Corporate Eye

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Lucy Nixon

Lucy Nixon

A Case Study in Consistent Branding – Puccino’s

I came across an excellent example of consistent branding on one of my favorite design blogs today, Brand New, that creates a clear message to a targeted audience which customers recognize and have quickly come to expect – Puccino’s a coffee bar with franchises in the U.K.

Check out some of the pictures of Puccino’s cups, signs, sugar packets, bags and more below, and notice how there is no doubt that these items come from the same company and deliver the same brand image – irreverent humor for a less formal audience.  Puccino’s hits the ball out of the park in terms of meeting the 3 key components of developing a brand – consistency, persistence and patience. [Read more…] about A Case Study in Consistent Branding – Puccino’s

Demographics, Twitter and Virtual Meetings

While browsing through some archives recently, I came across … ArcelorMittal using Second Life to hold retail investor meetings – or at least, to hold a mixed reality meeting, with some people present in real life, and others present in a virtual life.

Now, I’ve talked before about using live chat for retail investor meetings, and I’ve mentioned companies using Second Life for recruiting before.

But the use of Second Life for investor meetings is interesting, and – not surprisingly – this caused a fair stir a few months ago.

Not only is the use of this technology for this purpose interesting, so too is the underlying reason: that ArcelorMittal have an aging group of retail shareholders. Apparently the average age is over 65, and, quite rightly, ArcelorMittal have identified this as a problem. (Good for them for recognising this – HR data was covered by Infohrm at their recent conference, but shareholder data is very important too).

I wonder how successful this venture was for ArcelorMittal? Apparently 50-70 avatars (or representations of people) came to the event. I’d like to know the numbers that turned up to the real-life section of the event – and how many of the people that came to the Second Life version were already investors, or were seriously interested in investing.

Is Second Life really full of people who might invest – using real life money – in ArcelorMittal?

There is some information available about age-ranges, and some on how many people regularly use Second Life, but no clear indication of whether these are likely to be investors.

However, Quantcast tells us that 56% of Second Life visitors, at least in the US, earn less than $60k/year (27% earn less than $30k), and that 33% are under 18.

Possibly not ideal investor recruitment territory, then.

Nevertheless, ArcelorMittal deserve kudos for trying this out. But what else could be tried?

The average age of shareholders in the UK is (or was, back in 2006) between 35-54, and 42% of shareholders are classed as A/B (or middle/upper middle class).

The Twitter demographics from Quantcast seem to indicate that Twitter users are more likely to be shareholders: the average age of Twitter users is higher (only 1% of under 18’s), they are wealthier (29% earn over $100k/year compared to 20%) and better educated (63% college-educated compared to 52%).

Now, Twitter isn’t the same as Second Life, but it can be used as part of an online conference, so that the audience is at their desk (as for a webcast), and can see what you are displaying (perhaps a mix of webcast/video/audio/slides) and simultaneously see and participate in the related Twitter stream of comments and questions.

This takes some doing, for all parties:

The company has to

  • arrange for technical control of multiple media streams
  • chair the meeting of those people physically present
  • incorporate the questions and comments being raised by those not physically present.

In order for this to work, the company would have to have someone dedicated to watching the Twitter stream, and summarising it for the chair, who could then invite responses from the Board members/IR team.

The participants who are not physically present have to handle multiple input streams simultaneously. Possibly, the participants who are physically present could have the Twitter stream presented on a large screen too, so that everyone has the same material available … and the same quandary about multiple simultaneous input streams. It isn’t easy to watch a webcast and simultaneously keep on top of the discussion happening on Twitter. I know, I’ve tried!

However, if your potential market is using Twitter, then I think it is worth a try – and I think ArcelorMittal is up to the challenge. I wonder if they’ve considered it?

Why Sustainable Businesses Need To Fight Corruption

The crowning of Lewis Hamilton as Formula One’s Youngest World Champion has some parallels for businesses keen to show they’re not corrupt.

I cannot have been the only one thrilled by excitement of last weekend’s Brazilian Grand Prix and Lewis Hamilton’s crowning as the youngest ever Formula One World Champion.

However, you must feel sorry for Filipe Massa. When he crossed the finish line HE was World Champion. Seconds later, Hamilton passed a suddenly slower Timo Glock, wresting the crown away from Massa by one point.

There have been the inevitable accusations that Glock was bribed to let Hamilton through. This has been a season of dubious decisions and, whether the allegation is true or not, it’s difficult not to wonder if there is some truth in at least some of the whispers.

Transparency International and Dow Jones Unite Against Corruption

Corruption is as much an issue for ordinary businesses as it is for Formula One. While the CSR facet of sustainability is about restoring corporate trust, corruption is all the betrayal of all trust for personal gain.

Thankfully there has been an organisation fighting against corporate corruption for over fifteen years: Transparency International (TI).

TI doesn’t conduct investigations into individual cases, although it will lend assistance in special circumstances. It’s focus is upon advocating transparency in the business arena as the means to stamp out corrupt practices once and for all.

Now it has entered into a two year partnership with Dow Jones, publisher of the Dow Jones Sustainability Index. The deal will considerably strengthen the efforts of both organisations to promote transparency and eradicate corruption among the business community.

As part of the deal, Dow Jones will give TI free access to two of its products. The first is Factiva, a news service which amalgamates various sources including the Financial Times, the Wall Street Journal, Associated Press, Dun & Bradstreet and Reuters.

The second is their Watchlist product. This tracks Politically Exposed Persons (PEPs); people from all over the world who could use their current or recent position in public office for private gain. There are nearly half a million PEPs worldwide: many have the same opportunity for corruption, though only a few take it.

World Map
Corruption Perception Index 2008

Bribery and Corruption In Your Western Country

But what, you may be asking yourself, has all this to do with enlightened Western democracies? Surely there’s no corruption in the UK, EU or USA?

Just over a month ago, the UK was described by TI as “a place where corrupt business is done”. It went on to call upon the Government to “stop procrastinating and address the fundamental weaknesses” in its approach to bribery and corruption.

This criticism was prompted by a stinging assessment of the UK’s anti-corruption framework by the Organisation for Economic Co-operation and Development (OECD).

This included four sweeping recommendations and the requirement that the country produce quarterly written reports to the OECD’s Working Group on Bribery.

However, according to TI’s 2008 Corruption Perception Index, the UK is seen as the sixteenth least corrupt country, with the USA ranked eighteenth.

If leading countries such as these are finding it difficult to meet their international obligations then you have to wonder about the businesses they are charged with regulating.

The Suspicion of Corruption

There are persistent rumours in Formula One about backroom deals and bias towards certain teams and drivers. No matter the veracity of these rumours, it’s the perception of a fixed championship which will stick more than any denial.

So it is with business. One or two questionable decisions (such as the UK-Saudi Al Yamamah Defence Programme) can lead to a wholesale collapse in trust and leave many companies unfairly tarnished with the same brush.

It therefore seems sensible to recommend that all businesses should include in their sustainability reporting a statement on transparency, preferably from the Global Reporting Initiative or another internationally accepted standard.

After all, everyone knows that if you’re not transparent you must be hiding something. Or at least, that’s what we all suspect …

Picture Credit: “World Map Index of perception of corruption” from Wikimedia Commons under GNU Free Documentation License.

When Brands Attack – The Rise of Comparative Advertising

Did you ever take “The Pepsi Challenge”?  Have you seen the Mac Guy vs. PC Guy commercials?  Chances are at some point you’ve seen some form of comparative advertising that could more accurately be called a “Brand Smackdown”.  Not unlike two brands entering an ultimate fighting ring, comparative advertising has become an all-out battle among some of the world’s top brands.

In the news of late has been the Dunkin’ Donuts vs. Starbucks taste test ads where Dunkin’ Donuts tells consumers that more “hard-working” people prefer their coffee than the high-priced Starbucks, “elitist” coffee.  Rumor has it, Time Warner is preparing to launch a comparative advertising campaign against Verizon. [Read more…] about When Brands Attack – The Rise of Comparative Advertising

How the giants measure & manage human capital

We all know that you can’t manage what you don’t measure.

Measure to manage

Knowing what to measure, and how to do it isn’t always easy – and in Human Resources, just as in Operations, getting it wrong can lead to bad decisions. Setting performance measures can change people’s behaviour as they work towards the measures, and if the measures aren’t good, there can be unforeseen results: not always good ones. Let’s just not discuss the bankers rewarded for taking high-risk positions, leading to the current financial problems …

But measuring the right things is a far broader topic than just performance measures; it involves getting a proper handle on the ‘people’ data. If – for example – you don’t track the age profile of your staff, you may find that one year you lose a great deal of human capital and knowledge because many of your most experienced staff retire, with a consequent loss of expertise within the company. If you’d been fully aware of this risk, you could have set up flexible retirement schemes, or managed the succession planning process better, or come up with a scheme to capture the critical knowledge that those individuals had.

Infohrm are holding a conference in November to look at how to use data analysis and data-driven decision making to improve business outcomes. The keynote speakers include very senior staff from RBS, Metropolitan Police and the National Australia Bank (all people-driven businesses) as well as academics who specialise in strategic workforce planning and human resources. Other presenters will be there from Nokia, National Grid, Royal Mail, BAA, Deloitte, Allied Irish Bank and Unilever.

That’s a group of speakers with a lot of experience talking about their companies and how they measure, analyse and report on workforce data to meet consumer demands, control costs, drive business change and maximise stakeholder engagement. Should be very interesting … and it may be a cliché, but learning from the experience of others, particularly the giants in the field, might just get you a better view.

Celebrating the FTSE 100: action on the breadline

Blog Action Day 2008Despite the recent financial madness, most FTSE 100 companies aren’t on the breadline … but many of them try to help those who are.

There are a few whose social involvement statements are a little like the beauty queen’s vapid ambitions to work for world peace – all motherhood and apple pie; and a few whose statements go no further than that they support health and education projects.

Don’t get me wrong: health and education projects are essential, and perhaps these companies subscribe to the view that charity should be conducted secretly, and don’t want to brag … but others provide a bit more detail, and if we dig a bit, we can see that there is some great work being done to try to alleviate poverty.

And surely these big companies are ideally placed to help, if anyone can.

How can big business help pull people out of poverty?

There are several different ways that businesses provide assistance to individuals or to smaller businesses.

By donating cash or goods

Some companies donate hard cash or goods in kind to charities aimed at particular problems, such as disaster relief and homelessness. This is a direct route to alleviate poverty, but doesn’t necessarily solve a long-term problem.

  • For example, Sainsbury’s donate food that is past the display date but before the eat-by date to various charities. This avoids waste and provides food for those in need – definitely a win-win.
  • Or ICAP, who donate money to VSO – in 2007, this was enough to send two teachers to Nepal, where “a single volunteer shares skills with people who go on to train hundreds more, and eventually change the lives of thousands”

By donating time

Some companies donate time by allowing their staff to volunteer in work time to support charities. This type of action is often local and small-scale: one-off barn-raising type events, or fun fund-raising events – but can be regular literacy sessions at a school, for example. And there is no doubt that education is one of the best ways out of poverty. Again, this is a win-win game: staff feel good, the company gets credit, and the people they help get the benefit – and that could be several children who improve their literacy skills, and therefore their life-chances.

By donating expertise

Some companies donate expertise to build entrepreneurial abilities – a great way to lift people out of poverty.

  • Several provide support for small entrepreneurs, such as:
    • BG, who supported women in Brazil in developing their business skills and marketing their craftwork
    • SABMiller, who work to develop a culture of entrepreneurship among young people in South Africa by providing training, grants, mentorship and assistance during the set-up phase of a new business
    • and Compass Group, who helped improve a Colombian fish breeding programme by teaching best safety practices and handling procedures.
  • Others provide financial support for entrepreneurs, such as Shell and AngloAmerican, both of whom support micro finance schemes.

What else could be done?

Here are some places where people are coming together to try to work out how business can help solve some of the issues around poverty:

  • Transforming Business is a research and development project based at University of Cambridge and is looking at how “the creative forces of free enterprise be effectively applied to the most pressing social, economic, and moral challenge of our time: the elimination of poverty”. It has an impressive array of advisers from big businesses, including many FTSE 100 or other multinationals
  • Business Fights Poverty is smaller scale, but is “a network for professionals passionate about fighting world poverty through good business”
  • University of Cambridge (again!) offers a training programme called Business and Poverty Leadership. It’s not cheap, but is intended for Directors and Senior Managers with responsibility for business development, CSR, or business units in emerging economies (some scholarships available)

Not FTSE 100? Not even close?

Here are some initiatives that you could consider as an individual or very small company (big ones welcome too):

  • Mentori – (online) offer time as a business mentor to an entrepreneur in a developing country
  • Skills Venture – (offline) offer time as a business mentor, combined with a holiday, as a working holiday or as a sabbatical – even as a team-building venture.
  • Kiva – offer micro loans to individual entrepreneurs. There are many of these organisations, but Kiva is perhaps the best known.

How can your organisation help? Something for us all to ponder, I think.

Last year’s Blog Action Day post, on the environment: Techniques for enticing the green investor