|A revolution in brand organisation|
Integration is the opposite of functionalism that has all too often stood in the way of serving consumers superbly. It was effective when high growth, unsophisticated consumer demands, and weak distribution channels meant that each function could make real progress by itself toward improved customer satisfaction and greater profitability. On its own, manufacturing could cut costs and boost quality; marketing could develop better ads; and sales could improve call patterns and enhance customer presentations. In most industries, however, the opportunities to make progress against such narrowly defined criteria have about run their course.
Michael George et al "Reinventing the marketing organization", McKinsey Quarterly, December 1994
|At the last industry conference, of the senior marketers attending and responsible for the brands, only one in ten believed that their dedicated distributors could feed back their desired set of brand values. And less than two in ten claimed that an internal staff audience (comprising eg product planners, designers and engineers involved in formulating new products) would be able to feed back their desired set of brand values spontaneously.|
Tim Greenhill quoted from his article on the future of the brand, ADMAP March 1995
|The main theme of our recent reorganisation was focus. We've set up key dimensions in our marketing team, eg one is customer loyalty, another is new customer marketing. We want our marketing process to operate along the line of key customer processes rather than specific functions. The customer used to start at point A and move through several departments. In other words, the customer moves through horizontally whereas we were organised vertically. We have had to relearn marketing. We are not yet there a hundred per cent, but it's been a real revolution for us thinking about how you walk through with the customer in every process.|
Extract from American Express interviewee BBC for Business video "Branding - The Marketing Advantage"
|·Prepare ahead. Scout externally for various practical perspectives on matters such as:|
- Opening tactics : eg whom to use as opinion leaders in evolving the new brand organisation?
- What cultural or other corporate beliefs will need to be turned upside down in recognition of the revolutionary process involved? Was the full extent of these needs-for-change foreseen or does this just have to be learnt by doing?
("Scouting" may involve benchmarking some companies who are ahead in brand organisation transformation. We suggest doing this with non-competitors and ideally those with whom you can reciprocate through some other valuable process/knowhow coaching)
·How will performance measures and incentives need to be changed to have a proactive influence on learning to be world class as a brand organisation?
·Think through "ultimate responsibility" scenarios. Eg on a corporate marketing setback scenario - when action must be fast and totally aligned to preserve goodwill's "kingpiece" corporate reputation - who do you want to lead what? How will process training be used to ensure that no gap exists between theory and practice of responsibilities at team and individual levels?
·Consider transitionary roles in the forms of managers of specific marketing/customer processes. These can help marketing people to re-learn first - this is vital if they are subsequently to act as expert coaches in networking internal marketing learning across the brand organisation.
·Architects at the top of the company must separate out changeover practices which may be threatening to people's jobs to those which are growth opportunities. If cutting jobs is inevitable, this not only needs to be handled with all the care and attention that the company has used in parallel circumstances, but it should be separated in time and process from:
·fostering teamworking beliefs
·introducing a learning tool for brand organisation
The successful introduction of these two processes requires building the maximum of motivation and openness among employees. Beyond anything your company has ever seen before.
|"There is a systemic failure in marketing culture and companies' organisations says market research consultant David Cowan. Too often, he claims, marketers' pseudo-explanations which satisfy our curiosity but actually explain very little if anything at all - crowd out real analysis.|
Marketers tend to see problems in terms of strengths and weaknesses of individuals. They tend not to give enough weight to the corporate structures and processes that create and mould peoples' behaviours and attitudes. Sentiments like "if only our agency was more creative", "if only our researchers had better insight", "if only the client thought more strategically" are mere platitudes masquerading as explanations: by definition, they are always true.
The real challenge is to understand the underlying conditions that stifle or encourage the human qualities we want. Why, for instance, do companies consistently fail to see the threats and opportunities that are thrown up by emerging technologies and new products?"
Alan Mitchell, Marketing Week, 21 April 1995
| Typical practitioner-directed scoping of top 8 "brand change" Agendas|
-> UK Business Schools 1995
|brand ARCHITECTURE||·Brand partnership strategy : new rules for externalising and internalising; ·exploiting reputation, top level values etc of banner brands; culling or refocusing brand equity in an "overbranded" company|
|brand ORGANISING||·Use of Chartering or equivalent scripts for teamworking; integration of strategy frames for leveraging brand and other intangibles (eg competences); CEO lead-responsibility for brand organisation|
|brand EQUITY||·How to prioritise marketing advantages invested in brand system; how to align measurement and performance time frames; how to rehearse scenarios of discontinuity threats to brand equity|
|GLOBAL branding||·Balancing HQ and local roles and information leads; how beat locally targeted brands; how model of external and internal priorities differs from local era branding|
|WORLD CLASS culture||·World number 1 culture - how to sustain and how not to lose; stakeholder priorities as global citizen; specific clarification of right to lead (eg visionary capabilities); manoeuvring corporate environment - eg abolishing over-accounting|
|"GLOCAL" added value WARFARE||·Market-partnership networks configured to glocally overthrow classic added value chains; principles of "holonic" organisations (beyond process reengineering)|
|SEEDED marketing CHANNELS||·New brand targeting of opinion leaders before mass marketing consumers; global and local transfer tactics of haute couture goodwill;co-developing new channels|
|SERVICE SMART integration||·Consumer relationships smarts : eg lifetime focus, two-way feedback loops; employees delight (through super-motivation mechanisms)|
| Source: adapted from BBC for Business Video Professorial Exchange, MEG 95|
- Management Centre, University of Bradford
|Developing a strong market orientation|
1 Start at the top. Strong leadership and commitment to customer focus at the top of an organisation is indispensable.
2 Involve everyone in the organisation in the marketing philosophy. The message has to cascade down so that everyone knows that serving the customer is ultimate raison d'etre.
3 Be prepared for structural change. Lasting step changes in customer service levels cannot be achieved wherever an organisation is structured along lines that benefit the company not the customer. Proactivity is needed to foresee how changes in the external environment are leveraged by leading the way with internal processes.
4 Use new structure to feed upwards into customer-facing strategy. The information on which strategic planning is based should come from customer-facing units.
5 Review marketing tactics, particularly the alignment of the 4P's with customer strategy. Keep looking at the 4P's (Products, Price, Promotion, Place) from the customers' point of view remembering to look ahead so that customers see you as the leader even as their perceptions are influenced by global and local trends in media and added value frames of reference.
6 Accept that change is a way of life. Involve all employees in "editing the future" and learning activities, eg competitive information detection, which produce an informed consensus and purposeful focus.
7 Understand the difference between quality systems and quality products or services. Make sure that people understand that systems exist to serve the needs of the customer. Recognise that every product has a perceptual context because all acts of consumption involve human emotions.
8 Focus on the customer, not the competition. Both matter, but leadership essence comes from focus on the first
9 Look at end-to-end processes, not piecemeal processes. The customer should experience seamless service
10 Keep the end user in sight. Immediate customers matter but losing sight of the end user is a symptom which can quickly lead to terminal illness
11 Develop and empower people down the organisation; particularly those who have customer contact. Ultimately customers experience brands as services whose power to consistently delight depends on the organisation's people12 Understand the relationship between customer focus and profit. Monitor a suitable combination of measurements for a well chosen selection of time horizons and tailored to appraise the specific purpose of the marketing approach and gauge levels of successful achievement
|(say) 20 core operating countries - control by liaising with 20 strong country managers|
|(say) 1000 products - control by clustering into (say) 10 product streams with their managers|
|(say) 100 brands - leave to junior brand managers to report in to various levels of management, depending on market size, but not to the CEO|
|World Class Operations|
In this context, the approach to facility location is a response to the projection of future conditions, not current competitive issues and resource prices. It is made by a CEO focusing on marketing, product and operational issues, not by a manufacturing executive concentrating on direct labor rates. The decision is based on the capabilities that conditions in the new location could help the company to build not on the conditions themselves.
The goal of this strategic approach to facility location is to build a network of capabilities, rather than just a network of facilities. This network is specifically designed to support the company's business and market strategies on a continuing basis. It is structured as much for what it can "teach" the firm as to take advantage of external location resources. It is dynamic and maintained as an ongoing element in a company's strategic plan.World Class Operations - Building competitive advantage though a global network of capabilities, Andrew Bartmess and Keith Cerny, California Management Review