Organizational and Manageial Communication

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Organizational and Manageial Communication

• Corporate Communication and the Corporate Brand
• Chapter 5

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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

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Corporate Image in Relation to Corporate Identity
Behavior
Corporate Identity
Corporate Image
Communication
Symbolism
Corporate Identity
van Riel
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• 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 organizations members perceive it
• Who we are, what we stand for
• Interpersonal channels

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CORPORATE IDENTITY MEDIA

• Examples
• Product
• Price
• Name
• Brochures
• Visit cards
• Buildings
• Uniforms
• Sponsorship
• Work environment
• Figure or character
• Logos

• Stationary
• Literature
• Transportation
• Packing
• Architecture
• Signs
• Marketing/Sales

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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

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TYPES OF CORPORATE IDENTITY

• Monolithic -- Shell, Philips, BMW
• Endorsed -- GM, LOreal
• Branded -- Unilever, Orkla, PG

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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 persons beliefs,
  ideas, feelings and impressions about an object.
  Dowling, 1986

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• 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

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Corporate identity and reputation
Fombrun, C. J., Reputation, Harvard Business
School Press
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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 USPs
  (unique selling propositions)

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• 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

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REASONS FOR IMAGE MANAGEMENT

• 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

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IMAGE LEVELS

• Product class
• Brand
• Company
• Sector
• Shop
• Country
• User

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Some Factors Controlling Company Image
Reality of company
Newsworthiness of company

Communica- tion effort

x
Time
Memory decay
-

Company Image
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Kellers 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

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Dowlings 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
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KEY ATTRIBUTES OF REPUTATION (Fortune)

• 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

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• 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

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Americas Most Admired Companies, Fortune

• 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

• 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

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Americas Most Admired Companies, Fortune

• 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

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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
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BARRIERS TO ACHIEVING DESIRED IMAGE

• CEO disease (refusal/inability to be
  reflective)
• Mental models
• If its not broke dont fix it
• Inability to read environment
• Confusion regarding whos job it is

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Goal Credible Image

• Believable message
• Clearly stated
• Continually and consistently
• Through appropriate channels
• At the appropriate level of understanding

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The Three Is - Mission Oriented

• Identity Who we are
• Image What we are
• Ideas What we stand for and believe

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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