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

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Corporate Identity

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