Corporate Identity Key Terms Flashcards
Where does competitive advantage come from?
Competitive advantage comes from:
4 domains: markets, resources, macro-culture and micro-culture
2 domains: material resources and human interpretations
(In this course we are studying the human interpretations).
Each of the four parts interact and mirror each other in how a firm will allocate resources and define success. All interpretations will affect choice activities and vice versa.
Strategic Investments, Strategic Plot and Strategic Projects all three must happen at the same time. Projections w/o investments could lead to loss of credibility. Investments w/ out projections fall short of potential/missed opportunity.
What is micro-culture? How does it create an advantage?
Micro-culture is the internal culture. The advantage is created as this influences how information is processed in the organization and how people will behave. The organization can enact strategic direction and can understand what is going on better within the organization.
What is macro-culture?
Macro-culture is the organisation’s reputation, how external constituents view the firm (i.e. stakeholders, experts, media). This culture sets the standard in the industry and allows us to evaluate firms. Firms need to both show how they are similar to the industry, but also how they stand out.
What is corporate identity?
“Who are we?” “What kind of business are we in?”
An identity exists, you do not make it up. It is changing/dynamic and multiple.
Identity of an organization influences an organisation’s behaviour. Newly formed companies/start ups must clearly define themselves, while established firms are influenced by their beliefs and aspirations.
The dilemma: how stable is identity? Managers need to know what we should/ can change and what can’t be changed.
What are the three criteria of identity?
Identity is defined in multiple with the three criteria:
Centrality, Distinctiveness and Endurance
Centrality: Alternative statements of identity may be possible, since they are expressed in specific organization settings and situations. These statements may be compatible, complementary, unrelated, or even contradictory. Identity as a statement of central character is contextual, therefore multiple.
Distinctiveness: Distinctiveness is defined by comparison with other relevant objects and therefore identity statements may be different according to the situation. Identity is a statement of distinctiveness is a classification performed against different other organisations, therefore multiple.
Endurance: Comparisons are an ongoing process. New identity dimensions may therefore develop during different corporate life stages alongside dimensions developed earlier over time. Identity as a statement with temporal continuity implies that identity changes over the organisational life trigger multiple identities.
What is identity changes towards duality over the organisational life cycle? What is a normative identity? What is a utilitarian identity?
Normative identity is more expressive, educational, culture related. The sources of control is normative power. There are rules to comply and rituals (like celebrations, graduations, awards).
Utilitarian identity are economic: production and service. Everything is a transaction and it is managed by information.
Most companies start out normative and end in a dual identity. They also may end more utilitarian, return to a normative identity. 4, 5 are most common forms of change: through lifecycle of company, challenged are addressed with new components. For example, when you are getting bigger, you higher an accountant, etc.
What are hybrid organisations, looking at identity?
Hybrid organizations are those whose identity is composed of two or more types that would not normally be expected to go together.
Ideographic/specialized forms: there are multiple identities of the organization being represented by different units. For example P&G, personal care, household care brands and identities.
Holographic form: duality in which each unit within the organization exhibits both identities. Ex: could be shared goals within the departments, for the different brands.
Larger organisations have more identities.
How is identity constructed?
Identity is socially constructed, between both inside and outside the organisation.
Internal definition answers the question “ who are we?” It represents the values, the beliefs. The org is less aware of it and it is more stable.
The external definition answers the question “what are we?” It is a conscious statement. It is a relational construct that emerges from relationships with others and is less stable.
What is organisational identity?
Organisational identity is the internal definition, and the answer to the question “who are we?”
- less aware,
- more stable and
- presents the values, beliefs of the org.
What is corporate identity?
Corporate identity is the external definition, and the answer to the question “what are we?”
- It is a conscious statement,
- relational construct, emerges from relationships with others, and
- is less stable.
What is applied identity?
Applied identity is the collective identity, that is unconscious and is created through reflections. It informs the way we express ourselves. (Organisational culture)
What is the element of perceived identity?
Perceived identity is what is perceived by members within the organisation. It is the internal image. Corporate communication has two functions:
- to provide information
- to nurture culture and values within/ the organization, which are built by cues
Cues are formed at the individual level, and more or less shared by members.
They are formed by category-based (how similar we are) cues: social categories, cognitive strategic group or trait based cues (how different): material traits, symbols, objects, values, collective practices, projected images.
What is the construed external image?
The construed external image is formed by member’s perceptions of how outsiders perceive the organization.
It is important that what you project aligns with outsiders perceptions.
What is social identification?
Social identification is the perception of oneness or belongingness to some human aggregate.
What is organizational identification?
Organizational identification is the degree to which a member defines himself by same attributes that he believes define the organization. It is a form of social identification. Shows perception of oneness with the organization.
What is desired identity?
Desired identity is the vision and mission. This is the dream picture held by top management, the bed rock that everything else is built on. It helps you understand what can not be negotiated and what can be changed.
What is Projected Identity?
Projected identity is the self presentation of the organization. It is the implicit and explicit signaling where the organization shows key attributes to internal and external target audiences through communication and symbols.
What is the difference between image and reputation?
Image can be created more easily than a reputation with an effective communication effort.
Reputation is harder and takes longer to build. You need consistent performance, over many years. The judgment is built on multiple, related images of the firm through its stakeholders.
Image and reputation are connected through the social process of our judgement. Judgement becomes something that is shared.
What are two big challenges today in identity?
- How can we build unity without requiring uniformity?
- How can organizations with multiple identities manage them so that their benefits are realized and costs minimized?
Risks of multiple identities would be hyper-adaptation (too much power in stakeholder images over org. self definition, you risk losing cultural heritage) and/or narcissim (identity refers exclusively to org. culture w/ likely implication the org. will lose interest and support from external stakeholders, PR issue).
What is the difference between legitimacy and reputation?
Legitimacy is focus on similarities between firms, while reputation is focused on difference.
Reputation = trust
(to be consistent over time, reliability of products/company behavior).
What is the ideal type model of social judgement formation? (Related to legitimacy)
You start with the evaluator’s motivations
We evaluate to:
- decide if you want to buy, invest, work
- related to status
- stakeholders w/ power (like control agencies)
- need to express him/herself
How judgement is displayed:
Discursive: communications - through words
Non discursive: action, behavior
What are the elements of social judgement?
- Cognitive legitimacy: simple straightforward legitimacy: what industry do you belong to?
- Sociopolitical legitimacy: evaluation based on work standards. impacts based on judgement.
- Reputation: can I trust you or not?
- Status: in addition to reputation, a status includes ranking. Some evaluators may make decisions based on status, they may only work w. the best.
What is important while thinking about social judgement evaluation?
Different stakeholders (evaluators) in different contexts have different priorities. As a company you must understand where the judgements exist and invest there. What is important to your industry? How are you judged? On status or sociopolitical legitimacy?
The more familiar I am, as an evaluator, the more bias I may have and the less willing I may be to invest time in the evaluation. There is a strong correlation (everything else equal) between familiarity and reputation.
When thinking about social judgment evaluation, what happens when you are under cognitive constraints?
When you have cognitive constraints, you will make use of Heuristics (short cuts).
If I don’t know where to put you, I’ll put you in a broader category. We do this to create legitimacy. Example, put pay day loan company into banking category. A business coach as a consultant. These companies may also use that strategy to nudge you into that direction to create their legitimacy.
What are strategies you should focus on if you are a newer company or undetermined status?
An organization with undetermined status is automatically placed in the lowest status (medium and high status takes time, energy and effort).
Judgement is based on categorization and status. If change is happening frequently, you may be undetermined.
As a communicator, you would focus on categorisation and status.
What is the core ideology?
Core ideology is the core values and the core purpose. It is part of articulating a vision. It is part of applied, desired and projected.
What is the Envisioned Future?
Envisioned future is part of articulating a vision. It includes to 10 - 30 year BHAG and the vivid descriptions. It is part of applied, desired and projected.
What is the brand essence or brand promise?
Brand essence is the core ideology for brand managers. It conceptualizes the core of the brand and communicates it.
What is the envisioned future?
The envisioned future includes the vision level BHAG (big hairy audacious goal) and the vivid description.
The progress you want to stimulate. Vivid description requires you to paint a picture with passion, emotion and conviction.
What is projection alignment (in terms of communication)?
When you project your identity, it needs to be addressed in all of your touch points. This is how your brand comes to life.
What are some good things to keep in mind thinking about the business canvas?
The elements of your business canvas must be justified by the core ideology and envisioned future of your company.
Make your choices explicit in relation to business model/values. Keep in mind stakeholders (like media, government). Don’t forget about social judgement and legitimacy.
Your value proposition should be clear and concise. (This is what you are solving, start here).
What are the elements of storytelling?
The message (the ideological or moral statement)
The conflict (the driving force, forcing us to act)
The characters (hero/villain)
The Plot (everything has beginning/middle/end)
What are the characteristics of storytelling?
Drama
Familiarity
Simplicity
Immersion
Relatability
Agency
Trust in the Teller
What is the core story? Where do related stories and ancedotes fit in?
The core story creates consistency in all communications.
Stories and anecdotes can come internally or externally.
A good communicator will identify the stories that can be used to reinforce the core story, will collect these.
