How to Use Rebranding to Transform Your Business

Transformation is a reality in the business world. With rapid changes happening in companies' operations and environments, it's important for businesses to be in a constant state of transformation. Business schools offer courses on the topic, consultants provide guidance, and business journals are filled with advice on what to do and what not to do. We're surrounded by discussions about change.

But here's a not-so-secret truth about business transformation: while a few succeed, most end up failing or achieving mediocre results. One of the main reasons for this is the lack of a compelling transformation narrative.  Without a narrative, a transformation project can become a confusing mix of initiatives, some of which may even contradict each other. On the other hand, a well-articulated narrative can capture the imagination of people both inside and outside the organization, creating a greater impact as a whole.

However, this doesn't mean that brands are the answer to bringing transformations to life. In fact, brands may contribute to the problem, or at least how we define them might. Brands that are static and narrowly defined, focused solely on consistency, might hinder transformation narratives. If organizations are constantly evolving, shouldn't brands be able to adapt to these changes? What if brands could be flexible and evolving entities that remain true to the organization's history while also pointing towards its future direction? This approach would reduce the need for repositioning exercises that often take brands further away from their core.

Most aspects of business now incorporate a response to uncertainty as part of their strategy. Yet, brands are still constructed with certainty and resolute terms that may fit better on a slide or a strategy model than in real-world conversations. Effective brand management today requires a "First Principles" approach, where brands reflect a direction of travel rather than a specific current state. Think of it as a compass, guiding the brand's journey rather than rigidly following a predetermined map.

Here are some key principles to consider:

1. Focus on Your Role in the World, Beyond the Product Category

Think of the brands that resonate with audiences today. They are constantly evolving, offering new products, services, and delightful experiences. Instead of limiting your brand to a specific category, consider the impact you want to have on your customers' lives. This broader definition of your brand allows for more growth opportunities and flexibility.

2. Identify a Common Enemy

There is much talk about brand purpose and its effectiveness in marketing, but experts have differing opinions. Often, there is a misconception that purpose requires lofty altruism. However, identifying a common enemy based on what's lacking in the current user experience can sharpen what your brand stands for and build a shared bond with your customers. For example, Indigo Airlines in India has identified flight delays as the common enemy and is focused on getting customers to their destinations on time. By involving customers in the mission, such as asking for their help in cleaning up litter before a flight lands, the brand creates a shared sense of purpose.

3. Embrace Your Founding Legend

Customers seek authenticity from the brands they engage with. They can easily recognize corporate speak and non-committal claims. To ensure authenticity, consider your brand's consistency with its founding legend. How would the founder(s) react to the current brand narrative? If it's inconsistent, your brand may come across as inauthentic. Even large businesses started small, and tapping into the founding legend can bring a personal touch to your brand. Scaling up doesn't mean sacrificing authenticity.

4. Prioritize Coherence over Consistency

Distinctive brand assets are important, but in a screen-first world, overemphasizing consistency can make brands appear one-dimensional. Instead, prioritize coherence. Stick to clear principles of your brand's visual identity while allowing for variations in its manifestations. Take HSBC as an example. They have become more experimental with their key brand asset, the Hex, recognizing the need to engage with audiences in innovative ways.

These principles of "First Principles Branding" have been successfully applied by businesses of all sizes. However, it's crucial that these principles are not limited to the marketing department. To have a significant impact on the organization's transformation, key departments across the business should be involved in developing these principles. The result is a strong and unified approach to the organization's transformation efforts, with an appreciation for the power of creativity and optimism within the business. This is a transformation that everyone can support.