Brand alignment across organisational boundaries
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LEADERSHIP ACTIONS Several brand managers said their primary challenge was getting senior 96
leadership in their companies to embrace the business implications of the brand and the brand positioning. Branding efforts were occasionally undermined by the remarks or actions of senior executives. When higherlevel management was not completely aligned with the brand, internal momentum usually faded as people within the organisation pulled the brand in different directions. Because organisational alignment is a top-down imperative for corporate and strategic brands, a brand champion at the executive level is needed to promote and protect the brand internally. While other leadership approaches (as explained later) can also help to achieve brand alignment, the key is to maintain centralised control of core brands and manage them as strategic assets of the company.
ORGANISATIONAL STRUCTURE Corporate executives seek to establish a workable balance between centralisation and decentralisation in running their businesses and managing core brands. However, companies with traditions of autonomous business units, independent country managers, or decentralised marketing functions find it challenging to maintain brand consistency across the organisation. Rationalisations for brand misalignment abound. Some companies take a very relaxed approach to brand alignment for new acquisitions and start-ups because of pressing business development and integration issues. Other
HENRY STEWART PUBLICATIONS 1479-1803 BRAND MANAGEMENT VOL. 13, NO. 2, 96–100 NOVEMBER 2005
EDITORIAL
companies are reluctant to deal with legacy brands that no longer fit existing business directions or brand architectures. In entrepreneurial companies, product groups that do not buy into the overall brand positioning sometimes promote a different brand identity to appeal to a specialised market niche. In one case, a major consumer packaged goods company had no less than 16 independent product groups each promoting and advertising separate benefit positions for the same 100-year old brand. As internal competition reportedly escalated, larger product groups tried to outspend other groups in the same company to ensure their benefits were the ones consumers most closely associated with the brand. Changing such organisational behaviour requires a strong, shared interest and discipline in safeguarding the brand. To accomplish these objectives, many leading companies have established global brand councils consisting of stakeholders from all relevant divisions, business units, and geographies. These centralised committees are typically led by a senior executive and meet regularly to set brand strategy, make policy, review plans, and resolve disputes. Brand councils provide a central forum to exchange differing perspectives and discuss special needs in managing the brand across organisational boundaries. Stakeholders are better able to evaluate the collective impact of individual initiatives and assess the value created in aligning their businesses with the brand.
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