ a specialized, non-geographically bound community, based on a structured set of social relations among admirers of a brand.” (Muniz & O’Guinn, 2001) </li></ul>© Arvind Lodaya, 2002
  52. 52. Thank you. Arvind Lodaya http://geocities.com/lodaia

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