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Managing the Changes in Corporate Branding and Communication: Closing and Re-
opening the Corporate Umbrella
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Philip J. Kitchen
Rennes School of Business
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Philip J. Kitchen
Hull University Business School, UK
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Managing the Changes in Corporate Branding and Communication
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Schultz and Kitchen
areas for the organization of the future and each of whom can impact markedly on
those efforts must be focused not just exter- both short-term and long-term market
nally, but internally as well. share, profit performance and shareholder
To illustrate the approach, how the con- value.
cept for this paper developed will be The corporation has thus become a
explained. brand that also needs to be ‘marketed’, or,
put another way, communicated, for in the
GENESIS OF THE CORPORATE authors’ view, all marketing is communica-
UMBRELLA tion and all communication is essentially
In the early 1990s, a leading guru of man- marketing. But, today, marketing the cor-
agement thought — Professor Charles poration means much more than a few
Handy, then of the London Business advertisements in the Wall Street Journal,
School — published a book entitled: The donating a few dollars to public radio and
Empty Raincoat (Handy, 1995). The title some corporate chest-thumping on the
related to a sculpture Professor Handy had Sunday morning ‘public affairs’ television
seen in an open-air sculpture garden in shows.
Minneapolis during a trip to the USA. Of Instead of this historic view of corporate
the three shapes created by sculptress, communication and branding, it is sug-
Judith Shea, the dominant one was a gested here that, because of the emerging,
bronze raincoat, standing upright, but with interactive and networked marketplace,
no-one inside it. For Handy, the empty there must be a new ‘raising of the corpo-
raincoat served as a paradox for the appar- rate umbrella’. By that is meant senior
ent emptiness of much that was occurring executives, led by the CEO, senior man-
in the name of technological, industrial and agement, and the board, need to present
post-industrial ‘progress’ at that time. the organization in such a way that it not
The authors have adapted Handy’s cor- only protects and nurtures all the indivi-
porate paradox in a somewhat different dual brands and customer relationships
manner. The empty raincoat, here, seems within its portfolio, but confirms to all sta-
to personify the apparent ‘emptiness’ of so keholders that the organization itself stands
many of today’s corporate entities. Empti- for something other than an anonymous,
ness in the sense that the firm appears as a faceless, profit-taking corporate entity.
cold, distant, unfeeling monolith, often This is represented diagrammatically in
unrelated to either its customers and consu- Figure 1.
mers or to its employees, associates and A market-oriented organization and its
other stakeholders. This seems a strange total meaning, ie its ‘corporate umbrella’,
paradox in a marketplace where interactiv- cannot be hoisted by empty corporate pla-
ity, dialog and personalization are becom- titudes or traditional corporate branding
ing more the rule than the exception. and communication programs. Instead, it
Thus, the authors argue that in today’s can only be communicated and made rele-
world, executives and managers at all vant when its management, employees,
levels, from the CEO downwards, must business partners, associates, channels and
reach out and communicate not only with affiliates understand and practice a totally
customers and consumers — from whom they integrated corporate marketing, communi-
expect to generate sales, income flows and cation and branding approach that puts
profits — but also with various related and reality and realism inside the firm and
involved employees, channels, affiliates, gives it form and substance on which to
associates, publics and other stakeholders, build and operate. By using that platform,
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Managing the Changes in Corporate Branding and Communication
Corporate Brand
B B B B B B B B B B B B
B B B B B B B B B B B B
the company can then announce and illus- driven corporate communication
trate its values, vision, mission and com- programs and activities act like the ribs
mitment internally and externally to the of an umbrella in that the various
various stakeholders and those who have, communication activities of the firm
might have or might want a relationship of support the overall organizational
some sort with the firm. In short, the aim communication systems. Lose or
of this paper is to suggest how corporate mismanage one of the communication
management can put flesh on the bones of ‘ribs’ such as crisis management, corpo-
the corporation and raise the corporate rate advertising, or environmental
umbrella in such a way that: issues, and the whole communication
coverage of the organization becomes
1 it acts as a force-field metaphor — unstable in the stormy winds of change.
nurturing, protecting, and providing The ‘ribs’ refer not just to potential and
the resource-fertile environment to actual communication activities de-
grow the total entity, including the ployed by the firm, but also relate to
individual brands and stakeholder rela- the underlying managerial assumptions
tionships, treating them as valuable and and practices concerning the nature of
potentially irreplaceable assets. the marketplace, the stakeholders they
face and how such stakeholders can and
and should be addressed to build relation-
ships by means of corporate communi-
2 it acts as a metaphor in terms of the cation.
way it can be operationalized at the
corporate level. In other words, under- Given this scenario, this text will now turn
standing that fully integrated, process- to the need for a different view of corpo-
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Schultz and Kitchen
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Managing the Changes in Corporate Branding and Communication
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Schultz and Kitchen
Traditional
Corporate Communication
Everything
National
National Product Optional
Optional
is
Is orientation
Orientation focus
Focus comms
Comms
outbound
Outbound
Separatist Tangible
Tangible Corporate Product
Product
approaches
Approaches assets
Assets monolith
Monolith branding
Branding
concepts and approaches have had their day these ‘corporate messages’ were developed
and while they, like a used umbrella, will to inform, educate, persuade or influence
continue to provide some coverage of cor- the various audiences and stakeholders
porate value, they are getting tacky and identified by the firm, particularly those
torn. Like a weakened umbrella in a raging that management felt needed ‘to be com-
storm, the concepts and approaches are municated with’.
sure to be ‘turned inside out’ through the Communication and messages were
strong winds of 21st century change. directed toward those external audiences
Figure 2 illustrates what the authors and success was measured by the successful
believe is the rapidly closing umbrella of tra- distribution of those developed messages.
ditional corporate communication assump- The common assumption was that ‘the
tions and approaches. As shown, there are more messages delivered the better’. Thus,
eight major assumptions or driving forces there was great focus on communication
that have directed or guided corporate message ‘tonnage’ in the belief that the
communication management for at least company with the greatest investment gen-
the past 40 years. The authors call them the erally dominated the communication spec-
‘historic ribs’ of the corporate umbrella. trum.
Internal communication programs, if
Everything is Outbound they were used at all, were generally devel-
For the most part, traditional corporate oped by the human resources (HR) group.
communication programs have reflected They consisted primarily of keeping
the views, needs and wants of the corpora- employees and other interested groups
tion. These were the ‘things, ideas, con- ‘informed’ about what ‘their company’
cepts or beliefs’ the firm wanted to was doing and how it would impact and
‘deliver’ to the ‘audiences’ which the orga- affect their lives, their jobs and their
nization had selected. For the most part, future.
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Managing the Changes in Corporate Branding and Communication
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Schultz and Kitchen
controlled. The balance sheet was king. result, product brands dominated the mar-
What the members of the financial markets ketplace. Most marketing firms believed a
wanted to hear was uppermost in everyo- ‘house of product brands’ structure was the
ne’s mind. Customers and brands were nice logical choice of not just the marketer but
to have, particularly for fast-moving con- also the marketplace. Thus, because product
sumer goods (FMCG) organizations. But, brands dominated, at least in North Amer-
they had little to do with service firms, ica, corporate communication became the
business-to-business and other types of backwater of the communication industry.
organizations. The reason? Success was Little activity, little funding, little value,
measured by the distribution and the and little attention, except when there was
volume of goods and services the organiza- a corporate crisis such as the well-known
tion produced, not by the customers it ‘problems’ of Tylenol, Union Carbide,
served. Corporate communication, there- Exxon, Perrier, Coca-Cola, and most
fore, was about products, plants and effi- recently Ford, Firestone and Monsanto
ciency. The corporate message was about (http://www.epa.gov/oilspill/exxon.htm).
sales increases and competitors routed from Then, all of the focus was on the organiza-
the field and the value of the organization. tion, its needs, concerns and issues. In crises,
So, one might consider the communication some organizations responded well and
programs self-serving, except for the senior others poorly. The primary point, how-
management and the communication ever, is that for the most part, product
director, to whom they were ‘informative’ brands and product communication have
and ‘useful’. dominated organizational interest and
financial support rather than the corporate
Focus on Product, Not Company brand and corporate communication.
Along with the focus on tangible assets as
the organization’s primary positioning The Corporate Monolith
tool, came the belief that it was competi- Traditionally, most organizations have
tive differentiation that was the key to cor- attempted to be monolithic and monopolis-
porate success. Thus, organizations focused tic. That is, with some exceptions, the orga-
on product differentiation with the goal of nization wanted to own everything so it
developing some type of ‘unique selling could control everything. Thus, few firms
proposition’ (USP) (Schultz, 1993). In focused on affiliations, alliances or even joint
other words, communication focused on ventures unless and except when required to
product positioning, product benefits and do so by government decree. The corpora-
product brands as the most important com- tion was seen as a single, stand-alone unit
munication values the organization had to where, although it might have a number of
deliver. When the corporate brand was divisions or business units, the goal was cor-
considered, it was thought of only as some- porate integration. That integration ranged
thing in which the financial community from the totally integrated automobile
had an interest, or perhaps as something manufacturing organizations of pre-Second
that lent some financial value to the pro- World War, to the integrated oil companies
duct brands. that had a brief flourish in the 1960s and
Until recently, that primarily North 1970s to the high-tech and dot.com ventures
American view prevailed. Few saw the of the 1990s. Every organization tried to
value of the corporate brand, particularly own everything and thus benefit from their
those at ‘product-branded’ firms such as ability to create revenue all along the so-
General Motors or Emerson Electric. As a called ‘value chain’. There was, therefore,
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Schultz and Kitchen
In fact, the product brands worked to keep ing recognition that the corporate brand is
the corporate brand out of sight. The less important. Global firms such as Sony,
the connection between the various pro- Samsung, LG, Schneider and others have
duct brands, the better — at least insofar as shown that corporate brands can indeed
the consumer stakeholder group was con- have value and provide a differentiating
cerned. Thus, the less customers and consu- force in the marketplace among all levels
mers knew about the corporate parent, the of corporate stakeholders. Yet, the percep-
better. Thus, the corporate brand became tion persists, certainly in North America,
like the ‘empty raincoat’ that Handy epito- that corporate brands are nice to have, but
mized in his writings in the 1990s. P&G not really equal to the product brands.
was a shell, as was Unilever. Corporate That perception generally persists until the
meant nothing. The product brand meant organization attempts to build share in the
everything. Admittedly, communication of global arena. The result has been that in
the corporate entity and its performance many organizations corporate branding or
was important to other stakeholder groups corporate communication, when it was
(ie financial stakeholders, investors, capital used at all, was primarily in support of the
markets, influential business analysts, and product brands. It appears that practice still
so on), but not too important. continues today.
Along with this focus on product There may well be other organizational
brands, there grew up a whole mythology beliefs and operating principles that have
of how brands were built and maintained. had an impact on the development of cor-
The premise was that mass communica- porate communication programs over the
tion, primarily television, delivered to years. These are, however, the key ones.
mass audiences with a common message They have driven the manner in which
that was driven home to the ‘target companies and firms have communicated
market’ through huge investments in and have been instrumental in guiding the
media and promotion, was the way brands development of media systems and supplier
were built. Thus, the ‘brand-building organizations. Most of all, they appear to
model’ was developed. The problem was, have generated marketplace success. That
the model only worked for P&G, Unile- is, they worked because they were devel-
ver, Coca-Cola, Colgate-Palmolive, and a oped for a specific type of marketplace, a
few other package-goods firms. When the specific type of communication delivery
‘brand-building model’ was tried by other system and a specific type of corporate
corporate organizations, particularly those need.
that were selling services or whose values The problem today is that corporate
came from long-term relationships or need is changing and has been for the past
some type of business-to-business connec- decade. Much of that change has been
tion, the model failed, often miserably. driven by technology that has radically
Thus, senior management began to believe altered the communication landscape.
that the corporate brand had little value, Much of it has come from the develop-
could not be built with communication ment of new forms of corporate value sys-
and certainly could not be developed at tems and the attempt to include, not
any reasonable cost. Therefore, there was exclude, social priorities, concepts and ideas
no use in trying. much has come as a result of new knowl-
As a result, today there are corporate edge and learning. The newer and better
brands that are not managed at all, except approaches on the horizon are discussed in
by their stakeholders. Yet, there is a grow- the next section.
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Managing the Changes in Corporate Branding and Communication
21st Century
Corporate Communication
Customer Leading
Interactivity Global
Global with
value
Value comms
Comms
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Schultz and Kitchen
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Managing the Changes in Corporate Branding and Communication
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Schultz and Kitchen
master how to talk. The change is illu- which organizations must operate or risk
strated in the ‘sense-adapt-respond’ model the loss of global customers. In short, every
shown in Figure 5. organization will be attempting to achieve
As shown, communication is planned the ‘easy to do business with’ goal that is
based on ‘sensing’ the information or mate- demanded by customers and prospects.
rial the stakeholders need. Then, the orga- This attempt is needed by firms that are
nization must adapt to those needs in order perceived to be ‘local’, as they too will be
to be able to respond. Finally, the firm influenced by the marketing strategies and
must be able to deliver those wanted, tactics of larger businesses.
needed and desirable messages to the var- The impact of this global marketing, dis-
ious stakeholders across the broad spectrum tribution, pricing and servicing model is
of organizational communication. only now being felt by communication
This ‘sense-adapt-respond’ approach groups. The need for cross-cultural, cross-
requires new skills on the part of the com- border, and cross-language capabilities in
munication director. He or she must be all communication units is rapidly emer-
constantly listening to the various stake- ging. The requirements for instantaneous
holder groups and synthesizing that infor- communication around the world are con-
mation for senior management. Making tinuous. The capability of the firm to plan,
suggestions on how to adapt the organiza- develop and deliver communication pro-
tion to meet the spoken or unspoken needs grams becomes less important as the need
of the various groups and then responding for skills and abilities to sense customer and
through the most appropriate communica- consumer communication needs, adapt
tion channels and forms. Typically, these communication messages, and to respond
‘listening, adapting and responding’ skills to customers, markets, and stakeholders on
are new to the corporate communication a real-time basis becomes mandatory. This
function. But, new skills are needed for a sense-adapt-respond model will increas-
new marketplace and that is the challenge ingly be the key element for on-going cor-
of corporate communication in the 21st porate success (see Figure 5).
century. Thus, many of the communication pre-
paration and planning approaches that have
Global — Every Organization is Now historically been used must give way to
Global new, innovative, online, instantaneous
There is no choice. Today and tomorrow, research and data gathering methodologies
there is and will be no way to limit the that are just emerging. The old, established,
flow of information about products, ser- traditional communication systems must
vices and activities. Global, multinational give way to ones that not only span the
and international organizations that once globe, but, at the same time, allow the
operated on a restricted geographic basis, ie manager to drill down into local situations
on country-by-country management sys- as needed or required.
tems, have found their customers are driv-
ing them to a global view, and they are Intangible Values
helpless to stem the tide. Differential pri- As the value of the organization moves
cing or distribution schemes developed for more and more into the intangible areas of
unknowing customers in individual coun- intellectual property, brands, patents,
tries are no longer acceptable. One solu- know-how, people skills and the like, the
tion, one price, one distribution structure, focus of the firm must move inexorably
and one billing system are the formats on toward the management of intangible
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Managing the Changes in Corporate Branding and Communication
assets and away from the traditional focus those products and services may change,
on plants, factories, inventory, distribution the need for the organization to gain and
systems and the like. Thus, senior manage- maintain customers does not.
ment will need to be able to manage the The same is true of the financial commu-
new ‘corporate value’, much of which will nity. The value of the organization is not its
be bound up in the just emerging methods current share price. Rather, the value of the
and approaches to value creation and mea- organization is the confidence and accep-
surement from the accounting and financial tance of shareholders in the present man-
areas. agement’s capabilities for the longer term.
Chief among the new skills management It will not be the number of employees the
will be the capacity and capability to com- organization has, it will be their capability
municate the new, forward-looking, cor- to gain and maintain customers and their
porate relevance that is being created in the income flows that will count. Thus, the
form of shareholder value. Where once the focus of the communication programs must
‘balance sheet’ spoke for itself with hard, shift from that of products and services, and
verifiable, tangible assets as the value base, plants and corporate ‘stuff’ to customers
as the organization inexorably shifts to the and prospects, stakeholders, income flows
intangible, and more difficult to communi- and shareholder value. That is a radically
cate measures of future value, the commu- different approach to organizational com-
nication manager becomes one of the key munication, because it requires the commu-
elements in the new structure. The firm’s nication to be focused on explaining the
ability to explain, illustrate, teach and even value of external customers and stake-
persuade the financial community, associ- holders, not on how well internal managers
ates, affiliates, and even employees of these and products are managed.
new corporate values becomes one of the Today, obtaining corporate information
key elements in the corporation’s manage- by communication managers is relatively
ment toolkit. The corporate communica- easy. Most of the knowledge the commu-
tion manager will and must play a key role nication people will need is already inside
in all these tasks. the firm. The challenge of getting informa-
Communication, like the new corporate tion about the external stakeholders,
assets, is often believed to be ‘intangible’ whether they be customers, governments,
by current senior managers. Therefore, the environmentalists or communities, is much
capability of the 21st century corporate more difficult and requires an entirely new
communication director to put ‘substance’ skill set. But, that will be the task of the
inside this presently empty corporate rain- new corporate communication manager —
coat becomes a key contribution to the on- thus, new skills, new tools and new
going success of the organization. approaches. All will be critical in the man-
agement of 21st century corporate brand-
Customer Value ing and communication programs.
Most corporate managers now understand
the real sustainable competitive advantage Alliances and Affiliations
of their firm is the ability to gain, retain, Traditionally, senior managers have
grow and migrate customers and their focused on managing employees and per-
income flows over time. Products and ser- haps a limited number of distribution part-
vices are just the current means by which ners. In most cases, management had
the organization gains income and ulti- control or power over those individuals or
mately profits from customers. While groups. Therefore, the task was relatively
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Schultz and Kitchen
straightforward, that is, it was based on the lead element in the overall corporate
command and control. Employees could strategy. Thus, investments in and returns
be coerced or fired. Channels could be from communication will be some of the
restricted or their franchises canceled. But, top priorities of many firms. Indeed, the
in the new world of alliances, partnerships, corporate communication director will
joint-ventures and affiliations, the situations often be working and perhaps sometimes
are commonly ones of equal power, or at even guiding senior team managers.
least shared power between the firm and its As the management of customers and
partners. Thus, today’s managers must customer groups becomes the primary
become negotiators, referees, consensus focus of the firm, more than the operation
builders and even cheerleaders. That is cer- of plants and factories or the direction
tainly a new role for many of the ‘hard- of internal employees, communication
nosed’ managers of the past. It requires dif- becomes one of the key tools the corpora-
ferent skills, capabilities and even emotions. tion will employ. As before, the ability to
These are not areas where edicts, directives listen, learn and respond to customers and
or even ‘strong management recommenda- stakeholders becomes a critical skill set for
tions’ carry much weight. Thus, the corpo- the firm. Similarly, the ability of the orga-
rate communication director is likely to nization to create and maintain an ongoing
find many new challenges in guiding dialog with all stakeholders becomes the
senior management in these new, often primary way in which marketplace success
‘communication-based’ situations. will be identified and gauged.
From another view, internal and cross- Inherent in this is the need for the orga-
company or cross-SBU communication nization to develop new, different and
has not been something in which corporate more relevant methods of measuring the
communication directors have historically impact and effect of its communication
had much of a hand. That fell to other programs. As communication becomes an
internal people. Yet, in the 21st century organizational investment, and therefore is
arena, corporate communication directors managed like any other asset-producing
must play a key role in assisting senior activity, budgeting and measurement of
managers with the often delicate commu- returns become critical skills. In this sense,
nication tasks that can keep an alliance, the ability of the corporate communication
affiliation or other rather fragile relation- manager to identify, value and determine
ship, not just functioning, but thriving. investment levels and measure results
While this internal communication becomes just as important as the role strate-
initiative may be a new role for the corpo- gic planners and CFOs fill today. Indeed,
rate communication director, it is not a being able to measure and evaluate the
new one in every sense. It is simply that financial value of the corporate brand is
the communication skills will have to be one of the key skills corporate communica-
applied in a new arena and, in most cases, tion managers must master going forward.
on a much larger scale and at a more deli- There is no question, communication
cate stage. must become a key skill in the 21st century
organization. For the most part, it must
Leading with Communication lead rather than follow the strategic direc-
In many organizations, both large and tions and actions of the firm. In many
small, communication has often been an cases, this will be a totally new role for the
after-thought. In the emerging 21st century corporate communication director but one
arena, communication will commonly be that must be not only filled, but mastered.
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Managing the Changes in Corporate Branding and Communication
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Schultz and Kitchen
the tools, technologies, and tactics asso- operating in the 21st century marketplace
ciated with the new corporate will play a key role in ‘filling the corporate
umbrella. This requires investment by raincoat’. Further, it is believed that corpo-
the firm and senior management in rate communication and corporate brand-
such training. ing will have much value by allowing the
organization to toss away the raincoat and
This paper has illustrated not one, but two, raise the corporate umbrella through effec-
corporate umbrellas. The umbrella meta- tive corporate communication programs,
phor in both its old unreformed state and developed and delivered both internally
its new renaissance state, together with the and externally. The opportunity exists, all
associated ribs, constitute ways of concep- the CEO and the corporate communica-
tualizing or theorizing information in the tion manager need do is seize the handle
domain of corporate communication. It is and open the umbrella — moving quickly
invited that colleagues in the domain of and effectively into the new world of 21st
corporate communication help test the century corporate branding and corporate
validity of the old and new umbrellas in communication.
the actual managerial thinking and prac-
tices in companies around the world. The ACKNOWLEDGMENTS
metaphor is ripe for further development. *The authors acknowledge the kind per-
Certainly, it is anticipated that the cate- mission of Palgrave-Macmillan Publishers,
gories or ribs described here can perhaps be Basingstoke, England to cite materials
presented more clearly, or there may be from their book Raising the Corporate
additional ribs, which have not been ade- Umbrella (2001), on which this paper is
quately identified or described. based.
CONCLUSION NOTES
The discussion now ends with these views 1 An extensive case on BT and its global relation-
of the closing of the historic corporate ship management program is found in Schultz,
umbrella and emergence of the new corpo- D.E. and Kitchen, P.J. (2000) ‘Communicating
Globally: An Integrated Marketing Approach’,
rate umbrella of the 21st century.
Macmillan Press, London, 217–226.
The authors believe there is value in the 2 An extensive case on Dow Chemical Co is found
present-day corporation. The corporation, in Schultz, D.E. and Kitchen, P.J. (2000) ‘Com-
in its multinational and global develop- municating Globally: An Integrated Marketing
mental phase, has been one of the most Approach’, Macmillan Press, London, 235–239.
important and impactful concepts in
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