Corporate identity: its effects on business performance

Abstract

CORPORATE IDENTITY is assumed to be an important business resource, but it has been inconsistently defined since its emergence last century. Although many organizations spend vast amounts on identity, its effects on performance remain unclear. There have been no studies on the connection. This thesis addresses these concerns, using qualitative research and a model which ties together the literature on identity and branding, and acknowledged identity practice. As there was no prior research, a descriptive approach was adopted, along with a definition of identity-'the explicit management of the ways in which an organization presents itself through experiences and perceptions to all of its audiences'-upon which most identity professionals agree. The research began with questionnaires, initially evaluating II firms in the greater Wellington region. The chosen six examined in depth, all from different industries, represented good, average and poor organizations, based on the handling of their identity programmes. A series of interviews looked at the organizations' approaches and their success as judged by internal, intermediate and external audiences. The findings suggest that there is a connection between identity and performance, measured objectively and subjectively. Regardless of organization type, industry concentration or size, identity impacts positively on performance through vision-setting, identity research, identity exposition, and image. The relationship between the stages is linear, each impacting on the next. The research demonstrates that a vision statement could, conceivably, be replaced by a memorable slogan which strongly differentiates the organization, providing a foundation for the identity programme. Organizations should develop identities using cross-functional working groups, where members can report developments to colleagues. When identity research lacks strategic input and involvement from different functions, an exposition programme, conveying the wrong messages about the organization, results. Audiences are confused by conflicting images; therefore, organizations must be consistent in the way they project themselves through a well-managed exposition stage. Audiences judge organizations based on image, which needs to be explicitly audited and managed to determine whether existing perceptions and associations can be capitalized upon, or replaced, over time. The explicit management of identity is a real concept and key to organizational success. Therefore, identity should be acknowledged as an indispensable business and marketing resource.