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Stewarding your brand to create long-term value
The Brand Council
Interbrand
33 Bloor Street East
Suite 1400
Toronto Canada M4W 3H1
Telephone: 416 366-7100
www.interbrand.com
September 2007
2
Introduction
It is now commonly understood that brands
represent significant corporate value and are among
an organization’s most valuable assets. This value
has been demonstrated in brand valuation rankings
and acquisition prices worldwide. Brands therefore
require ongoing attention, management and
investment to grow and generate an economic
return to the business.
Properly created and managed, your brand helps
generate operational and economic value by:
•	 Enhancing awareness, consideration, trial
and loyalty
•	 Attracting and retaining customers with an
engaging promise and experience
•	 Guiding and informing business decisions
and activities
•	 Attracting and retaining top-tier talent
and partners
•	 Easing entry into new markets
•	 Commanding price premiums
•	 Facilitating brand extensions into new products
and categories
One of the most pressing challenges we address
with clients is how to make business decisions
that are consistent with what the brand stands for.
Companies in many industries struggle to enhance
the power of their brands by aligning their activities
to deliver a fulfilling customer experience.
Without proper stewardship, your brand can
languish and result in a diminished or detrimental
impact on your business.
In this paper, we introduce the concept of the
Brand Council and discuss the role it can play in
developing, safeguarding and managing your brand
across the organization.
Specifically, we:
•	 Define the Brand Council
•	 Identify specific issues your Brand Council may
address
•	 Discuss who should be on your Brand Council
•	 Describe the steps for the typical Brand Council
process
•	 Review typical Brand Council responsibilities
(in a hypothetical scenario)
•	 Suggest how to “turbocharge” or maximize your
Brand Council’s impact on your organization
•	 Pinpoint potential “bumps in the road” or barriers
to success that your organization may encounter
in establishing its Brand Council
Why should you have a Brand Council?
“At The Walt Disney Company, for several years, we
had an individual in the role of Brand Steward at the
strategic planning – not the C-suite or Board – level.
She was a deeply thoughtful and internally networked
veteran marketing exec who was asked to add her
perspective on strategic decisions. This was helpful,
but (she) only had the decision-driving weight that
was assigned her by the senior executive at any given
point in time.”
– Marshall Monroe
Former Creative Executive, The Walt Disney Company
A common misconception is that the brand is the
responsibility of the Marketing department or a
select few. In some cases, the success of a brand
can depend solely on the stance of the CEO –
for better or worse.
We encourage you to view the brand as the sum
total of your organization’s promises and activities.
A brand is too precious to leave to just one
department or senior executive.
Consider the following questions:
•	 Our organization has developed a new offering/
product/service. Do we need a separate brand?
Why or why not?
•	 One or more aspects of our performance may be
hurting our brand image. How can we prioritize
where we should take corrective action to protect
and build our brand?
•	 We’re considering a merger, partnership or dives-
titure. How might that affect our brand?
Without proper steward-
ship, your brand can
languish and result in a
diminished impact on
your business.
The Brand Council
Shetil Rastogi
Strategist
Interbrand Toronto
srastogi@interbrand.ca
Benjamin Bidlack
Executive Director, Strategy
Interbrand Toronto
bbidlack@interbrand.ca
Stewarding your brand to create long-term value
A common miscon­cep­
tion is that the brand
is solely the Marketing
department’s responsi-
bility.
3
Your organization is collectively responsible
for creating an expected and consistent brand
experience. The challenge becomes how your
organization, with its multiple layers, multiple
divisions and multiple markets, comes together to
address the strategic and tactical issues related to
brand management.
Enter: Your Brand Council.
The Brand Council defined
A Brand Council is a group, representative of your
larger organization, with one mandate:
To ensure that business strategies, processes,
decisions and actions are aligned with the brand’s
positioning and values – namely, your organization’s
unique promise and point of difference.
This, in turn, focuses the entire organization on
delivering the fulfilling customer experience that
secures loyalty and future earnings.
The Brand Council provides strategic brand
governance in four categories:
1.	 Creation/management of the brand
2.	 Challenges and opportunities for the brand
3.	 Brand compliance
4.	 Brand measurement and refinement
5. 	Brand culture
Beyond “Logo Police”
Following are the types of issues that you may
encounter in your Brand Council, grouped into the
four categories introduced above.
1.	 Creation/management of the brand
a.	 Alignment between business strategy and brand
strategy
What is our business strategy, including our short-
and long-term business objectives? How does the
brand strategy bring this business strategy to life?
b.	 Business objectives formulation and assessment
How can we leverage the brand to achieve our
business objectives (i.e., revenue growth, cost
reduction, market share growth, etc.)? How have
these objectives changed in the last year/quarter
and what impact could these have on the brand?
c.	 Product and /or service portfolio decisions
Which products/services complement the brand
direction and, therefore, warrant a current or future
investment? Conversely, which products/services
should be rationalized because they no longer match
with the brand promise? What is the best ongoing
process to review our portfolio?
2.	 Challenges and opportunities for the brand
a.	 Operational choices and decisions
How should the brand promise guide everyday
operational issues and/or decisions (e.g., work
quality, defect rates, product design, response times,
communication gaps, product line or service gaps)?
Conversely, how do these operational issues and/or
decisions affect the brand?
b.	 Customer targeting
Which new customers are most likely to benefit from
the values, objectives and promise that our brand
stands for?
c.	 Merger and acquisition evaluation
When evaluating potential mergers or acquisitions,
which organization(s) would complement our
existing brand promise? How do these organizations
fit into our existing portfolio? What would be the
brand implications of merging with or acquiring
these organizations? How can we manage the
brand to maximize value for an upcoming liquidity or
merger event?
d.	 Prospective partner assessment
Which potential co-branding partnerships will align
with our brand promise and values? Which of these
partnerships might be most beneficial for building
brand equity?
The Brand Council
Ideally, your Brand
Council should have
key people from all
functional areas, since
they all contribute to the
delivery of your brand
promise.
e.	 Competitive analysis and response
How does the brand help us differentiate ourselves
and de-position our competitors? How can the
brand dictate our response to competitive activity?
(See Exhibit B, “The Brand Council at Cool Tech Inc.”)
3.	 Brand compliance
Visual and verbal expression
How do advertising, communications, signage,
online and other applications of our identity
(e.g., logo, visual vocabulary, language and tone of
voice) align with our guidelines for consistent brand
expression? Should there be differences in brand
expression in the organization and, if so, what are
these differences? What are the challenge areas
(e.g., too many versions of the logo, inconsistent
execution across applications) in the expression of
the brand?
4.	 Brand measurement and refinement
General brand assessment
What is the state of the brand (e.g., metrics
definition and tracking, findings and implications
from any recent brand research, recent media
mentions, share of brand choice, etc.)? How do
we measure the brand’s performance against the
competition in a changing marketplace?
5.	 Brand culture
a. Brand culture assessment
How deeply are our employees engaged with the
brand? How well are our brand attributes being
embraced internally to help shape desired behaviors
and attitudes? What new programs should we
develop to keep people engaged and “living” the
brand?
b.	 Customer touchpoint management
How well have the multiple interactions that
customers have with the organization been
considered and aligned with the brand? Have
touchpoints been mapped and analyzed for
improvement so that investment can be directed to
those that have the greatest potential for positive
impact on the customer experience?
Constituting the Council
“You have to examine the environment(s) the business
is competing in and the organism of the organization
to understand what is the best structure of the Brand
Council.”
– Kevin McSpadden
Senior Director, Brand Marketing
eBay (North America)
We suggest following two guiding principles to
determine who should be a member of your Brand
Council:
1.	Have organization-wide representation with
members from each of your key strategic
functions.
Ideally, your Brand Council should have a senior
representative from each functional area, since all
areas impact the delivery of your brand promise.
These include:
•	 C-suite management
(including a senior marketing executive)
•	 Operations
•	 Human Capital Resources
•	 Finance
•	 Marketing
•	 Sales
•	 Legal
•	 Public/Investor Relations
•	 Research and Development
•	 Administration
We recommend that you also retain an external
brand consulting partner to maintain an objective
point of view and provide your Brand Council with
the most current best practices in branding.
2.	 A member of senior management should be your
Brand Council Leader.
The Brand Council Leader should represent the
importance and visibility that your organization
wishes to give to the brand. We recommend that
your CEO or COO lead your Brand Council.
3.	 The Brand Council should also have a Chair.
The Brand Council Chair is responsible for setting
the agendas and directing the meetings.
4
The Brand Council
Brand Council’s respon-
sibilities extend beyond
“logo-policing” to a
much deeper involve-
ment in addressing
brand-related issues –
issues that have
strategic implications for
your organization.
5
The Brand Council
Brand Ambassadors:1
Your “ground-level team of designated”
brand champions
Brand Ambassadors form the critical information
flow channel between the Brand Council and the rest
of the organization. Especially in larger organizations,
the Brand Council needs a team of communicators
and brand champions to assist with implementation
and communication to and from the Council.
(See Exhibit A, “Brand Council’s Information Flow.”)
Brand Ambassadors embody and champion the
brand at the ground level. Every employee is
expected to live the values of the brand, but Brand
Ambassadors go a step further and promote its
1	 A forthcoming white paper will address the concept of
Brand Ambassadors in greater detail.
values throughout the organization, regardless of
whether they work in marketing, finance, operations,
logistics, or other functional areas.
Steps in the Brand Council Process
Step 1.	 Mandate and Formation
The first step is to agree on your Brand Council’s
mandate and membership. All key functional areas
should be represented, and the critical roles of Chair
and/or Leader should be assigned and agreed. The
roles and functions of Brand Council should be
announced to the rest of the company to validate
its importance and to clarify how people can and
will be expected to contribute. Taking this step will
also prepare the organization to view brand-related
decisions as an output of the Brand Council, giving
it the visibility it needs to thrive in the long term.
Brand Ambassadors
are the “ground-level”
champions of the brand.
Note:
Each brand council member would have a Brand Ambassador(s) providing
information and feedback from their functional areas.
Brand value
creation /
enhanced business
performance
Functional
area
Operations
HR
Finance
Marketing
Sales
Legal
Communications
Public Relations
R&D
(Representation
on Brand Council
varies by industry)
Functional
area
Exhibit A: Brand Council’s Information Flow
Brand
Ambassador
Business benefitsExecutionDecisionInformation
Coordinated
brand management
governance
Promised
partner experience
Promised
employee experience
Promised
customer experience
Brand Council
Mandate
Ensure delivery on and
alignment to the brand promise,
values, and behaviors
Brand
Consulting
Partner
Leader:
CEO/
COO/
CMO
Brand
Council
Member
Brand
Council
Chair
Brand
Council
Member
Brand
Council
Member
Brand
Council
Member
Brand
Council
Member
6
The Brand Council
Step 2.	 Communication
Issues and information are communicated from
the functional area. Depending on the size and
structure of the functional area and/or the
organizational culture, people from a functional area
may wish to directly communicate with their Brand
Council Member. In these cases, we recommend
that the Brand Ambassador(s) be advised of the
communication, if appropriate.
Step 3.	 Forwarding
The Brand Ambassador(s) forward the information
to the Brand Council Member for review. The Brand
Council Member should then assess how the issue
might impact the corporate brand and whether
or not it is appropriate to address it to the Brand
Council for discussion. The Brand Council Member
may already have the knowledge and/or authority to
make a decision without Brand Council review, as
defined by the Brand Council Mandate.
Step 4.	 Review
The issue is raised for discussion and resolution
at the regular or special Brand Council meetings.
The Leader oversees the Brand Council and is the
final decision-maker in case of a tie vote and/or
makes the final recommendations, depending on the
Council’s mandate and recommendation process.
The Chair of the Brand Council runs the Brand
Council meetings, sets the agenda, directs the
discussion and helps the group to reach decisions
and recommendations.
Step 5.	 Decision
Once the Brand Council reaches a decision/resolu-
tion, the Brand Council Member communicates it,
either directly or to the Brand Ambassadors in the
appropriate functional area.
Step 6.	 Distribution
If applicable, the Brand Ambassador com­municates
the decision/resolution to all or part of the
functional area, as appropriate.
Step 7.	 Implementation
The Member, Brand Ambassador(s) and other
leaders within the functional area(s) prepare an
implementation plan on the decision/resolution and
deploy the required resources to produce business
benefit for the organization.
Step 8.	 Results
The Brand Council guides the consistent delivery of
the brand promise throughout the organization. But
that alone is not enough. To create tangible value,
Brand Council decisions must be supported by effec-
tive implementation from the functional area(s). Over
time, this process will institutionalize the brand, help-
ing build customer loyalty and ensure future revenue.
Hypothetical scenario:
The Brand Council at Cool Tech Inc.
The following hypothetical scenario will provide
you with additional dimension and insight on the
role each functional area might play in the Brand
Council. We’ve chosen a manufacturer as our
hypothetical organization, but the principles apply to
any business or organization.
Imagine that Cool Tech Inc. is a leading
manufacturer of audio technology. Its products –
headphones, speakers, etc. – are world-renowned
for their premium quality and design. One of their
medium-to-high-end product lines operates under
the sub-brand, Vibe.
A major competitor to Cool Tech has just flooded
the market with a lower-cost alternative to the Vibe
product line.
How should Cool Tech Inc.’s Brand Council help it to
protect its Vibe product line’s market share?
Senior management needs to consider its options
and has asked the Brand Council to analyze what
the various outcomes might be for the premium
image of the Cool Tech brand.
We recommend that
your CEO or COO lead
your Brand Council.
77
The Brand Council
The Brand Council
should bring a brand
lens to organization-
wide decisions and
activities to protect and
build brand value.
Functional Area
Role in Cool Tech’s
Brand Council
Areas of concern in evaluating
the best response
C-Suite
(e.g., CEO, COO)
•	 Lead Brand Council meetings
•	 Promote brand visibility within
the organization
•	 Represent the brand in actions
and behaviors
•	 Potential implications on share
price, brand defensive value,
competitive position
Senior Marketing executive
(e.g., CMO)
•	 Prepare meeting agendas
•	 Monitor that organization
discussions and activities are
consistent with the brand
positioning
•	 Represent the brand in actions
and behaviors
•	 Product portfolio implications
•	 Pricing implications on Vibe line
and other sub-brands
•	 Distribution implications for
the Vibe line to protect market
share
•	 Promotion issues including
budget, media, and choice of
partners
Operations •	 Provide operational implications
to Brand Council discussions
and decisions
•	 Represent the brand in actions
and behaviors
•	 Production capabilities and
restrictions
•	 Raw material procurement
•	 Capital asset changes
Human Capital Resources •	 Contribute the employees’
perspective to Brand Council
discussions and decisions
•	 Represent the brand in actions
and behaviors
•	 Talent requirements or disposi-
tions
•	 Training
•	 Development
Finance •	 Bring a financial perspective to
Brand Council discussions and
decisions
•	 Represent the brand in actions
and behaviors
•	 Financial resource requirements
•	 Capital structuring implications
(e.g., increase in debt, issue
equity)
•	 Compliance with corporate
financial hurdles
(e.g., ROI, ROS)
Product Marketing •	 Give product-specific insight to
Brand Council discussions and
decisions
•	 Represent the brand in actions
and behaviors
•	 Vibe positioning implications
•	 Vibe market share implications
•	 Changes to Vibe consumer
loyalty and brand equity index
scores
Exhibit B:
The Brand Council at
Cool Tech Inc.
8
Functional Area
Role in Cool Tech’s
Brand Council
Areas of concern in evaluating
the best response
Sales •	 Provide insight on sales
opportunities/challenges and
on major customer accounts
•	 Represent the brand in actions
and behaviors
•	 Ability to meet Vibe’s sales
targets
•	 Ability to manage customer
inquiries and expectations
Legal •	 Provide the legal perspective
and ramifications to Brand
Council’s discussions and deci-
sions
•	 Represent the brand in actions
and behaviors
•	 Cool Tech’s legal recourse
against its competitor
•	 Potential lawsuits on Cool Tech
towards competitive response
(e.g., anti-competition, exceeding
production quota, union-related)
Public/Investor Relations •	 Inform the Brand Council with
potential public and investor
reactions to discussions and
decisions
•	 Represent the brand in actions
and behaviors
•	 Public and shareholder
perception
Research and Development •	 Contribute a research and
product development per-
spective to Brand Council
discussions and decisions
•	 Represent the brand in actions
and behaviors
•	 Impact on speed of next genera-
tion of Vibe product development
•	 Continuing innovation on Vibe
line for long-term competitive
advantage
Brand consulting partners •	 Bring an objective point of view
as a branding subject matter
expert
•	 Previous branding cases in client
or similar industry
•	 Advice to Brand Council on
suggested course of action
Administration •	 Provide the administrative
perspective to Brand Council
discussions and decisions
•	 Represent the brand in actions
and behaviors
•	 Municipal, environmental or other
permits for increased factory
production (if necessary)
•	 Arrangement of appropriate
security, maintenance and admin-
istrative support staff to oversee
increased level of factory produc-
tion (if necessary)
The Brand Council
9
The Brand Council
Your brand must have
a high profile within
your organization. This
responsibility typically
lies with your C-suite.
Industry Insurance Telecommunications
Mandate •	 To manage, grow and measure
the brand while acting as
a liaison to the Board of
Directors on issues of brand
management
•	 To vet strategy development and
approve brand decisions
Membership •	 CEO (Chair)
•	 Regional VPs
•	 Functional VPs (COO, CMO)
•	 Directors
•	 External Consultants
•	 Head of Branding (Chair)
•	 10 representatives from:
	 –	 Manufacturing
	 –	 Logistics
	 –	 Legal
	 –	 Marketing
	 –	 Product Development
Meeting Frequency •	 Weekly for tactical issues.
Monthly/quarterly for strategic
issues
•	 Quarterly
Types of Issues Addressed •	 Implementation of brand
measurement metrics and
training programs to promote
on-brand behavior
•	 Development and management
of process to integrate new
products into portfolio
•	 Development of new product
naming system
•	 Evaluation of merger from
perspective of brand
You can see from this scenario that the Brand Council
should bring a brand lens to organization-wide
decisions and activities to ensure adherence to the
brand promise and to protect and build brand value.
How to “turbocharge” your Brand Council
1.	 Define the right Mandate for you.
We suggest that your Brand Council clearly articu-
late its Mandate and have the authority to hold your
organization’s people accountable for decisions,
actions and behaviors that align with the brand.
Your Mandate can be simple (“To consider corporate
decisions from the point of view of their impact on
and alignment with the brand”) or elaborate (with
tactical objectives and metrics to evaluate business
decisions). Your mandate should also specify the
rules and conditions under which issues are brought
to the Brand Council for discussion, resolution and
communication to the broader organization.
“Our expectation is that the Brand Council be a
stakeholder-led control and implementation of the
brand against a clear set of guidelines.”
– Managing Director
Leading European retailer
The following examples from two industry sectors
illustrate the types of Mandates, membership and
business issues that a Brand Council can address.
10
2.	 Meet regularly.
Frequency and continuity are vital to institutionalize
the Brand Council into your organization’s culture.
To establish continuity, the Brand Council should
meet at least once every quarter on strategic issues
and even more frequently on tactical issues.
	 In addition to regular meetings, the Council
should have the flexibility to convene as the need
arises (e.g., events or operations that impact the
brand, responses to recent competitive and/or
internal developments: analyst report releases, new
hires, customer satisfaction surveys, etc.).
3.	 Be “brand-centered.”
a.	 Your brand must have a high profile inside your
organization. This responsibility typically lies
with your C-suite. They must maintain a high
profile for your brand by first making a business
investment in the brand and supporting that
investment by demonstrating a personal pride in
what the brand stands for. Simply, they need to
lead by example in living your brand.
b.	 Your brand lives beyond Marketing. View brand
building as a holistic organizational responsi-
bility as opposed to the responsibility of your
Marketing department. The functional areas and
business units within your organization need to
understand, through their leaders on the Brand
Council, how they contribute to brand value.
4.	 Inspire your organization through Brand
Ambassadors.
“The key is to ensure that the Council is controlling the
brand but, also, that it provides the freedom to work
within a defined set of parameters.”
– Managing Director
Leading European retailer
The Brand Council also guides and manages
the activities of your Brand Ambassadors. Your
employees can make or break your brand. When
properly inspired and empowered, your Brand
Ambassadors will lead your employees to make the
brand thrive in your organization and, ultimately, with
your customers.
Potential bumps in the road
1.	 A lack of consensus on the importance of the
brand to the organization.
The Brand Council is representative of the
organization holistically. Therefore, its members,
regardless of functional area, should believe in the
brand as a vital corporate asset that merits the time,
discussion and collaboration of the organization’s
senior-most people.
2.	 The absence of a clear mandate.
Branding can be abstract, even to experienced
leaders and managers. Part of the Brand Council’s
role is to educate its members and the wider
organization about the role and potential value of the
brand. A clear, well defined and well communicated
Brand Council Mandate ensures that the
organization understands the purpose of the Brand
Council and the value it can bring.
3.	 Infrequent meetings.
A lack of regular Brand Council meetings hinders
the momentum on brand-related discussions
and sends the message that the brand is a lower
business priority.
4.	 The absence of C-suite support.
C-suite support of the Brand Council is critical,
especially at the outset, in order to give the Brand
Council the credibility and visibility it needs to
enable effective strategic brand decisions. Without
this support, the Brand Council runs the risk of
losing relevance among the organization’s functional
leaders.
5.	 A highly fragmented organizational culture that
favors operation in “silos” over enterprise-wide
communication and collaboration.
“People want to re-interpret and re-invent things.”
– Managing Director, Leading European retailer
Organizations predisposed to working as
autonomous functions, divisions or markets will need
to commit themselves to greater intra-company
collaboration in order to benefit from creating a
Brand Council.
.
The Brand Council
Like any organization
and its functional areas,
the Brand Council
should be evaluated on
business results.
11
6.	 Incomplete execution on Brand Council
decisions.
Like any organization and its functional areas, the
Brand Council should be evaluated on business
results. Leadership can only make this assessment if
the organization consistently executes on the Brand
Council’s decisions, and monitors the resulting
impact on performance.
Conclusion
The Brand Council oversees the activities whereby
the brand contributes to shareholder value. When
your Brand Council guides business activities to
align with the brand promise, your organization
will benefit from satisfied customers. Over time,
consistent and satisfying brand experiences will
transform satisfied customers to loyal customers,
which, in turn, helps you secure and grow future
earnings and create economic value.
The Brand Council
12
For more information, please contact Bev Tudhope at 416-366-7100 or btudhope@interbrand.ca.
About Interbrand
Founded in 1974, Interbrand serves the world with over 30 offices in over 20 countries. Working in
partnership with our clients we combine rigorous strategy and analysis with world-class design and
creativity.
We recognize the importance of brand in this increasingly competitive business environment and tailor our
services to client needs. Our services include brand analytics, brand valuation, strategy, naming and verbal
identity, corporate identity, packaging design, retail design, integrated brand communications and digital
branding tools.
We enable our clients to achieve greater success by helping them to create and manage brand value.
Visit www.interbrand.com and www.brandchannel.com for the latest brand thinking.
Acknowledgements
The authors thank the following individuals for their assistance with this White Paper:
Bev W. Tudhope, Chief Executive, Interbrand Toronto
Rita Clifton, Chairman, UK, Interbrand London
Tom Zara, Executive Director, Corporate Branding, Interbrand New York
Max Raison, Associate Director – Brand Strategy, Interbrand London
Additional contributors:
Heather Cartwright, Director, Strategy, Interbrand Toronto
Carolyn Ray, Director, Integrated Communications and Planning, Interbrand Toronto
Gary Ludwig, Creative Director, Interbrand Toronto
Trevor Cape, Director, Resources, Interbrand Toronto
Michèle Champagne, Designer, Interbrand Toronto
David Turner, Director, Digital Production, Interbrand Toronto

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WP_BrandCouncil

  • 1. Stewarding your brand to create long-term value The Brand Council Interbrand 33 Bloor Street East Suite 1400 Toronto Canada M4W 3H1 Telephone: 416 366-7100 www.interbrand.com September 2007
  • 2. 2 Introduction It is now commonly understood that brands represent significant corporate value and are among an organization’s most valuable assets. This value has been demonstrated in brand valuation rankings and acquisition prices worldwide. Brands therefore require ongoing attention, management and investment to grow and generate an economic return to the business. Properly created and managed, your brand helps generate operational and economic value by: • Enhancing awareness, consideration, trial and loyalty • Attracting and retaining customers with an engaging promise and experience • Guiding and informing business decisions and activities • Attracting and retaining top-tier talent and partners • Easing entry into new markets • Commanding price premiums • Facilitating brand extensions into new products and categories One of the most pressing challenges we address with clients is how to make business decisions that are consistent with what the brand stands for. Companies in many industries struggle to enhance the power of their brands by aligning their activities to deliver a fulfilling customer experience. Without proper stewardship, your brand can languish and result in a diminished or detrimental impact on your business. In this paper, we introduce the concept of the Brand Council and discuss the role it can play in developing, safeguarding and managing your brand across the organization. Specifically, we: • Define the Brand Council • Identify specific issues your Brand Council may address • Discuss who should be on your Brand Council • Describe the steps for the typical Brand Council process • Review typical Brand Council responsibilities (in a hypothetical scenario) • Suggest how to “turbocharge” or maximize your Brand Council’s impact on your organization • Pinpoint potential “bumps in the road” or barriers to success that your organization may encounter in establishing its Brand Council Why should you have a Brand Council? “At The Walt Disney Company, for several years, we had an individual in the role of Brand Steward at the strategic planning – not the C-suite or Board – level. She was a deeply thoughtful and internally networked veteran marketing exec who was asked to add her perspective on strategic decisions. This was helpful, but (she) only had the decision-driving weight that was assigned her by the senior executive at any given point in time.” – Marshall Monroe Former Creative Executive, The Walt Disney Company A common misconception is that the brand is the responsibility of the Marketing department or a select few. In some cases, the success of a brand can depend solely on the stance of the CEO – for better or worse. We encourage you to view the brand as the sum total of your organization’s promises and activities. A brand is too precious to leave to just one department or senior executive. Consider the following questions: • Our organization has developed a new offering/ product/service. Do we need a separate brand? Why or why not? • One or more aspects of our performance may be hurting our brand image. How can we prioritize where we should take corrective action to protect and build our brand? • We’re considering a merger, partnership or dives- titure. How might that affect our brand? Without proper steward- ship, your brand can languish and result in a diminished impact on your business. The Brand Council Shetil Rastogi Strategist Interbrand Toronto srastogi@interbrand.ca Benjamin Bidlack Executive Director, Strategy Interbrand Toronto bbidlack@interbrand.ca Stewarding your brand to create long-term value A common miscon­cep­ tion is that the brand is solely the Marketing department’s responsi- bility.
  • 3. 3 Your organization is collectively responsible for creating an expected and consistent brand experience. The challenge becomes how your organization, with its multiple layers, multiple divisions and multiple markets, comes together to address the strategic and tactical issues related to brand management. Enter: Your Brand Council. The Brand Council defined A Brand Council is a group, representative of your larger organization, with one mandate: To ensure that business strategies, processes, decisions and actions are aligned with the brand’s positioning and values – namely, your organization’s unique promise and point of difference. This, in turn, focuses the entire organization on delivering the fulfilling customer experience that secures loyalty and future earnings. The Brand Council provides strategic brand governance in four categories: 1. Creation/management of the brand 2. Challenges and opportunities for the brand 3. Brand compliance 4. Brand measurement and refinement 5. Brand culture Beyond “Logo Police” Following are the types of issues that you may encounter in your Brand Council, grouped into the four categories introduced above. 1. Creation/management of the brand a. Alignment between business strategy and brand strategy What is our business strategy, including our short- and long-term business objectives? How does the brand strategy bring this business strategy to life? b. Business objectives formulation and assessment How can we leverage the brand to achieve our business objectives (i.e., revenue growth, cost reduction, market share growth, etc.)? How have these objectives changed in the last year/quarter and what impact could these have on the brand? c. Product and /or service portfolio decisions Which products/services complement the brand direction and, therefore, warrant a current or future investment? Conversely, which products/services should be rationalized because they no longer match with the brand promise? What is the best ongoing process to review our portfolio? 2. Challenges and opportunities for the brand a. Operational choices and decisions How should the brand promise guide everyday operational issues and/or decisions (e.g., work quality, defect rates, product design, response times, communication gaps, product line or service gaps)? Conversely, how do these operational issues and/or decisions affect the brand? b. Customer targeting Which new customers are most likely to benefit from the values, objectives and promise that our brand stands for? c. Merger and acquisition evaluation When evaluating potential mergers or acquisitions, which organization(s) would complement our existing brand promise? How do these organizations fit into our existing portfolio? What would be the brand implications of merging with or acquiring these organizations? How can we manage the brand to maximize value for an upcoming liquidity or merger event? d. Prospective partner assessment Which potential co-branding partnerships will align with our brand promise and values? Which of these partnerships might be most beneficial for building brand equity? The Brand Council Ideally, your Brand Council should have key people from all functional areas, since they all contribute to the delivery of your brand promise.
  • 4. e. Competitive analysis and response How does the brand help us differentiate ourselves and de-position our competitors? How can the brand dictate our response to competitive activity? (See Exhibit B, “The Brand Council at Cool Tech Inc.”) 3. Brand compliance Visual and verbal expression How do advertising, communications, signage, online and other applications of our identity (e.g., logo, visual vocabulary, language and tone of voice) align with our guidelines for consistent brand expression? Should there be differences in brand expression in the organization and, if so, what are these differences? What are the challenge areas (e.g., too many versions of the logo, inconsistent execution across applications) in the expression of the brand? 4. Brand measurement and refinement General brand assessment What is the state of the brand (e.g., metrics definition and tracking, findings and implications from any recent brand research, recent media mentions, share of brand choice, etc.)? How do we measure the brand’s performance against the competition in a changing marketplace? 5. Brand culture a. Brand culture assessment How deeply are our employees engaged with the brand? How well are our brand attributes being embraced internally to help shape desired behaviors and attitudes? What new programs should we develop to keep people engaged and “living” the brand? b. Customer touchpoint management How well have the multiple interactions that customers have with the organization been considered and aligned with the brand? Have touchpoints been mapped and analyzed for improvement so that investment can be directed to those that have the greatest potential for positive impact on the customer experience? Constituting the Council “You have to examine the environment(s) the business is competing in and the organism of the organization to understand what is the best structure of the Brand Council.” – Kevin McSpadden Senior Director, Brand Marketing eBay (North America) We suggest following two guiding principles to determine who should be a member of your Brand Council: 1. Have organization-wide representation with members from each of your key strategic functions. Ideally, your Brand Council should have a senior representative from each functional area, since all areas impact the delivery of your brand promise. These include: • C-suite management (including a senior marketing executive) • Operations • Human Capital Resources • Finance • Marketing • Sales • Legal • Public/Investor Relations • Research and Development • Administration We recommend that you also retain an external brand consulting partner to maintain an objective point of view and provide your Brand Council with the most current best practices in branding. 2. A member of senior management should be your Brand Council Leader. The Brand Council Leader should represent the importance and visibility that your organization wishes to give to the brand. We recommend that your CEO or COO lead your Brand Council. 3. The Brand Council should also have a Chair. The Brand Council Chair is responsible for setting the agendas and directing the meetings. 4 The Brand Council Brand Council’s respon- sibilities extend beyond “logo-policing” to a much deeper involve- ment in addressing brand-related issues – issues that have strategic implications for your organization.
  • 5. 5 The Brand Council Brand Ambassadors:1 Your “ground-level team of designated” brand champions Brand Ambassadors form the critical information flow channel between the Brand Council and the rest of the organization. Especially in larger organizations, the Brand Council needs a team of communicators and brand champions to assist with implementation and communication to and from the Council. (See Exhibit A, “Brand Council’s Information Flow.”) Brand Ambassadors embody and champion the brand at the ground level. Every employee is expected to live the values of the brand, but Brand Ambassadors go a step further and promote its 1 A forthcoming white paper will address the concept of Brand Ambassadors in greater detail. values throughout the organization, regardless of whether they work in marketing, finance, operations, logistics, or other functional areas. Steps in the Brand Council Process Step 1. Mandate and Formation The first step is to agree on your Brand Council’s mandate and membership. All key functional areas should be represented, and the critical roles of Chair and/or Leader should be assigned and agreed. The roles and functions of Brand Council should be announced to the rest of the company to validate its importance and to clarify how people can and will be expected to contribute. Taking this step will also prepare the organization to view brand-related decisions as an output of the Brand Council, giving it the visibility it needs to thrive in the long term. Brand Ambassadors are the “ground-level” champions of the brand. Note: Each brand council member would have a Brand Ambassador(s) providing information and feedback from their functional areas. Brand value creation / enhanced business performance Functional area Operations HR Finance Marketing Sales Legal Communications Public Relations R&D (Representation on Brand Council varies by industry) Functional area Exhibit A: Brand Council’s Information Flow Brand Ambassador Business benefitsExecutionDecisionInformation Coordinated brand management governance Promised partner experience Promised employee experience Promised customer experience Brand Council Mandate Ensure delivery on and alignment to the brand promise, values, and behaviors Brand Consulting Partner Leader: CEO/ COO/ CMO Brand Council Member Brand Council Chair Brand Council Member Brand Council Member Brand Council Member Brand Council Member
  • 6. 6 The Brand Council Step 2. Communication Issues and information are communicated from the functional area. Depending on the size and structure of the functional area and/or the organizational culture, people from a functional area may wish to directly communicate with their Brand Council Member. In these cases, we recommend that the Brand Ambassador(s) be advised of the communication, if appropriate. Step 3. Forwarding The Brand Ambassador(s) forward the information to the Brand Council Member for review. The Brand Council Member should then assess how the issue might impact the corporate brand and whether or not it is appropriate to address it to the Brand Council for discussion. The Brand Council Member may already have the knowledge and/or authority to make a decision without Brand Council review, as defined by the Brand Council Mandate. Step 4. Review The issue is raised for discussion and resolution at the regular or special Brand Council meetings. The Leader oversees the Brand Council and is the final decision-maker in case of a tie vote and/or makes the final recommendations, depending on the Council’s mandate and recommendation process. The Chair of the Brand Council runs the Brand Council meetings, sets the agenda, directs the discussion and helps the group to reach decisions and recommendations. Step 5. Decision Once the Brand Council reaches a decision/resolu- tion, the Brand Council Member communicates it, either directly or to the Brand Ambassadors in the appropriate functional area. Step 6. Distribution If applicable, the Brand Ambassador com­municates the decision/resolution to all or part of the functional area, as appropriate. Step 7. Implementation The Member, Brand Ambassador(s) and other leaders within the functional area(s) prepare an implementation plan on the decision/resolution and deploy the required resources to produce business benefit for the organization. Step 8. Results The Brand Council guides the consistent delivery of the brand promise throughout the organization. But that alone is not enough. To create tangible value, Brand Council decisions must be supported by effec- tive implementation from the functional area(s). Over time, this process will institutionalize the brand, help- ing build customer loyalty and ensure future revenue. Hypothetical scenario: The Brand Council at Cool Tech Inc. The following hypothetical scenario will provide you with additional dimension and insight on the role each functional area might play in the Brand Council. We’ve chosen a manufacturer as our hypothetical organization, but the principles apply to any business or organization. Imagine that Cool Tech Inc. is a leading manufacturer of audio technology. Its products – headphones, speakers, etc. – are world-renowned for their premium quality and design. One of their medium-to-high-end product lines operates under the sub-brand, Vibe. A major competitor to Cool Tech has just flooded the market with a lower-cost alternative to the Vibe product line. How should Cool Tech Inc.’s Brand Council help it to protect its Vibe product line’s market share? Senior management needs to consider its options and has asked the Brand Council to analyze what the various outcomes might be for the premium image of the Cool Tech brand. We recommend that your CEO or COO lead your Brand Council.
  • 7. 77 The Brand Council The Brand Council should bring a brand lens to organization- wide decisions and activities to protect and build brand value. Functional Area Role in Cool Tech’s Brand Council Areas of concern in evaluating the best response C-Suite (e.g., CEO, COO) • Lead Brand Council meetings • Promote brand visibility within the organization • Represent the brand in actions and behaviors • Potential implications on share price, brand defensive value, competitive position Senior Marketing executive (e.g., CMO) • Prepare meeting agendas • Monitor that organization discussions and activities are consistent with the brand positioning • Represent the brand in actions and behaviors • Product portfolio implications • Pricing implications on Vibe line and other sub-brands • Distribution implications for the Vibe line to protect market share • Promotion issues including budget, media, and choice of partners Operations • Provide operational implications to Brand Council discussions and decisions • Represent the brand in actions and behaviors • Production capabilities and restrictions • Raw material procurement • Capital asset changes Human Capital Resources • Contribute the employees’ perspective to Brand Council discussions and decisions • Represent the brand in actions and behaviors • Talent requirements or disposi- tions • Training • Development Finance • Bring a financial perspective to Brand Council discussions and decisions • Represent the brand in actions and behaviors • Financial resource requirements • Capital structuring implications (e.g., increase in debt, issue equity) • Compliance with corporate financial hurdles (e.g., ROI, ROS) Product Marketing • Give product-specific insight to Brand Council discussions and decisions • Represent the brand in actions and behaviors • Vibe positioning implications • Vibe market share implications • Changes to Vibe consumer loyalty and brand equity index scores Exhibit B: The Brand Council at Cool Tech Inc.
  • 8. 8 Functional Area Role in Cool Tech’s Brand Council Areas of concern in evaluating the best response Sales • Provide insight on sales opportunities/challenges and on major customer accounts • Represent the brand in actions and behaviors • Ability to meet Vibe’s sales targets • Ability to manage customer inquiries and expectations Legal • Provide the legal perspective and ramifications to Brand Council’s discussions and deci- sions • Represent the brand in actions and behaviors • Cool Tech’s legal recourse against its competitor • Potential lawsuits on Cool Tech towards competitive response (e.g., anti-competition, exceeding production quota, union-related) Public/Investor Relations • Inform the Brand Council with potential public and investor reactions to discussions and decisions • Represent the brand in actions and behaviors • Public and shareholder perception Research and Development • Contribute a research and product development per- spective to Brand Council discussions and decisions • Represent the brand in actions and behaviors • Impact on speed of next genera- tion of Vibe product development • Continuing innovation on Vibe line for long-term competitive advantage Brand consulting partners • Bring an objective point of view as a branding subject matter expert • Previous branding cases in client or similar industry • Advice to Brand Council on suggested course of action Administration • Provide the administrative perspective to Brand Council discussions and decisions • Represent the brand in actions and behaviors • Municipal, environmental or other permits for increased factory production (if necessary) • Arrangement of appropriate security, maintenance and admin- istrative support staff to oversee increased level of factory produc- tion (if necessary) The Brand Council
  • 9. 9 The Brand Council Your brand must have a high profile within your organization. This responsibility typically lies with your C-suite. Industry Insurance Telecommunications Mandate • To manage, grow and measure the brand while acting as a liaison to the Board of Directors on issues of brand management • To vet strategy development and approve brand decisions Membership • CEO (Chair) • Regional VPs • Functional VPs (COO, CMO) • Directors • External Consultants • Head of Branding (Chair) • 10 representatives from: – Manufacturing – Logistics – Legal – Marketing – Product Development Meeting Frequency • Weekly for tactical issues. Monthly/quarterly for strategic issues • Quarterly Types of Issues Addressed • Implementation of brand measurement metrics and training programs to promote on-brand behavior • Development and management of process to integrate new products into portfolio • Development of new product naming system • Evaluation of merger from perspective of brand You can see from this scenario that the Brand Council should bring a brand lens to organization-wide decisions and activities to ensure adherence to the brand promise and to protect and build brand value. How to “turbocharge” your Brand Council 1. Define the right Mandate for you. We suggest that your Brand Council clearly articu- late its Mandate and have the authority to hold your organization’s people accountable for decisions, actions and behaviors that align with the brand. Your Mandate can be simple (“To consider corporate decisions from the point of view of their impact on and alignment with the brand”) or elaborate (with tactical objectives and metrics to evaluate business decisions). Your mandate should also specify the rules and conditions under which issues are brought to the Brand Council for discussion, resolution and communication to the broader organization. “Our expectation is that the Brand Council be a stakeholder-led control and implementation of the brand against a clear set of guidelines.” – Managing Director Leading European retailer The following examples from two industry sectors illustrate the types of Mandates, membership and business issues that a Brand Council can address.
  • 10. 10 2. Meet regularly. Frequency and continuity are vital to institutionalize the Brand Council into your organization’s culture. To establish continuity, the Brand Council should meet at least once every quarter on strategic issues and even more frequently on tactical issues. In addition to regular meetings, the Council should have the flexibility to convene as the need arises (e.g., events or operations that impact the brand, responses to recent competitive and/or internal developments: analyst report releases, new hires, customer satisfaction surveys, etc.). 3. Be “brand-centered.” a. Your brand must have a high profile inside your organization. This responsibility typically lies with your C-suite. They must maintain a high profile for your brand by first making a business investment in the brand and supporting that investment by demonstrating a personal pride in what the brand stands for. Simply, they need to lead by example in living your brand. b. Your brand lives beyond Marketing. View brand building as a holistic organizational responsi- bility as opposed to the responsibility of your Marketing department. The functional areas and business units within your organization need to understand, through their leaders on the Brand Council, how they contribute to brand value. 4. Inspire your organization through Brand Ambassadors. “The key is to ensure that the Council is controlling the brand but, also, that it provides the freedom to work within a defined set of parameters.” – Managing Director Leading European retailer The Brand Council also guides and manages the activities of your Brand Ambassadors. Your employees can make or break your brand. When properly inspired and empowered, your Brand Ambassadors will lead your employees to make the brand thrive in your organization and, ultimately, with your customers. Potential bumps in the road 1. A lack of consensus on the importance of the brand to the organization. The Brand Council is representative of the organization holistically. Therefore, its members, regardless of functional area, should believe in the brand as a vital corporate asset that merits the time, discussion and collaboration of the organization’s senior-most people. 2. The absence of a clear mandate. Branding can be abstract, even to experienced leaders and managers. Part of the Brand Council’s role is to educate its members and the wider organization about the role and potential value of the brand. A clear, well defined and well communicated Brand Council Mandate ensures that the organization understands the purpose of the Brand Council and the value it can bring. 3. Infrequent meetings. A lack of regular Brand Council meetings hinders the momentum on brand-related discussions and sends the message that the brand is a lower business priority. 4. The absence of C-suite support. C-suite support of the Brand Council is critical, especially at the outset, in order to give the Brand Council the credibility and visibility it needs to enable effective strategic brand decisions. Without this support, the Brand Council runs the risk of losing relevance among the organization’s functional leaders. 5. A highly fragmented organizational culture that favors operation in “silos” over enterprise-wide communication and collaboration. “People want to re-interpret and re-invent things.” – Managing Director, Leading European retailer Organizations predisposed to working as autonomous functions, divisions or markets will need to commit themselves to greater intra-company collaboration in order to benefit from creating a Brand Council. . The Brand Council Like any organization and its functional areas, the Brand Council should be evaluated on business results.
  • 11. 11 6. Incomplete execution on Brand Council decisions. Like any organization and its functional areas, the Brand Council should be evaluated on business results. Leadership can only make this assessment if the organization consistently executes on the Brand Council’s decisions, and monitors the resulting impact on performance. Conclusion The Brand Council oversees the activities whereby the brand contributes to shareholder value. When your Brand Council guides business activities to align with the brand promise, your organization will benefit from satisfied customers. Over time, consistent and satisfying brand experiences will transform satisfied customers to loyal customers, which, in turn, helps you secure and grow future earnings and create economic value. The Brand Council
  • 12. 12 For more information, please contact Bev Tudhope at 416-366-7100 or btudhope@interbrand.ca. About Interbrand Founded in 1974, Interbrand serves the world with over 30 offices in over 20 countries. Working in partnership with our clients we combine rigorous strategy and analysis with world-class design and creativity. We recognize the importance of brand in this increasingly competitive business environment and tailor our services to client needs. Our services include brand analytics, brand valuation, strategy, naming and verbal identity, corporate identity, packaging design, retail design, integrated brand communications and digital branding tools. We enable our clients to achieve greater success by helping them to create and manage brand value. Visit www.interbrand.com and www.brandchannel.com for the latest brand thinking. Acknowledgements The authors thank the following individuals for their assistance with this White Paper: Bev W. Tudhope, Chief Executive, Interbrand Toronto Rita Clifton, Chairman, UK, Interbrand London Tom Zara, Executive Director, Corporate Branding, Interbrand New York Max Raison, Associate Director – Brand Strategy, Interbrand London Additional contributors: Heather Cartwright, Director, Strategy, Interbrand Toronto Carolyn Ray, Director, Integrated Communications and Planning, Interbrand Toronto Gary Ludwig, Creative Director, Interbrand Toronto Trevor Cape, Director, Resources, Interbrand Toronto Michèle Champagne, Designer, Interbrand Toronto David Turner, Director, Digital Production, Interbrand Toronto