How Leaders Create Engagement and Competitive Advantage

purpose

How Leaders Create Engagement

A decent product at a fair price with good customer service may once have been enough. No longer. The bar has moved. Employees and customers want organizations to do some social good along the way.

My friend and bestselling author John Izzo is out with a new book, co-authored by Jeff Vanderwielen: The Purpose Revolution: How Leaders Create Engagement and Competitive Advantage in an Age of Social Good. The book is full of examples and ideas to help you move your organization to one that is infused with purpose.

I recently asked John to share more about his research and work in this area.

 

“Winning in the purpose revolution requires authenticity.” -John Izzo

 

4 Forces Driving Change

You say that there is a revolution happening right now and ignoring it will send your company to irrelevance. What is it and what forces are driving it?

The revolution is a desire among employees, customers and investors to leverage social good with their choices. This is a revolution of AND not OR. Employees want everything they have always wanted, but they also want a job that gives them a sense of purpose in a company they feel is doing good in the world. Customers want products that excite them at a good price, but they also want to leverage good with those choices—and certainly buy things that cause no harm. Investors was a return on money, but the fastest growing funds are those that also promise social impact.

In an age of commoditization, the marketplace is filled with many similar products, and purpose is a way for companies to create brand differentiation based on values, not just product.

What’s driving the revolution are four primary trends. The Millennials are now a global force with a strong set of values around creating social good and having meaning in their work. The boomers are moving into the “legacy” stage of life where the impact they leave starts to compete with ego. The rising middle class in the developing world is another major driver, as people rise out of poverty, they are able to think about the social good in their choices. Finally, business is both blamed for some of the world’s biggest challenges but also increasingly seen as the key to addressing those same issues through corporate social responsibility.

 

“Purpose is a way for companies to create brand differentiation based on values, not just product.” -John Izzo

 

Connect Purpose to Contribution

How do leaders help employees connect purpose to work contribution?

The first step is to have a clearly articulated compelling purpose that is authentic. Starbucks’ purpose is to “inspire the human spirit one cup of coffee at a time” while 3M’s is to “advance every life and improve every business while using science to solve the world’s greatest challenges” (like sustainability).

The second step is to drive job purpose more than job function. Focus on the real impact jobs and teams make. Have every person identify the purpose of their job and the same for every team. Consistently tell stories of how your company makes a real difference. Bring in customers to tell their stories, and create space for employees to do the same. One large bank we worked with started having a standing agenda item in every branch: “How did we make a difference for a client since last time we met?” In the branches that did it, engagement went up 23% and sales went up 18%!

 

Move Purpose to Center Stage

Unleash the Power of Brand-Culture Fusion for Maximum Growth

fusion

Having read more books than I can name about leadership, branding, and culture, I am surprised at how rare it is to see one that combines the power of all of them.

But that’s just what my friend Denise Lee Yohn did in her exceptional new book, FUSION: How Integrating Brand and Culture Powers the World’s Great Companies.

As one of the world’s leading authorities on brand-building, Denise tackles one of the most important and overlooked aspects of a strong brand: company culture.

It’s the FUSION of brand and culture that creates organizational power.

After reading the book, which I also proudly endorsed, I followed up with Denise to talk about her research into brand and culture.

 

The Importance of Culture

Denise, you are well known for your work on branding. This book takes a different turn as it is as much, if not more, about organizational culture. Tell us about why you decided to address culture.

FUSION actually came out of my work with clients on strengthening and/or repositioning their brands.  I found that our efforts were sometimes held back from making as much of an impact as they could have because of cultural issues inside the organization. If the culture of the organization wasn’t aligned with the brand, some leaders wouldn’t want to include culture as part of brand-building, or they didn’t appreciate the need to align and integrate their brand and culture — to create brand-culture fusion — and that prevented them from realizing the full potential of their organization and their brand.

 

“Great brands are built from the inside out.” -Denise Lee Yohn

 

You say that a key leadership responsibility is the integration of culture and brand. Has this always been true? What are the best ways to accomplish this?

Brand-culture fusion has always required strong leadership from the top of the organization, but it has become more important in recent years, given the corporate culture crisis that has arisen. Leaders can no longer assume their organizations will have a healthy culture if they’re nice and decent people — it takes deliberate effort to cultivate a unique, valuable, sustainable culture.

 

“You must accept the challenge to lead your organization to greatness.” -Denise Lee Yohn

 

Drop Your Mission Statement

Prepare Your Brand for Unpredictability

Become a Free Range Brand

For many years, the big brands dominated powerfully over all. Little-known brands struggled to be noticed, hoping for shelf space or a PR miracle that would catapult them to the top.

That’s all changed now says Nicole Ertas, who argues that it’s easier for a challenger brand to gain a following even without the massive marketing budget of the biggest players.

Good news for the smaller players and for personal branding, too.

With little money and recognition, how do the challengers gain traction?

And what must the big names do to respond?

 

Nicole Ertas is the founder and president of The Ertas Group and author of Free Range Brands. She has helped build some of the world’s most influential brands. I recently asked her to share her branding insights.

 

“Authenticity can’t be claimed on the surface, it needs to be practiced.” -Nicole Ertas

 

Design for the Unpredictable

What is a Free Range Brand?

unnamed-2The big legacy brands we’ve known forever were built in an era of one-way, controlled communication.   TV, print, radio, retail distribution were all very controlled and well planned by big brands with big money, locking challenger brands out.

But today, not only have the barriers lowered for the challenger brands, these brands are able to engage communities in ways the big brands don’t know how.  The big brands aren’t set up for this and are quickly losing relevancy.

The brands that are thriving in this new world have made the shift from the old-world model of planning for control to the new world model of planning for unpredictability.  In fact, they are designed for unpredictability.  They are set up to let go.   I call these the Free Range Brands.

 

“A brand must be timeless and trendy at the same time.” -Nicole Ertas

 

Transform Your Brand

How can a brand set itself up to navigate unpredictability and become more relevant?

Today’s consumers demand brands that embrace an unwavering authentic core, but in a hyper-relevant way.  This essentially means that a brand has to be timeless and trendy at the same time.  Unchanging yet reimagined constantly.  This is what the old-school marketing models don’t account for.

The shift to going Free Range is simple, but strategically profound.   It requires transforming your Brand Equity to Brand Currency. Free Range Brands trade in Brand Currency.  This is the new mode of engagement, and one that is true to what a brand stands for.

Brand Currency is the dynamic offspring of Brand Equity. It allows your brand to reinvent itself to become relevant without losing its authenticity. By transforming Brand Equity into Brand Currency, brands become agile in an unpredictable marketing environment where leaders need to make decisions quickly without jeopardizing brand value.

 

“Brand currency is the dynamic offspring of brand equity.” -Nicole Ertas

 

4 Consumer Personas to Understand

Free Range BrandsYou reveal 4 consumer personas who each interact with brands in a different way.  Tell us about them

The key is in shifting your mindset from making the brand the hero to creating entry points for a consumer to become the hero.  From brand purpose to consumer purpose, this is how you build community.

There are 4 powerful ways a consumer interacts with a brand – and they can be understood through distinct personas.  They are:  LORDS, LOVERS, HACKERS, and HAWKS

LORDS are the modern-day influencer.  In the past, influencers used to be celebrities. Today, everyone has some form of a following. These are the Lords.  They seek to be recognized and seen by their followers.

LOVERS:  All brands are headed towards commoditization.  This raises the bar for marketers to build a brand over a product.  Lovers connect on values.  What does your brand stand for that your audience values beyond functional benefits?

HACKERS:  Modern day consumers think if brands are for them, then they should have every opportunity to interact and co-create.  Brands that don’t let consumers “in” are missing a profound opportunity to connect.

HAWKS:  Transparency has unleashed generations of distrust of companies.  Now the Hawks are in power, and they know it.  You need to think about everything from sourcing to hiring to ingredients, or the Hawks will unleash with little warning.

 

How to Avoid the Most Common Branding Mistakes

6 Rules of Brand Revitalization

 

How do you keep a brand relevant?

 

If you are looking to develop a strong global brand, you will find two names consistently mentioned as “go-to” experts: Larry Light and Joan Kiddon. They have just released a second edition of their book on branding, Six Rules of Brand Revitalization.

If you need to revitalize a brand, or if you are looking to avoid the pitfalls others have made, this book is a blueprint to follow for building a brand.

 

“Without trust, there can be no brand loyalty.” -Light / Kiddon

 

I recently spoke with the authors about their new book and the rules of branding.

 

6 Rules of Brand Revitalization

 

1. Refocus the organization.

Where do most corporate leaders get it wrong?

They tend to believe that “refocus” can happen through tools and templates and HR seminars. Refocus is more than filling in the blanks and talking the talk. When there is a conflict between strategy and culture, culture wins. A commitment to change requires refocusing of the cultural mindset that emanates from the top down. Merely embarking on a training program to encourage a focus on new tools, templates, and techniques can distract from the need to accomplish both the behavioral and attitudinal modifications that foster culture change.

 

“Refocusing an organization around common goals is the first step for brand revitalization.” -Light / Kiddon

 

6 Rules of Brand Revitalization

Rule 1: Refocus the organization

Rule 2: Restore brand relevance

Rule 3: Reinvent the brand experience

Rule 4: Reinforce a results culture

Rule 5: Rebuild brand trust

Rule 6: Realize global alignment

 

What tip would you provide to a leadership team in the midst of this refocus?

Leaders are different from commanders. Commanders manage by telling people what to do. They create acceptors. Leaders create believers. Acceptors go through the motions complying with the new processes and behaviors. Believers have true commitment that this refocus is a better path to a successful future. Acceptors are not the same as adherents. The leader must be the one to set the tone and drive the change for all to see and emulate. Leaders must demonstrate commitment if they expect people to become believers in the new world.

 

“The leader must set the tone and drive change.” -Light / Kiddon

 

  

2. Restore brand relevance.

What are the best ways to stay on top of changing customer expectations?

Stay up-to-date with all available information. Read a variety of sources, not just in your business’ field but also across many disciplines. Include regular market research reports. But also include what is happening in the world around us. Be observant. Be informed. Be open to new ideas.

In this world of access to “big data’” there is now a focus on data analytics. Analysis can tell us about what is happening today. Analysis is about the decomposition of data. But real insight does not come from analysis. It comes from creative synthesis. Analysis is about taking data apart. Synthesis is about putting together disparate sources of information in original ways. Synthesis is about detecting patterns that others fail to see. Keeping a brand relevant will involve both analysis and synthesis. Make sure that the organization is open and conducive to creative synthesis.

 

3. Reinvent the brand experience.

How do you define a brand experience?

The total brand experience includes consideration, shopping, purchase, use, service, online, offline, brand communications, handling of customer complaints, and so on. Every touch point with the customer is a part of the total brand experience. It includes every aspect of the brand promise: functional benefits, emotional and social rewards, solutions to problems, and so forth.

 

“Every touch point with the customer is a part of the total brand experience.” -Light / Kiddon

 

How fast can a brand innovate and reinvent?