The successful creation and management of brands will be the hallmark of true business leadership in the 21st Century. The world has changed, and these structural changes place brands at the forefront of business success.
A review of stocks in the S&P index shows that businesses that own the strongest brands significantly outperform other businesses. Business leadership and brand leadership have become inextricably linked – a study by Millward Brown Optimor highlights the shift that has taken place.
The analysis found that in 1980, virtually the entire value of an average S&P 500 company consisted of tangible assets (furniture, factories, inventory, etc). Now days, tangible assets account for only 30 to 40 percent of a company's value. The rest is intangible value, and about half of that intangible portion – close to 30 percent of total business value – is attributed to brand.
It can be said that for many companies, their brand is their single biggest asset. To drive business success, companies must identify their brand ideals. The ultimate test of the authenticity of a brand ideal lies in the degree to which it permeates the business and provides a compass for everything the company does.
The brand ideal serves as an internal organising principle, and has a tremendous impact on an organisation's alignment as well as the behaviour, satisfaction, and retention of its employees. When a company is organised around its brand ideal, it allows the brand to show up in the world with intentionality and a purpose that is instantly apparent. GT Bank is such a brand.
The late Tayo Aderinokun, former Managing Director of GT Bank advocated passionately about developing the GT Bank "brand". The GT brand ideal was delivered through its management and operating practices by motivating its employees to create a unique and memorable customer experience.
This space saw GT Bank become the favoured brand among the middle class and drive the bank to global prominence. Today, companies that make it their business to develop, promote and organise around a purpose higher than their product will be the powerhouses of the future. Does your brand have an ideal purpose?
