All businesses have an identity, regardless of whether they control or effectively manage it. You can increase the efficiency of your business by concentrating on developing a desirable identity to project to customers, use as a tool to prove internal direction and orientate strategic development.  

 

Types of Business Identities

Remember that a business identity program embraces and manages a valuable asset. There are three identity types that your business can be classified.  

 

Monolithic Identity

The business uses one name and visual system throughout all of its interactions. Since everything that the business does has the same name, style and character, each part supports the other such as with Virgin.  

 

Endorsed Identity

Most businesses develop at least partly by acquisition, where the acquiring company is eager to preserve the goodwill (equity) associated with its acquisitions. Under this strategy, the parent endorses its subsidiaries with the company name and sometimes its visual style such as the Nestle Company.  

 

Branded Identity

Some businesses, particularly in the consumer products field, separate their company identity from those of the brands that they’ve won such as Unilever, Diageo and LVMH. Brands have names, reputations, life cycles and personalities of their own; and they may even compete with other brands from the same company.            

 

Defining Your Business Identity

When you are going to establish an identity for your business, there are few points that you have to consider:  

 

Is implanting an identity part of a turnaround, following buying that business or reestablishing? Does the identity inspire, invigorate and create more cohesion within the business? Is the purpose of defining the business’ identity to increase the share price if a public company? Is it focused on helping to integrate newly-acquired businesses as part of your corporation if that is the scenario? Is defining your business identity a response to competitive influences?  

 

When a identity program is started, someone in the business should be set up to manage it. Such a change has to be implemented in a clear and goal-focused manner. Most businesses will need outside assistance from consultants that specialize in branding, identity and design. There must be a power base, financial controls and clear lines of authority for an identity program.  

 

CLIMBING THE BUILDING IDENTITY LADDER  

 

There are four steps on the ladder that must be taken in order to define a clear identity for your business, so that you will be successful.  

 

Step One – Investigation, Analysis and Strategy

The business has to take an objective look at how it is perceived by its various target audiences. You have to determine how these perceptions match up with the business’ aspirations. If the current identity is perceived as fragmented, incoherent, vague, old-fashioned or ineffective; you must determine on the action required to change that.  

 

Before you move on to the next step, you must have a call for action that has a plan.  

 

Depending upon what you determine in your previous step, you will probably want to revamp your business identity completely – whether it’s changing both your name and visual style, just the visual style or make other changes.  

 

Remember that changes of name and visual style are expensive and time-consuming. They clearly send a message to the marketplace that your business is making a new promise or moving in a new direction. This kind of change makes the promise of a change in performance that hasn’t been fulfilled yet. Just remember to make a promise that you can’t keep and deliver.  

 

Based on the plan that you decided on in Step One, consultants develop an identity system that’s based on the monolithic, endorsed or branded model. The identity system usually consists of a name, mark or logo, main subsidiary typefaces and colors. These will be applied to a variety of company materials such as letterheads, web sites and products.  

 

Step Three – Implementing the Plan

The new identity has to be arranged into an organized system so that it can be used in your business and by relevant outside suppliers.  

 

You need to create manuals that provide all the elements of the identity and their precise specifications for a variety of applications. Additionally, the manual should demonstrate the spirit behind your business.  

 

Step Four – Launching Your New Identity to the Public

If your new identity program is going to work for your business, you must launch it with enthusiasm and commitment. The launch is the first major opportunity for your business to present the identity as a significant resource and integrate it into the organizational structure.  

 

Remember to never trivialize your corporate identity. Explain that the new identity is the outward sign of change, and what the change implies. Both people from within and outside your business want to know what, why and how this new identity will affect them – how much in particular for external audiences.