Category Archives: Maurice Saatchi

Latvians show Greece how to smile in the face of austerity – Its all just National Branding

As you contemplate the austerity that your government has wrought upon you, spare a thought for how national branding can make the whole thing both more acceptable and successful.  You don’t believe me?  Well try this.

So tied up are we with the dire straights that Greece finds itself in, we might forget that not so long ago Latvia faced a worse economic plight than Greece or Portugal are facing right now.  Latvia fixed it with extremely stringent austerity measures and bounced back to become a very successful economy, in a far shorter time than we are anticipate will be the lot of the Greeks.  What’s more, during the process their government was re-elected.  So, what’s the trick?

There’s a hint in the fact that at the time of their crisis, polls of the Latvian public revealed a marked spirit of shared endeavour or one-ness.  They were definitely meeting the challenge in the spirit of all for one and one for all.  Now, that’s a state of collective minds that only a strong national brand can generate.  While the Greek people (and to some extent pretty well all of the rest of us) play the blame game and try to lay responsibility for the mess on someone other than themselves, the Latvians kinda’ got the fact that arguing about whose fault it was, wasn’t going to fix it, and knuckled down to the task.  Result – they fixed it in record time and suffered far less than the rest of us are going to unless we wise up fast.  The big tick in the satisfaction box also makes the exercise self-perpetuating, serving to strengthen the community spirit and give the subject organisation or country the scope for more and bigger challenges.

The difference between Latvia and Greece or Portugal is national pride.  The Greeks, despite their claims to the contrary don’t have any.  If they did they would have been paying their taxes for the last few decades, which might have averted their current plight.  Greeks are largely in it for themselves.  Don’t get me wrong, I’m not saying they are any different from most of the rest of us, driven as we are by the belief that the only difference between happiness and abject misery is lodasamoney.  From that perspective it’s but a short step to topping Gran for her pension.

National pride, in turn, is a product of good national branding (A subject that I have been beating on about for years).  Once you have that sorted you can do some neat stuff – like win wars, bring home the world cup or sort one of the worst financial crises in recent history, in no time at all.

In fact, national branding is no different from any other kind of branding and the benefits it brings are no different either.  Contrary to what I sometimes think is popular myth among businesspeople, branding isn’t just for customers, it’s for employees too.  In fact, employees are where you start with any brand development programme, because unless they are on-board and have that feeling of belonging you aren’t even going to get to first base with customers.

A strong brand is represented, among other things, by a spirit of shared responsibility and those businesses that have set about building one have found that with the right guidance it can be channeled in any direction.  Southwest Airlines employees famously went to all kinds of extreme lengths to create one of the most successful airlines in commercial aviation history.  ABB Brown Boveri returned from the jaws of death and reduced their product development time from three years to three months.  A one-man-and-a-dog operation called Saatchi & Saatchi (The real one not the one we know today) did the reverse takeover trick on the monolith Garland Compton and went on to build the world’s biggest advertising agency and Apple have persuaded millions of people that lap-tops with iffy software are best thing since sliced bread.  I could cite innumerable others, but you get the idea.

So, if you are running a business or a country that’s facing a bit of a challenge right now, consider what the power of a strong brand can achieve and start building yours.  You’ll be able to achieve more with less, probably give your competitors a good kicking and could even do all of this with a smile on your collective face throughout.

In successful companies employees dance on tables

You don’t need me to tell you, its tough out there.  Many businesses that I come across are struggling to adjust to the new rules of business and a few are still realising that many of the old ways of running a business simply don’t work anymore, but, old habits die hard.

I’m seeing a disappointing return to purely tactical focus and its hard to persuade the companies heading in this direction and whose priority is to pay this month’s wage bill, that  it’s a dead-end street.  A still more worrying trend I am witnessing though is towards whip-cracking.  Much as I sympathise with the desperation of managers who simply don’t understand why the approaches they have used successfully for years to build or run a business don’t work in the era of new model marketing, flogging your staff is the desperate last twitch of management that has already failed.  High-pressure tactics like this are doomed to failure in both the long and the short-term.

I overheard a conversation last week where a middle manager was bemoaning the loss of the “good old days”.  “I remember …” he said “… the days when, if I was out of the office for a day, I’d return to find my stuff all pushed to one end of my desk because someone had been dancing on it!”.  Extreme perhaps, but there are offices throughout England where the atmosphere is so dour and depressing that its hard to imagine that this kind of thing once happened in successful businesses.

My mind goes back to a quote by Tom Peters in one of his early presentation where he begged business leaders to ask themselves if there was a spring in their employees’ step as they walked across the parking lot from their car to the office each morning, saying “If there isn’t, it’s your fault!”.  His overarching point being that unless employees are happy and enthusiastic about their work, your business will fail.

How many organisations, who today are battling to put together a business strategy that works under the new rules, are paying attention to the absolutely vital element of employee engagement?  Without the backing and buy-in of employees, no business will stand a chance of delivering its brand promise, and when you fail at that you’ve just failed!

For those tempted to respond with “… but we never did any of this stuff before”, I’ll underline what I have said earlier and many times before – If you got away with this omission in the past, it was only because the competition (despite what you may have thought then) wasn’t that tough.  Now its “game on” and there’s no room for slack.  No business can afford this level of inefficiency and, believe me, trying to deliver a promise without having first secured the committment of your employees is inefficient in the extreme.

If you think its par for the course for managers to be hated by employees, forget it!  If you confuse respect for you as a manager with distant or non-existing relationships with your staff you need to take a reality check.  Successful businesses have always had figureheads who employees are happy to stand behind – Richard Branson, Bill Muirhead, Maurice and Charles Saatchi, Stelios Haji-Ioannou, Steve Jobs … I could make a long list, but you get the idea.  Developing and leveraging relationships like these are all part of the internal marketing task.  Don’t side-step the issue.  These internal “brandships” are the key to the “brandships” you have with customers and that’s what drives your business.  When you need all the help you can get to keep afloat, the last thing you should do is abandon your internal relationship-building, so double-check your marketing strategy to ensure you are doing all you can to get your employees dancing on the tables!