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1 ALI Internal Branding Conference August 4, 2009 Breaking Through to Engage Employees in Your Brand Strategy and Drive Growth: Using A Comprehensive, Multi-Faceted Internal Brand Program Thomas G. Tibbs Marketing Manager Internal Brand and Marketing Communications Presented to: Advanced Learning Institute August 4, 2009

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1 ALI Internal Branding Conference August 4, 2009

Breaking Through to

Engage Employees in Your

Brand Strategy and Drive Growth:

Using A Comprehensive, Multi-Faceted Internal Brand Program

Thomas G. Tibbs Marketing Manager

Internal Brand and Marketing Communications

Presented to: Advanced Learning Institute

August 4, 2009

2 ALI Internal Branding Conference August 4, 2009

Today’s discussion

Strategic objective:

Enabling employees to serve as brand ambassadors

Developing successful tactics

Collaborating with HR (Employee Communications

and Training)

Measuring results

Leveraging today…

3 ALI Internal Branding Conference August 4, 2009

Pitney Bowes is a $6.3 Billion company and a strong,

trusted partner to over two million customers in more

than 100 countries

90 year legacy of innovation

Expertise across all major industries

35,000 employees

Responsible corporate citizen with

transparent business practices

Who is Pitney Bowes?

4 ALI Internal Branding Conference August 4, 2009

People often think of Pitney Bowes

for mail, but our mission has

always been broader:

What does Pitney Bowes do?

Improving business

communications

Facilitating global commerce

Today, our solutions span

the entire customer

communication value chain

5 ALI Internal Branding Conference August 4, 2009

We continue to innovate on our core

technologies to expand into new areas

6 ALI Internal Branding Conference August 4, 2009

Let’s journey back to 2002…

New England

Patriots win their

first Super Bowl

A Beautiful Mind wins

Best Picture at the

Academy Awards

Dot-com bubble bear

market reaches bottom in

October, when the DJIA

slips below 7,200

7 ALI Internal Branding Conference August 4, 2009

We began with the growth strategy…

Redefine the marketplace: Integrated mail and document management

Estimated $250 billion market

2% market share vs. 80% share of postage meters

Expand into adjacent areas:

Organic growth: Cross-selling products & services

Acquisition: Compatibility with core brand attributes

8 ALI Internal Branding Conference August 4, 2009

Then performed a complete brand assessment

Completed comprehensive research worldwide

2,000 customers in eight countries

Brand tracking study

50+ journalists from top-tier media

PB senior management

PB sales force

Assessed PBI marketing materials

Cross-Enterprise Brand Council

9 ALI Internal Branding Conference August 4, 2009

Customer perceptions (2002)

Postage meters only -- little understanding of Pitney

Bowes’ full value proposition

Not business critical

“Integrated mail and document management” meant

little to C-suite

Wide variances globally

Source: Brand Tracking Study 2002

Landor Worldwide Study 2001

10 ALI Internal Branding Conference August 4, 2009

Journalist perceptions (2002)

Very few understood Pitney Bowes business

Some felt industry not dynamic

Those familiar with Pitney Bowes considered us “dry”

Source: 2002 Study

11 ALI Internal Branding Conference August 4, 2009

Employee perceptions (2002)

Unclear on value proposition -- “We solve problems through equipment”

Heritage as a mechanical device manufacturer drives how people think of the brand

Siloed structure

Lack of marketing integration

Source: Marketing Vision and Brand Positioning, Landor 2001

12 ALI Internal Branding Conference August 4, 2009

Top 10 customers’ perceptions (2002)

Ingenious at uncovering “hidden ways” to improve

communications flow

Expert at marrying advanced hardware and software

Tradition of integrity and promises kept

Source: Best Customer Study, Ogilvy 2002

13 ALI Internal Branding Conference August 4, 2009

Heritage

Maintain Change

Secure

Trusted

Reliable

Equipment vendor, “just a meter company”

“Business critical”

solutions partner

Low profile, low energy Innovative, dynamic,

confident

One purchase at a time Solution suite

purchases

Low-level decision Senior management

decision

To

Challenge is to evolve company while

retaining valuable key brand attributes

14 ALI Internal Branding Conference August 4, 2009

“One Company” Vision & Operating Principles:

We are all brand ambassadors

1. We put customers first

2. We live our brand

Every employee must act as an ambassador

for the Pitney Bowes brand

3. We are partners in everything we do

4. We identify and solve problems

5. Our actions make the difference

6. Innovation and risk-taking drive our growth

7. We conduct business with the highest ethical

standards

15 ALI Internal Branding Conference August 4, 2009

Building a brand ambassador culture

Clarify

I am aware of and

understand the brand

Persuade

I find the brand relevant

Change Behavior

I live the brand

16 ALI Internal Branding Conference August 4, 2009

Internal branding challenges

Siloed culture

Business Unit and product-focused

Limited knowledge of offerings across the

enterprise

Limited cross-selling

Lack of knowledge of strategic direction

Inability to articulate the Pitney Bowes story

Relatively low employee engagement

17 ALI Internal Branding Conference August 4, 2009

“Wall of Shame”

18 ALI Internal Branding Conference August 4, 2009

Initial internal baseline fairly low

Equip sales people to use the brand to open doors, cross-sell

Enable all customer-facing employees (sales, service,

call center) to better leverage the brand with customers

Help all employees understand the brand’s importance to PB’s growth Clarify

I am aware of and

understand the brand

Persuade I find the brand

relevant

Change Behavior

I live the brand

Baseline: 11%

Baseline: 21%

Baseline: 28%

19 ALI Internal Branding Conference August 4, 2009

Brand ambassadorship required major change

Senior managers evaluation and compensation, in part,

on support for brand

Training for customer-facing employees

Visits to key sales offices, service and call centers

Coaching, e.g., for sales force on using the brand to

drive sales with an elevator speech, letters, brand CDs

Face-to-face presentations to employees

Intranet focus on brand

20 ALI Internal Branding Conference August 4, 2009

New “One Company” look, feel

Brochures

Annual Report

Trade Shows

Newsletter

21 ALI Internal Branding Conference August 4, 2009

Launched new training: Brand messaging

22 ALI Internal Branding Conference August 4, 2009

Other new employee media

Ad kit for sales managers

letter explaining objectives of the campaign

media schedule

color reprints of ads to use with customers

e-mail with Flash

Media reprint kits

For service, call centers: Promotions

No longer “the brand,” but “what we do”

23 ALI Internal Branding Conference August 4, 2009

Good internal results -- 18 months

Equip sales people to use the brand to open doors, cross-sell

Enable all customer-facing employees (sales, service,

call center) to better leverage the brand with customers

Help all employees understand the brand’s importance to PB’s growth Clarify

I am aware of and

understand the brand

Persuade I find the brand

relevant

Change Behavior

I live the brand

Baseline: 11% 2005: 46%

Baseline: 21% 2005: 29%

Baseline: 28% 2005: 38%

24 ALI Internal Branding Conference August 4, 2009

Next challenge: New category

Mailstream: New definition of our category

Launched Dec. 2005

Builds on heritage in mail, adds data and process.

Introduces a new concept of end-to-end physical and electronic communications

Internal branding leveraged

Annual leadership conference (video)

Kits to all managers, sales

New on-line training, with contest

Large, dedicated employee meetings

Elevator speech

25 ALI Internal Branding Conference August 4, 2009

Internal infotainment events

“One Forum”

Corporate Marketing partnership

with HR to raise brand

awareness and employee

engagement

Live events in each geography

“Infotainment” using humor and

music to generate emotional

connections to key Pitney

Bowes messages around

growth and the brand

26 ALI Internal Branding Conference August 4, 2009

Online training module

Over 10,000 employees completed the mailstream online training module – became required component of onboarding.

27 ALI Internal Branding Conference August 4, 2009

New category drives better brand understanding

Equip sales people to use the brand to open doors, cross-sell

Enable all customer-facing employees (sales, service,

call center) to better leverage the brand with customers

Help all employees understand the brand’s importance to PB’s growth Clarify

I am aware of and

understand the brand

Persuade I find the brand

relevant

Change Behavior

I live the brand

Baseline: 11% 2006: 54%

Baseline: 21% 2006: 39%

Baseline: 28% 2006: 55%

Baseline: 44% Managers: 70%

28 ALI Internal Branding Conference August 4, 2009

PB Ambassador Program

Launched in late 2006 as an internal recognition

program to help identify “brand champions”.

Offered employees a variety of options to

participate and demonstrate their knowledge

of the PB brand.

Qualified over 1,100 employees since launch.

Attracted employees with higher overall

engagement levels.

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How do we keep employees engaged

and focused…

Particularly during

such challenging

economic times?

30 ALI Internal Branding Conference August 4, 2009

We are focused on three key priorities

Empowering Employees

Driving Innovation

Personalizing Experiences

31 ALI Internal Branding Conference August 4, 2009

Empowering Employees

32 ALI Internal Branding Conference August 4, 2009

Our brand and values are linked

The brand will truly represent who we are and the

value we deliver to our customers

Our values define how we live our brand and

serve as a guide to how we act

33 ALI Internal Branding Conference August 4, 2009

PB Operating

Principles

34 ALI Internal Branding Conference August 4, 2009

Customers First -- We Put Customers First We actively work with our customers to understand their current and

future needs.

We develop and communicate a compelling value proposition.

We design and deliver solutions that delight our customers.

We make it easy for our customers to do business with us.

We are not satisfied with simply meeting our customers’ needs, we

always strive to exceed those needs.

We understand how our individual actions affect our customers and are

dedicated to maximizing every customer experience.

Own the Brand -- We Live Our Brand Every employee must act as an ambassador of the Pitney Bowes Brand.

We build our business on our Brand values.

We reflect our Brand through the effectiveness of our solutions, the

clarity of our communications, and the quality of our work and

employees.

We act as a unified company with our customers at all times.

Unite -- We Are Partners in Everything We Do We base our relationships on trust, teamwork and respect, and we do not

tolerate turf wars.

We know our work is used by others and take pride in providing the

highest-quality output.

We communicate directly, share openly with one another, and respond

to requests with a sense of urgency.

We live by the Golden Rule – we help each other, and we expect and

rely on others to help us.

We employ the highest ethical standards in all our relationships.

Resolve Problems -- We Identify and Solve Problems We each take personal responsibility for problems and solve them quickly and

effectively.

We prioritize problem-solving based on the impact it has on our customers and

the company’s business.

We make decisions based on fact, and we stand by them.

We relentlessly track down the root causes of problems, and resolve them at the

source.

We are dedicated to continuous improvement.

We find intelligent interim answers when long-term solutions aren’t immediately

available.

Act to Make a Difference Every Day Our word is our bond, and we earnestly honor our promises and commitments.

We consistently confront and resolve all issues directly, quickly, and with a

sense of purpose.

We expect and provide direct, honest and respectful feedback on ideas, plans

and performance.

We clearly communicate our expectations for outcomes and hold each other

accountable for results, appreciating effort while expecting and rewarding

success.

We pursue diversity in people and opinions, to create a culture that fosters and

values new ideas.

We encourage decision-making at all levels in the company to increase

collaboration and our shared mission.

Growth -- Innovation and Risk-Taking Drive Our Growth The needs and priorities of our customers drive our innovation.

We are passionate about new ideas; we act quickly to develop and exploit them.

We collaborate to innovate, and do not let organizational boundaries restrict

innovation.

We take risks to deliver breakthrough solutions.

We use failed ideas as a learning experience and springboard for further innovation.

We understand our competition and use a disciplined process to evaluate

opportunities to build business value.

We aggressively protect our intellectual property.

Ethics -- We Conduct Business with the Highest Ethical

Standards We will not tolerate situations that breed unethical business behavior.

We obey all the laws of the countries in which we operate.

We adhere to the code of conduct contained in the Pitney Bowes Business

Practices Guidelines.

Reporting of our financial and business results will conform to all governance

requirements for disclosure.

“COURAGE”

35 ALI Internal Branding Conference August 4, 2009

64.2%

36 ALI Internal Branding Conference August 4, 2009

1. Customers first – WE PUT CUSTOMERS FIRST

• We actively work with our customers to understand their current and future needs.

• We develop and communicate a compelling value proposition.

• We design and deliver solutions that delight our customers.

• We make it easy for our customers to do business with us.

• We are not satisfied with simply meeting our customers’ needs, we always strive to exceed those needs.

• We understand how our individual actions affect our customers and are dedicated to maximizing every

customer experience.

2. Own the brand – WE LIVE OUR BRAND

• Every employee must act as an ambassador of the Pitney Bowes Brand.

• We build our business on our Brand values.

• We reflect our Brand through the effectiveness of our solutions, the clarity of our communications, and

the quality of our work and employees.

• We act as a unified company with our customers at all times.

3. Unite – WE ARE PARTNERS IN EVERYTHING WE DO

• We base our relationships on trust, teamwork and respect, and we do not tolerate turf wars.

• We know our work is used by others and take pride in providing the highest-quality output.

• We communicate directly, share openly with one another, and respond to requests with a sense of urgency.

• We live by the Golden Rule – we help each other, and we expect and rely on others to help us.

• We employ the highest ethical standards in all our relationships.

4. Resolve Problems – WE IDENTIFY AND SOLVE PROBLEMS

• We each take personal responsibility for problems and solve them quickly and effectively.

• We prioritize problem-solving based on the impact it has on our customers and the company’s business.

• We make decisions based on fact, and we stand by them.

• We relentlessly track down the root causes of problems, and resolve them at the source.

• We are dedicated to continuous improvement.

• We find intelligent interim answers when long-term solutions aren’t immediately available.

5. Act to Make a Difference Every Day – OUR ACTIONS MAKE THE DIFFERENCE

• Our word is our bond, and we earnestly honor our promises and commitments.

• We consistently confront and resolve all issues directly, quickly, and with a sense of purpose.

• We expect and provide direct, honest and respectful feedback on ideas, plans and performance.

• We clearly communicate our expectations for outcomes and hold each other accountable for results,

appreciating effort while expecting and rewarding success.

• We pursue diversity in people and opinions, to create a culture that fosters and values new ideas.

• We encourage decision-making at all levels in the company to increase collaboration and our shared mission.

6. Growth – INNOVATION AND RISK-TAKING DRIVE OUR GROWTH

• The needs and priorities of our customers drive our innovation.

• We are passionate about new ideas; we act quickly to develop and exploit them.

• We collaborate to innovate, and do not let organizational boundaries restrict innovation.

• We take risks to deliver breakthrough solutions.

• We use failed ideas as a learning experience and springboard for further innovation.

• We understand our competition and use a disciplined process to evaluate opportunities to build business value.

• We aggressively protect our intellectual property.

7. Ethics – WE CONDUCT BUSINESS WITH THE HIGHEST ETHICAL STANDARDS

• We will not tolerate situations that breed unethical business behavior.

• We obey all the laws of the countries in which we operate.

• We adhere to the code of conduct contained in the Pitney Bowes Business Practices Guidelines.

• Reporting of our financial and business results will conform to all governance requirements for disclosure

602

words

Our Operating Principles – A Closer Look…

37 ALI Internal Branding Conference August 4, 2009

1. Put Customers First

2. Collaborate

3. Be Passionate

4. Be Accountable

5. Act with Integrity

We decided to redefine and simplify…

…and call them what they are:

PB Values

38 ALI Internal Branding Conference August 4, 2009

Values In Action: Recognizing Employees

39 ALI Internal Branding Conference August 4, 2009

“Walk the Talk” Blog

40 ALI Internal Branding Conference August 4, 2009

Site Signage:

Values Posters

41 ALI Internal Branding Conference August 4, 2009

Some Values are Easily

Identifiable

Most employees are able to correctly identify three of the five values. “Collaborate” and “Be Passionate” are least known.

Less than one-fifth (15%) of employees correctly identified all five values.

41

Number of correct answers

Total Employees

0 8%

1 3%

2 18%

3 35%

4 21%

5 15% Base: Total (n=5,619)

Still More to Do…

42 ALI Internal Branding Conference August 4, 2009

Driving Innovation

43 ALI Internal Branding Conference August 4, 2009

Creating a Culture of Innovation

Invest in innovation and change

mindset at Pitney Bowes

Accelerate our ability to innovate

Break down silos

Involve all employees

“Innovation distinguishes a leader from a follower”

Steve Jobs, Apple

44 ALI Internal Branding Conference August 4, 2009

Building an innovative community

45 ALI Internal Branding Conference August 4, 2009

PB My Sites:

Social Media Options

46 ALI Internal Branding Conference August 4, 2009

Personalizing

Experiences

47 ALI Internal Branding Conference August 4, 2009

Potential/New Employees:

Interactive Recruiting Site

Visit:

www.pb.com/careers

48 ALI Internal Branding Conference August 4, 2009

All Employees:

I AM Pitney Bowes

49 ALI Internal Branding Conference August 4, 2009

50 ALI Internal Branding Conference August 4, 2009

I AM Pitney Bowes Employee Campaign

51 ALI Internal Branding Conference August 4, 2009

52 ALI Internal Branding Conference August 4, 2009

"Coming together is a beginning,

staying together is progress, and

working together is success."

- Henry Ford

53 ALI Internal Branding Conference August 4, 2009

Questions?