The values-driven brand comes of age

Purposeful branding can help companies grow twice as fast, engage more customers, retain more staff, and become better at innovation.

So why is it all so hard? Because, research shows, change starts at the top.

Purposeful branding, or one that seeks to create value for a broader set of stakeholders than shareholders alone, is leadership-driven, according to a 2020 study by Kantar Consulting.

‘‘Senior leadership must embrace purpose and commit to it in a very explicit way. Again, [the report] finds this distinguishes success from failure, with 85 per cent of over-performing companies reporting that purpose is driven by the C-suite versus 58 per cent of under-performing companies. Senior leaders must make purpose personal,’’ says the Kantar Purpose 2020 report.

The evidence suggests that it is leaders driven by purpose that will create the most successful companies of the future. Examples include Hamdi Ulukaya and Chobani, and local examples like Kristy Chong and Modibodi, Simon Griffiths and Who Gives a Crap.

These are leaders with a strong personal brand based on purpose that is aligned to an equally strong corporate brand, which multiplies their marketplace impact.

The idea behind purposeful branding that particularly Ulukaya, Chong and Griffiths are pursuing is one that is coming of age.

A landmark study by the Harvard Business Review found that purposeful brands attract new and loyal customers, more engaged employees, and are better at innovation and transformational change.

A swathe of other studies highlight how a majority of consumers will switch brands for a conscious alternative at a similar or even higher value and price. From a talent perspective, millennials are willing to take a pay cut to work for a company that has similar values to their own.

The practice of developing a purposeful brand, however, requires a willingness from leaders to dig deep – they need to be committed over the long term to their company, be prepared to think of their business in a new way, and find their own story in the corporate narrative.

‘‘Many leaders find it difficult to create a purposeful brand because they don’t know how to,’’ says Sibon Schouten, CEO and founder of purpose-driven brand and marketing collective Markd Global.

“It takes a holistic framework based on four Ps – purpose, people, planet and profit. The daily demands of leading a company can make such an approach feel out of reach for many leaders, which is why purposeful branding can land in the too-hard or for-idealists-only basket. Yet it has a business case imperative.”

But as more people expect leaders’ personal brands to marry with the companies they run, and for that to deliver something more than profits, there are a few steps corporate leaders need to be willing to take before engaging a brand strategy company like Markd Global.

Markd is merging the worlds of branding, leadership and purpose and while purposeful branding may be an emerging field, it’s not niche: the company has worked with a diverse range of global and local organisations including Nestle, Galderma, Mylan, Sara Lee, Modibodi and NSW Department of Education.

‘‘There’s nothing like this that exists in the market as far as we know,’’ Schouten says.

She says the Markd brand experience requires commitment and has developed a proprietary approach that works with leaders over 90 days across three phases, Brand Discovery, Brand Expression and Brand Planning.

“Our leaders are very busy people, which is why we’ve uncomplicated purpose through a streamlined approach. It has culminated in PX™ – The Purpose Experience, which is a one-day individual or executive team experience that takes leaders away from their normal environment,’’ Schouten says.

‘‘Brand Discovery is the most critical phase because it aims to align personal and company purpose for every leader. We work with leaders on audience mapping, messaging and action plans, and after that we engage our brand village of expert collaborators to bring every brand experience to life.

‘‘There are three expected outcomes: personal satisfaction, social currency and economic value. If you’re on purpose, on message and on brand supported by authentic actions, you’re going to connect to an audience that will follow you and the company you lead.’’

One of Schouten’s first personal brand clients is business leader Mark Cushway, who had sold a successful business but couldn’t define what was next for him.

Cystic fibrosis meant he’d always lived with a shortened life expectancy. He found Markd when he’d scored new lungs and had a 50 per cent chance of surviving five years.

The Markd experience enabled him to create a longer-term outlook, which included starting a new venture, writing a book, running a half-marathon and doing a TED Talk.

Schouten says what inspires the Markd team the most are personal stories powered by brand purpose. “Looking back at all the great brands and businesses, you will always find purpose-driven leadership at their core. We’re helping leaders get back to basics in a way.”