CorpComms Magazine

When a company unveils a snazzy new brand, most people tend to judge whether it is successful or not by looking at the name and the logo. If they like the colours and the font, they give it the thumbs-up; if not, they tend to regard the rebrand as a failure.

But branding experts believe this approach is just scratching the surface. Before a company's new brand is even unveiled to the outside world, there are whole swathes of people affected internally. When handled well, internal communication about rebranding can motivate staff, change the company's culture for the better and create cohesion and loyalty. When communicated badly, however, it can seriously undermine your entire rebranding strategy.

Group dynamic
'Ultimately, any brand is enacted by its people,' says Graham Hales, chief marketing officer at brand consultancy Interbrand. 'You need to consult them and keep them onside to lift it. A brand is only as good as its tangible delivery.'

Tom Greenwood, co-founder of ethical branding consultancy Scamper, agrees that getting staff onside is vital. 'They are powerful ambassadors for any brand, and if they do not buy into it - or, worse still, they resent it - they will pass this message on to customers,' he points out.

Radical brand changes where the staff are not onside rarely work, Hales points out, citing Royal Mail's disastrous name change to Consignia in 2001. It took two years of research and focus groups to come up with the name, which was described by then chief executive John Roberts as 'modern, meaningful and entirely appropriate', and by staff as something altogether less positive. It was 'Consignia-ed' to the scrap heap of unpopular brand names within two years.

'The media were allowed to judge it just on the name, and the strategy wasn't explained to employees,' says Hales. 'Companies should do their homework in advance so they are more comfortable defending the brand.'

Experts agree that the time before unveiling a new image to the world should be seen as a window of opportunity to engage with employees. To make a rebranding successful, staff must feel part of the whole process and, ultimately, proud of the results.

Allan Biggar, chairman of brands and marketing services group All About Brands, says rebranding can make a huge difference to staff motivation, as long as it is based in reality.

'You can't just stick go-faster stripes on something that is old, slow and poorly run and declare it to be bright, new and dynamic,' he says. 'The brand needs to work internally and externally, and it needs to be believable. It needs to reflect the true values and ethos of the company. If it does, and people are proud to work for the company, you'll have highly motivated people working for something they are proud of. That's a hugely powerful combination.'

Biggar advises managers to get involved with their employees at the time of a rebranding. 'Managers need to demonstrate leadership, and part of that is getting on to the floor and talking to people,' he explains. 'Run workshops, surveys or whatever fits the organisation's scale; capture what's already good about the organisation, harness existing goodwill and be seen to be fixing problems first before tackling the external brand.'

Finding the right route
Missing People did just that when it changed its name from National Missing Persons Helpline last year. The charity, which was in the limelight recently following the safe return of kidnapped teenager Shannon Matthews, feels its new brand more successfully reflects what it does.

'Research suggested the public saw us as a single service organisation, probably heavily state funded and being closely tied to the public sector,' says Ross Miller, head of corporate communications at Missing People. 'Our visual identity was dated, inconsistent and neither engaging to nor reflective of our beneficiaries, stakeholders and supporters.'

The organisation selected 'brand champions' among its workforce and volunteers, who completed a survey and helped choose an agency to work on the rebranding. 'As the process developed, we regularly alternated the champions so that as many people as possible would have their opinions heard,' says Miller.

Once the new brand was ready to be unveiled, the charity invited every staff member and volunteer to a meeting to discuss the new brand. This communication with employees and volunteers has even continued since the launch: Missing People has a 'brand board' for suggestions, and invites staff to find places where the old name still appears and needs to be updated.

'We are trying to get staff to feel part of the branding process on an ongoing basis and to convey the need for constant review of our brand,' Miller explains.

He adds that the rebranding has dramatically changed internal company culture: 'Greater pride is taken in the office environment and there is also a willingness to 'be part of the brand', be it contributing to internal communications or wearing branded clothing when a television crew films in the office. The key for us was making sure we spoke to different internal audiences in a way they would understand, and to always relate the brand back to their work.'

LV affair
Nigel Snell, corporate communications director at financial services company Liverpool Victoria, agrees that a company rebranding can have a serious effect on staff motivation, if it is handled well.

Founded in 1843 as a friendly society that helped members fund the burials of their loved ones, Liverpool Victoria is now a major financial services group managing funds in excess of £8 bn. It became apparent in recent years, however, that Liverpool Victoria was considered an out-of-touch brand with few links to its business, so the group consulted with members, customers and staff about a potential rebranding.

The company relaunched as LV= in March 2007, although it has also hung on to its old name. 'Post-event analysis showed employee engagement was much improved,' Snell says, citing a survey that showed a 22 percent increase in the number of employees being proud to work for LV=.

Like Missing Persons, LV= made sure it did its homework beforehand. 'It was vital to ensure all employees were fully engaged and 'bought in' to the new brand strategy, identity and values,' Snell says.

A range of events was held to engage staff with the new corporate brand. A 'walk-in' tunnel depicting the brand's history was created, while ITV Evening News anchor Nina Hossain interviewed LV= chief executive Mike Rogers on the brand and the future strategy for the business.

The company also held four interactive sessions to involve its employees in the new brand strategy. During these sessions, staff learned more about the new brand and what it stood for but also decided ways in which they would deliver its values to customers and members.

Graffiti and storyboard artists were used to bring staff ideas to life. Some of these images are now on permanent display in the group's offices, and new ideas are being added to the visuals as they emerge.

Snell attributes a recent award won by the firm to employee engagement with the new brand. 'We have recently been recognised by the Corporate Research Foundation as one of Britain's top employers,' he says. 'Our new brand introduction and launch were undoubtedly key to this success.'

Cooperative working
The Co-operative Group also found a recent rebranding as The Co-operative helped to motivate staff. The company surveyed stakeholders before rebranding, and its staff received training in their respective sectors.

'Given that we have more outlets spread across our family of businesses than Tesco and McDonald's put together, and we also operate in a number of sectors including food, financial services and travel, this is a continuing programme,' explains Russ Brady, head of corporate affairs at Co-operative Financial Services. 'For years we've been unable to show how big we are on the high street, but that is now changing.

'The feeling that we are a major player is starting to reverberate through to colleagues, which can only bode well. It is still early days and, given our size, our rebrand programme is likely to continue for the next 18 months or so. That said, however, there is still a noticeable buzz within our organisation.'

Ambius, formerly Rentokil Tropical Plants, won best rebranding exercise at the CorpComms Awards 2007. Michelle Rodwell, international brand and marketing director, claims the rebrand has changed the way employees think about their company. 'You hear people saying now, That's not the Ambius way,' she points out.

The company formerly had two different names in 14 countries, and the rebranding exercise also created curiosity about what was happening overseas.

'Everyone had a 'five senses' day to discuss the rebranding, and people were wondering what was happening in other countries,' Rodwell says. 'It really got people talking.'

Rodwell advises anyone who is beginning a major rebranding exercise to take a collaborative approach. 'People like to be consulted about events and feel part of them,' she says. 'We changed our logo several times during the process after we asked people what they wanted. Nobody wants to feel uninvolved or unable to have any input on these issues.'

Dodging the pitfalls
All these rebrandings worked well because staf f were involved and consulted. Brand experts warn that if a rebranding goes wrong, it can cause serious staff problems.

'Staff members may feel the rebranding is not in their best interests and see it as a signal of unwelcome changes in the business, such as job losses or changes in management,' warns Greenwood.

'This can result in problems such as reduced staff motivation, increased staff turnover, increased recruitment costs and poor customer service. A great brand can make staff feel inspired and proud, and a poor brand can have the opposite effect.'

Biggar believes just throwing money at the problem can be a disaster. 'Don't start with the logo!' he warns. 'Put a new shiny logo in front of apathetic or upset staff - or, even worse, spend a ton of money on a logo and then do that - and you'll just aggravate the problem.'

Biggar says that unless managers fix problems and harness existing goodwill before tackling the external brand, a rebranding 'will be seen as a cynical exercise and staff motivation will plummet'. He cites high street retailer Marks & Spencer as an example of good rebranding after a shaky start. 'Having tried new advertising campaigns and tinkering with the stores, it had to go back to basics internally before overlaying an external brand push to get it to work again,' he explains.

Hales worked on a rebranding of banking group Barclays that aimed itself squarely at employees. The bank bought up all of the advertising space at Canary Wharf station, where it is headquartered, and used this to declare that it was proud of its employees. The adverts championed the staff as inventive and creative, helping to brand the bank internally.

'With HSBC on the same site, the campaign also spurred some competitive pride,' says Hales. 'Gradually it changed what defined a 'Barclays person'. To get staff onside with a rebranding you have to explain the economic reason for it. The mistake people can make from outside is to see brands as nebulous. If you have a case behind your brand for how it is going to create economic value, it will work. Without that, it's just a nice idea.'

Talking the talk
Greenwood believes a rebranding is a great time to improve staff communication. 'It is a perfect opportunity to open up a dialogue with staff and understand what they want their organisation to be,' he says. 'It can, therefore, be highly effective in signalling changes in the corporate culture and ensuring that staff members are truly on board and have a good sense of ownership and belief in the changes that are taking place at their company.'

Greenwood warns, however, that unless staff see things really changing, a brand relaunch can just look like an empty dream. Hales agrees. 'Hype may create an initial buzz, but in the long term people need to see real results,' he asserts. 'It's therefore better to under-promise and over-deliver than to promise more than you can really give.'

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