Organizational and Manageial Communication

1. Organizational and Manageial Communication Corporate Communication and the Corporate Brand Chapter 5

2. CORPORATE IDENTITY • The way in which an organization presents itself • Symbols • Communication • Behavior • Referred to as Corporate Identity (CI) Mix • Personality manifested through this mix Peggy Simcic Brønn

3. Corporate Image in Relation to Corporate Identity Behavior Corporate Identity Corporate Image Communication Symbolism Corporate Identity Peggy Simcic Brønn van Riel

4. Corporate identity • Idea of organization and how it is presented externally • Defined by top management and agencies • Mass media and impersonal channels • Organizational identity • How an organization’s members perceive it • Who we are, what we stand for • Interpersonal channels Peggy Simcic Brønn

5. Stationary Literature Transportation Packing Architecture Signs Marketing/Sales Examples: Product Price Name Brochures Visit cards Buildings Uniforms Sponsorship Work environment Figure or “character” Logos CORPORATE IDENTITY MEDIA Peggy Simcic Brønn

6. IMPORTANCE OF IDENTITY • Raises motivation among employees – creates a ‘we’ feeling • Increased productivity • Premium pricing • Cost savings • Protection from competition • Ability to cut through information clutter • Inspire confidence in the organization Peggy Simcic Brønn

7. TYPES OF CORPORATE IDENTITY • Monolithic -- Shell, Philips, BMW • Endorsed -- GM, L’Oreal • Branded -- Unilever, Orkla, P&G Peggy Simcic Brønn

8. Corporate Image An image is the set of meanings by which an object is known and through which people describe, remember and relate to it. That is the result of the interaction of a person’s beliefs, ideas, feelings and impressions about an object. Dowling, 1986 Peggy Simcic Brønn

9. CORPORATE IMAGE IS THE PERCEIVED SUM OF THE ENTIRE ORGANIZATION - ITS OBJECTIVES AND PLANS. IT ENCOMPASSES PRODUCTS, SERVICES, MANAGEMENT STYLE, COMMUNICATIONS ACTIVITIES AND ACTIONS AROUND THE WORLD. Marken 1994/95 Peggy Simcic Brønn

10. Corporate Identity Names, Self-Representations Employee Image Customer Image Community Image Investor Image Corporate Reputation Corporate identity and reputation Fombrun, C. J., Reputation, Harvard Business School Press

11. WHY DO WE NEED TO CARE ABOUT IMAGE? • Consumers are more sophisticated than ever before • There is more distrust than ever regarding motives of big business • There has been more changes in the last ten years than in the last 80 • There is a clear relationship between a positive image and profitability • Quality and good service taken as given • Organizations need new differentiators, new USP’s (unique selling propositions) Peggy Simcic Brønn

12. Image is no longer solely the realm of marketing, but rather a strategic instrument of top management. De Soet (CEO Dutch KLM) When having to choose similar products, 9 out of 10 consumers base their decisions on the reputation of the company. Mackiewicz

13. General promotion value Encourage favorable behavior towards organization Build sales Attract shareholders Attract and motivate employees/build morale Reduce cost of capital Aid in relations with community/ government Serve corporate objectives Create familiarity and favorability Create position in industry Can demand premium prices REASONS FOR IMAGE ‘MANAGEMENT’ Peggy Simcic Brønn

14. IMAGE LEVELS • Product class • Brand • Company • Sector • Shop • Country • User Peggy Simcic Brønn

15. Some Factors Controlling Company Image Reality of company Newsworthiness of company + Communica- tion effort + x Time Memory decay - = Company Image Peggy Simcic Brønn

16. Keller’s Corporate Image Dimensions • Common product attributes, benefits, attitudes • quality, innovativeness • People and relationships • Customer/(stakeholder) orientation • Values and programs • Concern with environment, social responsibility • Corporate credibility • Expertise, trustworthiness, likability Peggy Simcic Brønn

17. Dowling’s Description Attributes • Importance and selection of attributes depend on stakeholder group -- their beliefs about what is distinctive, central and enduring in their relationship with the organization • Common image attributes • Credible Expert • Innovative Environmental concern • Successful • Well managed Dowling, in Creating Corporate Reputations Peggy Simcic Brønn

18. Financial soundness Value as a long-term investment Use of corporate assets Innovativeness Quality of Management Ability to attract, develop and keep talented people Quality of products and services Community and environmental responsibility KEY ATTRIBUTES OF REPUTATION (Fortune) Peggy Simcic Brønn

19. Products/Services • Quality • Satisfaction • Technology • Value • Selection • Management/Employees • Quality of Management • Quality of work conditions (physical and social) • Quality of strategies • Ethics/Community • Equal employment • Socially responsible • Protect jobs • Contributes to charity • Helps the community • Conserves energy • Environmentally conscience • Supports culture • Responsible citizen • Finances • Sound investment opportunity • Pays dividends • Reporting practices • Stock price • Diversified • Wise use of assets • Consistent growth

20. Top Ten 1999 1. General Electric 2. Microsoft 3. Dell Computer 4. Cisco Systems 5. Wal-Mart Stores 6. Southwest Airlines 7. Berkshire Hathaway 8. Intel 9. Home Depot 10. Lucent Technologies Top Ten 2000 1. General Electric 2. Cisco Systems 3. Wal-Mart Stores 4. Southwest Airlines 5. Microsoft 6. Home Depot 7. Berkshire Hathaway 8. Charles Schwab 9. Intel 10. Dell America’s Most Admired Companies, Fortune • Top Ten 2001 1. General Electric 2. Southwest Airlines 3. Wal-Mart Stores 4. Microsoft 5. Berkshire Hathaway 6. Home Depot 7. Johnson & Johnson 8. Fed Ex 9. Citigroup 10. Intel Peggy Simcic Brønn

21. The Bottom Ten 1999 495. Humana 496. Revlon 497. Trans World Airlines 498. CKE Restaurants 499. CHS Electronics 500. Rite Aid 501. Trump Resorts 502. Fruit of the Loom 503. Amerco 504. Caremark Rx The Bottom Ten 2000 526. Trans World Airlines 527. Trump Hotels & Casinos 528. Kmart 529. Bridgestone/Firestone 530. America West Holdings 531. LTV 532. US Airways Group 533. Federal-Mogul 534. Warnaco Gr 535. CKE Restaurants America’s Most Admired Companies, Fortune Peggy Simcic Brønn

22. Problems with Lists Such as Fortune, MMI, Financial Times • Give little diagnostic information -- more a beauty contest • Do not discriminate among images of different stakeholders • Do not distinguish between corporate image and reputation (as defined by Fombrun) Dowling, in Creating Corporate Reputations Peggy Simcic Brønn

23. BARRIERS TO ACHIEVING ‘DESIRED’ IMAGE • “CEO disease” (refusal/inability to be reflective) • Mental models • If it’s not broke don’t fix it • Inability to read environment • Confusion regarding who’s job it is Peggy Simcic Brønn

24. Goal: Credible Image • Believable message • Clearly stated • Continually and consistently • Through appropriate channels • At the appropriate level of understanding Peggy Simcic Brønn

25. The Three I’s - Mission Oriented • Identity: Who we are • Image: What we are • Ideas: What we stand for and believe Peggy Simcic Brønn

26. Peggy Simcic Brønn

27. Reputation is the most important commercial mechanism for conveying information to consumers. It is a distinctive capability that accrues competitive advantage to an organization. John Kay Foundations of Corporate Success Peggy Simcic Brønn