Obtaining the best value from internal communication to support your brand strategy

Rodney GrayEmployee Communication & SurveysIQPC Conference, 25 October 2005“Aligning Employees with Brand Values”

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Coming to grips with internal branding – today’s session

Defining “brand” and who decides what it isWhat “internal branding” is and what it isn’tWhat to do to differentiate our organisationsHow we go about delivering “brand promise”Why internal branding is critical to survivalAlignment with business strategy, positioningWhy great communication is just not enoughGoing beyond understanding to commitment

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What is “brand”?Many definitions, mostly wrong

A distinctive, trademarked product, serviceA name, sign, or symbol for differentiation

What makes something special or uniqueThe “personality” of a product or serviceA promise of a certain standard, qualityA special “corner of a consumer’s mind”A “symbolic construct” to represent a collection of information about somethingA marketing tool for “disambiguation”

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“Brand” - a few misconceptions

It is not “reputation” – this is related, but differentYou can have a great reputation and dud brandsYou may even have great brands and crook reputation

Is not your logo, trademark, symbol, slogan etc.Although these may influence perceptions of brand

Is not brand recognition, sentiment or personalityIs not your (formal or espoused) “values”

Although your “values-in-use” will affect your brand

Is not your “organisational DNA” as some claimIt is what people make of what your brand represents

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What “brand” really is

“Brand” is the totality of perceptions that both customers and others have about a name

Based on experiences, hearsay, impressionsIs a mental constructMay be fact-based or not“Truth, like beauty, is in the eye of the beholder”Is an intangible

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A brand is whatever WE say it is

What McDonald’s says:Quality, Service, Cleanliness, Value“Hot, safe, fresh, tasty food”Supports many local communitiesSpends $500m p.a. in AustraliaEmploys 55,000 in 725 stores

What consumers might think:Convenient meal, snack or coffee?Fast but fattening, unhealthy food?Low wages exploit young workers?Quick to sue critics? (McLibel case)No.1 “worst reputation” nominee in Europe

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Internal branding is not “employer branding”

How do you like your career - well done ?

(Employer branding is related but different …is done very well by the likes of Deloitte)

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Nor branding of internal communication initiatives

It is not branding of internal communication initiatives, although many organisations do this very well too…

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Internal branding

Relates to the extent to which employees deliver your brand promiseDespite what your brand promise says, your brand is determined partly by what your people do The “moments of truth” may have a big impact

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Internal branding

Brand engagementBrand assimilationBrand alignmentPutting brand at the centre of businessEmployee delivery of the brand promise

(Get it right and you can produce “brand equity”)

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Internal branding –a simplistic approach

Employee knowledge

and motivation

Great profits and

huge success

Brand promise

Satisfied customers

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Employee-customer-profit modelM

easu

res • Personal growth and

development• Empowered teams

• Customer needs met• Customer satisfaction• Customer retention

• Revenue growth• Sales per square foot• Inventory turnover• Operating income margin• Return on assets

Obj

ectiv

e • Environment for personal growth and development• Support for ideas and innovation• Empowered and involved teams and individuals

• Great merchandise at great values• Excellent customer service from the best people• Fun place to shop• Customer loyalty

• Revenue growth• Superior operating growth income• Efficient asset management • Productivity gains

A compelling place to work A compelling place to shop A compelling place to invest

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Internal branding – the reality

Employee contribution

+SystemsStaffingPolicies

ProceduresProductServiceetc. etc.

Brand Promise

Satisfied customers(or not)

Financial outcome

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Key drivers of employee behaviour – Sears research

1. I like the kind of work I do2. My work gives me a sense of

accomplishment3. I am proud to say I work at Sears4. …the amount of work I am expected

to do 5. …my physical working conditions 6. …the way I am treated by those who

supervise me

Attitude about the job

Employee behaviour

7. I feel good about the future of the company

8. Sears is making the changes necessary to compete effectively

9. I understand our business strategy10.…I see a connection between the

work I do and the company’s strategic objectives?

Attitude about the

company

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Personal case study -what makes the difference?

Hardware store BBlack + white line advertsHuge range of stockEnormous, dark warehouseInexperienced staffToo few personnelPoor knowledge of storeLittle knowledge of DIY“they hide from you”Many long, slow queues“Lowest prices are just the beginning”

Hardware store CFull colour advertisementsAdequate range of stockLight bright, cluttered storeExperienced tradesmenPlenty of eager staffKnow where everything isExpert helpful handymenGenuinely keen to help youOne queue, a few checkouts“All the help you need”

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Brands depend much more on systems than people

The main focus should be on policies, systems and processes, so you need to get these rightPeople can only do so much but, once systems are in place, competitive difference or advantage depends on people

Systems80%

People20%

Systems People

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Which do you work on? Communications or communication

Communications = Program focusWork on about 20%

Employee engagementService KPIs, deliveryCustomer feedbackMostly managing information flows up and down organisationValuable but not the complete picture

Communication =Total system focusGet involved in 100%

Employee engagementService KPIs, deliveryOrganisational meaningPolicies, proceduresSystems, processesExecutive role modellingManager skills trainingEtc.

Organisation’s Vision, Mission, Objectives

Brand promise

Brand promise, values, attributes, positioning Feedback on brand promise

Sometimes the brand promise or values are unrealistic and need revision, modification

2.•••

1.•••

3.•••

4.•••

5.•••

Communicate brand promise, values, attributes, positioning

Deliver programs to ensure employees deliver the promise•Programs

- Media- Sources

• Measurement

•Programs- Media- Sources

• Measurement

•Programs- Media- Sources

• Measurement

•Programs- Media- Sources

• Measurement

• Programs- Media- Sources

• Measurement

People feedback• Selection, staffing• Induction, training• Understanding brand• Service standards• Culture, morale, pay• Teamwork, manager

Systems feedbackCross-functional, staff support, processes,

policies, procedures or some other operational issues may to be fixed.

5.•••

4.•••

1.•••

2.•••

3.•••

Rodney Gray © 2005

How to get from brand promise to brand

ORGANISATION

• vision, mission, goals • values espoused• employer brand• corporate reputation

BRAND PROMISE

• value proposition• competitive advantage• brand strategy• brand positioning, niche• brand values, attributes

ORGANISATIONAL MEANING

Symbols• executive role modelling (behaviour)• uniforms, appearance• physical environmentCulture• values in use, norms• stories, language used• behaviour rewarded

EMPLOYEEENGAGEMENT

• consult, involve staff • understand promise• employee satisfaction• morale, motivation• intellectual and emotional commitment• use of time• discretionary effort• internal service• retention of staff

SERVICE DELIVERY

• what employees do • what employees say• teamwork• attitude, demeanour• performance (handling “moments of truth”)• service consistency• recovery (glitches)

BRAND

• attributes as perceived by public (whether accurate or inaccurate, correct or incorrect) versus expectations• brand is as defined by customers, others

• recruitment; selection; staffing levels• structure; employee deployment• remuneration; benefits; prerequisites• communication infrastructure• induction; training; coaching• performance management system• upward or 360 manager feedback• information technology infrastructure• employee opinion, culture surveys• profit share; incentives; ESOPs

POLICIES, SYSTEMS, PROCESSES, PROCEDURES

• policies, procedures, processes• product/ service systems• service/quality standards• cross-functional “hand-offs” • support functions• reporting system• measurement processes• customer feedback processes• TQM process mapping• Balanced Scorecard

Rodney Gray © 2005

How to get from brand promise to brand

ORGANISATION

• vision, mission, goals • values espoused• employer brand• corporate reputation

BRAND PROMISE

• value proposition• competitive advantage• brand strategy• brand positioning, niche• brand values, attributes

ORGANISATIONAL MEANING

Symbols• executive role modelling (behaviour)• uniforms, appearance• physical environmentCulture• values in use, norms• stories, language used• behaviour rewarded

EMPLOYEEENGAGEMENT

• consult, involve staff • understand promise• employee satisfaction• morale, motivation• intellectual and emotional commitment• use of time• discretionary effort• internal service• retention of staff

SERVICE DELIVERY

• what employees do • what employees say• teamwork• attitude, demeanour• performance (handling “moments of truth”)• service consistency• recovery (glitches)

BRAND

• attributes as perceived by public (whether accurate or inaccurate, correct or incorrect) versus expectations• brand is as defined by customers, others

• recruitment; selection; staffing levels• structure; employee deployment• remuneration; benefits; prerequisites• communication infrastructure• induction; training; coaching• performance management system• upward or 360 manager feedback• information technology infrastructure• employee opinion, culture surveys• profit share; incentives; ESOPs

POLICIES, SYSTEMS, PROCESSES, PROCEDURES

• policies, procedures, processes• product/ service systems• service/quality standards• cross-functional “hand-offs” • support functions• reporting system• measurement processes• customer feedback processes• TQM process mapping• Balanced Scorecard

Rodney Gray © 2005

Brand information

Vision, Mission, Goals

Organisational meaning

Employee engagement

Service delivery issues

Systems, policy issues

DELIVERING THEBRAND PROMISE

Modify brand promise- if unrealistic to deliver

Service delivery issues

Fix people issues

Fix systems problems

Change perceptions-Communication

Assessment of issues- perception issues- real brand issues

BRIDGING THE GAP

BRANDPROMISE

Marketing,Advertising andPublic Relations

Expectations of potential customers

BRAND

Rodney Gray © 2005

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What to communicate -Organisational vision

Vision, Mission, goalsOrganisational objectives

Values espousedHow we wish to do things

Employer brandPerceptions we create to attract new people

Corporate reputationGovernance etc.

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What to communicate – Brand promise

Brand promiseWhat advertising saysWhat PR has promotedCompetitive advantage

Brand valuesKey brand attributesPoints of differentiation

Brand aspirationsWhat we truly aspire toIdeal market positioning

Brand alignmentHow functions work as team

Brand engagementDifference employees make

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What to communicate –Brand features (tangibles)

Key features, benefits of product and/or servicePoints of differentiationTestimonials from customers, brand comparisons (Choice)How to discuss with prospects and customers

What to sayWhat not to sayWhat you can promise

(You could run role plays)

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What to communicate –Brand essence (intangibles)

A defining sentence or sloganPersonality (compare brand to an animal, car, or person)Values – what does the brand stand for (and not stand for)What are symbols and stories?Exactly how brand adds value to increase pleasure, reduce painAny other benefits: tangible and intangible (customer segments)

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What to communicate –Brand repositioning

What advertising, PR saysConsistency – what is said externally and internally

The internal realityFeedback from staff about ability to deliver promise (s)

Cross-functional issuesEmployee behaviour

What staff start doingWhat staff stop doingWhat remains the same

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What to communicate –Social value and WIIFM

Contribution of brand to societyYounger employees particularly with to contribute to societyWhat good does brand do for the world (nation, or local community)

WIIFM = “What’s in it for me?”Training, skills will benefit careerSuccessful brand = successful employer = good career prospectsSuccessful brand = more likely to get good pay levels, increases

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What to communicate –Organisational meaning

Managing symbolsPhysical environmentEmployee appearanceStories, symbols, icons

Developing cultureWhat executives do, sayWhat is reinforcedWho gets rewarded, why?Values-in-use v espousedHow things are done around here (traditions)

Formal media Organisational meaning

Formal media will only have impact if messages are from trusted sources and/or are consistent with employees’ experiences

WEAK

• What executives and managers say

• Espoused values

• Vision, MissionWhat employees experience; what they

observe; what they hear from those they trust; what executives do; who they recognise; what

is reported; what is measuredSTRONG

Rules

Policies

Procedures

Systems

Processes

Creates MEANING

• What is important

• How things are done

• Values in use

EMPLOYEES’ BEHAVIOUR(What employees do)

Rodney Gray © 2005

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What to work on -Employee engagement

Staff understand Visionand own role in achieving

Consult and involve forownership, commitment

Morale and motivationDepends on extent staff are respected and valued

Retention, loyaltyDepends on growth, learning, improvement

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What to communicate -Staff selection and management

Staff specificationsNature of people needed

Employer brandingAdvertising, promotionRecruitment promises

Reward communicationSalaries, benefits, perks

Induction, orientationPerformance appraisalsCoaching, counselling

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Sears Employee-Customer-Profit chain

1. A company must build management alignment around the model…It is critically important that every manager, especially those at the top of the company, understand the system and buy into it wholeheartedly.

2. … it is essential to create sense of ownership among sales associates and staff… It looks like a simple communication challenge, but it is a good deal more.

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What to communicate –Feedback to managers

Customer feedbackCustomer complaintsResearch findings

Staff feedbackUpward or 360 feedbackEmployee opinion surveysCommunication audits

Process issuesFeedback from internal customersWhat process mapping tells about improvement possibilities

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What to communicate -Customer expectations

What customers needWhat research says What complaints indicateWhat employees feed back from customers’ commentsEmployees’ ideas and suggestions broadlyGap between customer perceptions and brand promise

(Don’t forget internal customers)

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What to work on – helping managers’ to communicate

How staff should use resources, technologyHow to meet unusual customer expectationsWorking within budgetsOperations systems issuesSupport function issuesPolicies and proceduresHow to appraise and coachHandling poor performersDeveloping teams, morale

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What to communicate – Service standards

Service expectationsJob descriptions, role specificationsCustomer interaction guidelinesManaging customer demandHow performance is evaluatedCustomer measurementRole of various functions

consistency of policies

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In short…

The customer/public decides what brand isInternal branding is delivering brand promiseOur people may be the best, only differentiatorWe must work on BOTH systems and peopleBut out people can destroy our brand = criticalCommunicate to support brand strategy, valuesCommunication not enough (policies, systems, staffing, training, manager competence, etc.)Commitment comes from WIIFM and society

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References

Slide 5 clients of Impact Communications (see www.employeecommunications.com.au)Slide 6 McDonald’s website + “Can Reputation be Managed” The Bulletin of Public and Corporate Communication, Issue 1, September 2005Slide 7 graduate recruiting advert from DeloitteSlide 8 ANZ internal branding for Breakout programSlides 12,14,32 “The Employee-Customer-Profit Chain at Sears” Harvard Business Review, Jan-Feb, 1998

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Internal Branding: has been around a while, one way or another – with different names

Crosby, Philip, B Quality is Free, Signet Shakespeare, 1979 (argued that management is the root of all quality problems = must engage executives)

Carlzon, Jan Moments of Truth, Harper & Row, 1987 (failing SAS was turned around by working on the 50,000 “moments of truth” with customers each day)

Wellins, Richard S et. al. Empowered Teams, Jossey-Bass, 1991 (self-directed work groups can unleash the full potential of people, from DDI)

Byham, William C. & Cox, Jeff Zapp! The Lightening of Empowerment, Fawcett Columbine,1992 (a fable on how to empower people, from DDI)

Sears, Roebuck and Company 1992 “The Employee-Customer-Profit Chain at Sears” see Harvard Business Review, January-February, 1998, pp. 83-97

Pfeffer, Jeffrey Competitive Advantage through People, Harvard Business School Press, 1994 (about how people make the difference in top firms)

Thomson, Kevin Emotional Capital, Capstone, 1998 (capturing hearts and minds to create lasting business success - from leading communicator)

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Contact details

Rodney GrayEmployee Communication

& SurveysSuite 217, 40 Yeo Street, Neutral Bay, NSW, 2089Phone (02) 9909 2900rodneygray1@compuserve.comwww.employee-communication.com.au