Your Company Identity Goes much Deeper Than Style

Strategic Identity

If you asked ten employees “What business are we in?” how many would give you a clear, concise answer? Would any three give you the same response?

The question of who you are and what you do is fundamental to the way your organization functions. Your sales and marketing employees need to explain it to new prospects. Your product teams need to develop competitive offerings that align tightly with each other. Customer service needs to create systems and processes that support how the company says it does business. (“Your call is important to us” – or maybe not.)

How do the leaders of these and other business functions know how to manage their teams and collaborate with the other executives if there is not a common understanding of what the business stands for? And if employees are not on the same page, what are customers to think?

If this sounds familiar, you are not alone. A recent PricewaterhouseCoopers (PWC) study revealed only half of company leaders are able to describe a distinctive identity for their companies, and only 1 in 5 think their employees could do so. As a result, employees describe their company in much the same way every competitor describes theirs. Nobody has a clear identity.

“We know, however, companies with a strong identity – the kind that is backed up by the ability to deliver their promise – tend to win,” wrote Paul Leinwand, global managing director at PwC, and Cesare Mainardi, former CEO of Booz & Company. In their Harvard Business Review article, the authors cite a survey of 720 executives concluding companies that were seen as having a stronger identity outperformed others by 25 percent.

What do we mean by “identity”?

The term “identity” has multiple meanings, depending on who you are talking to (and what they are trying to sell you). The management consulting community sees it as a strategy for driving business. The marketing community uses the term to describe the way a company presents itself. These are very different, yet very complementary ideas.

One of my favorite brands is Home Depot. At one point, I think it was the second largest item on my household budget, right behind the house payment (really). Home Depot has always been about helping the homeowner and the small, professional contractor complete projects the way they want to. The design of the store, product selection, staff training, customer service approach, and everything else is done with those customers in mind. It’s an identity that is different than Lowe’s, Ace Hardware, and any other home goods retailers.

Notice that I didn’t mention branding or marketing. The Home Depot identity was formed before it became a big advertiser. They hired people experienced in their trades to staff departments to help the home improvement and DIY types. Customers who walked through the doors didn’t need to see an ad to know what the company was about. They experienced it.

The Home Depot example shows how an identity has two parts. The strategic portion of the identity defines how the organization is distinctive and aligns everything the company does behind it. Customers get an experience that is intentionally designed and executed just for them. They don’t need an advertising campaign to know this is their kind of place.

The brand portion of an identity communicates how the organization is distinctive. Home Depot branding tells homeowners and professional contractors everywhere what they can expect from the company. If the brand identity and strategic identity are aligned, brand magic happens.

It important to invest in both parts of the identity. One without the other doesn’t work. Home Depot can shout “More Saving. More Doing.” from the rooftops, but if the customer doesn’t get the prices, advice, and service they need to do they projects they want, there won’t be any “doing”.

How does this apply to you?

You are, presumably, not Home Depot. You are smaller, not as well known, and not as complicated. Is identity still important? It is.

Regardless of industry, you have a bunch of competitors, and it can be hard for prospective customers to tell the difference between you. Just take 30 minutes to look at the websites of your direct competitors. How do they position themselves? What are the top three messages they want customers to get? What proof do they offer about their value? Chances are, nobody really stands out. If they were actually doing something different, you would see it on their website.

The challenge and opportunity for your organization is to elevate your company above the sameness by setting the standard by which all your competitors get measured. This starts with a strategic identity that gets all your employees working toward the same goal and thinking about the company in the same way. Then, and only then, can you build a brand identity that truly reflects who you are and what makes you different.

After doing this for a year, you will be able to ask your employees “What business are we in?” and a vast majority will have a good answer.


FREE GUIDE: INTRODUCTION TO IDENTITY

The value of your identity goes far beyond eye-catching marketing.

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