One of the biggest changes in the 21st century is the way in which companies are valued. In the past, company value was calculated based on hard assets such as land, buildings, equipment, products/inventory and factories, etc. Today, over 80% of a company’s value is tied to less tangible factors, such as brand value, customer data, relationships, leadership quality, algorithms and more. Harvard Business Review now believes that competitive advantage goes to companies that manage human capital effectively rather than companies that manage finances effectively.
The Incentive Research Foundation 2018 Trends Study reports that innovation and human capital are the #1 and #2 areas respectively that CEO’s want to improve in order to remain competitive and capitalize on new opportunities. In addition, 92% of CEO’s agree that it’s important to reflect their corporate purpose in their values, culture and behaviors.
How to Build a Brand-Asset Culture
A culture that focuses on brand assets includes:
- Defining your company culture. What are your core values? What is your business purpose? What is your vision for the future? All company policies and procedures should be consistent with those values and support the vision.
- Communicating it. Employees take their cues from top leadership. Company leaders must embody and demonstrate the core values. Communicate the message through a variety of channels so that employees are on the same page. If you have an “elevator pitch”, it makes sense to make sure every employee (customer-facing or not) can communicate the message to anyone with which they interact.
- Increasing engagement through rewards & recognition. On every list of ways in which to increase performance are reward and recognition programs. Warning, never try to go it alone! Partner with an experienced firm that can guide you through the pitfalls you might encounter while designing an effective recognition program. Setting clear and achievable goals that support the company direction and vision will reinforce the message and engage employees at a higher level.
Non-cash Rewards Gain Popularity
Employees are especially motivated by rewards and experiences that are selected especially for them. It’s no surprise that another one of the 2018 Trends identified by The IRF is a move toward more meaningful tangible rewards. Topping the list of most popular merchandise rewards are electronics, sunglasses and apparel. Partner with an experienced firm or agency that represents name brand rewards that are consistent with your own brand attributes. They will be able to guide you through the process of engaging your workforce to determine which awards will best motivate them.
A strong brand-asset culture leads to highly engaged employees. Highly engaged employees are happier, stay with the company longer and say more positive things about the company to others which translates into easier customer acquisition and better customer service. Contact us to begin building your brand-asset culture today!