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How your organisations culture defines your brand 21 february 2019

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How your organisations culture defines your brand 21 february 2019

  1. 1. How your organisation’s culture defines your brand
  2. 2. The link between the public face of organisations (brands) and internal culture has been bought into sharp focus by the Hayne Royal commission. While this brand~ culture link is an issue that is currently in the spotlight it has been evident for a number of years. We have seen it in the increasing appeal of small boutique companies whose brands are a direct reflection of the culture and values of the organisation. We also see the negative side of this brand ~ culture link with brands losing credibility and trust because customers personal experiences simply don't match what the brand promise. "Overall, my fear – that there may be a wide gap between the public face NAB seeks to show and what it does in practice" Hayne Royal Commission
  3. 3. Culture is the public face of your brand Your organisation’s culture defines what is valued and hence rewarded in your people, so your culture determines how your people behave Your customers’ experience forms their impression of your brand How your people behave is a critical element in the experience your customers have in your store or with your service or product
  4. 4. What happens on the inside shows on the outside Organisations that say one thing, while their customers experience communicates something quite different, undermine their brand. It is your organisation’s culture that both defines and gives your brand credibility. To demonstrate what happens when an organisations culture is misaligned with its brand, we only have to look at the financial services industry. It will be hard for these once trusted organisations to regain credibility, as customers no longer believe what their brand stands for. These examples serve as warnings for all organisations of the marketplace power of culture. Culture is not some soft HR good intention, but a hard business metric that drives marketplace outcomes and increasingly compliance
  5. 5. Culture is your only enduring competitive advantage  As technology closes the gap on speed, convenience, and even lower prices, it is your customer experience fuelled by your company’s culture and values that allows your organisation to rise above the age of ubiquitous retail and products and offer a unique experience; something that cannot be copied.  It is also an organisation’s cultural resilience that allows you to both stay true to your purpose and values whilst adapting to the increased pace of change.
  6. 6. How changing customer expectations are driving a greater focus on culture i. What are you hiding? Customers demand greater transparency around everything from ingredient and manufacturing provenance, fees and charges, environmental considerations, how much tax company’s pay, gender pay gaps, cultural diversity, price increases and a whole lot more. If you don’t tell them – they will assume the worst. The firm said it would also slightly reduce the recommended retail cost of some of its incredible shrinking bars from $4.99 to $4.79. But the price cut would be proportionally less than the chocolate reduction. Besides, the shelf price is set not by Company X but by retailers who could decide to pocket the lower price themselves. ii. What are your ethics? Rather than creating an emotional connection with organisations and brands, increasingly customers want a values connection. Customers look for organisations whose values reflect their own. While plenty of customers continue to prioritise convenience and low cost, is ‘ethical’ the new status play, for example ‘I am more ethical (more enlightened) than the rest’? Growth in sustainable, Fairtrade and organic products reflects this growing need for values connection iii. Prove it! Show me what your brand stands for, don’t tell me. The way brands are seen to treat their people will become an increasingly important part of the way customers perceive them as a brand. And they don’t just mean token stuff – what do you do for your people? What am I helping to support (or not) by buying from you?. Just ask Domino's and & 7 Eleven
  7. 7. So how do you align culture and your brand? First, understand where you are now 1. What are the defining characteristics of your culture at all levels of the organisation. 2. Understand how culture is impacting your organisation’s customer experience. A key part of this alignment of culture & people’s experience with your brand(s), is clarifying what is the difference your organisation is trying to make - why are you in business? Many organisations don’t know, or seem to have forgotten, what difference they are supposed to make. They may have a purpose, mission or vision statement for the annual report, but often no one really believes it or remembers it – it certainly doesn’t guide any decisions. To create a meaningful brand, your organisation has to discover, or rediscover this difference. "The public expectations of your company have never been greater. Society is demanding that companies, both public and private, serve a social purpose." Larry Fink, the chairman of giant asset management company BlackRock
  8. 8. "Great companies start because the founders want to change the world …not make a fast buck" Guy Kawaski Successful founders of organisations have a vision, a purpose and a passion. They know why they are creating an organisation, what they are in business to do, what problem they are solving and why it is important to the world - they create businesses with purpose. Rather than thinking about how to ‘position’ a brand, it is more powerful to think about your organisational truth – why do you exist? What role do you play in people’s lives? Then define your brand or brands as a means to help address that challenge. … What difference do you want to make in the world? Think like a founder
  9. 9. Why marketing is losing it's power Marketing seems to have become solely about trying to build (often superficial) emotional connections with the customer; allowing people to express something about themselves by choosing to use a brand, I am more of a foodie, more health conscious, wealthier, smarter, etc. This is no longer enough. As customers become more sophisticated in their understanding of the 'dark art' of marketing; as they start to share their experiences via social media; they become a more active participant in marketing, they are not so easily duped by false claims and shallow emotional appeals. This, along with the fragmentation of communication channels, has made marketing as we know it less effective. Marketing is increasingly associated with 'spin' in many customers' minds. They don't believe you… “That’s just marketing”.
  10. 10. Marketing 2.0? In many ways it's back to the beginning of brands, when a brand was a mark to represent the personal reputation of the founder. Even Mars started in the kitchen of Frank C Mars. Early brands for the most part were associated with specific people, a name, a face, not a large corporation. The brand reflected the beliefs and values of that founder so it meant something. One would argue that the strongest brands still have that link to organisational purpose and the culture that delivers it. Virgin, Apple, Google, Nike, Prada... they all have a sense of purpose and a culture that is focused on delivering that purpose. Marketing can't exist in a vacuum. Brands are only as strong as the organisational purpose, culture and values that they represent without this 'it's just marketing'. Need Need + Purpose Culture/values Then Now
  11. 11. Take an inside out approach 1. What is our company trying to achieve? Beyond financial returns, what are we here to do? 2. What is our organisation’s current culture and values? 3. How does our culture deliver our purpose? 4. How does our brand(s) reflect and communicate our culture and purpose? Four questions to ask yourself, to help you build an credible brand
  12. 12. Culture = authenticity Your organisation’s culture is the public face of your brand because it is your culture that ultimately defines the experience your customer has with your brand. Culture = competitive advantage Like personality, you can't copy culture nor the values and purpose that fuel it. Culture-driven customer experience is what allows you to rise above the ubiquitous offers and false claims. Culture= adaptation to changing customer expectations • Demand for greater transparency about everything. • A growing focus on values alignment between organisations and their customers. • Prove it. Don’t tell me who you are, show me who you are. Culture actions i. Understand what defines your culture – at all levels. ii. Understand what impact your culture is having on your customers and their experience with your organisation. iii. Think like a founder. Uncover the difference you are trying to make. Why should customers care that you exist? iv. Then ask yourself how does your culture and customer experience align to this purpose? v. Then, and only then, explore how your brand(s) helps you communicate and deliver this purpose. Key take outs
  13. 13. If you would like to discussion the relationship between brands, customer experience, culture and purpose please call us Margo Cashman Bread & Butter Mob: +61418700880 Email: margoc@bbutter.com.au Vanessa Stewart PeopleCraft Mob: +61 419286059 Email: vanessa.stewart@people-craft.com Jandi Shennan PeopleCraft Mob: +64 272301805 Email: jandi.shennan@people-craft.com Level 3, 3 Young Street, Neutral Bay, 2089
  14. 14. Culture & purpose "The public expectations of your company have never been greater. Society is demanding that companies, both public and private, serve a social purpose," Larry Fink, the chairman of giant asset management company BlackRock, wrote in his annual letter to CEOS. You’re about to get less chocolate bang for your buck with confectionary giant Cadbury confirming its famous Dairy Milk bars are set to shrink. Again. The firm said it would also slightly reduce the recommended retail cost of some of its incredible shrinking bars from $4.99 to $4.79. But the price cut would be proportionally less than the chocolate reduction. Besides, the shelf price is set not by Cadbury but by retailers who could decide to pocket the lower price themselves. Business is experiencing increased numbers of popular protests, consumer boycotts, legal suits, various public shaming campaigns," says Associate Professor Bronwen Dalton, from the UTS Business School.

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