From the Pentagon: A New Identity Framework

Transcription

1 Corporate Reputation Review Volume 4 Number 1 From the Pentagon: A New Identity Framework Professor John M.T. Balmer Bradford School of Management, The University of Bradford, UK ABSTRACT This paper summarizes the latest developments relating to a new approach to corporate identity management called Dr Balmer s AC 2 ID Test TM. The approach is the most recent development of a model that was initially reported in Balmer and Soenen (1999). The revised model makes explicit what was implicit in the original ACID Test and, as such, accords perception, which in the revised framework is styled the conceived identity, an enhanced status. Furthermore, it is posited that ten key interfaces require examination rather than the six interfaces outlined in the original model. This new approach has the objective of reconciling the five identity types which impinge upon any corporate entity. The approach also draws on the diverse disciplinary strands which inform our understanding of an organization s identity. The five identity types are the actual, communicated, conceived, ideal, and desired identities. To date, the nascent field of identity studies appears to have lacked an overarching structure that would enable managers and scholars to orchestrate these seemingly different perspectives into a meaningful whole. Dr Balmer s AC 2 ID Test TM is grounded in the premise that the lack of alignment between any two of the identity forces will sow the seeds of corporate malaise. Thus, the modus vivendi of the test is that senior management should align the five identities so that they are broadly congruent with each other. INTRODUCTION How can identity scholarship inform current business and consultancy practice? How can the seemingly disparate disciplinary roots which form the pantheon of identity studies be reconciled? How can the above be accomplished within a practical, pragmatic and memorable framework? These were some of the challenges which the author, as lead-researcher, was charged to surmount as part of the Transatlantic Identity Study which was, in the initial stages, undertaken with the support of a corporate branding consultancy wing of the WPP Group. The initial results of the study resulted in a new approach entitled The ACID Test of corporate identity management TM 1 which were reported by Balmer and Soenen (1999). This article reports, in abridged form, the most recent adaptation of the framework which has been named Dr Balmer s AC 2 ID Test TM. 2 In this article the revised framework will be known The AC 2 ID Test TM. 3 This approach serves not only to distinguish this framework from the earlier version, but also from similar approaches which are starting to emerge. WHAT IS DR BALMER S AC 2 ID TEST TM? This is a revised framework, in effect a pentagon, which has the objective of reconciling the five identity forces which Corporate Reputation Review, Vol. 4, No. 1, 2001, pp # Henry Stewart Publications, Page 11

2 From the Pentagon: A New Identity Framework impinge upon any corporate entity. These five forces are reality, communication, perception, strategy, and vision. In the AC 2 ID Test framework these five forces are identified as five identity types. They are as follows: actual identity communicated identity conceived identity ideal identity desired identity. To date, the nascent field of identity studies appears to have lacked a structure which would enable managers and scholars to orchestrate the different disciplinary paradigms into a meaningful whole. The AC 2 ID Test TM is grounded in the premise that the lack of alignment, or fit, between any two of the identity forces causes dissonance. This dissonance is sometimes referred to as a moment of truth which is revealed where corporate rhetoric is ahead of, or lags behind, reality; where vision jars with strategy or when performance and behavior fall short of the expectations demanded of the corporate reputation. Identity dissonance, if left unresolved, invariably develops into a crisis for the organization. At its worst, this crisis can, eventually, be fatal. The modus vivendi of the test is that organizations should orchestrate the five elements so that they are broadly congruent with each other and, by implication, should be congruent with environmental trends. To explain in a little more detail, these disparate forces variously reside not only in the minds of managers, employees, Figure 1: Dr Balmer s AC 2 ID Test TM A ACTUAL C COMMUNICATED C CONCEIVED I IDEAL D DESIRED nb: Each circle represents a distinct identity type Page 12

3 Balmer customers, and other stakeholder groups, but are also represented by a company s strategy, activities, and behavior. Time is often a crucial element. This is because the various identity types are likely to inhabit different time-frames: imagine five clocks, each of which is showing a different time and the difficulties this can cause. Figure 1 shows Dr Balmer s AC 2 ID Test TM. The pentagon consists of five identity types and, equally significantly, the ten interfaces, or relationships, between the five identity types which form the mnemonic AC 2 ID: actual, communicated, conceived, ideal and desired identities. Figure 2 shows the ten interfaces, or relationships, between the five identity types. An important theme of this article is that the identification of the five identity types and an analysis of the ten interfaces should be considered as an integral part of corporate identity management and consultancy. Industry survey The first challenge presented by the Transatlantic Identity Study entailed understanding and recording the main methodologies used by 20 of the UK s top identity consultancies. This was undertaken by examining the available published literature existing within the public domain. In addition, two weeks were spent in the offices of a major corporate identity consulting practice followed by a further four days in the consultancy s New York office. This part of the study entailed an examination of the documentary evidence relating to 37 projects as well as undertaking about 34 interviews with a cross-section of the consultancy s staff. In the industry survey it was found that many identity change programs are oneor, at best, two-dimensional. For instance, many corporate identity consultancies primary emphasis is to harmonize the relationship between vision and corporate Figure 2: The ten interfaces of Dr Balmer s AC 2 ID Test TM A 5 1 C C I 3 D Page 13

4 From the Pentagon: A New Identity Framework communication and/or visual identity. It was found that questions of culture and strategy rarely formed part of the consultancies methodological approach. To continue the musical metaphor, many consultancies, while having undoubted skills in harmony, are not so adept in musical counterpoint in other words, in combining different strands into a unified and harmonious whole. The difference is between degree and scale between providing a harmony to a given tune as opposed to the cerebral prowess and sheer complexity involved in writing a five-part fugue with all its attendant problems. It is the former, rather than the latter, that characterizes a good deal of corporate identity practice. It is the latter which increasingly characterizes the work of corporate identity scholars and, it has to be said, of some leading identity consultancies. Part of the problem facing many socalled identity consultancies is that they themselves have an identity problem of their own. Many have a background in graphic design and few of their staff, if any, have a competency in organizational behavior, strategy, or corporate communication. The study failed to find one instance where some change in the organization s visual identity had not been effected, which is, perhaps, indicative of the graphic-design hegemony, if not domination, over a good deal of the industry. THE CORPORATE IDENTITY LITERATURE The second phase of the Transatlantic Identity Study entailed a comparison between the findings of the research with recent developments in relation to the corporate identity literature. Here, the picture was more complicated. The points of departure for this stage of the research were those articles which had, in whole or in part, reviewed the literature, viz., Abratt (1989), Balmer (1998), Kennedy (1977), van Riel (1995), and van Riel and Balmer (1997). In making sense of the literature it was decided that three strands of inquiry should be explored, namely the following: Noting the various audit techniques advocated by scholars (by this means a direct comparison could be made with the techniques adopted by consultants) Assessing the degree of consensus among scholars regarding the components of the corporate identity mix (by this means the scope of an identity audit could be ascertained) Reviewing the emerging theory vis-àvis the corporate identity interface(s), viz., Abratt (1989), Stuart (1999), and Balmer (1998) (by this means the identity interfaces requiring alignment could be identified). The findings of the literature review were far from straightforward, but a synthesis of the findings did lead to a number of significant insights. They are as follows: Many models of corporate identity formation and management mirrored the vision-driven approach as practised by consultants. Significant parts of the literature did not, however, support the efficacy of relying on the vision-driven approach. The recent literature on corporate identity adopts a more holistic view of corporate identity in that it acknowledges its multidisciplinary roots, its complexity, and multiplicity (Balmer 1998, 2001). It also acknowledges the importance of understanding the mix of subcultures which underpin an organization s identity (Balmer & Wilson, 1998). There was a failure to distinguish between the elements comprising an identity (the corporate identity mix) Page 14

5 Balmer and the component parts required of its management (the corporate identity management mix). The emergent theory of the corporate identity interface was at variance with the vision-driven approach. Rather than the interface between vision and external perception(s) or visual identity or communication as emphasized by consultants, the traditional interface was between reality and perception (Abratt, 1989, 2001; Stuart, 1998, 1999). More strikingly, the recent literature advocated the need to take cognisance of numerous other interfaces (Balmer 1998). THE DICHOTOMY OF THE PRACTITIONER AND ACADEMIC INTERFACE An analysis of recent corporate identity practice and scholarship showed there to be a dichotomy. This can be explained by referring to, and comparing, the dominant research question confronting identity scholars, namely, What is the nature of an organization s identity? with the dominant question underpinning a good deal of corporate identity consultancy, which is, What is the most effective means of communicating (through visual means) an organization s desired identity? Thus, the world of practice tends to focus on the future, on management vision, and on the more easily manipulated elements of an organization such as its system of visual identification (see Dowling, 2001, p ). In contrast, the world of the identity scholar typically emphasizes the past and present; focuses on organisational and individual values; on business competence; as well as on structure, strategy, history, and communication. While there is a concern with management issues, the main focus is on revealing and understanding identities. Whereas complexity, multiplicity, and uncertainty tends to be anathema to practitioners, scholars, though striving for simplicity, do confront the miasma which is a characteristic of the field. One interpretation of the dichotomy presented by the above is that the approaches of scholars and practitioners are so diametrically opposed that a resolution, let alone an accommodation, of the two is impossible. On reflection, however, practitioners emphasis on simplicity, on vision, and on the future can be seen to complement a good deal of academic thought which gives greater importance to identification, history, structure, and communication and which tends to accord the present and past a higher profile. What has become apparent since the initial reporting of the framework by Balmer and Soenen (1999) is that the question of time was of particular importance. The challenge was to accommodate the seemingly disparate and complicated facets of identity within a simple and memorable framework. The basic tenor of the approach adopted by the writer was accommodation rather than abjuration. In its revised form and name, The AC 2 ID Test TM framework is shown as a pentagon. The new framework attempts to satisfy three of the essential characteristics of identity and yet maintain a relatively simple framework. The three main characteristics of corporate identity, as conceived by the writer, are as follows: COMPLEXITY: accommodating the multi-faceted and multi-dimensional aspects of identity as revealed in recent identity scholarship (eg, Whetten & Godfrey, 1998). VARIABILITY: the mix of identities pertaining to an organization are not sclerotic. Different identities are likely to inhabit different time-frames. Thus, rather than thinking of identities as Page 15

6 From the Pentagon: A New Identity Framework being central, distinctive, and enduring (Albert & Whetten, 1985), it may be preferable to replace enduring with evolving (Balmer, 2001). HETEROGENEITY: the need for sensitivity to, and recognition of, the various disciplinary strands comprising corporate identity. DEVELOPING A NEW FRAMEWORK The main task was to design a new framework that would marshal the current understanding of corporate identity. Hatch and Schultz (1997) posited the breakdown of boundaries between the internal and external environment and the model also reflects this breaking down of boundaries, albeit on different dimensions. For instance, there are some elements of one identity type which can belong to another. Reputation, for example, can be seen to belong to the actual as well as to the conceived identity. Table 1 illustrates Table 1: The disciplinary strands and time-frames comprising The AC 2 ID Test TM Identity categorisation Management roots Time-frame Strategy, structure Present Actual A communication, (Cultural elements will identity culture, de facto, include dominant history, reputation, as well as descendant & leadership ascendant subcultures) Marketing Communications, Corporate Communications, Communicated C Total Corporate Communications* identity *Primary Communications Present (Products, services, behaviour of the organisation & of the personnel) *Secondary communication Past/Present/Future (controlled communication channels, Advertising, PR, visual identity etc) *Tertiary communication Past/Present (word of mouth/spin) Conceived C Reputation Past/Present identity Image Corporate Branding Ideal I Strategy Future identity Leadership Environmental & Corporate Analysis Corporate structure Desired D Leadership Future identity Page 16

7 Balmer how the various disciplinary strands coalesced to form the new AC 2 ID test framework. In creating this new approach a number of criteria were established as an ideal for the new framework. It is hoped that The AC 2 ID Test TM meets these criteria to a greater degree. They are as follows: The new framework should be: Innovative, and reflect cutting-edge developments regarding corporate identity research and scholarship Capable of being operationalized by consultants Able to improve current best practice in relation to corporate consultancy and identity management Able to bring objectivity to corporate identity consultancy and practice Of assistance in evaluating corporate identity programs and their management Simple Memorable. THE FIVE IDENTITY TYPES OF DR BALMER S AC 2 ID TEST TM Acid test: a conclusive test of success and value. (Concise Oxford Dictionary, 1999) Dr Balmer s AC 2 ID Test TM encapsulates the five different identity types that need to be considered when thinking about, examining, or effecting a change of identity. The word AC 2 ID, with the C 2, is used as an acronym for the five identity types, which are outlined below. Actual identity The actual identity is shaped by a number of elements including corporate ownership, the leadership style of management, organisational structure, business activities and markets covered, the quality of products and services offered, and business performance. An important, albeit complicated, dimension of the actual identity is the values held by management and employees and the degree to which they identify with the actual identity (or indeed with other identity types). Communicated identity This encapsulates not only controllable corporate communication such as advertising, sponsorship, and PR, but also noncontrollable communication such as the performance of products, organizational behavior, employee discourse, and spin commentaries made about the organization by groups such as competitors and the media. The author calls this Total Corporate Communications. Conceived identity This refers to the main perceptual concepts of corporate image, corporate reputation, and corporate branding. These exist in the minds of individuals, of groups, and of networks. The following are prosaic explanations of the family of concepts falling under this area. Corporate image refers to the immediate mental picture an individual has of an organization. Corporate reputation refers to the latent perception of the organization caused over time by the effects of total corporate communication. The Corporate brand encapsulates key expectations and promises grounded in the organization s identity which are not only expected by key stakeholder groups but also underpin the organization s strategy vis-à-vis controlled communication. This may be viewed as an informal contract of commitment between the organization and its various stakeholder groups. In terms of The AC 2 ID Test TM a choice has to be made with regard to which groups, and which concepts, form the conceived iden- Page 17

8 From the Pentagon: A New Identity Framework tity. Typically this will be the reputation and/or the conception of the corporate brand. Ideal identity The ideal identity, although a purely conceptual construct, refers to the articulation by strategic planners and others of the optimum positioning of the organization in its market, or markets, in a given time-frame. This is based on current knowledge about the organization s prospects in the context of projections vis-à-vis the general business environment. Desired identity This lives in the minds of corporate leaders: it is their vision for the organization. Although this identity type is misguidedly assumed to be identical to the ideal identity, in reality the vision that is held by the chief executive and that drives his or her decisions may not correspond to the general understanding of what the organization s current strategy is. Whereas the ideal identity normally emerges after a period of research and analysis, the desired identity may have more to do with an individual s personality and ego than with a rational assessment of the organization s current identity within the time-frame of current corporate plans. PLUS ÇA CHANGE: SEEING THE TWO Cs Since the original exposition of the first framework a number of small but significant refinements have been made to the original model. They are briefly outlined as follows: The model accords heightened importance to the critically important force of perception. In the revised framework this is shown as conceived identity. This accounts for the C 2 symbol in the title of the model. While the Table 2: Dr Balmer s REDS AC 2 ID Test process TM 4 Dr Balmer s REDS AC 2 ID Test process TM The principle Reveal the five identities AC 2 ID ; (1) Actual identity (2) Communicated identity (3) Conceived identity (4) Ideal identity (5) Desired identity Examine the ten identity interfaces A Actual communicated B Actual conceived C Actual ideal D Actual desired E Communicated conceived F Communicated ideal G Communicated desired H Conceived ideal I Conceived desired J Ideal desired Diagnose the situations vis-a` -vis the organization s identity The following questions may be useful regarding this part of the process (i) Is there a problem or problems? (ii) What is it, or their, nature? (iii) What is urgent? (iv) What is important? (v) What is desirable Select a suitable strategy (i) What type of corporate change programme is needed? (Change of vision (leadership), strategy (structure) behavior/culture, formal communication?) (ii) What are the implications re: cost, time, management, outside help and type of consulting advice? Page 18

9 Balmer original model clearly explains the importance of perception, the umbrella title of communication tended to mean that little or no importance was accorded to perception and to such concepts as reputation. According distinctiveness to conceived identity resulted in alterations to the basic procedure advocated in using the framework. Originally known as the RED ACID TEST process, or the principle, based on the principle that four identity types and the six interfaces between them should be revealed, examined, and the problem diagnosed, the pentagon framework now deals with five identity types and ten interfaces. Thus, a principle is required. The new procedure is now called the REDS rather than the RED process so as to accommodate a further stage, namely, the selection of a suitable strategy. THE REDS AC 2 ID TEST PROCESS Table 2 outlines a basic process for operationalizing the test. The original article (Balmer & Soenen, 1999) outlines some tools which may be used to effect such an analysis. THE IDENTITY WHEEL OF CHANGE An important characteristic of The AC 2 ID Test TM is that it should not be used simply as a one-off diagnostic exercise but should be viewed as a framework for constantly evaluating an organization s current, past, and future identity interfaces. Because of rapid institutional and environmental change the resolution of one identity interface invariably means that another interface requires attention: identity change is, it would appear for many organizations, a constant feature of organizational life. The author has called this phenomenon the identity wheel of change. It has been found that a review of all the identities and interfaces can be too broad a proposition and it may be helpful to break the identity pentagon into two identity triangles (Figures 3 and 4). Each is broadly concerned with particular time-frames. However, there does not appear to be a universal law that determines which timeframe a particular identity type will belong to. In the main, however, the first triangle will have as its primary focus the current situation (the actual, communicated, and conceived identities and their interfaces), while the second triangle is broadly con- Figure 3: Breaking the pentagon into two identity triangles: present identities A 3 1 C 2 C Page 19

10 From the Pentagon: A New Identity Framework Figure 4: Breaking the pentagon into two identity triangles: future identities A 3 1 I 2 D cerned with the future situation (the actual, ideal, and desired identities). USING DR BALMER S AC 2 ID TEST TM FRAMEWORK The saliency of The AC 2 ID Test TM framework is that it reconciles the five power relationships which impact upon organizations of every hue. It is envisaged that the test will be of assistance in the planning, implementation, and evaluation of identity change programs. It can also be used as a regular tool for a periodic audit of an organization s identity and, additionally, may be used for thinking about the most pressing identity issues confronting an organization during a period of change. For instance, it can be used by managers in a workshop situation as a framework for discussing broad issues relating to the strengths and weaknesses of the various identities, as well as highlighting weaknesses in the management of the organization s identities. It is also hoped that it will have a didactic role: from the author s experience students have found it to be a useful framework for understanding, as well as reconciling, the multifaceted aspects of identity. The test also seeks to redress any imbalance between client and consultancy relationships in that the framework can be used by the client to assess the scope and capabilities of a consultancy in undertaking a particular identity project. For consultancies, the model can be used to assess their own capabilities vis-a` -vis a particular project and can help to determine when they need to work with other agencies such as those engaged in image and or reputation research. Nevertheless, while the framework and process might appear to be straightforward, corporate identity issues are rarely straightforward. Along with Page 20

11 Balmer other identity researchers one approaches the area not so much with hubris as with humility. It is hoped that Dr Balmer s AC 2 ID Test TM will help bridge the practitioner vs. academic divide and that it will be found to be useful for practitioners and managers and will also be of assistance to all those interested in identity research and scholarship. Moreover, it is also hoped that The AC 2 ID Test TM serves to capture the field s multiplicity and complexity within a simple, pragmatic and memorable framework. ENDNOTES 1 The ACID Test of Corporate Identity Management TM J.M.T. Balmer Dr Balmer s AC 2 ID Test TM. J.M.T. Balmer The AC 2 ID Test TM. J.M.T. Balmer Dr Balmer s REDS AC 2 ID Test Process TM. J.M.T. Balmer 1999, also The AC 2 ID Test TM. J.M.T. Balmer ACKNOWLEDGMENTS The author wishes to thank all those who have assisted with this study. Especial thanks are due to Professor Stephen A. Greyser of Harvard Business School, who acted as special adviser to the study. Thanks are also due to Guillaume Soenen, who was the author s research assistant during the first stage of the study. The author also notes, with thanks, the support given by Enterprise IG during the first three years of the study. He also wishes to acknowledge, with gratitude, the helpful suggestions, as well as the encouragement, given by all those involved in reviewing this article. REFERENCES Abratt, R. (1989) A new approach to the corporate image management process, Journal of Marketing Management, 5 (1), Abratt, R., and Mofokeng, T. N. (2001) Development and management of corporate image in South Africa, European Journal of Marketing: Special Edition on Corporate Identity and Corporate Marketing, 34 (3 & 4). Albert, S., and Whetten, D.A. (1985) Organizational identity, In L. L. Cummings & B. M. Shaw (Eds.), Research in Organizational Behavior, 17, JAI, Greenwich, CT. Balmer, J. M. T. (2001) Corporate identity, corporate branding, and corporate marketing: Seeing through the fog, European Journal of Marketing: Special Edition on Corporate Identity and Corporate Marketing, 34 (3 & 4). Balmer, J. M. T., and Soenen, G. B. (1999) The AC 2 ID Test of Corporate Identity Management TM, Journal of Marketing Management: Special Edition on Brand Reality, 15 (1 3), Balmer, J. M. T. (1998) Corporate identity and the advent of corporate marketing, Journal of Marketing Management, 14, Balmer, J. M. T., and Wilson, A. (1998) Corporate identity: It is more than meets the eye, International Studies of Management and Organisation: Special Edition on Corporate Image, 28 (3), Dowling, G. (2001) Creating corporate reputations: Identity, image, and performance, Oxford University Press, Oxford. Hatch, M. J., and Schultz, M. (1997) Relations between organisational culture, identity, and image, European Journal of Marketing: Special Edition on Corporate Identity, 31 (5 & 6), Kennedy, S. H. (1977) Nurturing corporate images: Total communication or ego trip?, European Journal of Marketing, 11, Schultz, M., Hatch, M. J., and Larsen, M. H. (Eds.). (2000) The expressive organisation, Oxford University Press, Oxford. Stuart, H. (1999) Towards a definitive model of the corporate identity management process, Corporate Communications: an International Journal. Special Edition on Corporate Identity, 4 (4), Page 21

12 From the Pentagon: A New Identity Framework Stuart, H. (1998) Exploring the corporate identity/corporate image interface: An empirical study of accountancy firms, Journal of Communication Management, 2 (4), Van Riel, C. B. M., and Balmer, J. M. T. (1997) Corporate identity: The concept, its management and measurement, European Journal of Marketing: Special Edition on Corporate Identity, 31 (5&6), Van Riel, C. B. M. (1995) Corporate communication, Prentice Hall, London. Whetten, D. A., and Godfrey, P. C. (Eds.) (1998) Identity in organizations: Building theory through conversations, Sage, Thousand Oaks, CA. Page 22