03-Belasen-45308.qxd 7/4/2007 12:02 PM Page 27 3 External Image, Internal Identity rafting the strategy that shapes the image they are discussed at length in chapters 5–8. C and identity of the organization is probably Chapters 9–11 provide a thorough review of the the most important responsibility of corporate four communication approaches and related communication staff. Image helps the organiza- theories and topics. tion to differentiate itself from others, and iden- The value of the Competing Values Framework tity enables the organization to integrate itself for Corporate Communication (CVFCC) is in from within. Strong identity evolves into ideol- providing a broader and integrative interpretation ogy that helps pull organizational members of corporate communication environments by toward the vision of the organization. And addressing diverse stakeholders such as reporters, strong image helps companies manage the adap- marketers, competitors, customers, investors, tation and retention processes. When the image regulators, employees, and managers. Shaping and and identity are in agreement, the organization sustaining the image of the organization is a as a whole is externally adaptive and internally challenge that requires a broad, strategic view of cohesive. When image and identity are not man- organizational environments. Kiriakidou and aged properly, constituents are confused, and the Millward (2000), for example, discuss the impor- credibility of the organization tends to diminish. tance for an organization to have a strategic fit, The linkage between identity and image can be which entails auditing the organization’s desired strengthened via intense integration, coordina- identity (management’s vision and mission) and tion, and monitoring activities across different the actual identity (what the organization is and areas of corporate communication functions how it frames the mindsets and behaviors of its (e.g., investor relations, media relations, employee members) to reveal the potential gaps between the relations, government relations) and based on two. Doing so, in turn, shapes the reputation of different communication approaches (e.g., finan- the organization. Image is the mental map that cial, marketing), as shown in Figure 3.1. Although constituencies have about the organization. the functions of corporate communication are Effective image management requires corporate only briefly described in the following sections, communication managers to act as if they are 27 03-Belasen-45308.qxd 7/4/2007 12:02 PM Page 28 28 PART B: STRATEGIC CORPORATE COMMUNICATION Marketing Communication Reputation/Branding Individuals/Groups Products/Markets Management Corporate Financial Communication Communication Communication Identity Image Systems/Processes Goals/Strategies Performance Credibility/Accountability Organizational Communication Figure 3.1 Competing Values Framework for Corporate Communication: Approaches and Focus paranoid managers—constantly scanning the of 2002, describing the company as “helping external environment and sorting through the customers make progress every day.” Its brand multiple images that are formed perceptually by name was associated with a positive, uplifting diverse stakeholders. The goal is to address possi- message, centered on accumulation of events ble weaknesses and vulnerabilities and guard that might otherwise be overlooked, rather than against suboptimization. In addition to building groundbreaking or historic events. IBM’s exper- positive image and reputation for an organization, iment with the World Jam and the creation of sustaining and managing an organization’s iden- “gravity centers” with information brokers act- tity is important in helping corporate identity ing as communication conduits or communica- adapt to a constantly changing environment. tion links is an example of a company that is in When image aligns with identity, an organi- the midst of updating its identity. IBM has a zation is widely accepted by the public; it is rec- very strong corporate communications depart- ognized implicitly and explicitly, and, in effect, is ment and seems to be doing very well. As of institutionalized. Retention by the environment 2002, it was listed as the number two company is then facilitated through branding and legit- in the Holmes Report. imization. Leading companies in different indus- Another successful example is the Japanese tries successfully manage the institutionalization department store Sogo, which established a process through strong identity programs and strong corporate identity in order to integrate its credible image. Verizon, for example, began a employees effectively through rituals and cere- significant brand name campaign in the spring monies. For instance, employees need to call out 03-Belasen-45308.qxd 7/4/2007 12:02 PM Page 29 Chapter 3: External Image, Internal Identity 29 the company’s slogan and sing the company’s about how an organization can communicate song together in the morning before they begin consistently to its many audiences in a way that work. They also bow 90 degrees to welcome represents a coherent sense of self. That sense of their customers. Because of distinctive charac- self is needed to maintain credibility and reputa- teristics such as these, Sogo presents the public tion inside and outside of the organization image of employee solidity and a reputation of through strong organizational identity and posi- putting customers above everything else. These tive external image. Corporate identity is proje- characteristics are embedded within Sogo’s cor- cted to stakeholders using a variety of cues and porate identity; thus, corporate identity is sign- represents how the organization would like to be ificant in constructing the company’s external perceived. Through delivering a planned message image and affecting its reputation. As much evi- to target audiences, an organization’s particular dence has revealed, a reputable organization has objective is more likely to be achieved. One such a competitive advantage and, therefore, sustain- planned message would be the corporate identity ing and managing corporate identity seems to program, which consists of two parts: the organi- be an inevitable and valuable part of organiza- zation’s visual identity, including the design and tional strategic planning. graphic associated with an organization’s symbol of self-expression, and the corporate mind and behavior, such as organizational values and Integrated Corporate actions that are embedded in organizational Communication culture (for more on this topic, see chapter 11). Before embarking on a plan, managers should As Figure 3.1 illustrates, marketing and manage- take into consideration both the organization’s ment communication is the dominant commu- original identity and its current identity. As nication link between the brand image and the shown in chapter 13, this process could start with identity fabric of the organization. Financial and audits that measure the current cultural profile of organizational communication, on the other the organization and compare it with a desired hand, is the dominant communication link cultural profile. Understanding an organization’s between organizational goals, strategies, and past allows managers to identify strengths and operators who are expected to embrace the mis- weaknesses in the current identity and improve sion and vision of the organization. Marketing weaknesses in the corporate identity program and financial communication addresses the out- (Van Riel & Balmer, 1997). side view of the corporation, with much atten- tion given to managing external stakeholders (e.g., customers, investors). Management and Sustaining and Managing organizational communication, on the other hand, Identity Programs responds to the need to link key interfaces (e.g., systems, structures, processes) and operators There are four important elements that should internally and align the corporate sociotechnical be considered in sustaining and managing an system. This integrated view of corporate com- effective corporate identity program: munication is also consistent with Markwick and Fill’s (1997) analytical framework for managing 1. SUSTAINING AND MANAGING AN ORGANIZATION’S corporate identity and aligning resources with MIND IDENTITY AND BEHAVIOR IDENTITY THROUGH organizational goals and strategies. INCREASING INTERACTION WITH AN ORGANIZATION’S Viewing internal and external communication STAKEHOLDERS. An organization’s mind identity as connected functions shifts the focus of cor- is the set of values and philosophies that are porate communication to answering questions believed by everybody in the corporation. The 03-Belasen-45308.qxd 7/4/2007 12:02 PM Page 30 30 PART B: STRATEGIC CORPORATE COMMUNICATION behavior identity is the actions that an organiza- the organization’s graphic design. Logos, letter- tion takes in order to distinguish itself from head, and house style are examples of visual others. In the corporate identity program, both identification of an organization. Because of its mind identity and behavior identity are signifi- role in communicating about the organization cant enough to be recognized. In an attempt to to its stakeholders, symbolism has been assigned consummate both, there must be increasing a great deal of importance (Van Riel & Balmer, interaction with the organization’s stakeholders 1997). For example, a company’s logo is expected to create and nurture a sense of positive corpo- to present the basic tenets