Internal Branding at Accenture

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Preface

It seems like ages ago since I started my studies at the RijksUniversiteit Groningen. Actually, it was ages ago.

During my time as a student, I have learned a lot. I have learned many things about organizations, systems, management and later on, when I found my heart was in marketing I learned about loyalty, branding, local adaptation vs. international consistency, strategic marketing and more. All extremely important and relevant knowledge that I will most certainly profit from in the rest of my career and life.

Now, at the very end of this long-term project my studies have become, I find myself looking back at those years in Groningen (and Amsterdam) and find myself thinking that not only have I learned many things about businesses and marketing, I also learned a lot are about myself and life in general.

I never doubted I would bring my studies to a satisfactory ending.

Naturally, if I would have the chance to do it all again, I would make sure I would increase my study pace a bit, to decrease the amount of years it ultimately took me. However, to be honest with you; I would not want to have missed those years for the world.

Thanks to all of you that have helped me when I needed your help. Jochem

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Management summary

In this report, Internal Branding at Accenture was investigated. Reasons for this research where the fact that Accenture operates in a complex, competitive market, where it is most important to have clients perceive the organization conform the desired image. In other words, it is necessary to have the internal and external positioning aligned. In the consulting business, employees are an important asset. Together with service quality employee behavior and impact on clients determines client satisfaction. Add to this the rapidly growing organization Accenture is, hiring tens of new employees every month, and no optimal scores in the last client satisfaction survey, the internal research was born, aiming for: Research objective

To gain insight in the perception of Accenture employees regarding the quality of the provided services and the quality of Accenture employees, in to what degree Accenture employees are aware of the company’s values and to what extent those values are being ‘lived’, and in the perception of employees regarding information distribution within Accenture.

Chapter one gives an overview of the Accenture Company and the Accenture brand, including mission statement, vision and an introduction to the core values that represent the brand. Besides this, it explains the research objective and problem definition.

Chapter two gives an introduction to Internal Branding, introducing different approaches to the concept. In chapter three I discuss the relationship between an organizations mission, vision and corporate strategy and the concept of Internal Branding. After that, chapter four describes several reasons for applying Internal Branding to an organization and some criteria for successful implementation. Chapter 5 than discusses the strategic execution of Internal Branding and the conditions under which Internal Branding can or cannot be successful. Chapter six brings practice after the theoretical part of this report. In this chapter, Internal Branding at Accenture is discussed. The actual research methodology is described, as are the results of the online survey that was conducted.

The findings of this research show that there is room for improvement in Internal Branding at Accenture. Employees are not aware of the meaning of the brand, are not able to pick the Accenture core values from a list of values and give a very negative evaluation of information providing at Accenture. They furthermore say that they are not satisfied with the way the Accenture brand is communicated internally as well as externally, which is also created by a lack of communication in my opinion.

In chapter seven I give a summary of the findings of the online survey I

conducted, and based on the key findings I give my advice and recommendations to Accenture marketing and management.

The advice in short is to approach Internal Branding from a strategic perspective from now on, based on some alarming results. My suggestion is to implement a Core Value campaign, to professionalize the information providing and to repeat the internal research on a yearly bases, to be able to set clear goals and

objectives, and measure development in the extent to which our Accenture personnel feels like true brand ambassadors. I hope you enjoy reading this report.

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Chapter 1 Introduction and problem definition

1.1 Introduction

Is ‘living the brand’ another boardroom fad or a rare and genuine insight – that magic bullet for corporate success? Either way, more companies are exploring the way their brand is represented by their employees1_.

Brands are getting progressively important and include more than the services or products they represent. Brands are gaining importance, emotional value and are increasingly connected to a certain way of living. For this reason, employees working for an organization are getting more important in the overall branding strategy. They in fact are the link that can shape the brand and has to prove the brand promise. This applies to people behind the scenes as well as employees working in front office functions, but is of course most applicable to those employees working with clients on a regular basis. Internal branding – brand values being the guiding principle for employee behavior – has become hype over the last couple of years. Several disciplines within organizations – HR, corporate communications, and marketing – try to embrace and control this instrument, to achieve consistency in employee behavior and interaction throughout the

company.

At Accenture, the importance of representation of brand values in the behavior of employees is recognized, which has led to an internal research on quality

perception and internal branding.

This chapter discusses the Accenture organization and brand, the background of the research and the problem definition.

This study focuses on the internal organization, the way branding is organized amongst employees and on how the values are communicated towards clients and other external stakeholders. Competitors and external market circumstances are left out of consideration.

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1.2 The Company - Accenture 1.2.1 Overview

Accenture is an internationally operating organization that helps her clients to realize ambitions. Service providing is organized around three core competences: ‘High value consulting’, ‘Technology’ and ‘Outsourcing’. Constantly aiming for innovative solutions, Accenture works together with its clients to transform their organizations into ‘high performance organizations’. On their global corporate website www.accenture.com, Accenture is described as follows:

Accenture is a global management consulting, technology services and

outsourcing company, with net revenues of US$16.65 billion for the fiscal year ended Aug. 31, 2006. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and

governments.

Our "high performance business" strategy builds on our expertise in consulting, technology and outsourcing to help clients perform at the highest levels so they can create sustainable value for their customers and shareholders. Using our industry knowledge, service-offering expertise and technology capabilities, we identify new business and technology trends and develop solutions to help clients around the world:

• Enter new markets.

• Increase revenues in existing markets. • Improve operational performance.

• Deliver their products and services more effectively and efficiently. We have extensive relationships with the world's leading companies and

governments and work with organizations of all sizes—including 91 of the Fortune Global 100 and two-thirds of the Fortune Global 500. Our commitment to client satisfaction strengthens and extends our relationships. For example, 97 of our top 100 clients in fiscal year 2006, based on revenue, have been clients for at least five years, and 77 have been clients for at least 10 years.

Among the many strengths that distinguish Accenture in the marketplace are our: • Extensive industry expertise.

• Broad and evolving service offerings.

• Expertise in business transformation outsourcing.

• History of technology innovation and implementation, including our research and development capabilities, on which we spend approximately $250 million each year.

• Commitment to the long-term development of our employees. • Proven and experienced management team.

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Our Core Values have shaped the culture and defined the character of our company, guiding how we behave and make decisions:

• Stewardship: Building a heritage for future generations, acting with an owner mentality, developing people everywhere we are, and meeting our commitments to all internal and external stakeholders.

• Best People: Attracting and developing the best talent for our business, stretching our people and developing a "can do" attitude.

• Client Value Creation: Improving our clients' business performance, creating long-term, win-win relationships and focusing on execution excellence.

• One Global Network: Mobilizing the power of teaming to deliver consistently exceptional service to our clients anywhere in the world.

• Respect for the Individual: Valuing diversity, ensuring an interesting and inclusive environment, and treating people as we would like to be treated ourselves.

• Integrity: Inspiring trust by taking responsibility, acting ethically, and encouraging honest and open debate

By enhancing our consulting and outsourcing expertise with alliances and other capabilities, we help move clients forward in every part of their businesses, from strategic planning to day-to-day operations. With approximately 146,000 people in 49 countries, deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance.

1.2.2 Business Dimensions

Accenture aims to optimize the three dimensions of their business—operating group, growth platform, geography—in their own right and achieve better balance and connection across them.

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1.2.2.1 Operating Groups The five operating groups are:

• Communication & High Tech • Financial Services

• Government • Products • Resources

Within every operating group, several markets and identified in which Accenture operates around the globe. The operating groups have primary responsibility for client relationships, with focus on sales excellence, client leadership and

management and client satisfaction.

o Within each operating group, there are three operating units organized by geographic area: North America; Europe, Africa, Middle East and Latin America (EALA); and Asia Pacific. These are the primary building blocks for management; and for achievement of targets related to revenue and profitability for the growth platforms.

o Accenture is transforming the role of the existing client groups and re-naming them client service groups. Client service groups will be responsible for developing Accenture’s business with an assigned portfolio of clients; delivering superior client service; and client satisfaction. Accenture is retaining the existing client groups until we transition to the client service group structure later in FY07. 1.2.2.2 Growth Platforms

The three growth platforms within Accenture are • Business Consulting

• Systems Integration and Technology • Outsourcing

These are the delivery engines of the business, and the centres of innovation, growth and capability building. Accenture will enhance the authority and

accountability of the growth platforms—both globally and geographically—with a focus on high-quality and cost-effective delivery, and better integration with the beforehand mentioned operating groups.

o The Business Consulting growth platform is an important source of revenue and margin potential and enables the company to deliver innovation.

o The Systems Integration and Technology growth platform comprises System Integration and Technology Consulting. o The Outsourcing growth platform comprises Infrastructure

Outsourcing, Application Outsourcing and Business Process Outsourcing.

1.2.2.3 Geographic Units

The identified geographic units are critical to how Accenture executes his strategy and operates in a way that is globally efficient and locally responsive to clients and people. Geography is the “home” where everything comes together. The 13 geographic units play a significant role in maximizing market positioning and

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penetration, optimizing our cost base and achieving our profitability goals. The geographies have responsibility for people advocacy, corporate citizenship efforts, and improving diversity and inclusion. Every country is led by a country managing director, and each geographic unit is run by a geographic unit managing director. 1.3 The Brand - Accenture

The Accenture brand is more than a name and signature; it’s a promise, a personality and the values embodied by every partner employee. From the messages we communicate, to the look of our advertisements, to how we interact with our clients each day, all actions shape our target audience’s perception of the Accenture brand.2

The company name, and therewith the brand ‘Accenture’ has only been used since 2001, when the company conducted one of the most successful rebranding campaigns in corporate history.

Accenture was founded in 1989, when several partners from the consulting division of ‘Arthur Andersen & Co’ founded a new organization under the name of ‘Andersen Consulting’. In the years after the initial separation from Arthur

Andersen, the gap between the two companies kept on growing, leading to the final separation in 2001. The new ‘Accenture Company’ started with a quotation at the NYSE (New York Stock Exchange) and has since grown to a worldwide operating concern with more than 146.000 employees in 49 countries. The new name has strengthened the newly taken position and reflects the ongoing growth and the broadened set of capabilities.

‘High Performance. Delivered.’ is the vision with which Accenture wants to help his clients to become high performing organizations.

Global symbol of high performance

In 2003 Tiger Woods became the centerpiece of Accenture advertising. As perhaps the world’s ultimate symbol of high performance, he served as a metaphor for commitment to helping companies become high-performance businesses. The advertising theme united his ethos and Accenture’s position: “Go on. Be a Tiger.”

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In 2006, advertising took the next step. Armed with findings from the comprehensive study of more than 6,000 companies including over 500 high performers, Accenture’s new campaign was built around this proprietary knowledge of the world’s elite companies, and the ability to channel that knowledge on behalf of its clients.

Tiger Woods remains the centerpiece of the advertising, but the ads now include a promise – Accenture has proprietary research into what makes organizations high-performance businesses. The revised theme, while clearly building on the previous campaign, reflects this evolution: “We know what it takes to be a Tiger.” Core Values

The core values shape the culture and define the character of the company. They guide the behaviour and decision making process of all personnel at Accenture. The core values are:

• Stewardship

Building a heritage for future generations, acting with an owner mentality, developing people everywhere we are, and meeting our commitments to all internal and external stakeholders

Stewardship includes committing through words and deeds to our shared vision, using resources of our company prudently, as if they were your own, developing relationships across our entire network of businesses, assuming accountability for the current and future health of our business, providing for training and development of all team members, including client personnel, counselling and mentoring others, and helping build a stronger organization for the future.

• Best People

Attracting and developing the best talent for our business, stretching our people and developing a “can do” attitude

Actions that demonstrate the Best People core value include searching out the best talent, seeking opportunities to develop leading-edge skills, creating positive energy and giving people confidence in what they can achieve. Other actions include providing honest and timely feedback– formal and informal, taking time to integrate new hires into the

organization or projects, and creating an environment that enables growth and success.

• Client Value Creation

Improving our clients’ business performance, creating long-term, win-win relationships and focusing on execution excellence

Client Value Creation lies at the heart of our company mission, which is to help our clients become high-performance businesses and governments. Client Value Creation includes ensuring our client activities demonstrate value that is exceptional and measurable, working to understand client expectations from the outset, ensuring our client activities strive to meet or exceed client expectations, obtaining continuous feedback on progress toward objectives from every level, seeking help if you do not feel you are delivering the highest standard of quality, involving a broad range of people in the approach to deliver quality services and requesting additional resources, if necessary, to ensure that quality objectives are met.

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• One Global Network

Mobilizing the power of teaming to deliver consistently exceptional service to our clients anywhere in the world

Living out our One Global Network core value includes focusing on teamwork and diverse viewpoints, sharing knowledge and expertise with other groups, actively developing your own internal and external network and contributing to knowledge capital and thought leadership.

• Respect for the Individual

Valuing diversity, ensuring an interesting and inclusive

environment, and treating people as we would like to be treated ourselves

Demonstrating Respect for the Individual includes asking for and listening to the views and opinions of those around you, valuing inclusion, creating an environment where people are encouraged to raise issues without fear of negative consequences, ensuring vacation and training schedules are respected, giving people recognition for a quality job and saying “thank you,” creating opportunities for people to balance work and personal needs and treating others as you would like to be treated.

• Integrity

Inspiring trust by taking responsibility, acting ethically, and encouraging honest and open debate

Demonstrating Integrity includes taking responsibility for your actions and words, meeting your commitments, however small, admitting your

mistakes and turning them into learning opportunities, speaking up when problems occur or asking for help when you need it, giving credit to those who deserve it and voicing your opinion, even if it may not be popular. 1.4 Reasons for the research

Consultancy (to summarize Accenture Consulting, Technology and Outsourcing services) is a people business. One of the most important criteria that determine customer satisfaction, next to the quality of the provided service, is employee quality. The image of Accenture perceived by customers is mainly created by the way Accenture employees work, the way they communicate and the way they interact with client employees. For this reason is it most important that Accenture employees are aware of the values Accenture wants to communicate, and how those values should be ‘lived’.

Accenture is a rapidly growing organization. Lots of new employees are recruited every month, a significant number of them fresh from college. They are often scheduled to a client project after the first few days of introduction at Accenture, and from that moment work at the client site. This increases the challenge to include all personnel in a joint feeling of involvement. In this situation the

importance grows to create an internal awareness of Accenture values, and to be able to let the values return in the employees’ daily activities. Doing this, the desired image can be confirmed in the market.

The consulting, technology, outsourcing market in The Netherlands can be characterized as a rather competitive and dynamic market. In all three functional areas – Consulting, Technology and Outsourcing - Accenture meets specialized competitors. Besides this specific competition Accenture meets a few strong global competitors that work the triple services as well. The ability to retain existing client relationships is important for future success. Brand loyal customers

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provide economic and competitive advantages. One important economic advantage is that marketing costs are lower when keeping existing clients compared to attracting new ones.

In previously performed research was found that Accenture reaches high scores on awareness amongst clients and potential clients. The key target audience knows Accenture exists. The scores on knowledge and consideration though, are much lower. This implicates that clients and potential clients are aware that Accenture exists, but are not fully aware of the total package of services Accenture provides and do not have Accenture top of mind when deciding on a partner for Consulting, Technology and Outsourcing services.

From these reasons, one can derive the need for an investigation on Internal Branding. In a complex, competitive market, it is most important that the clients perception of the organization is conform the desired identity, character and core values. In other words; that the internal and external positioning are optimally aligned. In an environment where clients meet the employees of Accenture on a daily bases, and these contacts contribute to the overall perception of the quality of Accenture people an Accenture’s services, it is most important that employees are aware of the way Accenture wants to present itself to clients. Especially in an era in which Accenture is growing rapidly, it is important for all new employees to be aware of the Accenture values from day one of their career at Accenture. Finally, a lack of structural and strategic Internal Branding could be one of the reasons behind the gap between the scores Accenture got on Client Awareness and Client Consideration.

1.5 Problem definition

Brands are getting more and more importance and encompass more than just the products or services they represent. Brands get more meaning, an emotional aspect en are attached to a certain lifestyle nowadays. For this reason a

company’s employees are gaining importance concerning the brand management. It is them who are capable of giving the brand a human face and who have to prove the brand values and brand promises. This concerns front- as well as back office employees, but naturally it is merely applicable to the employees that have day to day contact with clients or customers. In the case of Accenture, it is nearly all personnel that have this type of client contact.

The thought that employee behavior is an extension of the brand promise and brand core values is embraced by an increasing number of organizations. Several functions within an organization – Human Resources, Internal Communications, and Marketing – are trying to understand and implement the instrument of Internal Branding separately, while an integrated approach to Internal Branding would result in more successful external positioning. The functions within the organization should be aware of the organizational identity, the internally shared values and the way they align with the brand and the brand values. The central question for the management should be: ‘How can we prove the brand promise internally as well as externally en influence the behavior of employees towards the external brand values?’

In short, the goal of Internal Branding is to ensure that the values of the brand and organization are reflected in the behavior and attitude of employees, and that employees can identify themselves with the values.

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The problem definition consists of a research objective and a main research question. To be able to give an adequate answer to the research question, it is divided into a number of sub-questions.

Research objective

To gain insight in the perception of Accenture employees regarding the quality of the provided services and the quality of Accenture employees, in to what degree Accenture employees are aware of the company’s values and to what extent those values are being ‘lived’, and in the perception of employees regarding information distribution within Accenture.

Main research question

Internal Branding has everything to do with influencing behavior and presentation towards external stakeholders, and alignment with external brand values. Key question in this report is whether influencing employee behavior can lead towards alignment of desired identity and desired image. The central question for this theoretical part of the report is:

“How can Internal Branding be used to align and realize the desired identity and the desired image of an organization, and how can this improve Internal Branding at Accenture?”

With the according sub questions:

1. What is the definition of Internal Branding and what is its purpose? 2. Why is it important to align vision, mission statement and corporate

identity?

3. What are the reasons for Internal Branding?

4. What are the conditions for a successful implementation of Internal Branding as a strategic instrument?

5. What is the perception of Accenture employees on the quality of Accenture services, the quality of Accenture personnel and the Internal

Communications within Accenture?

6. How can Accenture improve the Internal Branding process internally, to ensure an optimal alignment between image and identity?

Restrictions

This study focuses on the Internal Branding organization at Accenture

Netherlands. Global Accenture activities are left out of consideration. Competing companies are left out of consideration as well, although it would be interesting to perform a similar research about the whole market. In this research though, only Accenture is analysed. In this research all personnel at Accenture Netherlands are taken into account.

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1.6 Data collection

In this research two types of data collection are used in order to gather the necessary information; desk research and an online questionnaire.

Desk Research

A large share of the information used in this research is gathered by doing desk research. Information obtained by desk research is information that has already been collected by others for different purposes (Saunders et al., 2003: 188).The information is used to gain more insight in this particular subject. With the

purpose of getting an impression of what has been previously published, a literary review has been performed. Furthermore, information available at Accenture, like annual reports and previously conducted researches, are studied to gather the necessary background information for this research.

Online survey

Above mentioned secondary data collection is very useful in creating insight in the subject, and for making a start in answering the research questions. In order to obtain more specified information, primary data are collected by means of an online questionnaire. A questionnaire is a form of data collection in which each person is asked to respond to the same set of questions in a predetermined order (Saunders et al., 2003; 280). In this research I chose to use an online survey, because of the data analysis advantages that come along with an online questionnaire. The questionnaire is executed among all personnel at Accenture Netherlands, at the time of the research a population of approximately 1600 people. The questionnaire consists of structured and closed questions. All personnel received an email from the Country Managing Director of Accenture Netherlands explaining the relevance and importance of the research for the organization, and requesting them to fill out the questionnaire. Extra stimulus to realize a maximal participation level was the fact that amongst all respondents ten dinner checks where divided worth €75,-. The reminder email that was send out after one week is shown on the next page.

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1.7 Structure of the research

This paragraph provides an overview of the report and indicates the structure of the research related to the answers of the sub questions.

Chapter 1 provided a company overview, an introduction to the Accenture brand, and an overview of the research objective and main research questions. Chapter 2 discusses an introduction to Internal Branding and the different approaches to Internal Branding. In chapter 3, vision, mission and corporate strategy are discussed, as well as their relation to Internal Branding. Chapter 4 provides reasons for applying Internal Branding, whereas in chapter 5 the strategic execution of Internal Branding will be discussed. After the theoretical part of this report, I will discuss the Internal Branding practice at Accenture based on the outcomes of my Internal Research in chapter 6. Having looked at Internal Branding from a theoretical and a practical angle, I will give my conclusions and recommendations to management in chapter 7.

Chapter 1

Company Overview Brand Overview

Research objective & problem definition

Theoretical framework Introduction and Research design

Chapter 2

Introduction Internal Branding Approaches to Internal Branding Chapter 3

Vision, mission and corporate strategy and how they relate to Internal Branding Chapter 4

Reasons for applying Internal Branding Chapter 5

Strategic execution of Internal Branding

Conclusion Chapter 7

Conclusions Recommendations

Research Chapter 6

Theory to practice – Internal Branding at Accenture

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Chapter 2 Internal Branding – an introduction

Internal branding is a relatively new term in the world of marketing, corporate communications and human resource management. But what exactly is Internal Branding? And not unimportant: What is the goal of Internal Branding and for what types of organizations can it be of great value?

The key question in this chapter is:

‘What is the definition of Internal Branding and what is its purpose?’ The key aspect of Internal Branding is proving the brand. The messages told and promises made by external communication and marketing efforts should also be ‘lived’ throughout the organization. Main point in this is that employees identify themselves with the philosophy of the organization.

In closing the often existing discrepancy between image – external perception- and identity – self presentation of the organization -, Internal Branding seems to be the ideal instrument.

This chapter explains the meaning of the term Internal Branding. First I will give some definitions of Internal Branding, used in different disciplines and different settings. From those, I’ll find my own definition to be used in this report. After that, we take explore different visions on Internal Branding, and finally I will describe the value Internal Branding could give to different types of

organizations.

2.1 Definitions of Internal Branding

For the fact that Internal Branding is a rather new concept in marketing literature and limited scientific research has been conducted on the topic, the amount of available definitions of Internal Branding is limited as well. In marketing literature the term internal branding has evolved over time in her definition. In addition; internal branding has been defined in combination to concepts as corporate branding, corporate communications, brand management, as well as through the disciplines HR, Communications and Marketing. The diversity of definitions of internal branding is due to the complexity of the concept.

I will describe five different definitions of the concept, and from those will

formulate my own definition, using common features from the several definitions. This definition will than be used in the rest of this report.

• Definition 1:

“The process in which brand values, that together create the brand promise, become the inspiration source for organizing business processes and the behavior of people. Internal Branding gives meaning and value to daily activities. It binds employees and is an important contributor to realizing the organizational goals.” 3

• Definition 2:

“Communicating the brand effectively to the employees, convincing them of its relevance and worth, and successfully linking every job in the organization to the delivery of the ‘brand essence.” 4

• Definition 3:

3

M. Baaten; in ‘Internal Branding: een introductie’, pag. 15

4

Bergstrom et al.(2002); in ‘Captivating company; dimensions of attractiveness in employer branding’, Berthon;Ewing;Hah, International Journal of Advertising, 24(2) 2005.

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“The process meant to create internal conditions, as a result of which contact employees can fulfill their role as brand builder as efficient and effective as possible.”5

• Definition 4:

“Internal Branding uses the brand to emotionally bind clients, management and employees. Internal Branding has to bring the brand alive and create value for employees. The brand has to be used internally to establish a process of identification with brand values. This will create a direct link between business results and employee behavior.”6

• Definition 5:

“A continuous process that tries to head employee behavior in the direction of brand identity values. Its goal is to communicate and integrate the brand values in all parts of the organization, to create a positive working culture. The

externally promised should be proven or ‘lived’ internally by employees.”7

The definitions show that multiple visions exist on Internal Branding, its focus and its implications for business processes. What is notable is that brand identity is named as point of reference in most of the definitions, and that employee attitude and behavior necessarily have to be confirming the values and external promise of the brand. The difference in the definitions is in the way employees should be transformed to brand builders. Den Engelsen feels internal conditions should be formulated employees should live and work by. According to him this only applies to ‘high contact’ employees. Van Eck believes that when the brand can be

brought to live for employees, it will get meaning and value for them, and will contribute to them ‘living the brand’. Giling thinks attitude and behavior should be headed by communicating the brand values internally. Bergstrom believes internal branding should be linked in every job in the organization to be successful.

Analyzing all definitions, I have come to my own definition of Internal Branding, which will be used throughout this report:

“Internal Branding is a continuous process in which brand values become the inspiration source for organizing business processes and the behavior of employees. Internal Branding has to bring the brand alive and create value for employees. The brand has to be used internally to establish a process of

identification with brand values, which will result in employees being true brand ambassadors.”

Underlined are the key aspects of the definition, of which I think they are essential for establishing genuine Internal Branding. The process of Internal Branding should be ‘continuous’, not action based or temporarily. ‘Brand values’ are central in the process of Internal Branding and should be an ‘inspiration source’ for employees. As a result of the process the brand should be eventually ‘living’ in all parts of the organization ‘create value’ for the employees to use in their day to day work, making them ‘true ambassadors of the brand’.

5

B. den Engelsen; in ‘Internal Branding: een introductie’, pag. 15

6

M. van Eck, in ‘Internal Branding: een introductie’, pag. 15

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2.2 Approaches to Internal Branding

Several answers can be given to the question what exactly is Internal Branding. The answer is dependent of what view one has on the topic. Four approaches can be distinguished that have a different understanding of Internal Branding. In short those approaches are:

• Mission approach

Internal Branding is seen as ‘corporate religion’: a deep conviction of what is worth striving for as an organization. A ‘corporate belief’ working as an internal binder and guiding the strategy of the organization. The values and mentality of an organization are embodied by a strong leader that carries out those values internally as well as externally.

• Strategy approach

This vision is rather similar to the basics of the mission vision. Key in this vision is the question how the brand is embedded in the corporate

strategy, organizational structure and culture and in product development, service providing and distribution. The entire organization should think and act brand-like. This concept is also referred to as ‘total branding’.8

• Communication approach

In this vision Internal Branding is seen as the internal strategy on

marketing and communications. In this strategy Internal Branding means that the organization should ‘sell’ the brand to its own employees and therefore the external marketing strategy should be translated internally. Key point in this vision is to ensure employees to be optimally informed of and motivated by brand meaning and brand positioning communicated towards clients. Assumption in this vision is that a clear understanding of the brand by employees will result in ‘brand behavior’ automatically.9

• Organization approach

Internal Branding is an organizational approach, aimed at creating internal conditions that make employees fulfill their role as brand builders as effective and efficient as possible. In this vision client contact is key. In creating real brand ambassadors/ brand builders, not only the

communication of brand values is necessary; Employees have to be thought exactly how to behave conform brand values.

It is my understanding that the concept of ‘total branding’, referred to in the strategy vision, has best chances of being successful in the field of Internal Branding. Internal Branding should be embedded in all areas of the organization, and should be ‘believed’ as well by all employees and bodies in the organization. Its basics should be a common set of values and behavioral aspects. Goal in an Internal Branding policy should in my opinion be to guide the image by optimizing the (internal) identity, not the other way around like is proposed in the

communication vision. The entire organization should think act like conform the brand values. Especially in services organizations, where the amount of direct client contact is relatively high, employees acting brand aware and being true brand ambassadors will improve client perception and eventually business results.

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Franzen and van den Berg, 2002

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2.3 Internal Branding from within – functional perspectives Internal Branding is a ‘hot topic’ within marketing, corporate communications and HR. Each of the functions attempts to control Internal Branding activities, whilst in perfect execution of the concept a cooperation between the three functions would bring best results. To understand the approaches to Internal Branding from different perspectives, an overview:

Human Resources

Some organizations approach Internal Branding by taking employee behavior as a fundament for the company’s values. In changing or adapting the values,

whenever the external brand promise makes such changes necessary, the HR department is leading.

Another approach from HR perspective is by means of ‘employer branding’. The employer brand is the brand an organization represents as an employer. The positioning towards current and potential employees. The employer brand concerns the organization’s brand values and is therefore important to achieve a strong position in the labor market en at the same time attract the right staff. A good relation between (external) brand values and (internal) organizational values is indeed the foundation for the employer brand.

Marketing

‘Marketing comprehends the – adjusted to the market – development, price definition, promotion and distribution of products, services or ideas, and other activities to systematically advance transactions, create a reputation and build lasting relationships with clients, where all sides accomplish their objectives’ 10_{; is}

the definition Verhage gives for ‘marketing’.

Over the past years, the term ‘integrated marketing & communication’ had gained importance. All marketing and communications instruments sould be aligned with each other, striving for synergy and consistency in all external and internal communication. The role of the employee becomes gradually more important in determining the client’s perception and the way an organization can distinguish from competing companies. For this reason, more effort is put in aligning the behavior of employees with the brand values and making them into true brand ambassadors.

Corporate Communication

Objective of corporate communication is primarily to communicate values and positioning statements to external stakeholder groups. By means of integrated communication synergy effects can be realized in terms of adaptations in knowledge, attitude and bahavior of the target group. This is achieved by integrating instruments and media, and communicating messages in a way that optimizes differentiation and consistency, to ensure recognizability of brand values, internally and externally.

Corporate communication mainly focuses on:

• Minimizing differences between desired identity and desired image • Giving meaning to the ‘company behind the brand’

• Structuring communication processes and responsibilities within the organization

For the culture of an organization corporate communication is important to

furmulate and choose the core values that are the foundation of the brand values.

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For a strong culture a logical connection between core values and brand values is key. The function Corporate Communication should prevent a situation in which different departments and units within the organization have their own subculture and set of values. Such a situation will lead to a shattered, unconsistent and unclear image.

Overlay of the three functions

A strong internal brand awareness stimulates employee loyalty and motivation, which results in lower retention rates and higher employee satisfaction rates. The organization can only achieve this when HR, corporate communication and marketing work closely together in communicating consistently, realizing synergy and enforcement of internal and external brand positioning. The final goal of internal branding is achieving changes in employee behavior towards the essence of the external brand values. The shared objectives of the three disciplines is: ‘Make your employees into true brand ambassadors’.

2.4 Benefits of Internal Branding for organizations

Internal Branding is mainly relevant in organizations that conduct an active brand policy and strive for a strong in- and external brand positioning. In some

situations applying Internal Branding consequently within the organization is particularly important:

• Large existing gap between external and internal brand image • Weak or underdeveloped organizational culture

• Merger or acquisition in which several organizational cultures come together

• Re-branding operations • Reorganization

• In times of, and after, crisis situations

A differentiation in adaptability to Internal Branding can also be made based on the type of product of services a company is providing:

Services vs. products

Products differ in many ways from services. A product is merely tangible, production is seperated from consumption, there is most often no direct contact between producer and customer, etc. Service providing companies the employee plays an important role in the service provided to the customer. Empoyees are in fact to be seen as part of the brand, they are important carriers of the brand essence.

The fact that Internal Branding is particularly relevant for service providing companies can be explained through a set of characteristics of services brands, namely: Intangiblility, inseperability, heterogenity and temporarity. These features are explained here:

Intangibility

The intangibility of a service means that the service can not be showed or touched beforehand, as is the case with most products. This is an extra hurdle for the customer to define the quality of the service. On could say that, when more competitors offer the same service, a customer can only decide his preference based on previous experience, experiences of others, word-of-mouth and the available tangible aspects of the services, as there are employees, technical equipment and price.

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Because the actual service is often intangible, it is important for

organizations to make their service as tangible as possible. By applying a clear and recognizable brand style and look&feel and by communicating clear and realistic with the customer, the expectations of the customer are managed and this enables them to make a better distiction between the different providers.

Inseperability

Services are inseperable because they’re sold first and produced and consumed later. The process of production and consumption can most often not be seperated from the service provider itself and its employees. The moment in which the employee had contact with the client is referred to as the ‘moment of truth’. At that moment, the customer’s perception of the quality of the service is merely determined by the employee11_.

Heterogenity

Service providing is always heterogene. No two employees are the same and services providing is strongly dependent of human interaction. Services are often bound to place and time and can vary between locations, departments, employees, between customers and even moments in time. A clients’ specific demands will change the process of service providing and make it unique. The challenge in this is for the employee to adapt to the wishes and demands of the client, making his of her experience with the service a positive one. Those occurences can result in a lasting relationship between service provider and customer. Temporarity

Storing or returning services is not possible. Services are provided when the customer asks for them.

The above mentioned four characteristics of services imply that the contact employee is a very valuable chain between organization and customer. The employee in fact represents the organization and has to ensure that the brand values are communicated properly though his actions and interaction with the customer.

In serviceproviding there are three central aspects: the customer, the organization and the contact employee. This results in three types of communication: communication between the organization and the client., between the client and the contact employee and communication between the organization and the contact employee. All three types of communication are relevant for growing and maintaining a proper relationship with the client. The clients perception of the quality of services and the identity of the organization is determined by the corporate communication of the organization towards the client, and by the interaction between the client and the contact employee.

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The picture shows the interaction of the three types of communication. What the picture doesn’t show is the fact that the customer should at all times be the center of all activities and communications. An organization’s success is

determined by the judgement of the customer. When the service providing of the organization is not corform the demands of the customer, chances of success are low. It is the employee who needs to carry out the brand values towards the customer. Therefore, it is most important that employees prove the externally promised brand essence. Internal Branding needs to enable the employees to prove the promised brand values to the customers.

2.5 Conclusion

This chapter discussed the definition of the concept of Internal Branding, the different approaches and disciplines within the concept and the types of organizations that Internal Branding could apply to most.

It is my understanding that Internal Branding needs to be a continuous process, not pushed by one department within an organization, but carried by all staff and functions within the organzation and embedded in all systems and processes of the organization.

It is crucial that all employees know, understand and value the vision, mission statement and core values of the brand they are representing. Only when this knowledge and understanding is in place they can become true ambassadors of the brand, in this case the Accenture brand.

It is obvious that Internal Branding is particularly relevant to apply within a service providing organization, because the contact employee embodies the organizations personality towards the customer. Even organizations only get one chance for a first impression and therefore the initial contact between an

employee and the customer is crucial in establishing a valuable relationship. When this first contact is not conform the expectations a customer had based on previous communications from the organizations communications department, the perception will be negative.

From the desrcibed theoretical framework I derive that the identity of the organization is connected to the formulated vision and mission statement. Employees will be able to identify with the mission and vision, and feel comfortable with the organizational values. This will result in a strong

organizational culture, lived by all personnel. Ways of thinking, feeling and acting are part of this culture. When Internal Branding is applied within an organization its goal is to have the external values copied internally in behavior and attitude.

Client

Contact

Employee

Organization

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The answer to the central question of this chapter:

‘What is the definition of Internal Branding and what is its purpose?’ is, according to me:

“Internal Branding is a continuous process and aims to align employee attitude and behavior with the desired brand identity of the organization. Employees identify with the external brand values, the mission

statement and the reasoning behind the brand by living and feeling the brand. The employee aligns his behavior with the brand promise, whereby the external promise is proven internally.”

The eventual goal of Internal Branding is to prove the external messaging and promises internally, to ensure a consistent image of the organization, which will reinforce the organizations positioning. Goal is not only to build a stronger brand but to build a stronger company.

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Chapter 3 Vision, mission and corporate strategy

This chapter concerns the question why it is important to align a company’s mission, vision and corporate strategy.

Most companies have formulated a vision and mission statement at the start of their activities. Nowadays, one could ask the question whether the used vision and mission are up to date in the modern economy. Next to the time aspect, it appears that mission and vision statements very often lack differentiation from competitors in the same sector. Few motivation and inspiration is derived from mission and vision by the employees, which eventually reflects on the companies corporate identity and in the end on the corporate image.

In this chapter I will first give a description of the different expressions and will after this look at the relationship between the expressions. What is their definition? What are the relevant aspects of a brand identity? Why are mission and vision important for the corporate identity? How can we determine if a company has the desired type of corporate brand? And of course…..what does al this have to do with Internal Branding?

3.1 Definitions

To be able to define a relationship between mission, vision and corporate strategy, it is important to first clearly define and understand the different expressions.

Vision

An organizational vision basically consists of two pieces; core goal and core values. The core goal translates the companies ‘raison d’etre’ – why does the company exist. For this matter it is key to understand that the reason of being is not within the organization itself. An organization only had reason to exist when it contribites to the environment it operates in.

Like Drucker (1974) said: “The purpose of the business must lie outside of the business itself. In fact, it must lie in society since business enterprise is an organ of society.”

An organization’s vision must therefore be defined according to it’s environment, it’s target market and it’s product of service. The reason to exist always has to lie outside the organization itself.

Core values are those values that are embedded deep in an organization and cannot easily be changed. Core values can and sometimes must change though. When the organization’s environment doesn’t seem to profit from the

organization’s values and output, the values need to be changed in order to assure the continuity of the company. The vision is a prelude to the company’s mission. The vision defines the area wherein the organizational mission has to be defined. Fulfilling this role, the vision has to be firm and stable.

A vision is build up from several elements: - Who/what are we? (Self image) - Wherefore do we exist? (Core goal) - For who do we exist? (Target audience) - What do we promise them? (Core values)

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Mission

Opposite to the vision, that is defined outside the organization, the mission is formed within the organization. A mission statement is a concrete and challenging goal that is defined within the boundaries set by the organizational vision. Vision and mission can be seen as an integrated whole.

In this, the understanding of the vision and mission by all stakeholders is key. Employees should feel motivated and valued by the content of the mission

statement and acting conform the core values. A lively description of the future is important in the definition of a mission, in which passion, emotional aspects and belief are essential elements. Collins and Porras (1996) believe that people as motivated mainly because of these elements. Only when employees can ‘picture’ the mission in their minds, it can function as a guide in their daily behavior. In formulating the mission a few aspects should be taken into account: - How do we do things around here? (behavioral standards) - What do we want to achieve? (operational goals) - How will we achieve it? (strategy)

Corporate identity

In short, corporate identity is the selfpresentation of the organization. Behavior, communication and symbolism are the three Corporate Identity-means of presentation. With these signals an organization reveals it’s unique features and represents it’s personality based on the organizational strategy.

Birkigt & Stadler (1986) formulated a definition of corporate identity, I can perfectly agree with:

“Corporate Identity is the strategically planned and operationally managed selfpresentation and the internal and external behavior of the company, based on the company’s philosophy, a long-term strategy and a desired image, aiming to leverage all organizational activities as one consistent set of expressions” Not only consistency in the company’s communications, but also aligning the short-term and long-term strategies with the overall organization goals are important for corporate identity. Selfpresentation and organizational behavior, internal as well as external, should be based upon a clear set of organizational goals.

In realizing the desired corporate identity, management can make use of a set of instruments:

• Behavior

Main and most effective Corporate identity instrument. In the end stakeholders perception will be mostly based upon organizational

bevahior. It is however possible, to underline certain behavioral aspects. • Communication

Verbal and visual messaging. Most flexible corporate identity instrument, can be used fast and tactical. An organization can distribute it’s messages quickly and directly. In all communications, one should keep in mind that the content of the messages has to be in line with the actual behavior. • Symbolism

Follows the other means of expression. Symbols are often used to simplify messaging, to support the messages told in communication and behavior. The corporate identity mix are the means for presenting the personalisy of the organization. In fact, personality could be seen as the fourth aspect in the corporate identity mix. It is the outcome of the other three.

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3.2 Vision, mission and corporate identity vs. Internal Branding Creating a clear brand-vision and –mission are the most important and key steps in assuring an employee brand. The brand vision aims to guide all employees in what goals to persue and accomplish. When the management lacks to define brand vision and – mission, employees will not be familiar with the values and messages the company wishes to distribute towards all key stakeholders, internal and external. In the scenario where no clear mission and vision are defined, individual employees will determine their own set of messages ans values they find applicable to the organization, which will result in a scattered image in the marketplace. A clear vision and mission statement can therefor contribute to the recognizability and distinctability of the company.

According to Broos (1998) having formulated a mission and vision is not enough to be succesful. Allowing the employees to derive motivation and commitment from the mission, is necessary in order to assure long term consistency in corporate identity.

The mission statement is to be ‘alive’ within the organization. Most important here is that the mission becomes the main source for employee behavior and guides them over time in making decisions that might affect the organization’s identity. The genuinity, discipline and consistency in the way the mission is ‘lived’ differentiate companies from their peers.

Conditions for vision and mission

Broos (1998) identified seven conditions a service providing company has to meet to enable the corporate mission to work as an ‘engine’ for employee behavior:

- Contact employees need to be willing and able to act conform the mission

- To be able, contact employees need to be competent and given adequate resources

- To be willing, contact employees need to be motivated and/or stimulated

- To be motivated, contact employees need to feel addressed by the mission and vision

- To feel addressed, contact employees need to at least understand the mission and vision

- To understand the mission and vision employees have to be confronted with it.

- To confront employees with organizational mission and vision, an organization must define mission and vision.

Being able and willing are the key words. In order to have an efficient and working set of mission and vision statements, an organization needs to define, implement, and consistently use the mission and vision.

Willingness and ability depend on a number of aspects which are dividable into intrinsic and extrinsic components. An employee should be motivated and capable to ensure him or her to be willing and able to work according to the brand vision and mission. The extrinsic part contains the employee to be stimulated and enabled (provided with possibilities) to optimally execute his or her

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Willing

Able

Intrinsic

Motivation Capability

Extrinsic

Stimulation Possibility

The ‘MissieMotorModel’ (revised version). Broos.

Intrinsic and extrinsic aspects reinforce each other and will not result in satisfactory outcomes without being well combined and integrated. Motivation and capability will florish when optimally stimulated and enabled. It is my opinion that not only the ‘contact-employees’ need to act conform the mission and vision of an organization. Front- and back office employees all work together in

providing the company’s services to the target audience and should all work accordingly, and follow the vision and mission in their daily decision making. Only than a consistent corporate identity can be realized.

Corporate Indentity and Internal Branding

An organization with a clear and strong corporate identity has better chances in achieving results. Main advantages of having a powerful corporate identity are:

Motivation increasing effect on own employees

A powerful corporate identity creates a sense of belonging. Employees can identify with the organizational values. This will inccrease commitment and willingness to contribute to the organization’s success. Human capital is utilized optimally in this way, translating the corporate identity externally. Trust amongst external stakeholder groups

A consistent and clear image amongst stakeholders is the result of a powerful corporate identity. Consistency is messaging is essential in this. Credebility is at stake when an organization communicates scattered messaging. This is applicable to all stakeholder groups, however two in particular:

Consumers

Most often clients are the most important stakeholder group. The reason of being is very often directly related to this target audience. Creating a relationship based on trust and reliability can provide a foundation for continuity and future success.

Financial stakeholders

Investors are often perceived as the second most important stakeholder group. Belief and trust amongst this group is essential for future

investments and the willingness to take financial risks.

In short, the importance of having a clear and consistent corporate identity is ‘bonding’. A powerful corporate increases expectations for identification with the organization. This applies internal as well as external stakeholder groups. 3.3 Brand identity vs. Internal Branding

According to Boer (2003) brand identity is subdividable into two parts: mental brand identity and visual brand identity. For Internal Branding, the mainly important aspects are those that make the mental brand identity. In defining the mental brand identity the most important aspects are a clear definition of what

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Show Brands

Blank Brands

Nerd Brands

Personality

Brands

the brand represents, what are the DNA and soul of the brand. Rigorous changes in these features can cause danger to the consistency. Changes to brand values, brand DNA etc. take a while to be fully realized and for the brand image to be adapted accordingly.

Boer says that the completion of the mental brand identity contains six relevant aspects:

1. Brand vision

Long term strategy – brand positioning for the future.

2. Brand mission

Concrete methodology to achieve the vision. Mission has to be ‘lived’ internally and is often communicated externally as well.

3. Brand core concept

Desired location in the associative network of clients and other key target groups.

4. Brand values

Describing the value of the brand in a few clear expressions.

5. Brand promise

What do we promise our customers?

6. Desired brand personality

Description of the brand in personality traits.

Internal Branding is about the alignment of internal and external brand

strategies, in which the employees act as representatives of the brand. Internal Branding is particularly applicable when brand identity and corporate identity align. An optimally implemented bonding with and commitment to the brand has to be the result.

3.4 Brand-Reputation Grid vs. Internal Branding

In cooperation with the Centre for applied research in Brand-, Reputation and Design management” (CRBD), Riezebos developed the Brand Reputation Grid, which separates the organization’s internal reputation (employees) from the external reputation (clients). Both internal and external reputation are

appreciated ‘weak’ or ‘strong’ which results in a reputation grid. Four types of corporate brands are differentiated: Show brands, personality brand, blank brands and nerd brands.

Strong

External reputation

Weak

Weak Strong Internal reputation

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Show Brands are strongly market oriented. A show brand is charecterized by extensive attention for the customer and a detailed knowlegde of competition. Well capable of differentiating and positioning themselves in the marketplace, based on market - , client- and competitor intelligence. Positioning supremacy is typical for show brands.

Personality Brands succeed in aligning not only the goals and objectives of individual employees with the organizational goals and objectives; the values of employees are also aligned with the corporate values. This results in a powerful and consistent culture, profiting from a strong identification. The power of identification is typical for personality brands.

Blank Brands should aim to maximize the systems and processes within the organization. Proces optimization is typical for blank brands.

Nerd Brands are strongly product-oriented brands. Main objective for these type of organizations is not ony producing high value products, but also inventing innovative new products. Innovation power is typical for nerd brands.

Analyzing the different quadrants, personality brands are most representative for effective and succesful implementation of Internal Branding. This type of

organization (brand) has both strong internal and external brand positioning, reinforcing each other. Employees feel committed and included and are proud to be part of the organiazation and to be able to represent the brand. They can identify with the brand values, and can easily ‘live’ the brand. Show brands also have strong external brand images, but lack the ability to make their employees identify with the brand values. External promises are in this case not always realized by the employees behavior and decision making.

3.5 Conclusion

This chapter thoroughly desribed the concepts vision, mission and corporate identity, including their interconceptual relations and their connection to Internal Branding.

This chapter concerned the question why it is important to align a company’s mission, vision and corporate strategy.

From findings in literature one could derive that for continuous success it is essential for organizations to define clear, comprehensive and consistent brand vision and – mission. Formulating mission and vision are the most and first steps to fulfilling a role as brand builder towards all employees. The importance of a brand mission lies in the fact that employees are aware of the organizational goals and the way the company strives to achieve those goals. Clear, realistic and stimulating goals will contribute to the employee commitment level and have a positive impact on motivation and involvement.

When employees understand the (brand)vision and mission of the organization and are willing and able to act on them, this will be recognizable in employee behavior and contribute to consistent external positioning. It will positively infuence the corporate identity which reflects on the organization’s image. In communication, symbolism and behavior the organization expresses a consistent image to relevant stakeholder groups. This contributes to the process of Internal Branding, because in this case external promises are lived internally.

For Internal Branding a powerful corporate identity is crucial. Employees feel involved and responsible for their contribution to the organizational goals and

Internal Branding at Accenture

Preface

Table of contents