Strategic Naming For Merging Healthcare Companies
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A facilitated workshop with company CEOs discussing factors and considerations in building towards a long-term master brand for the merged enterprise.
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Strategic Naming For Merging Healthcare Companies
- 2. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 2 Situation The thinking around the enterprise brand is fluid § FROM: The combined “ABC + XYZ Health Partners” holding company § TO: A more publicly facing and singular master brand with certain endorsed entities IF a master brand, key questions remain: § Which is the best name to use? § How should we transition to that master brand? § How can we retain the heritage and equity of both strong brands? § What should the new brand identity look like? § What is the best timing for transition?
- 4. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 4 § Naming the new master brand § Putting possible end-states into context – how “master branded” to go? § Transitioning to an end-state - factors to consider § Alternative logo treatments that merge the two identities § In summary - roadmap and considerations going forward Agenda
- 7. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 7 § Perceptions of your company that directly or indirectly drive desirable actions resulting in a business benefit is “brand equity” § While these perceptions come, primarily, from interactions, a name can certainly set the right direction for intended associations § A name can have intrinsic value, and can be an important signal of what the brand stands for and what it believes to be most important § A location (NorthShore) § A role in society (Advocate) § A founder (Mayo) § A core belief (Honor Health) One of the first issues to resolve will be the name
- 9. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 9 Our perspectives on the name The best corporate brand names have certain things in common: q They are memorable / easy to use / generally, the shorter the better (Google, Twitter, Microsoft) q They have inherent meaning of a higher order that transcends function (Amazon, Oracle, Apple) q They don’t limit the organization relative to product, geography, etc., as it grows into the future (GE as opposed to General Electric) q They are relevant to, and help position the organization within, the category they operate (Honor Health as opposed to Tenet or Presence Health) q They help the organization stand out and get easily recognized in different communication forms (written, conversation, digital)
- 10. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 10 Our perspectives on the name Given these objective criteria, we believe ABC is the best option to use for the new master brand name q Memorable / easy to use q Has inherent meaning of a higher order q Not limiting as the organizations grows q Very relevant within the healthcare category q Helps the organization stand out and get easily recognized (starting with an “A” actually helps, especially in digital search, and list rankings) In addition, it’s already an existing name with high equity and scaled presence in the market, and thus won’t require inordinate amount of resources to build, like a new name would Additionally, we believe it has no negative associations or issues to be considered
- 12. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 12 § Naming the new master brand § Putting possible end-states into context – how “master branded” to go? § Transitioning to an end-state - factors to consider § Alternative logo treatments that merge the two identities § In summary - roadmap and considerations going forward Agenda
- 13. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 13 Brand Architecture Spectrum Branded House House of Brands Investment Banking Trading & Principle Investments Asset Management & Securities Customer Segments / Need-states Brand Management Resources Competitors Homogeneous Heterogeneous Centralized / limited Decentralized / Abundant Few / Large Many / Small
- 15. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 15 Our perspec0ves on the brand architecture – post merger § Moving toward a master brand strategy makes a lot of sense, BUT … § ….choosing which name to go with and which entities to retain legacy identities for won’t be an easy one (a wholesale conversion might not be advisable) § Both institutions have built powerful master brands unto themselves (clearly both have a “master brand philosophy”), unlike others who never unified their brands and maintained a fragmented portfolio § Ensuring the transfer of equity into the new master brand will be key, as well as strategically determining which entities should retain the legacy name § Steps and timing in this transition will also be key, as we are about to discuss….
- 16. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 16 § Naming the new master brand § Putting possible end-states into context – how “master branded” to go? § Transitioning to an end-state - factors to consider § Alternative logo treatments that merge the two identities § In summary - roadmap and considerations going forward Agenda
- 17. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 17 After an end-state is determined, a transition strategy will be key Current End-State Transition Process toward integrating the institutions from an outward-facing / brand perspective How do we effectively and efficiently build toward a master brand? Entities • Hospitals • Departments • Centers • Institutes Offers • Clinical Areas • Wellness Programs • Lab Services Illustrative – to be discussed later Company Y Company X
- 20. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 20 § FedEx Historically—Very disciplined in managing its brand architecture, post-M&A § Leverages its master brand § Drives synergies throughout its portfolio § Clarifies breadth of offers § Kinkos Acquisition—Migration to “FedEx Office” § In total, a 4-year migration to successfully transfer equity to FedEx master brand § "Kinko's Printing Inside” signs helped reduce confusion during transition § Skillfully used design and copy to individualize the Kinko’s offer during migration FedEx / Kinkos – Highlights of Transition
- 21. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 21 § UPS made no big brand changes to MBE after it acquired the company for two years (from 2001 to 2003) § In 2003, UPS re-branded itself to reflect its broadened capabilities, and evolve its positioning to capture a higher order benefit of “synchronizing the commerce” § As part of the system-wide re-branding effort, all MBE locations were converted to “UPS Stores” § The MBE brand did not have the same level of equity that Kinko’s had, and thus was easier to eliminate A comparison to UPS / Mail Boxes Etc. 2003 UPS re-brands itself / converts MBE 2001 UPS acquires MBE 2004 Sold 500 new UPS Store franchise locations 2012 Mall Boxes Etc. changed its legal name to UPS Store, Inc. Synchronizing the world of commerce
- 22. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 22 Moving toward a master brand requires forethought, systems thinking, and flexibility for entities that require their own identities or more time to convert § Establish a high-level vision before you begin… § Clearly articulate the enterprise brand strategy § Accrue equity to master brand as quickly as possible; while minimizing costs § …and at the same time, pay close attention to details and nuances § Need a detailed migration plan § It’s about “substance” (e.g., positioning) not just “optics” (e.g., name, logo) § Clarify impact of transition on all relevant stakeholders § Be realistic on timing. Some entities may be able to be convert quickly while other will require more time Our perspec0ves on transi0oning to a master brand
- 24. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 24 § All three “Big Oil” mergers resulted in a single corporate master brand § ExxonMobil immediately merged legacy brands into a new master brand § BP and Chevron transitioned to a single existing master brand § Legacy Corporate brands were retained, but not at same level of brand architecture § Corporate brands “demoted” to station brands (e.g., Texaco, Mobil) § Corporate brands “demoted” to product brands (e.g., Amoco Ultimate) § Product brands retained and extended (e.g., Mobil Speedpass) Energy Industry - Highlights of Transition
- 25. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 25 § From a naming perspecCve, BP and Chevron got it right—Moving to a single, exis0ng legacy Corporate brand is be@er than merging two legacy brands into one § Customers—Nearly 20 years later, customers and other stakeholders conCnue to refer to the merged enCty by its previous legacy name (Exxon) § Employees—combining two legacy brand names into one (ExxonMobil) did more to perpetuate differences than to inspire unity § Expression—ExxonMobil has struggled with the cumbersome nature of its logo, and has periodically toyed with developing a shorthand version of its name § If Company X and Company Y follow the Chevron/BP example above (single, exisCng legacy), the other brand should be considered for other parts of brand architecture § Landmark (e.g. XYZ Evanston, an ABC Hospital) § Building/wing carrying donor names (e.g., ZTP Ambulatory Care) § Prac0ce/treatment (e.g., XYZ Name Cancer Center) Our perspec0ves on transi0oning to a master brand
- 26. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 26 Considerations in moving fast vs. slow Cost § There’s often a trade-off between initial and long-term costs Signal to the Market § A prudently rapid pace will signal decisive leadership Confusion § Go fast…but not too fast. Never sacrifice clarity, internal or external Equity § Effective management allows for faster speed § Different categories can dictate different speeds § While more “comfortable,” a slow transition misses an opportunity to build equity into new brand sooner Strategic Preparedness § When future M&A activity is anticipated, a faster transition is recommended (to speed adoption/minimize confusion)
- 27. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 27 § Naming the new master brand § Putting possible end-states into context – how “master branded” to go? § Transitioning to an end-state - factors to consider § Alternative logo treatments that merge the two identities § In summary - roadmap and considerations going forward Agenda
- 28. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 28 § You should adopt a master brand strategy because of the strength, “critical mass,” and operational and financial efficiencies that results from a single master brand § ABC is the best name to use for that master brand because § It is an existing (i.e., not new) name § Has a positive, benefit-oriented connotation § Allows for greatest degree of future geographical expansion § There are ways to honor and leverage the heritage of both brands, while taking advantage of this “moment in time” opportunity to create a new brand (i.e., beyond just the name) § But, a lot of work is required to do this well… Our perspec0ves in summary
- 29. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 29 Long-term Brand Building Roadmap § STRATEGY SETTING § Segmentation / Targeting § Equity Research § Brand Strategy § Brand Architecture § Transition Planning Time Period 1 (6 months – 1 year) Time Period 2 (6 months – 1 year) Time Period 3 (Ramp-up in year 2 / 3) STRATEGY SETTING STRATEGY SETTING § Name Development and Trademarking § Visual Identity System § Guidelines § Brand Messaging CREATIVE DEVELOP. STRATEGY SETTING § Employee Training § Integration into key operations § Governance § Event Coordination § Int. Communications LAUNCH PLANNING STRATEGY SETTING § Ext. Communications § Marketing § Stakeholder Experience § Identity conversion (e.g. signage) FOCUSED ACTIVATION STRATEGY SETTING § Continued brand integration into business, offers, etc. § System-wide identity conversion § print § digital § environmental § Brand Management System § people § process § tools § Organizational Design § Monitoring & Management SCALED OPERATIONALIZATION & MANAGEMENT
- 30. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 30 § Think beyond the logo - how the brand should be strategically positioned and architected to achieve business and mission objectives, and how it should be expressed in entity to evoke the human side of the enterprise § Think about the system of entities and offers, what the end-state should be for brand architecture, and how to transition them in efficient / effective ways § Think about key interactions with different sets of stakeholders - required to generate momentum, shape perceptions, and build equity over time § Think about the sequencing of work required to build toward a strong master brand – what comes first, second, third § Think about the team, operating mechanisms, governance, and the metrics required to ensure progress and a professionally managed process in-tuned with the sensitivities of different constituencies Considerations going forward