My friend and colleague at the Medinge Group, Ava Hakim, passed on a few papers from her day job at IBM. The first is the latest edition of a biennial global CEO survey, while the second asks the next generation of leadersâGeneration Y. The aim: to find out what these groups think about the challenges and goals for CEOs.
Unsurprisingly, both studies (involving thousands of respondents) had commonalities, though Generation Y placed global awareness and sustainability more highly on their list. Creativity, however, is ranked as the most valuable leadership trait. What society doesnât need, they tell us, is the same-again thinking if we are to make progress in the 2010s. The old top values of âoperational excellenceâ or âengineering big dealsâ no longer come up top in this new decade.
Or, as I heard from one gentleman yesterday, we canât afford to have the sort of âexperienceâ certain people tout, for they do not have 25 yearsâ experienceâthey just have one yearâs experience, over and over again, 25 times.
You know Iâm going to say it, so I might as well: this sounds like the sort of âexperienceâ some of my political opponents have had, day in, day out. Groundhog Day comes to mind.
Indeed, the studies indicate that we have a far more complex world, and same-again thinking isnât going to cut it.
In the first study (emphasis in original):
Creativity is the most important leadership quality, according to CEOs. Standouts practice and encourage experimentation and innovation throughout their organizations. Creative leaders expect to make deeper business model changes to realize their strategies. To succeed, they take more calculated risks, find new ideas, and keep innovating in how they lead and communicate.
The most successful organizations co-create products and services with customers, and integrate customers into core processes. They are adopting new channels to engage and stay in tune with customers. By drawing more insight from the available data, successful CEOs make customer intimacy their number-one priority.
Later:
Facing a world becoming dramatically more complex, it is interesting that CEOs selected creativity as the most important leadership attribute. Creative leaders invite disruptive innovation, encourage others to drop outdated approaches and take balanced risks. They are open-minded and inventive in expanding their management and communication styles, particularly to engage with a new generation of employees, partners and customers.
And:
Creative leaders consider previously unheard-of ways to drastically change the enterprise for the better, setting the stage for innovation that helps them engage more effectively with todayâs customers, partners and employees.
The study also highlights an increase in globalization, especially in developing markets, leading to greater complexity. It also says the most successful leaders are prepared to change the business models under which they operate.
In fact, the world we now live in demands that our leaders are globally aware, and see the need to compete in a global market-place.
The implications for this city are that Wellington can no longer afford to see itself as merely the capital of New Zealand or the geographic centre. It is one of many cities that must compete for attention and resources at a global levelâwhich means creating world-class centres of excellence for our industries. Creating such clusters can even help them stay domestically owned.
The study indicates that the style of leadership is going to be, necessarily, internationalistâwhich means we canât afford to have leaders who are monocultural, and fake multiculturalism. This, like any aspect of a brand, must be embodied for real. It doesnât mean giving up what âbeing a New Zealanderâ is; it does, however, mean that we have to be able to communicate with other nations and cultures, seeking advantages for ourselves.
Innovation is a driver both in terms of internal processes and as a core competenceâso leaders had better be prepared to do this. And being closer and more transparent with customersâor in the case of a city, citizensâis something practised by the most successful leaders, says the study. It reminds me of the topics in the first book I contributed to, Beyond Brandingâwhere integrity and transparency were at the core.
When it comes to the Generation Y study, the results were similar. This table summarizes the two quite well, and notes how the two groups differ:
I donât want to be giving the impression that the second study is less important, but realize that some of you are sorely tempted to see me wrap up this post.
I will say, quickly, that the lessons are clear: the next generation expects leaders to be globally minded and sustainable.
Chinese respondents in the second study, in fact, valued global thinking ahead of creativity. This perhaps highlights where the Peopleâs Republic, above the other Chinese territories, is heading: looking outwardly first and delivering what customers in export markets want.
As creativity is naturally a trait among Wellington businesses, itâs nice to know that many are already prepared for the challenges of the 2010s. And some of our most successful names would not have got to where they are without global thinking, even if some have been acquired by overseas companies: 42 Below, Weta, and Silverstripe come to mind.
However, I canât see these traits being reflected in politicsâand thatâs something I hope we can change in the local body elections, for starters.
A leaked GM memo revealed: âWeâd ask that whether youâre talking to a dealer, reviewing dealer advertising, or speaking with friends and family, that you communicate our brand as Chevrolet moving forward.
âWhen you look at the most recognised brands throughout the world, such as Coke or Apple for instance, one of the things they all focus on is the consistency of their branding. Why is this consistency so important? The more consistent a brand becomes, the more prominent and recognizable it is with the consumer.â
The document was signed by Alan Batey, vice president for Chevrolet sales and service, and Jim Campbell, the GM divisionâs vice president for marketing.
Bad example there, Alan and Jim.
Coke is to Chevy as Coca-Cola is to Chevrolet.
And no one ever complains of Coke being inconsistent.
This is the sort of daft thinking that makes any of us brand professional shudder: total amateurs talking about brandingâout of their rear ends.
Itâs this lack of awareness of what branding is, inter alia, that started GM down its slippery pathâwith only a brief reprieve when Bob Lutz, aware of what GMâs brands stood for, was around.
By demanding that Chevrolet people not refer to the brand as Chevy does the exact opposite to what brand experts and marketers recommend today: to be one with the consumer.
I can understand if Chevy was a very negative word, but it isnât. Itâs an endearing word and it does not create inconsistency with the full Chevrolet word. It complements it, connects the brand to the audience, and, perhaps most importantly for GM, builds on the brandâs heritage.
After all, Chevrolet itself has encouraged the use of the Chevy name for decades in its own advertisingâincluding during its heyday. Omitting the use of Chevy instantly cuts many Chevrolet connections to its stronger past. And thatâs a past that can be used for internal brand-building and loyalty.
There was even, formally, a Chevy model in the 1960sâthe line that later became the Nova. The Chevy II nameplate even continued in GM in Argentina in the 1970s.
The Chevy diminutive is used in many countries where the brand is sold, including South Africa, where it was once as local as braaivleis, rugby and sunny skies.
Maybe GM canât afford the same branding advice it used toâin which case it might be better to shut up than issue memoranda that can be ridiculed so easily. Or get Bob Lutz back again. One month after retirement, and the natives have lost direction again, Bob.
PS.:From Robin Capper on Twitter, who sums this blog post up in 140 characters or fewer: âPoor Don McLean: âDrove my Chevrolet to the levee, but the levee was dryâ just doesn’t workâ.âJY
I havenât missed the sale of Volvo to Geely, but it wasnât as momentous as the rebirth of Saab. We knew the deal was coming and the rest were formalities.
The company has said there will be no Geelys badged as Volvos and vice versa. It recognizes the Volvo brand is too valuable to tinker withâsomething Ford did, too, even if it starved the company of smaller models that could have helped kept its market share strong in Sweden.
Important for Geely is the innovative technology that Volvo possesses that could make the younger company a world-class player. Itâs common knowledge that Volvo provided Ford with some of its better present platforms, and that as a centre of excellence, it worked on safety systems for all Ford units.
Geely gets access to the lot, which improves its own productâwhile arguably helping Volvo realize economies of scale in the Red Chinese market. It only sells a seventh of what Audi does in the growing market, and Geely could instantly help improve that.
The deal makes sense. One only needs to take a look at how quickly Geely has grown in Chinaâwithout pirating othersâ designsâto know that itâs not in the business of asset-stripping or ripping off its Swedish unit. Of the Chinese firms, itâs operated far more ethically than, say, BYD, with its too-close-to-Toyota designs.
And will we see Geely outside China? You bet we willâbut only when the cars are up to snuff. If Ford can build a Taurus on a Volvo S80 platform, then look out for world-class small- to mid-sized Geelys hitting international markets on future Volvo ones.
Mostly by focusing on growing creative clusters and taking a bigger slice of the cake. So it is not from technocratic ideas or the notion that we are liberating more of the economy, but by growing entrepreneurship. The city will take the most socially responsible, entrepreneurial start-ups and act as an agent to grow them (with an agreement that they remain in Wellington, of course) and create the capital flows to get them funded. I realize there is Grow Wellington already, but their ambit will be shifted.
So, itâs economic growth from the bottomâup.
Then (italics added for this post):
The clusters have naturally formed but they can get so much stronger. If the city is being them, then there is no reason Wellington cannot become internationally known for them. I think in this last week I have shown that borders mean very little to me, and anyone who wants to be mayor in the 2010s needs to have a similar mindset. We are not competing just for national resources, but global ones; and by being part of the global community, we might start bridging more communities and getting some greater global understanding. The nationâstate as it was understood in the 20th century is dying as a concept, and governments have only themselves to blame. Things are shifting to the individualâcommunity level, and you are right, real things happen when it is people acting at the coal face. Those who distance themselves will not be equipped for this century.
The day the current mayor, Kerry Prendergast, announced her intention to stand for a fourth term, I was asked by a few media colleagues what I thought. The wittiest reply I gave to Salient, as it was an email interview, and I seem to be cheekier in writing than I am in speaking. I wonât spoil it yet, but letâs just say one learns an awful lot from television.
This morning was a very good start to the day, giving a guest lecture at my Alma Mater, Victoria University, thanks to my friend Helen Baxter, who has begun teaching there. In fact, I taught out of the same building in 2000 when the campus was shared with Massey University, and the A on the front was not mounted backwards (typography students must have taken note by now).
One thing I hit upon, and I donât think I have shared with readers, is the concept of personal branding taking on corporate behaviours. We know that corporations and countries have been swapping roles a bit in the 1990s (Wally Olins wrote a book on it, called Trading Identities), but I donât think it has been properly addressed at the personal sphere (corrections welcome).
We have corporations trying to look mean and responsive, and speak with a personal voiceâthe One principles that Stefan Engeseth has talked about, and the idea of one-to-one from Christian Grönroos. They are trying to look like individuals, so the person in charge of the Tweetstream is the âvoiceâ of the organization.
Meanwhile, people are becoming aware of branding themselves, of differentiating who they are, and finding the right things to align with in order to make themselves employable. Of course, such efforts must still remain authentic, as we can see through the spin, but it would not surprise me if the nascent ideas of personal branding in the 1990s become formalized in to whole courses on personal brand management.
I refer not just to styling, of course, but making sure embarrassing stuff is taken off Facebook (I believe my words were along the lines of, âBy all means, party and show youâre human. But photos of you doing a powerchuck: maybe notâ), of figuring out what your vision is from a very early stage, of engaging with your audiences, and, if I may be so bold, living your brand as part of living your life.
The cynic in me recognizes that last phrase sounds dodgy because it cheapens the whole experience of life into a brand event, which is not precisely what I mean. But it is important to have some idea of a personal direction in mind and doing things that are compatible with that. This is, in some respects, no different to some of the self-help claptrap out there, explained in corporate branding language as opposed to spiritual fulfilment.
However, itâs not altogether a bad way to think. Iâm willing to bet some of us have done exactly this, perhaps unconsciously or informally. We all have some purpose, some raison dâĂȘtre, and whether we like thinking about it in branding terms or some other method is up to us. Brand, at least, provides a framework and some boxes to tick, and if they help people get a personal advantage and get the job of their dreams, then why not?
Note to self: Keeley Hawes jokes work a lot better with heaps of Brits or Anglophiles in the room.
Rumour has it that the new Saabâa small car (finally)âwill resemble the ur-Saab, the 92. In fact, inside Saab, it has the codename 92.
Where have I heard this one before? I know. Stefan Engesethâs Detective Marketing, 2001 edition. And from what I understand, since in 1999 I could not read much Swedish, it featured in the original Swedish edition, too.
While I am no fan of retro design, a modern one that has strong inspiration from Saabâs roots could go down well with the marketâespecially if the new 9-1 model had some advanced, non-fossil-fuel powertrains.
A car tied to Saabâs roots as an airplane manufacturer could reinvigorate passion for the brand in the same way as the Jaguar mascot unveiling under John Egan in the 1980s. And new boss Victor Muller, CEO of Spyker, has wasted no time getting Saab loyalists excited about the brand again. He has not set his sights on brand-new customers: he wants the old Saab buyers back.
While it might have Opel underpinnings, it at least gets Saab into the European premium compact car game, one which GM denied it, probably due to overlap with its mainstream brands. It was an opportunity missed as BMW, Audi and others broke in to the compact and supermini game.
I know at least one Swede who finds Mullerâs promises exciting, and I sincerely hope to be proven wrong when I expressed doubts about bringing a 40,000-sales-per-year company back from the brink. Below is the announcement of Spyker finalizing its purchase (via Detective Marketing).
When he talks about âDNAâ, Muller really means brand: it will rediscover and redefine that brand and its entrepreneurial spirit, using it to fuel the corporate culture, and having that drive product quality, R&D and other functions. If he succeeds in reaching his 100,000-per-year goal, then we can say that brand loyalty was a huge driver.
His first announcement alone has been praised, Saabâs 100-day plan gives distributors and loyalists some certainty, and the folks in this video actually look enthusedâalready this is not like a tired, Rover-style attempt at getting the company back on its feet, even if the annual salesâ figures are far worse than what the English company had prior to its collapse.
As of tonight, the Beyond Branding Blog, where I first cut my teeth blogging, is no more.
The posts are still there, but no further comments can be entered on to the site. The nearly four years of posts remain as an archive of some of our branding thought of that period.
The blog had a huge number of fans in its day, but as each one of us went to our own blogs, there seemed little need to keep it going. Chris Macrae and I were the last two holding the fort in late 2005. Since January 2006, no new posts have been entered on to the site. No new comments have come in a year.
Googleâs announcement that it would end FTP support for blogs in May spurred me into action, and I advised the Medinge Groupâs membership this morning that I would take it off the Blogger service.
I altered the opening message to reflect the latest change.
I was very proud of the blog, because it was the first one I was involved in. It was also the first I customized to match the look and feel of the rest of the Beyond Branding site, which I designed in 2003. While the design is one from the early 2000s, it has not dated as much as I had expected. Beyond Brandingâs core message of transparency and integrity remains valid, so while the blog is no longer updated, I think the book remains relevant to the 2010s.
I was surprised to learn that Toyota still has not issued a worldwide recall of its troublesome Prius NHW30 model, even though one had gone out in New Zealand.
In laymanâs terms, the brakes allegedly donât work when you want them to. In more complex terms, the software has trouble distinguishing between different types of braking, and drivers may experience a delay in âpedal feelâ.
I was always a bit sceptical about the recalls over the unintended acceleration, given that the last time I heard those words, they were in relation to a falsified report from CBSâs 60 Minutes, a show known to me for making up stories (Killian memoranda, anyone?). Hearing them again, I thought it was just another excuse for the clumsy driving of a few individuals who couldnât figure out where the accelerator was (which was what happened with Audi in the US). But it seems this matter has been around for a long time, and recalls were being done even last year.
But the Prius matter, something that has not come under a global recall, appears more serious than carpets getting in the way, which is the problem behind the unintended acceleration complaints. AFP reports:
The Transport Ministry has received some 80 complaints in February about malfunctions in the brake system of the latest model of the flagship Prius, the Tokyo Shimbun reported without quoting sources.
Five of them were actual crashes in which the drivers claimed the brakes did not work properly, the daily said, adding that the ministry would urge the company to launch an investigation.
It was not possible to immediately confirm the report.
Already Toyota has been berated by top management for going too far from its core principles by its honorary chairman, Shoichiro Toyoda. The company had been trying to sell big cars in China during the financial crisis, and spent a good part of the 2000s developing large pick-up trucks for the US market. Bloomberg reported last June that a meeting was called:
Shoichiro scolded the president [Katsuaki Watanabe] for being so anxious to boost sales and profits that heâd let Toyota emulate now bankrupt General Motors Corp. and Chrysler LLC. Toyota had become addicted to big, expensive cars and trucks and had forgotten the customersâ need to save money, Shoichiro said, according to the personâs account.
In other words, Toyotaâs culture has been suffering, and we all know what happens when salesâ volume and profit are pursued at the expense of quality or engineering. (Ask Mercedes-Benz.)
Toyota may be an example where too many niches were created, simply to get consumers in the showroomsâand now thatâs coming to bite it on the rear end. Having too many niches has one immediate drawback: consumers no longer understand the structure of the range. Is the small car the iQ, Ist, Vitz, Porte, Belta or Passo? Do I move from that to a Corolla, Auris, Blade, Corolla Rumion, Probox, Raum, RAV4 or wotsis?
The mistakes are understandable in some ways. Toyota had to create more new models as attention spans shortened. While a car might be able to be presented as ânewâ for two years in the Japanese market 10 years ago, consumers expect something else within half a year. To fund this appetite, the company looked for ways to maximize profits in every marketâwith the US one fuelled by bigger and bigger vehicles. It had to take costs out of cars, especially with electronics (by combining as many functions on to one system as possible) and architectureâand it may be these areas where the Prius suffered.
But no company can really afford to pursue too many nichesâMazda overextended itself in the late 1980s and early 1990s, as did Nissan in the early 1990sâwhen times are tough. Toyota should have forecast a downturn, as many business experts did. The question that the company needs to ask itself is: what made it so blind in the 2000s?
Even ignoring the idea of unintended acceleration for now, Toyota ends the lunar year on a low. It will always have its diehard followersâthere are many models not affected by these issuesâbut the company must refocus its brand for the New Year toward its traditional principles. There is every sign the company knows that, with Akio Toyoda, the founderâs grandson, now at the helm, and doing spot checks down on the production floor. (Iâd rather Toyota have someone like that than a âcelebrity CEOâ who gives good press. The era of the celebrity boss is over for now.) It is simply a pity that the company did not get on to its mounting problemsâthere are claims that unintended acceleration reports began surfacing with Toyotaâs Lexus ES model as early as 2004âsooner.
Few buy a Toyota because the cars make oneâs heart beat faster. They are a default choice for many people who want the simplest conveyance from A to B. Akioâs job has been reminding his own team of that, and reinstituting the âToyota Wayâ and kaizen, terms that many of us who went to business school during a certain era recall.