Training session - Creating shareholder value through successful branding
Dr Colin Gruar from the Cranfield School of Management put it to AIRMIC members that reputation is the biggest unmanaged risk in business today and was a key factor in recent high profile business failures. Reputational risk is very rarely on the formal agendas of boards, he alleged.
Much of these failings could be traced back to how companies view their brands, which he defined in wide terms. It is not just a corporate logo but, for example, a promise and a risk reducer for the consumer and linked very closely to a company's vision and values, culture and image. It is also a key business risk if there is a gap between the vision and the customer's perception of it.
Drawing on examples such as Orange and Tesco, he stated that it was essential that all employees see themselves as part of their company's brand, which should permeate every contact they have with customers, suppliers, shareholders, etc, making it feel different to its competitors.
The key was, therefore, promoting the right culture and helping people to understand how to behave. This in contrast to performance cultures that lead people to focus solely on short-term personal aspirations - a notable feature of recent corporate failures. Colin distinguished between brand and reputation as the former was capable of being internally controlled and therefore determining to a large extent the latter.
All in all a very interesting and thought-provoking session with some good ideas to take away.
Thanks to Nigel J Hitchborn for this report