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Business Identity Plan Implementation Checklist (BIPIC)

M.Qazizadeh Allame Tabatabai University, School of Business and Accounting, Iran
Mhmd_ghazizadeh@yahoo.com

Abstract
Managing a brand means much more than just developing a good product. Each corporation, voluntarily or involuntarily, represents a certain image in the market which creates a more superb phenomenon which is called Business identity. The elements of this identity and its specific characteristics are, however, unclear to many corporations therefore instead of paying special attention to build this unique identity, they continue their way in the loop of making mistakes and correcting them accordingly to be successful in the long term, each organization must be aware of its purposes and goals and must communicate them to its employees and customers in order to create a feeling of affiliation and trust which will be created as a result of business identity. And also the power of a brand is concealed in having a unique and differentiated business identity. This goal can be reached if we consider both the soul and the body of our business identity. Without each, attaining a unique business identity is inevitably impossible. Therefore, business identity is not merely the logo or the brochures (they are just like the body and appearance of business identity), but the purposeful harmony of whole companys activities. All parts of the company must credibly mirror the companys values and goals. This is especially true for the quality and design of the products or services, the architecture of buildings and sales places, the layout of communication media, and the way employees and customers are treated. Each element and each communication medium influences our picture of the company. A higher constancy leads to a clearer picture. In this paper the author has tried to define Business Identity and propose a plan to implement it in order to help companies to have systematic view of their business identity and develop it step by step, some considerable implementing points and finally present a tool called BIPIC which give them the ability to permanently control the congruity of their activities within the plan which leads to successful implementation of it.

Keywords: Identity, Business identity, identity plan, identity of insiders and outsiders

Business Identity Plan Implementation Checklist (BIPIC)

Introduction
Identity and organization
Definitions
The increase in theoretical and research attention to identity and identification within and across organizational contexts can, in part, be attributed to the richness and profundity of the core identity concept. In the organizational domain this spans multiple levels of analysis (Brown,2001) individual (relating to peoples personal sense of self within the organization), groups( J. P. Cornelissen, S. A. Haslam and J. M. T. Balmer) (relating to the shared identity of teams and sections within an organization), organizational (relating to the identity of the organization as a whole) and cultural (relating to commonalities in identity across organizations and within a society as a whole). Moreover, the versatile and generative way in which the identity concept can be applied is credited with having opened up a multitude of avenues for theore cal development and revela on (Albert, Ashforth and Du on, 2000, p. 13; Gioia, Schultz and Corley, 2002). Indeed, in Pratt and Foremans (2000b, p. 141) words, theore cal development surrounding the constructs of organizational identity and corporate identity is characterized by an amazing theoretical diversity. Amongst other things, this means that the term identity has been conceptualized from very different theoretical perspectives and has been used to refer to very different conceptual objects (e.g. self-knowledge, beliefs, discourse, capabilities or structures) (see also Schultz, Hatch and Larsen, 2000). From a linguistic perspective, this polysemy or interpretive viability refers to the plurality and openness of interpretation associated with the notion of identity which becomes even more pronounced when coupled with reference to a social, organizational or corporate entity. This has contributed to the concepts rapid and wide promulgation across different literatures as it resonated with, and hence was incorporated into, other meanings in existing academic schools and research traditions. For example, in the marketing and corporate communications` literatures, it connected with existing questions concerning the way in which companies position and promote themselves to others (Van Riel and Balmer, 1997), while in the social psychological literature it connected with questions about ways in which collective self-esteem could be enhanced by defining in-groups as posi ve, dis nct and enduring (Tajfel and Turner, 1979; see also Dutton, Dukerich and Harquail, 1994). As a result of this rapid uptake, the concepts of social, organizational and corporate identity have been comprehended and applied in very different ways and to very different research questions.Indeed, these differences in emphasis can be seen in the primary definitions of these constructs (i.e. those most prevalent in particular research literatures) that are presented in table 1. Here it is apparent that social iden ty (a er Tajfel, 1972, p. 31) tends to be seen as an internalized knowledge structure, organizational identity tends to be seen as a system of shared meaning, while corporate identity tends to be seen as a projected image. Nevertheless, it is apparent that secondary (i.e. less common) definitions reflect sensitivities compatible with the primary focus of research in other areas. So, for example, while the basis and form of shared meaning is a primary concern in the literature on organizational identity
Business Identity Plan Implementation Checklist (BIPIC)

(e.g.Gioia, Schultz and Corley, 2002), this is also a discernable theme in work on both social and corporate identity.

Table 1.Deni ons of social, organizational and corporate identity constructs

The research terrain

Given the size and diversity of the literature, a comprehensive review is beyond the scope of the present treatment (for representa ve recent reviews, see Balmer, 2001; Cornelissen, 2006; Haslam and Ellemers, 2005; Van Dick, 2001).Instead, we draw on the work that is showcased in this special issue and on other representative work to map the terrain of research on identity and organiza on. Figure 1 represents a summary framework for organizing the literature based on the relative positioning of work along key dimensions of analytic focus (internal versus external) and analytic form (cognitive versus symbolic). The first dimension refers to the locus of identity, i.e. whether the attribution of an identity to a collective or organization involves individuals and groups internal (e.g. employees) or external (e.g. customers) to an organization. The second dimension refers to the analytic form or nature of identity. At the cognitive end of the dimension, identity is defined as involving a mental framework, categorization or set of beliefs and attributions in the minds of individuals. On the other hand, the symbolic end of the same dimension defines identity as the symbolic manifestation or projection (through language, artifacts and behavior) of an identity. What we observe here is that, as the above definitions imply, research into social identity (primarily in the social psychological literature) has tended to attend to internal, cognitive factors in its focus on identity processes at the level of individual group members within the organization. On the other hand, research into corporate identity (in the marketing and communications literatures) has traditionally placed an emphasis on external, symbolic factors in its focus on identity products (i.e. material manifestations of identity). Located between these traditions, research on organizational identity has reflected a concern with both the internal and external aspects of identities, but has tended to address the patterning of those meanings (e.g. their form and content) and the way they are negotiated within the dynamic interactions of organizational
Business Identity Plan Implementation Checklist (BIPIC)

life. These differences in emphasis can be drawn out by considering the key developments, insights and themes in each area of research in turn.

Figure 1. Overview of social, organiza onal and corporate iden ty constructs

Identity in business world

Every day, and almost constantly, we are confronted with a huge amount of information. We are permanently perceiving stimuli with our senses; we have to recognize them, order and react to them. Our brain is only able to handle this overflow by strongly selecting the most important stimuli. Most criteria according to which our brain filters the incoming information, however, are not fixed but flexible. This situation causes problems for companies and organizations. While there was only one relevant Pasta-making company in our country a few years ago, dozens of such companies populate the market today. And while there were only a handful of womens magazines in the past, a woman can choose among lots of magazines today. Consumers thus have to process more and more information before deciding which product to buy. The company behind a product is becoming more and more important, for its "brand" is strongly affecting our purchase decisions. Products come and go, but the company remains as a constant. Its position in our value system therefore is an important consumer criterion. Corporate has to build and develop such a position. This highlights the fact that future marketing success rests on the development of skills in brand building that tie together all organizational assets and competencies to create unique products
Business Identity Plan Implementation Checklist (BIPIC)

and services (Tilley, 1999). According to Balmer every organiza on should have an iden ty. It articulates the corporate ethos, aims and values and presents a sense of individuality that can help to differentiate the organization within its competitive environment. ."(Van Riel and Balmer,
1997, p. 355).

When well managed, identity can be a powerful means of integrating the many discipline and activities essential to an organizations success. It can also provide the visual cohesion necessary to ensure that all corporate communications are coherent with each other and result in an image consist with organizations defining ethos and character. By effectively managing its identity an organization can build understanding and commitment among its diverse stakeholders. This can be manifested in an ability to attract and retain customers, achieve strategic alliances, gain the support of financial markets and generate a sense of direction and purpose. Indeed, a strong brand creates a we-feeling (Van Riel, 1995). Employees will feel more motivated if they identify that the company they work for promotes a strong image and has a good reputation. A highly motivated workforce is essential as it can lead to increased productivity and profitability. External target groups are equally as important as internal groups. It is essential to provide consistent signals and communication with them so as to develop a clear picture of the company. Companies often see customers as the most important target group and thus acknowledgment of their role is clearly important. Like employees, a well-defined business identity (brand) inspires confidence in customers. Strong business identity ensures that all internal and external communication directed at the companys stakeholders is coherent and consistent. (T.C. Melewar, 2006; Kara Basse , 2006). Studying successful and powerful brands shows that an established business identity enables its owner to introduce innovative and new product offerings into the market with a better chance of Success than otherwise would have being possible without an established and reputable market presence. Furthermore, an existing strong business identity presents an opportunity for comparative assessment of any new offerings with firms previous competence and capability and customers trust in the offerings. It also gives these corporations other opportunities like recruit and retain professional, experienced and well-talented human resources; working with better suppliers is another chance that these corporations have. Besides, according to Dr.Aeker having a well-shaped business identity has six financial benefits like: 1- Business identity (Brand) commands a price-premium. Why is someone willing to pay more for Famila than for Zar-makaron? They are virtually the same product with the exception of some additional options. You can also buy Chips from Cheetoz and Crunchips, and every one of them is made by Dina co.and you shouldnt be surprised to discover that they even share material. The value proposition is wrapped around the brand. The Crunchips, Cheetoz and Munchips, brands are worth more in the minds of consumers regardless of whether the product actually functions better. 2- A price premium creates the perception of quality. This follows the age-old axiom of you get what you pay for. If a Kalleh yogurt costs more than a comparable product, it must be because the Kalleh provides better quality. Right? Not necessarily. There are plenty of lower-cost, high Business Identity Plan Implementation Checklist (BIPIC)

quality dairy products available, yet people still pay more for what they perceive to be a better or higher-quality brand. So the axiom lives on. 3- Perceived quality has been shown to positively affect customer usage. Consumers tend to select brands they perceive to be quality brands. This also connects to repeat buying or brand loyalty. Consumers tend to continue buying brands that reward them with a good experience versus repeating the evaluation process time after time. 4- According to Dr. Aakers research, perceived quality is the single most-important contributor to a companys return on investment (ROI), having more impact than market share, R&D, or marketing expenditures. Business identity perceives quality that contributes to profitability in part by enhancing prices and market share. Improve perceived quality and the organizations ROI will improve. 5- Customers relate value with quality. This is closely connected to Benet 2. If one brand is perceived to be of higher quality than another brand, customers tend to perceive that the higher-quality brand is a better value. For example, the chocolates of Shirin-Asal may have a better quality and taste than Cadbury (one of the world famous chocolate brands) but because it proposes in the mind of Iranian consumer that it has a better quality than products of Shirin-Asal, consumers would be loyal to it and so willing to pay much more for it. 6- Perceived quality can be a point of differentiation. Smart companies are continually looking for ways to differentiate their Business` identity (brand's) from competing offers. Perceived quality can be used to dieren ate, and in doing so, enable the company to loop back to Benet 1 and charge a price premium for their strong brand ( Aaker's, 1996). The most important benefit of creating an effective business identity is the establishment of trust: trust in the product, trust in the future orientation and the abilities of the company, trust in everybody who is part of it, shortly: trust in the brand. This establishment of trust doesnt happen automatically. One has to work hard for it and measure up for it again and again. In a market full of information, a companys profile must be distinguished and consistent. Only then will it be perceived and positively identified in the long run. The basis of this strategy is business identity. It allows sustainable and understandable corporate communication. The corporate-identity process makes sense regardless of the size or situation of the company or organization. It is a scalable strategic approach tailored towards specific goals of the corporation and its customers. The author believes that the majority of Iranian companies does not seek to create any identity for their business and are not familiar with its benefits and even if they try to create an identity, it only concerns a particular aspect or dimension of their business identity. For example, they design modern interior decorations for their offices while they ignore having a particular strategy or a well structured communication for their business. There are also numerous companies who tried to create identity by spending fortunes on TV commercials with an aim to take a market share which finally failed to achieve any of those goals

Business Identity Plan Implementation Checklist (BIPIC)

and disappeared. In fact most of the so-called companies had neglected the more essential and prior aspects of identity creating. The world we live in becomes more competitive day by day. In this situation, rivalry among the existing competitors is increasing. Everyday more and more entrants emerge in the business world and fuel the existing competition and rivalry. Consequently, the need for differentiation and having a distinguished identity has become indispensable. Therefore, companies should have a systematic point of view toward all organizational issues and specially identity creating, to prevent them facing problems such as unnecessary focusing on just making good images for their consumers (outsiders) and ignore the identity creating for their employees and vice versa.

Business Identity Plan Implementation Checklist (BIPIC)

Business Identity

As we have seen, the more recent definitions of corporate, organizational and brand identity are very broad and confusing; they suggest areas for these concepts which are in some cases related and in some not. This paper will collect these concepts under the umbrella that we called Business Identity. The author defines Business Identity as: "An inimitable, unique and enduring presentation of a corporate to its stakeholders. It gives a business its own individuality, personality and distinctiveness in dealings with others. It is a set of shared cognition, shared language, shared behaviors and symbols exist among its both insiders (i.e. as individuals, groups and etc. inside a corporation) and outsiders (e.g. customers, community members and/or members of special interest groups and etc. outside a corporation).

Figure2. Business Iden ty model

As can be seen from the model the business identity mainly controls and defines two areas which depend on each other: 1-Insiders` Identity: seen as a self-definition or cognitive self representation adopted by corporate members that is generally embedded in deeply ingrained and hidden assumptions and refers to those features that are perceived as apparently central, enduring, and distinctive in character [and] that contribute to how they define the organization (or corporate) and their identification with it (this is a revised version of the original statement by Gioia and Thomas, 1996, p.372). 2-Outsiders` Identity: is the total proposition that a company makes to consumers - the promise it makes. The OI includes the companys service reputation, symbols, product quality, features, benefits, performance, values, and a position it occupies in people's minds. OI is the complete package of a business to its customers. In this study, we use the terms brand; and business identity; interchangeably, to reflect the fact that they normally refer to the same basic concept in a variety of related studies.

Business Identity Plan Implementation Checklist (BIPIC)

Business Identity Plan

Business identity may typically and wrongly be reduced to visual appearance, i.e. corporate design it has been set equal to designing a logo, a letter head, a brochure, or a new luminous sign on the companys roof. This basic misconception has led to the situation that uncountable amounts of money are thrown away for superficial make-ups. This may save some money and time in the short term, but it is a disinvestment in the mid and long term. Thousands of corporate designs have been created in this way. When the financial budget is tight and quick successes are crucial, many managers avoid the complex corporate-identity process. Such short-term thinking does not agree, however, with strategically leading a company. Design is only one of areas of business identity. The identity of a company in the eyes of consumers includes much more than just its visual appearance. It describes the companys multitude of elements, e.g. Strategy, Culture, and communication. There are some important questions you should answer. These questions have to be clarified at the beginning, for which it is essential to consciously look into the company, its goals, its employees, its customers and its competition. The business identity has to be developed and defined on the basis of its strategic goals, its strengths, as well as the expectations of its customers and partners. To be effective, this identity must be communicated authoritatively and clearly. To create a coherent and convincing business identity plan, a company has to ask himself many questions like: -What are we? - Who are we? - What are the organizations symbols and system of identification? -In relation to management, organization and market does an integrated communication exist? -What is the promise inferred from/committed by the brand? -Is there congruency between corporate communication, corporate actions, performance and behaviors and between third parties? -Is there congruency overtime in above actions? These questions have to be clarified and organized. In identifying and shaping the companys personality, differences from its competition and finally creating its business identity and to organize and control the actions you need to do for creating it, only a structured and ruthless analysis is helpful.

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According to the author the business identity is divided to two dimensions: insiders` and outsiders` identity. Based on our researches about identity in business, companies use variety of actions and materials for creating their identity; components like strategy, design, culture and etc. By gathering these we relate each item to our main categories. Culture, strategy, communication and design become outsiders` identity areas and

Figure3. Outsiders Iden ty Areas

Culture, strategy, structure, communication, design become insiders` identity areas.

Figure4. Insiders Identity Areas

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To plan for implementing identity in their business, managers should be aware of every dimensions areas. After dividing these dimensions to mentioned areas, we divide them to different components i.e. in design area we have components like Visual identity system/symbolism and Situational factors. (Figure 5)

Figure5.Outsiders` iden ty areas and components

And at last, according to our studies and researches we divide these components to subcomponents which their execution should be delegated by management to the related departments. (table.2) Looking thoroughly at all areas and dimensions of business identity shows us the indispensability of planning and prioritizing these parts. Without a prioritized plan, one manager cannot create an identity for his/her business, the plan which can lead all managerial activities to create of business identity and prioritize them due to their value . After investigation of different managerial texts, the author prepared a prioritized plan for managers to help them in creating identity for their business. (Figure 6)

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Table 2.Business Identity Areas, Components and Sub-components

Main topic

Dimension

Area
Design

Component
Visual identity system/symbolism

Situational factors CR and PR Communication HR communication advertising Positioning Differentiation Mission Vision Culture Core Values History Country- of-Origin Design Visual identity system/symbolism Situational factors Organizational Communication Management Word-of-mouth and messages imparted about organization from third-parties Mission Strategy Vision Market Scope Values Culture Company History Country of origin Payment Structure organizational structure

Outsiders

Strategy

Business Identity

Insiders

Structure

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Figure6. Business identity plan

The consistency of all different areas and parts mustnt come with uniformity. Every company has a certain personality from the beginning. How it is led, which goals it has, and how they are realized determine the companys character, its identity. Every company should take the time to check whether its actual identity (still) conforms to its goals and its current as well as future social-economic environment. Companies are perceived as a whole neither message, design, nor conduct, can hence be developed independently. Rather, it is important to develop all areas continuously and in synchrony, keeping the balance between them. A business Identity plan is a very dynamic process, always oriented at the companys development.

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Business identity plan implementation

The development of business identity and its consequent implementation therefore has not only visual consequences for the company but predominantly affects structure and content. The visualization is a result of this development, but never its origin. Due to its importance, business identity must be managed by the head of the company. It is the only authority in the company that has enough power and knowledge to start and implement such a plan. For a successful implementation these aspects must also be considered:

Affiliation

The company should present itself clearly and straightforwardly, being easy to understand for current and potential future customers, employees, suppliers, the press, and investors.

Proclamation

The company should clearly communicate its values and principles so that everybody (internally and externally) is aware of them.

Positioning
The company should develop its products and services on the basis of its identity and should clearly discriminate them from the competition.

Companys Resources

The ideal form of implementing identity plan is to apply all areas, components and subcomponents of the plan in any business, which leads to a noticeable synergy. But managers should consider companys available resources and benefits from all parts of this in accordance with companys competencies and abilities, and use them in a step by step manner in their business

Vogue

To implement identity plan, current trends should be considered. According to rapid social, cultural and technological changes, interests and attitudes of people are rapidly and dramatically changing. Since the issue of business identity concerns the people both inside and outside the organization, the current trends and tastes should be taken into consideration and particular changes should be applied based on these trends and tastes.

Business Identity Plan Implementation Checklist

Without having a structured tool it may become so difficult for managers to systematically organize and continuously control the areas of their identity plan. In this way the author presents a tool called Business Identity Plan Implementation Checklist (BIPIC), which is predominantly a management tool that can be used to identify and control the areas of an Identity plan of any company.

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With this tool managers can control the congruity of their business identity areas and components with other parts of plan. For example, designs that were developed without considering a harmonious business-identity plan usually become a burden in the mid and long term because they lack sustainability and are not really representing the companys core. Working with BIPIC is too easy .Managers should first check the existence of these components and sub-components in their company and then if they are using them, they should control the congruity of them due to their companys goals.

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References
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