2007:016

M A S T E R ' S T H E S I S

Internal BrandingDevelopment of Brand Values and

Organizational Commitment

Stephen Roast Nadihezda Silva-Rojas

Luleå University of Technology

D Master thesis Industrial Organization

Department of Business Administration and Social SciencesDivision of Industrial marketing and e-commerce

2007:016 - ISSN: 1402-1552 - ISRN: LTU-DUPP--07/016--SE

ACKNOWLEDGEMENTS To write our Masters Thesis has been an extremely demanding and challenging task of hard work and co-operation. We would like to thank our supervisor Manucher Farhang for all his assistance, as well as expressing our gratitude to Moa Welinder at Peab AB and Elisa Saarinen at Svenska Handelsbanken AB for taking the time to support our study and participate in the interviews to share valuable information in our research area. We would also like to thank our families for understanding the time and effort that writing this thesis has taken.

Luleå, February 2007

Nadihezda Silva-Rojas Stephen Roast

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ABSTRACT Internal branding is considered to be a relatively new approach which assists companies to focus on the organizational vision and values, by collectively conveying and committing to one coherent brand message, so as to enhance the corporate brand identity to all stakeholders. The purpose of this study is to provide a better understanding of the development of internal branding in organizations. Therefore the following four research questions were applied to this study: How can the alignment of brand values be described? How can the attaining of consistent brand values be described? How can organizational brand commitment be described? How can the sustaining of organizational brand commitment be described? A literature review was conducted based on the four research questions, which resulted in a conceptual framework that supported the data collection. A qualitative, multiple-case study methodology was applied for this investigation, with the primary data collected from two focused telephone interviews. The two interviews in this study were conducted with a member of the Human Resource Department at the Swedish company Peab AB and the Head of Communications of Svenska Handelsbanken AB. The findings indicate that the alignment of brand values is important to the development of internal branding, core brand values are the fundamental aspects in internal branding for attaining consistent brand values, effective internal communication of the core brand values is vital for employee belief and commitment and a strong organizational culture assists individual employees to remain loyal and committed to the brand.

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SAMMANFATTNING Intern uppbyggnad av varumärket är ansett att vara en relativt ny infallsvinkel vilket hjälper företag att fokusera på organisatoriska visioner och värden, genom att kollektivt förmedla och satsa på en sammanhängande budskap om varumärket, för att förbättra företagets varumärkesidentitet för alla inblandade. Syftet med denna studie är att tillgodose en bättre förståelse för intern varumärkesutveckling i organisationer. Således användes följande fyra forskningsfrågor till denna studie: Hur kan inriktningen av värdegrunden av varumärket beskrivas? Hur kan konsistent varumärkesvärde beskrivas? Hur kan organisatoriskt åtagande gentemot varumärket beskrivas? Hur kan upprätthållandet av åtagandet gentemot varumärket beskrivas? En litteraturöversikt utfördes, baserad på de fyra forskningsfrågor vilket resulterade i en teoretisk referensram som assisterade vid datainsamlingen. En kvalitativ, flerfalls studie inom metodologi användes vid undersökningen tillsammans med primär data från två strukturerade telefonintervjuer. Intervjuerna utfördes med en anställd vid Human Resource avdelning i det svenska företaget Peab och kommunikationsansvarig vid Svenska Handelsbanken AB. Resultaten indikerar att inriktningen av värdegrunden av varumärket är viktig för utvecklingen av det interna uppbyggandet av varumärket. Vidare att kärnan av varumärkets värdegrund är den fundamentala aspekten i intern uppbyggning av varumärket för att uppnå konsistent värdegrund av varumärket. Även effektiv intern kommunikation gällande kärnan av varumärkets värdegrund är väsentlig för anställdas tro och engagemang och en stark organisatorisk kultur assisterar enskilda anställda att förbli lojala och engagerade mot varumärket.

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TABLE OF CONTENTS

1 INTRODUCTION............................................................................................................ 1 1.1 Background ................................................................................................................ 1 1.2 Problem Discussion.................................................................................................... 3 1.3 Purpose and Research Questions................................................................................ 5 1.4 Demarcations.............................................................................................................. 5 1.5 Outline of the Thesis .................................................................................................. 6

2 LITERATURE REVIEW................................................................................................ 7

2.1 Alignment of Brand Values........................................................................................ 7 2.2 Attaining Consistent Brand Values .......................................................................... 11 2.3 Organizational Brand Commitment ......................................................................... 17 2.4 Sustaining Organizational Brand Commitment ....................................................... 22 2.5 Conceptual Framework ............................................................................................ 27

2.5.1 Conceptualization – Alignment of brand values .............................................. 27 2.5.2 Conceptualization – Attaining consistent brand values ................................... 28 2.5.3 Conceptualization – Organizational brand commitment.................................. 29 2.5.4 Conceptualization – Sustaining organizational brand commitment................. 30

3 METHODOLOGY......................................................................................................... 32 3.1 Research Purpose ..................................................................................................... 32 3.2 Research Approach .................................................................................................. 32 3.3 Research Strategy..................................................................................................... 33 3.4 Data Collection Method ........................................................................................... 33 3.5 Sample Selection ...................................................................................................... 34 3.6 Data Analysis ........................................................................................................... 34 3.7 Quality Standards ..................................................................................................... 35

3.7.1 Validity............................................................................................................. 35 3.7.2 Reliability ......................................................................................................... 36

4 EMPIRICAL DATA ...................................................................................................... 37 4.1 Case 1: Peab AB....................................................................................................... 37

4.1.1 Alignment of brand values ............................................................................... 37 4.1.2 Attaining consistent brand values .................................................................... 39 4.1.3 Organizational brand commitment................................................................... 40 4.1.4 Sustaining organizational brand commitment.................................................. 43

4.2 Case 2: Svenska Handelsbanken AB ....................................................................... 44 4.2.1 Alignment of brand values ............................................................................... 45 4.2.2 Attaining consistent brand values .................................................................... 46 4.2.3 Organizational brand commitment................................................................... 48 4.2.4 Sustaining organizational brand commitment.................................................. 51

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5 DATA ANALYSIS ......................................................................................................... 54 5.1 Within-Case Analysis............................................................................................... 54

5.1.1 Within case analysis of Peab AB ..................................................................... 54 5.1.2 Within case analysis of Svenka Handelsbanken AB........................................ 61

5.2 Cross-Case Analysis................................................................................................. 68 5.2.1 Alignment of brand values ............................................................................... 68 5.2.2 Attaining consistent brand values .................................................................... 70 5.2.3 Organizational brand commitment................................................................... 72 5.2.4 Sustaining organizational brand commitment.................................................. 75

6 FINDINGS AND IMPLICATIONS ............................................................................. 77 6.1 Research Question 1: How can the alignment of brand values be described?......... 77 6.2 Research Question 2: How can the attaining of consistent brand values be

described?................................................................................................................. 78 6.3 Research Question 3: How can organizational brand commitment be described? .. 80 6.4 Research Question 4: How can the sustaining of organizational brand commitment

be described? ............................................................................................................ 82 6.5 Implications.............................................................................................................. 83

6.5.1 Implications for practitioners ........................................................................... 83 6.5.2 Implications for further research ...................................................................... 84

REFERENCE LIST ............................................................................................................... 86

APPENDICES APPENDIX A: INTERVIEW GUIDE

LIST OF FIGURES FIGURE 1.1 Outline of the thesis ............................................................................................. 6 FIGURE 2.1 There is a continuous interaction between value and identity at three levels...... 7 FIGURE 2.2 Interaction sources contribute to brand values. ................................................... 9 FIGURE 2.3 The identity-reputation gap model of brand management................................. 11 FIGURE 2.4 Brand mantras .................................................................................................... 15 FIGURE 2.5 The relationships between internal brand resources and brand performance .... 16 FIGURE 2.6 A holistic model for internal brand management .............................................. 18 FIGURE 2.7 A holistic model for internal brand management .............................................. 23 FIGURE 2.8 Conceptual model of internal marketing ........................................................... 26 FIGURE 2.9 Illustration of the emerged conceptual framework ............................................ 31

LIST OF TABLES TABLE 5.1 Alignment of brand values .................................................................................. 68 TABLE 5.2 Attaining consistent brand values........................................................................ 70 TABLE 5.3 Organizational brand commitment ...................................................................... 72 TABLE 5.4 Sustaining organizational brand commitment ..................................................... 75

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INTRODUCTION

1 INTRODUCTION In this first chapter, the background will present the concept of corporate brands and corporate branding. A problem discussion will then follow describing the organizational development of internal branding. Finally, the purpose and the research questions of this investigation will be identified.

1.1 Background Brands are recognized to provide quality to customers, distinction within a market and to gain financial rewards to an organization, and can be characterized as products, corporations, persons and places. The impact of brands can not be overvalued, since organizations need to constantly attain customers so as to exist and compete in the marketplace, with brands being deemed to be as valuable to a company as the human and financial resources. Brands require a continual development and fostering, in order to meet customer expectations, and as customers are becoming more refined and markets more intricate, the positioning of the brand is of utmost importance, in assisting to differentiate the brand from its many competitors (Andriopoulos and Gotsi, 2000; Uggla, 2006; Melewar and Bains, 2002; Davis, 2002; Hatch and Schultz, 2003). Harris and de Chernatony (2001) expose that brands are multidimensional creations that must coordinate a company’s operational and emotional values with customer activities and psychological needs. As mentioned by Simões and Dibb (2001), brands identify with the customer in both a psychologically and physically manner, with the acknowledgement that consumers currently purchase brands and not products. Morsing (2006) highlights that branding concentrates on generating an additional emotional value to the customer, which fundamentally creates imaginative and visual associations to increase the appeal of products or services. Organizations, as contended by Hatch and Schultz (2003), have changed marketing importance from product brands to corporate branding due to the progress of globalization. Morsing (2006) adds that many companies are transformed into brands due to the increased stakeholder pressure of today’s business environment, as a company’s ethics are becoming an extremely scrutinized aspect of corporate branding. Morsing (2006) explains how corporate branding has been developed from a marketing framework, with the intentions of engaging the interests of the brand in a complimentary fashion. According to Kay (2006), corporate branding must be appreciated as a method of communicating to an audience in a logical manner, in which mental and emotional representations in many forms can be employed to provide customers with the meaning of the brand. A corporate brand is explained by Balmer and Greyser (2006) to entail a high degree of emotional ownership, as close association and loyalty are recognized as important elements of corporate branding. Corporate brands vary from product brands, as Uggla (2006) notes that corporate brands have a greater strategic focus and approach, plus the involvement of internal and external stakeholders. Corporate branding, as highlighted by Kay (2006) has been recognized as the means in which a company communicates its identity. Corporate brand identity is a process that creates uniqueness, as well as representing what an organization stands for, as Melewar and Baines (2002) mention that this is of extreme importance to employees, customers and investors. Simões and Dibb (2001) describe how a

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INTRODUCTION

strong brand identity is essential in order to convey a consistent image for the internal and external environments surrounding the organization, with corporate branding entailing an influential role. Harris and Chernatony (2001) express how a holistic approach towards corporate branding is needed in order for the entire company to perform in unison with the desired brand identity. Moreover, Knox and Bickerton (2003) argue therefore that to be able to attain successful corporate branding today, organizations must be aware of and understand both organization and customer focus. Kay (2006) affirms that corporate branding activities can be aimed at shareholders, employees and other stakeholders, with a distinct focus on the operational and visible actions which represent the values of the organization. As described by Knox and Bickerton (2003), in the past few years the perception of corporate branding has switched to focusing on the qualities of the organization and its individuals, so as to project an enhanced impression of the company towards customers, in order to be able to cope with the demands of the modern day business activities. Even though the intricate task of developing a strong corporate brand has been made more difficult due to the greater intensity of intangibility and responsibility, the value of creating a reputable corporate brand is regarded by Simões and Dibb (2001) to be an excellent opportunity, especially for service brands, to enhance recognition. Hatch and Schultz (2003) expose that organizations must take into consideration the past and the future, in order for the brand to relate to all stakeholders through both their heritage and the planned visions of what is to be expected. Strong corporate brands are recognized by Simões and Dibb (2001) to be a valuable asset to organizations, as increasing competition indicates that customer perceptions are becoming more and more important. Kay (2006) states that successful corporate brands enjoy having a significant impact, which strategically entails attracting more loyal and less price-sensitive customers in today’s fierce competitive markets. Effective corporate brands, as described by Brønn, Engell and Martinsen (2006), should possess a distinct perspective of its values, especially when interacting with customers, so as to “make a difference” in a competitive environment. Balmer and Gray (2003), furthermore Simões and Dibb (2001) affirm that corporate brands have many benefits to appreciate, such as communicating brand values, differentiation from competitors and increased admiration and loyalty to the company. According to Morsing (2006), corporate branding focuses on a single central locus of control to manipulate corporate visions, values, actions and morals that all employees are asked to perform by. She also notes that this means corporate branding involves communicating with one voice to all stakeholders and media through consistent and coherent actions. Research has shown, according to Melewar and Karaosmanoglu (2006) that organizations can develop a stronger reputation and enhanced recognition if employees are always proficient in representing company values to external stakeholders. A fundamental problem regarding corporate brand management is consequently highlighted by Kay (2006) and Morsing (2006) to be how the values associated to the brand correspond to the personal values and beliefs of employees, which must be align with the brand’s value and promises, as they are responsible for the daily communications to customers. Vallaster (2004) indicates how internal branding is a relative new phenomenon that is starting to attract a lot of attention, and that it is a key feature for organizations to develop strong corporate brands, by coordinating organizational culture with internal operations.

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INTRODUCTION

1.2 Problem Discussion Organizations need to adopt a systematic internal branding approach in order for employees to become customer conscious, as well as to perform in align with brand values. In light of this discovery, employees have now become the focus of brand management, as they interact on behalf of the company to external stakeholders and can differentiate the organization in an increasingly competitive working environment. Therefore, the importance of educating and training personnel on the brand message and integrating these values into working operations is growing in many organizations today. However, this is renowned to be an extremely intricate task, as an organization must expose a consistent fit of all business activities connected to the corporation with their brand meaning (King and Grace, 2005; Aurand, Gorchels and Bishop, 2005; Kay, 2006). Brønn, Engell and Martinsen (2006) expose that consistency and likeness of employee values is a major influence which affects the daily routines of a company, as well as corporate communication. The employees’ attitudes and expressions are critically observed by stakeholders, as these should constantly be aligned with the corporate brand and its values, thus Melewar and Karaosmanoglu (2006), as well as Kiriakidou and Millward (2000) contend that employee beliefs and actions may at times disagree with the external generated image. Leberecht (2004) notes that there are many researchers which state that an important aspect of internal brand management is to align personnel behaviour with brand values, and he continues to mention that by applying this internal approach, management can guide employees to a greater overall image of the brand vision. By directly linking organizational culture with strategic vision, Hatch and Schultz (2003) dispute that the corporate brand has a greater opportunity to succeed. Organizational culture, which includes the vision and the strategies of the company are highlighted by Gotsi and Wilson (2001) to have a major impact of how employees create an image of the company. By simultaneously linking strategic vision, organizational culture and corporate images, Hatch and Schultz (2003) argue that an organization has a far better chance of differentiating brand values and competing in a market. Uggla (2006) states that corporate brands posses a few essential core values which describe the brand and that these values are central to the organization, in addition to having a big role in its core philosophy. Kay (2006) comments that the core values of an organization must always be associated to help and maintain the brand’s identity. To have too many core values, as proposed by Uggla (2006), may generate confusion involving a company’s values and norms. Effective brand management, according to King and Grace (2005), therefore relies on employees recognizing the correct behaviour or service when communicating to customers, as these actions should be associated with the brand’s core values. Gotsi and Wilson (2001) reveal that studies have shown that a corporate reputation is influenced by the performance of the entire organization, and they further note that it is the responsibility of management and the employees to look after and develop their corporate image. Employees are, according to Hatch and Schultz (2003), the vital link in building relationships with all organizational stakeholders, as they are required to convey the genuine significance of the brand. Vallaster (2004) declares that in order for employees to transmit the brand’s values in all communications, they must understand and acknowledge what the brand represents. In order to develop a strong corporate brand with a reputable corporate identity, Brønn, Engell and Martinsen (2006) highlight that projecting the brands story to others needs the staff to recognize the knowing, being and performance of the corporate brand. Employees must develop a collective understanding of the brand, as Vallaster (2004) mentions that a

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INTRODUCTION

consistency in branding activities, for example corporate design, corporate communication and corporate behaviour need to be harmonized, with the intention of the company to create a strong corporate brand identity. So as corporate branding switches from aesthetic promises to moral promises, Morsing (2006) states that employees are required to believe in and possess personal morals in which the organization promotes to all stakeholders. According to Harris and de Chernatony (2001), the responsibility of employees is shifting to a role than can be deemed to be viewed as a brand’s “ambassadors”, as employees are the pivotal communicating link to a corporate brand’s internal and external environments. Balmer and Greyser (2006), furthermore King and Grace (2005) declare that every individual within the organization must be seen to be corporate marketers. Wilson (2001) claims that internal communication operations must be ongoing and continuous if they are deemed to be effective, furthermore he mentions that they should be connected to recruitment procedures, training, performance measurements, motivation and rewards. By the recruitment of personnel that have similar values and morals of the brand, Morsing (2006) declares that this enables the organization to minimize the risks of noise and lack of commitment by employees, so as to present a strong, consistent corporate communication of the brand. However, King and Grace (2005) and Gotsi and Wilson (2001) also note that this entails the constant support of brand management, including all levels of the organization in the process of motivating and preparing all employees to fully understand the practice, as well as operational and communicational activities chosen by the organization. Involving the entire organization in corporate branding is highlighted by Hatch and Schultz (2003) to help to attract and motivate all employees. By including the motivation of employees, Melewar and Karaosmanoglu (2006) maintain that a respectable corporate identity can be accomplished. Ewing and Caruana (1999) describe how successful internal branding plays a significant part in assisting employee attitudes in regards to work assignments, organizational commitment, work contributions, job motivation and job satisfaction. Gotsi and Wilson (2001) also mention that management must communicate a distinct message of defining brand values and corporate identity internally, so as to support personnel identification with corporate identity and increase commitment, motivation and reliable employee behaviour in conveying the brand’s core values and company goals. Emotional commitment is deemed by Vallaster and de Chernatony (2006) to contain the strongest and most encouraging association to the workforce’s behaviour. Organizational culture, as described by Balmer and Greyser (2006), refers to how employees identify themselves with the organization through values, beliefs and assumptions of the company’s historical roots and traditions. Morsing (2006) reveals that a strong organizational culture is required so as to be able to constantly motivate and commit employees to collectively perform to branding operations. Firms which create a successful corporate brand, as illustrated by King and Grace (2005), develop an organizational culture that encourages all levels of the organization to be committed to branding operations, as the message of corporate strategy and performance must be consistent to employees, so as to positively interact with external stakeholders. Leberecht (2004) proclaims that employees must completely understand the values of the brand and internalize these to the degree that they are aligned, as well as committed to performing these values. King and Grace (2005) assert that by committing and motivating employees to always signify the corporate brand’s values and promise to all audiences, leads to a greater recognition to customer satisfaction.

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INTRODUCTION

Internalizing the brand enhances the organization to achieve a strong reputation, and Simões and Dibb (2001) define this process as; “Internalising the brand involves explaining and selling the brand to employees. It involves sharing with employees the research and strategy behind the presented brand. It involves creative communication of the brand to employees. It involves training employees in brand-strengthening behaviours. It involves rewarding and celebrating employees whose actions support the brand. Most of all, internalising the brand involves involving employees in the care and nurturing of the brand”. Leberecht (2004) states that internal branding, “encompasses the firm’s values, systems, policies and behaviours towards the objectives of attracting, motivating, aligning and retaining the firm’s current and potential employees”. In light of the aforementioned problem discussion, we have chosen to investigate this area of research due to the fact that internal branding is recognized by many researchers to be a fairly new phenomenon that has become important for corporate brands to be recognized and operate in increasingly competitive markets. Many authors have also stated that there is relative little empirical evidence surrounding the concept of internal branding and its developments. In order to study the concept of internal branding the following purpose and research questions has been applied.

1.3 Purpose and Research Questions The purpose of this study is to provide a better understanding of the development of internal branding in organizations. In order to attain our stated purpose, the following research questions will be addressed:

1. How can the alignment of brand values be described? 2. How can the attaining of consistent brand values be described? 3. How can organizational brand commitment be described? 4. How can the sustaining of organizational brand commitment be described?

1.4 Demarcations The ideal situation would be to research the development of internal branding from many different perspectives. However, in our study we are only focusing on brand values and organizational commitment from a corporate perspective. This enabled us to attain a better understanding and a more focused analyse in our time-restricted study of a large, complex research area.

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INTRODUCTION

1.5 Outline of the Thesis The study consists of six chapters and we will briefly explain the contents of each chapter. Chapter one begins with the background, which is followed by the problem discussion that presents the research area and the research questions. Chapter two describes the literature and the theory which is associated to our research questions and thereafter a conceptual framework is selected to support us in our study. Chapter three illustrates the methodology and how the data was obtained for our thesis. In chapter four, the collected empirical data is presented, which is then analyzed in comparison to the conceptual framework in chapter five. Finally, chapter six highlights the findings and implications assessed in our research. The outline of the thesis is shown in figure 1.1 below:

FIGURE 1.1 Outline of the thesis

CHAPTER 1 Introduction

CHAPTER 2 Literature Review

CHAPTER 3

Methodology

CHAPTER 4 Empirical

Data

CHAPTER 6 Findings and Implications

CHAPTER 5 Data

Analysis

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LITERATURE REVIEW

2 LITERATURE REVIEW The purpose of this chapter is to review the relevant literature and establish a theoretical outline. Firstly, the presentation of brand value alignment, the attaining of consistent brand values, organizational brand commitment and the sustaining of organizational brand commitment are described, in order to establish how these factors influence the development of internal branding in organizations. At the end of this chapter a conceptual framework is presented relating to the literature reviewed. The basis for selecting the following literature to help investigate our research area and to construct a conceptual framework for our study is that we consider them to be current theories which also provide us with different perspectives surrounding each of our four research questions. Thus, this presented us with an overall general view of each research question that enabled us to select the most relevant theories, or parts of theories, which we considered to best suit our investigation.

2.1 Alignment of Brand Values Urde (2003) highlights that the acknowledging, application and functioning of the value credentials of the corporate brand are often matters that can be neglected, forgotten or unclear. He continues to mention that the expressions associated with the combination of values employed to generate the identity of the corporate brand can create uncertainty. Due to these circumstances Urde states that there are no evident connections to creating and sustaining the corporate brand, as values are difficult to relate to. Urde asserts that the supporting of corporate brand values in the brand building process is a recognized dilemma, and presents three perspectives to how values can be examined: values that are related to the organization, values that summarize the brand and values that are experienced by customers (see figure 2.1). FIGURE 2.1 There is a continuous interaction between value and identity at three levels Source: Urde (2003), p 1020.

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LITERATURE REVIEW

Values that are related to the organization Urde (2003) declares that organizational and corporate values can be explained in several ways, and are used to help express how a company operates. He illustrates that values can be interpreted as the rules of the company, the religion of the company, provides a company with a cohesive mission and vision, accepted intrinsic principles, exclusive core practices, storytelling and an element of intellectual assets. These internal values are maintained by Urde to describe what the company represents, and are an essential source for core values which generate the distinctiveness of an organization. Values that sum up the brand The heart and the fundamental nature of the brand has in the view of Urde (2003) been a discussed area in corporate branding over the years and can also be construed in various terms. He adds that defining and describing the core of the brand helps to enhance identity, by revealing the innermost values that cements the brand’s essence. Furthermore, Urde discloses that values can be viewed as the most important part of the brand, which help to clarify the brand’s spirit, as the communicative element of the brand’s soul and the brand’s code or desire can be described in only a few words. Urde states that the function of core brand values is to proficiently assist corporate brand development, thus this implies that core brand values have an instrumental role in employee performance and communication. Values as experienced by the customer Urde (2003) verifies that corporate brands possess value as they are entailed to provide added value to the customer, however, customer added value is rather hard to illustrate and are noted by several authors in different theories to contain either emotional and/or functional appreciations, competitive advantage, brand development and a willing sacrifice. Customer associations to the brand are, according to Urde, symbolic and extremely strongly connected to the core values of the brand and the organization, implying that added values represent the image and identity of the corporate brand, in other words the interactions of internal and external communication. As exposed by Urde (2003), first and foremost each of the three explanations can significantly be acknowledged on its own, so as to obtain a greater understanding of clarifying which are the organizational, the core and the added values, as well as the identities of the organization, the brand and the customer. Urde indicates that when all these factors are combined they help to demonstrate the value base of the corporate brand, in addition to the value development process. de Chernatony (2002) clarifies that the brand’s values may be evaluated alongside the values of the vision, individual employees and organizational culture to ensure that management can understand and recognize the required activities and practices that help to create a more consistent brand. Figure 2.2 on the next page illustrates the interaction sources which contribute to brand values according to de Chernatony.

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LITERATURE REVIEW

FIGURE 2.2 Interaction sources contribute to brand values. Source: de Chernatory (2002), p. 32. de Chernatony (2002) notes that this approach to strengthen the brand performance is to evaluate the consistency of the providers to brand values. According to de Chernatony, these can be assessed and observed by firstly considering the values of senior management that are transmitted into the brand vision, and then there are the values of individual employees that must be aligned with these generated brand values in their working environment of providing the brand’s promise to customers. Additionally, de Chernatony points out that the brand vision values may not be so different between rival companies and highlights that managers must be able to differentiate between category values which are essential for competing in the given industry and distinctive brand values which encourage the purchase of a service or product. It is here that de Chernatony explains that all these elements are rarely completely aligned with the brand at once. de Chernatony (2002) then comments on the importance of organizational culture, as this consists of all the values held by every division within an organization, and then finally the values stated in documents and experienced by stakeholders. By creating their own organizational culture, Abbott, White and Charles (2005) maintain that companies are capable of attracting internal and external stakeholders with equivalent qualities, features and values. They add that it is also positive to observe that organizations which mainly focus on standard and end result values are more likely to experience negative behaviour in the work arena, as although these values are important for a company, Abbott et al. claim that to operate in an environment where diligence surpasses moral integrity is not very encouraging. Yaniv and Farkas (2005) confirm that to increase employee identification to the corporate brand, as well as maintaining their backing, corporate brand values must mirror organizational values and culture. They further note that if there appears to be a difference in these perceptions, employees will begin to develop mistrust towards the organization in which they work for, thus harming their identification with the corporate brand. Consequently, Yaniv and Farkas propose that this dissatisfaction felt by the employee will then be conveyed to the customer, paving the way for customers to question the value of the corporate brand, which helps to create a greater corporate brand and organizational value difference that will affect customer loyalty issues. Yaniv and Farkas highlight that the theory of Person-Organization Fit (POF) is regarded to assist treating the contrast between the employee’s individual values and the value’s of the corporation, from an employee’s perspective.

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LITERATURE REVIEW

According to Yaniv and Farkas (2005), the greater the POF an employee has, the more likely it is that job satisfaction and commitment to the company and its objectives will be achieved through performance. Thus, as mentioned by Yaniv and Farkas, a high POF implies that if the personal values, as well as the brand and the organizational values are coherent, this provides a source of contentment and accomplishment to the employee. Yaniv and Farkas continue to argue that by feeling this fulfilment an employee will have no qualms in the communicating and the transferring of the brand promise to customers, as they appreciate these given principles themselves, plus the fact that the organization and the brand appear to project the same beliefs. Moreover, Yaniv and Farkas proclaim that if the difference of corporate values and corporate brand values are small, in other words, if the actual and desired image of the organization does seem to be true, this will also assist an employee in to communicating and transferring the brand’s promise to the customer, as no deceit is felt by the employee, thus enhancing employee and customer relations. Yaniv and Farkas (2005) validate that there have been many studies surrounding the POF theory and there will be many more in the future, due to the fact that the POF is acknowledged to be an effective assessment and measurement of mission direction for an organization. They also highlight that one study has shown that this theory can be investigated from four viewpoints: the degree to which individual knowledge, skills and abilities match work requirements, the degree of contrast between employee needs and organizational structures, the match between personal values and organizational values and culture and employee personality and apparent organizational image. However, Yaniv and Farkas state that a majority of researchers are in agreement with that the POF influences personnel behaviour and performance, which in turn influences customer perceptions of the corporate brand and the organization. Personal values are indicated by Yaniv and Farkas (2005) to be of a social nature which assists the individual to become accustomed to an environment, and this includes the values, goals, personality and attitude of a person. While organizational values are described by Yaniv and Farkas to present the motives for employee behaviour, in addition to organizational operations. Yaniv and Farkas acknowledge that this involves organizational culture, climate, values, goals and norms. Organizational values are therefore illustrated by Yaniv and Farkas to be manipulated by the majority, as these group principles shape the basis for organizational culture and the more employees that comply to these implications, the greater the influence organizational culture has. They add that personal and organizational values interact and influence with each other, allowing POF to assess how employee values may modify when becoming part of the workforce, as well as evaluating the degree to which the employee will familiarize himself/herself to organizational norms and values. Thus, Yaniv and Farkas affirm that a strong association between POF observations and organizational identification inferred that an employee is more prepared to offer a additional support to the brand and the company in his/her performance. Yaniv and Farkas (2005) also reveal that a previous study from 1996 observed the congruence between direct (subjective) and indirect (objective) appraises of POF. Direct measurements are highlighted by Yaniv and Farkas to be better applied to obtain a perceived fit, as a strong match between personal and organizational values always implies that an individual will be more satisfied with and committed to an organization despite whether this is actually true. Whereas indirect measurements are described by Yaniv and Farkas to be more adept in acquiring an actual fit, as the compatibility of personal and organizational values must be

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evaluated together in order to obtain a conclusion, which focuses upon “process” effects, such as communication and teamwork. Additionally, Yaniv and Farkas emphasize upon two articles from 2001 and 2002 that underlined a strong connection between values alignment and organizational efficiency and between values alignment and economic success. Yaniv and Farkas mention that from the conclusions of the articles it had revealed that organizations that possess a strong adaptive cultures supported by shared values had a far greater performance level than other organizations, plus they illustrated superior rates of growth, better job creation rates and a greater returns in stocks prices.

2.2 Attaining Consistent Brand Values Harris and de Chernatony (2001) propose that a manager’s task is to first characterize brand values and then to make certain that employees’ values and performance correspond with them. Corporate brand management, as verified by Harris and de Chernatony, must adopt a manner which appreciates the entire workforce to behave as a unit in appliance with the generated brand identity. They clarify that corporate identity is reflected in an organization’s values and goals so as to create distinction in the marketplace. According to Harris and de Chernatorny, brand identity is formed upon six elements: vision and culture, positioning, personality, relationships to all stakeholders and stakeholders’ reflections, which all help to fashion an organization’s reputation. Figure 2.3 illustrates de Chernatorny’s identity-reputation gap model of brand management.

FIGURE 2.3 The identity-reputation gap model of brand management Source: Harris and de Chernatorny (2001), p. 443.

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Vision and culture Vision and culture are noted by Harris and de Chernatorny (2001) to be the hub of the brand’s identity. They illustrate that vision focuses upon the brand’s core purpose, with organizational core values and principles leading the way. Every corporate brand, as revealed by Harris and de Chernatorny, distinguishes the organization to its audience by their core values, so they proclaim that the consistency and the character of these core values are an important feature to successful corporate brands. Therefore, Harris and de Chernatorny mention that it is these core values that are to be prominently communicated by management to employees, so as to provide working roles, guide behaviour and to motivate. Organizational culture is deemed by Harris and de Chernatorny to include employees’ values and assumptions, which also shapes employee behaviour, so managers must recognize the need to align organizational culture with core values in order to encourage a consistent brand performance. For an organizational culture to be considered to be a competitive advantage for the organization, Harris and de Chernatorny state that central core brand values can not be altered, while other core brand values must be adaptable. Positioning Harris and de Chernatorny (2001) highlight that the association between the brand’s vision and core values, as well as the brand’s positioning then needs to be addressed. The brand’s positioning should be founded upon the brand’s core values, as they explain that these must represent the brand and distinguish the brand from competition, prompting an indication of the brand’s performance qualities. Personality As described by Harris and de Chernatorny (2001), emotional features of the brand are developed through the brand’s core values to create personality. These characteristics are affirmed by Harris and de Chernatorny to be supported and emphasized in the employee/customer relationship. To assist the brand’s positioning, Harris and de Chernatorny explain that managers must make sure that the brand’s personality is constantly communicated to employees and external stakeholders. Relationships The values featured and developed in the brand’s personality, are then according to Harris and de Chernatorny (2001) consistently applied to create a customer/brand association. The interactions of employees are therefore noted by Harris and de Chernatorny to be fundamental in cementing the relationship of the brand with its customers. Harris and de Chernatorny further mention that managers must assist and support employees to acquire suitable behaviour at all times to different stakeholders, which stem from the brand’s core values. Presentation The next element pointed out by Harris and de Chernatorny (2001), entails creating presentation methods to enhance the brand’s identity to an audience. Here they mention that both marketing activities and employee interactions affect the way a consumer relates

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themselves to the brand, so managers must appreciate the desired image in reflection to advertising and employee behaviour. Reputation Effective internal brand management should conclude in a complimentary brand reputation, as Harris and de Chernatorny (2001) declare that the brand’s value is evaluated by customers on both past and present performances over time. According to Harris and de Chernatorny, the identity-reputation gap model of brand management assists managers to reduce the gaps between a company’s identity and reputation, consequently managers must develop employees that can effectively, internally and externally, build the brand. Ind (2003) states that the employing of an ideology helps an organization to identify their objectives, which in turn presents an overall belief for employees to connect to the organization. A distinct ideology presents a focus for employees and is declared by Ind to permit employees to systematically deliver a customer-orientated product or service in a content and liberated manner. He goes on to mention that for an organization to be strictly values-led, the vision must be delivered with conviction and consistency and that there are three aspects that must be encompassed. Ind highlights that an organization’s ideology should be clearly and honestly described, communicated and practised in an appropriate way and it must convey business benefits. Clearly and Truthfully Defined In order to develop an authentic commitment towards an organization, Ind (2003) asserts that this necessitates both transparency and reality, as it must be a genuine and logical way for an organization to attain its business goals. Applying the values that need to be integrated into and associated with the organization is explained by Ind to require total faith and commitment for an organization to be successful. According to Ind (2003), employees should be able to trust the organization, so the ideology must be reliable and visionary in order for the whole organization to strive to accomplish goals. Passion, and to be motivated to feel passionate are not emotions that can be artificially attained, so Ind claims that by creating a strong organizational culture should assist stimulation, involvement and commitment. The ethical element of an ideology must also be considered, as Ind affirms that this entails an organization operating within the view of customer and shareholder belief. Furthermore, he continues to mention that courage is needed so as to create uniqueness and differentiation from competitors, which leads to developing a real loyalty and fondness with customers. Communication and Experience Ind (2003) illustrates that organizations can not believe that by just communicating an ideology to its employees will immediately entail that it will become a focus in their working environment. Employees are busy people that also have their own values and judgements, and Ind states that management can not simply enforce certain beliefs on individuals for the sake of the business. Managers, as declared by Ind, must validate the values to be applied, while also appreciating the freedom and possibilities to put them into action, therefore the employee must understand their right to select their own value structures.

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Consequently, Ind (2003) highlights that the organizational culture should be encouraging and favourable in endorsing an ideology, however, Ind also states that individuals should appreciate and understand these matters, as well as being allowed to decide about the given ideology for themselves. Creating the working environment is generally considered by Ind to be the hardest element of this process, and the following are highlighted as requirements: wholehearted commitment of management, willingness to empower people, willingness to take risks on people, accepting the need to share ideas and results, and integrating the ideology into all facets of the organization, in particular recruitment policy, training, appraisals and rewards. In the view of Ind, the ideology must be employed and appreciated by the entire organization, which entails the need to apply these values beyond simply communication and to implement them into the day-to-day tasks of employees so as to motivate and encourage self-discovery and behavioural change, instead of demanding it. Business Benefits By focusing on employees, Ind (2003) notes that an organization demonstrates the relationships between extremely committed employees, content and loyal customers and organizational performance are of great importance. Management therefore have the duty of ensuring that the organization “lives the brand”, as Ind maintains that the connection between employee attitudes and behaviour, as well as organizational performance should be aligned and attained, in addition to being pivotal to the organizational culture. Ind acknowledges that this enables an organization to successfully motivate employees in striving to achieve organizational goals through both good and bad times. Ind proclaims that in order to convey a good balance, significant knowledge and information needs to shared appreciated throughout the entire organization, so as true meanings and reflections can be evaluated and measured, so as to enhance the overall performance of the brand. However, he also illustrates that for an organization to be successful, the significance of ideology, consisting of values and visions must be illustrated through organizational performance, and this entails evaluating employee performance and customer behaviour, so as to attain financial rewards and brand value. Keller (1999) describes brand mantras as short expressions that quickly sum up the prominent characteristics of the brand positioning, and he explains the reason for brand mantras is that both employees, in addition to marketing partners understand the core of the brand, so as to transform activities to match the brand expectations of customers. Keller declares that “brand mantras are internal (to the organization) translations of brand positioning designed to simplify and communicate positionings to facilitate employee understanding; core brand associations are external translations of brand positioning designed to reflect customer understanding” (see figure 2.4 on the next page).

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FIGURE 2.4 Brand mantras Source: Keller (1999), p. 50 Keller (1999) states that brand mantras are essential for various motives, and he starts by mentioning that they form how customers perceive the brand, from first impressions to present day judgments, which are always influenced by the direct or indirect interactions with a company’s employees. Consequently, Keller contends that employees may not be knowledgeable on current marketing activities employed by the organization, so organizations may risk damaging the brand’s reputation. The communication of the brand mantra is recognized by Keller to play an important part in symbolizing the brand’s meaning for an organization, so all the internal stakeholders of a company should appreciate their role in assisting these matters. As confirmed by Keller, brand mantras are made up of three components. Firstly, he describes how the Brand Functions portray the kind of product or service to be expected or benefited by the brand, which can vary from very definite to very abstract symbolizations. The Descriptive Modifier is illustrated by Keller as a method to further define the brand in relation to business activities and uniting these components can assist an organization to outline the borders of the brand. Ultimately, the Emotional Modifier is presented by Keller to be a reflection of how the brand generates its benefits and qualities to customers. He further notes that brand mantras develop their power and value in their collective significance, as Keller exposes that an effective brand mantra implies that no other brand should exceptionally excel on all three components. Harris and de Chernatorny (2001) state, along with a numerous of previous studies, that there are three main aspects that influence perceptual congruity: the similarity of brand members, shared values and communication. Figure 2.5 on the next page, illustrates the importance of these integrated internal aspects that can be employed to evaluate performance, as described by Harris and de Chernatorny.

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FIGURE 2.5 The relationships between internal brand resources and brand performance Source: Harris and de Chernatorny (2001), p. 447. Brand Team Members Harris and de Chernatorny (2001) argue that corporate branding involves a large, diverse team to leverage the brand into action. They highlight that the more similarities in characteristics that these brand team members possess, the greater chance of communication, integration and consensus building can be achieved. Harris and de Chernatorny contend that shared values and outlooks are needed to harmonize the team members in their brand building performance. However, they also describe that dissimilarities between group members can be advantageous, with a greater scope of skills and knowledge, plus the restrictions connected to “groupthink”, stated as key issues to be considered in regard to innovation, as well as change. Harris and de Chernatorny even mention that a team could become more compact and stronger if they were to settle differences and conflicts to begin with, although they specifically note that the turnover rate of team members could also be quite high. Nevertheless, Harris and de Chernatorny confirm that in time team members usually acquire similar values and assumptions, as they continually work and interact with each other, and in turn communication within the team in enhanced. Shared Values Successful organizations, in the view of Harris and de Chernatorny (2001) stress that the brand values are to be easily recognized, understood explicit and shared by all employees. They continue to note that effective managers employ their values to form the views and attitudes for the entire company. By having shared values, Harris and de Chernatorny declare that desired employee behaviour can be achieved, which is an important corporate brand factor, as brand and organizational values must be consistent to each other when communicating to stakeholders. Harris and de Chernatorny insist that shared values improve participation, hence creating a better commitment towards the brand and the company, and enhancing organizational performance. However, they do also mention that shared values can impair an organization’s success, as certain core values must be able to adapt to the dynamics of the ever-changing business environment in order to maintain a competitive performance. Harris and de Chernatorny add that managers must therefore decide which core values are to be kept and which are to be changed so as to enhance performance.

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Communication According to Harris and de Chernatorny (2001), communication plays a significant role in the development of the brand, in particular when considering actual and desired brand identity. As mentioned before, Harris and de Chernatorny state that communication is more effective when similar values and attitudes are shared. Communications will affect the brand’s performance, so Harris and de Chernatorny confirm that brand team member relationships, as well as the relationship between brand team members and employees are noted to be of considerably importance. They state that the more the brand team interacts with each other, the stronger the team becomes in terms of solving problems with compromises and/or shared attitudes and values. In addition to these interactions, Harris and de Chernatorny also avow that a more distinct brand identity is created the more managers and employees communicate, as performances are conducted in a more consistent manner to the outside world. This is acknowledged by Harris and de Chernatorny to support and improve the brand images of both the employee and the customer. Moreover, they state that the communication between management and employees should become a two-way communication process so as evaluate if the communication methods are effective. Harris and Chernatorny also allege that employees are more inclined to accept communicated brand values, from both management and advertising if they feel that they are part of the brand’s communicational efforts, so management must be clear to employees in explaining the brand’s identity, as well as how brand communication is to create that identity in order to eliminate uncertainty. In order to achieve employee commitment to the brand’s identity, Harris and de Chernatorny (2001) acknowledge that it is vital to create personnel communication programmes, as internal organizational communication is considered to be essential for presenting and receiving information, attaining understanding and employee commitment. They further note that employees must understand what role they have in an organization and feel that they are engaged in the brand identity process, in order to fully understand and comply with congruent brand values, in addition to acting as brand ambassador to stakeholders.

2.3 Organizational Brand Commitment Abbott, White and Charles (2005) affirm that a reliable forecaster of organizational behaviour is organizational commitment (OC), which describes the emotional associations between the employee and the organization and the development of this relationship. They confirm that previous studies have shown that the OC of an employee is connected to fundamental workplace behaviours. Abbott et al. reveal that one investigation in 1993 stated that OC consists of three factors and these are affective, normative and continuance commitment. They define these as: “affective OC denotes the ‘emotional attachment to, identification with and involvement in the organization’; normative OC refers to ‘a perceived obligation to remain in the organization’; and continuance commitment denotes ‘the perceived cost associated with leaving the organization’ ”. Abbott et al. expose that lower turnover intention, in other words, employees find it hard to leave a workplace, is the single likeness found between the three OC elements, and they comment on the fact that OC recognizes the power of emotional ties connected to the employee and the organization. Results in Abbott et al. studies reveal that there is a strong connection between work values and OC in various organizational circumstances. They continue to point out that employees develop affective and normative OC due to the association of their own personal values and the perceived

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values of their place of work, and that socially prioritized values, such as vision and humanity, are considered to be attractive values for an organization to be in accordance with. Hoogervorst, Koopman and Flier (2005) further add that organizational culture, management practices and organizational structures and systems must be understood and appreciated, so as to attain collective, consistent employee behaviour. As decision-making is a renowned management process, Hoogervorst et al. argue that this traditional method of organizational process removes employee participation, in terms of knowledge, ideas and significant assistance. They also note that organizational performance is credited to be enhanced the greater personnel comply to formal structures, regulations and assignments, as their behaviour is acknowledged to be of a coherent and harmonized nature. Hoogervorst et al. state that management need to encourage employee motivation and commitment, therefore they highlight that a human-centred view that focuses on employees being the vital link for organizational success. Competitive advantage, as they explain can only be achieved by the attaining of required organizational behaviour. Hoogervorst et al. assert that human resources are the greatest unexploited supply of knowledge in companies today, so they maintain that employee participation in organizational internal activities is crucial to sustain and enhance organizational performance, as well as supporting employee development. Burmann and Zeplin (2005) present a holistic model for internal branding and declare that brand commitment does not materialize by itself. They have designed a holistic model with three central forces for achieving brand commitment based on the review of previous their studies. Their earlier investigations lead Burmann and Zeplin to believe that there is no ideal or easy answer for how to create brand commitment as numerous processes must be implemented and coordinated together. The fundamental nature of these processes, according to Burmann and Zeplin, are shared in three forces: brand-centred human resources (HR) activities, brand communications and brand leadership. However, they point out that these three core forces will not result in success if they are not aligned with the background features of the organizational culture and organizational structure fit. Figure 2.6 illustrates the elements, according to Burmann and Zeplin, of holistic brand management, which are influential to brand commitment within an organization.

FIGURE 2.6 A holistic model for internal brand management Source: Adapted from Burmann and Zeplin (2005), p. 286.

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Ensuring Person-Brand Fit through HR Activities Burmann and Zeplin (2005) predict that some employees will be stronger related to the brand values through their own personal values than others even prior to working at an organization, which implies that core brand values already typify certain ingredients of their self-concept, so less effort regarding the brand promise activities is required by the organization. A brand-centred approach to HR management, as stated by Burmann and Zeplin, must make certain that candidates with a strong personal identity-brand fit are firstly hired and chosen, and then those employees which posses a strong person-brand fit are promoted. They go on to mention that the foundations of the brand identity concept support employee marketing, employee selection and promotion credentials. Burmann and Zeplin highlight that “Recruitment is a branding exercise, it’s part of the management of the corporate brand”. Although various screening methods do exist, Burmann and Zeplin recommend that potential employees are to spend time with established employees so as to observe their qualities before entering the workplace, in order to assist personal identity-brand identity fit in the course of self-selection. Furthermore, Burmann and Zeplin (2005) also proclaim that the HR management of an organization can assist to the development of brand identity internalization by phasing in new employees. Burmann and Zeplin acknowledge the use of orientation training as a key means to initialize the socialization process, in addition to the communicating of brand identity through an organization’s tradition, vision, values, capacity and character. They even note that executive programmes experienced in later working life can be a way of complementing this preliminary training. As well as training, Burmann and Zeplin emphasize the need for informal approaches so as to enhance the employee’s perception of the brand identity, with social events and mentor programmes given as examples. They reveal that previous investigations have shown that institutionalized socialization has a major encouraging impact on the development of organizational commitment, organizational identification and person-organizational fit, thus Burmann and Zeplin maintain that the same must be said for brand commitment as it is founded on brand identity internalization. Generating Brand Awareness and Understanding through Internal Communications In the view of Burmann and Zeplin (2005), if personal identity-brand identity is accomplished by HR practices, personal and brand values are only associated unconsciously. It is here that they allege that every employee must also be consciously responsive to the brand’s identity, so as to appreciate what this entails for the organization by recognizing the importance of branding concerns of the day-to-day aspects of their jobs and the interaction with customers in ensuring the brand’s promise. Burmann and Zeplin continue to add that only when every single employee understands the impact of customer relationships that the brand identity concept can be communicated. Therefore, Burmann and Zeplin assert that a clear and engaging expression of the brand identity concept is to be verbally communicated within the entire organization at every employee and management level. The verbal communication is explained by Burmann and Zeplin (2005) to involve two contradicting purposes that must be fulfilled. Firstly, they claim that it should truthfully symbolize all the features surrounding the brand identity, and secondly, they add that it must also be memorable. Burmann and Zeplin (2005) continue to mention that an extensive brand book can describe in great detail the conception of an organization’s brand identity, however, they highlight that a brand book is considered to be a very good guide and support to the

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brand’s progress, in particular for HR and internal communications. But Burmann and Zeplin reveal that it is very unlikely that the whole book will be memorized by every employee. According to Burmann and Zeplin, small teams, which can include the CEO, as well as any long existing executives and significant employees, are the best method to transmit the verbalization of the brand identity. Burmann and Zeplin affirm that a brand value statement can also be employed as a directive, but even this can be long-winded and hard to recollect. They stress that core values, no matter how simple and common they appear, must be remembered and employed in the daily communications and work activities within an organization. In order for the brand statement to be effective, Burmann and Zeplin disclose that it must first and foremost be memorable, in addition to also being short and concise. Encouraging Brand Leadership on All Levels According to Burmann and Zeplin (2005) the third element of developing brand commitment is leadership, and they reveal that there are two brand-related levels of leadership to be considered. Firstly they highlight the macro level, which describes the role of the CEO and executive board in the brand management procedure. Burmann and Zeplin explain that the CEO and the executive board are recognized to have a substantial influence on both the internal and external brand observations. Employees, as acknowledged by Burmann and Zeplin, will only take the internal branding practices sincerely if they are backed by and employed by the CEO and executive board. Consequently, Burmann and Zeplin state that the entire organization, from top to bottom, must appreciate and understand the brand identity concept, in order for it to be both employed and effective. However, they also mention that the key role of the CEO can also be considered to be negative, as a few careless expressions or actions can brutally harm the brand’s reputation. Another danger exposed by Burmann and Zeplin, is that the brand identity may become too dependent on the CEO’s charisma and that the brand identity can be left with no direction when a successor takes over. The second level, as describe by Burmann and Zeplin (2005), concentrates on the micro level of leadership, which entails the personal leadership of executives within an organization. They verify that every executive must behave as a role model for the brand, and that social learning can be deemed to be the informal means of the internal interaction process where employees gain knowledge of brand norms and values. As well as role models, Burmann and Zeplin also reveal that there are specific forms of leadership behaviours which are judged to be more successful in developing brand commitment through identification, and they mention the transformational leadership theory as an effective research model. Transformational leadership, when considering the brand, is highlighted by Burmann and Zeplin (2005) to define leaders’ behaviour, which manipulates the values, assumptions and ambitions of the employees of an organization and persuade them to surpass personal interests to support the good of the brand. They continue to add that transformational leadership has been proven to have noteworthy influences on organizational commitment and organizational citizenship behaviour, as well as improving organizational identification. Previous investigations have shown that charisma, inspiration, intellectual stimulation and individual consideration are four features that symbolize transformational leaders, and Burmann and Zeplin acknowledge that all four characteristics can be obtained by leaders through the methods of training and coaching. They also mention that many practitioners illustrate the need for empowerment of employees in these circumstances.

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Leadership, not management is maintained by Hoogervorst, Koopman and Flier (2005) to be a key factor for an organization to employ a human-centred approach, as they mention that the motivation of employees is a managerial task that is founded from mutual needs, expectations and values. Hoogervorst et al. argue that the moral issues surrounding leadership are important matters that help to cement relationships with personnel, as emotional bonds are generated. Trust therefore, as considered by Hoogervorst et al. to be a necessity in the leader/employee relationship, in order for management to constantly relate to and appreciate their employees. They point out that leadership qualities affect employee self-control, self-confidence, self-efficiency and self-actualization, in relation to organizational performance. Hoogervorst et al. reinstate that effective leadership requires employees to be involved and committed, and this is obtained through the relationship of creating shared goals, values and ambitions, thus a valuable internal social interaction is imperative to coordinate organizational performance. Aligning the Context Factors: Culture and Structure Fit Burmann and Zeplin (2005) confirm that the three brand-centred HR practices of brand communication will only be successful in attaining brand commitment if the organizational culture and structure are in correspondence with the brand identity concept. Due to the extreme influence of organizational culture on personal values and performance, Burmann and Zeplin maintain that there must therefore be a brand identity-culture fit. They go no to clarify that high brand identity is experienced by employees as it is founded on values that are strongly recognized through the organizational culture, and this helps to develop a strong and consistent brand identity by informal interactions within the organization. However, Burmann and Zeplin affirm that if a misalignment between desired brand identity and organizational culture is exposed, there are three alternatives an organization can consider, and these are: adapting the brand identity concept, managing around the organizational culture or adapting the organizational culture. As noted by Hoogervorst, Koopman and Flier (2005), organizational culture can either enhance or discourage organizational objectives. Moreover, they reveal that many authors state that as well as social communications, management practices have a major impact on the organizational learning process and the instigation of organizational culture change. Thus, Hoogervorst et al. propose that this represents how management can manipulate that values and beliefs of personnel. They describe how certain authors indicate that the development of organizational culture is a managerial problem, as this helps to fashion and sustain appropriate employee behaviour. Corporate structure, as stated by Burmann and Zeplin (2005), must also be in harmony with the brand identity concept as it entails reward policies, infrastructure and organizational structure. Burmann and Zeplin mention that the first measure to align reward systems is to make certain that incentive structures do not neutralize the desired brand-consistent behaviours, and they highlight that to influence these brand behaviours they must be able to be evaluated and rewarded upon successful performance. As described by Hoogervorst, Koopman and Flier (2005), organizational structures and systems involve communication, evaluations, rewards, operational organization and assignments, as well as information processes and these are considered to be pivotal in organizational behaviour. Structures and systems, according to Hoogervorst et al. are traditionally associated to regulating instruments that shape a controlled state of standards and knowledge throughout the organization, which is

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guided by management. They further note that structures and systems must coincide with an organization’s mission, vision, value and objectives, which consequently provide an organization with a purpose. Therefore, Hoogervorst et al. insist that organizational structures and systems need to be mutually consistent, understandable and coherent at all times, so as to obtain optimal organizational performance. In addition to the organizational structure representing the brand identity, Burmann and Zeplin (2005) also note that internal brand management itself should be institutionalized and they continue to mention that this begins at the top of an organization, in view of the fact that internal brand management covers many organizational tasks, thus the marketing department or the HR department can not be responsible for organizing these internal practices. They explain that the deployment of an executive brand council, which involves all functional and divisional managers as members, meeting to discuss, assess and decide both internal and external brand management aspects, is a reliable method of institutionalizing internal brand management. Burmann and Zeplin also reveal that internal brand management can be encouraged by the decentralized approach of using brand ambassadors. Brand ambassadors, as described by Burmann and Zeplin, are selected employees from each division and geographic area, which are responsible for communicating the brand identity concept to other employees and promoting their participation so as to generate a positive chain of events. Burmann and Zeplin propose that brand ambassadors should make suggestions regarding brand issues to the brand organization centre and that they delegate best brand activities in written statements, as well as with other current brand ambassadors.

2.4 Sustaining Organizational Brand Commitment Keller (1999) affirms that brand mantras consist of a few words or phrases that highlight core brand positioning which are an internal means to encourage the contribution of employees and marketing staff, by examining and determining how they can each confidently promote the brand effectively. The brand positioning process can be described in a brief paragraph, and as revealed by Keller is closely linked to core brand associations, so as to easily attract targeted customers. To communicate, simplify and inspire are acknowledged by Keller to be the criteria for effective brand mantras. Communicate Keller (1999) exposes that a great brand mantra must be able to clearly describe the set(s) of business for the brand, as well as maintaining its uniqueness and limitations. Simplify An efficient brand mantra must be unforgettable, so Keller (1999) implies that it should be brief, snappy and colourful in its meaning, and three worded mantras are believed to be the most financially effective way to communicate the brand positioning. However, he explains that more words may be necessary in certain circumstances. In any case, Keller comments that brand mantras must be expressed and words must be chosen carefully to exactly attain the desired effect, therefore short phrases might be required to clarify each word.

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Inspire According to Keller (1999), the brand mantra should be preferably personally meaningful and significant for as many employees as possible, as brand mantras can enlighten and direct, as well as arouse and motivate if the brand values can be sincerely identified with employees, in addition to customers. Burmann and Zeplin (2005) comment that employees play an essential part in the development of a brand, as employees provide the foundations for brand identity through all their mannerisms and behaviours while working. Organizational citizenship behaviour, as noted by Burmann and Zeplin is an acknowledged theory which focuses on the research of organizational behaviour. They highlight that there are seven recognized aspects of organizational citizenship behaviour, which are as follows: helping behaviour, organizational compliance, individual initiative, sportsmanship organizational, loyalty, self-development, and civic virtue. In addition to organizational behaviour, Burmann and Zeplin affirm that this theory also recognizes how an individual also behaves past the expected organizational role and the incentives of official rewards, but yet still influences the organization’s performance. From previous results found by Burmann and Zeplin (2005), they declare that it is these further behavioural elements of employees that truly bring the brand to life. So they continue to add that this theory has been adapted and accepted to evaluate the issue surrounding internal branding, and has duly been named brand citizenship behaviour. Thus, Burmann and Zeplin claim that brand citizenship behaviour takes into account both the internal and external behaviours of employees. According to Burmann and Zeplin, employees can only obtain brand citizenship behaviour through the support of brand commitment, if they have the access to the required information and resources, so that information structure, planning, budgeting and controlling systems can be effective and enhance brand strength (see figure 2.7 below).

FIGURE 2.7 A holistic model for internal brand management Source: Adapted from Burmann and Zeplin (2005), p. 286. Burmann and Zeplin (2005) also add that employees must be empowered to capture the essence of the brand if they are to develop brand citizen behaviours, which entails the adequate organizational support, hence the importance of organizational structure. According

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to Burmann and Zeplin, brand citizenship behaviour defines an amount of common brand and organizational employee behaviour which can influence the brand’s identity, and so as to gain an enhanced understanding, and they adjusted the seven aspects surrounding organizational citizenship behaviour as follows: helping behaviour, brand consideration, brand enthusiasm, sportsmanship, brand endorsement, self-development, and brand advancement. They state that brand commitment is the major influencer of brand citizenship behaviour, and describe brand commitment as “the extent of psychological attachment of employees to the brand, which influences their willingness to exert extra effort towards reaching the brand goals”. Something that Burmann and Zeplin maintain that can also be observed as exercising branding citizenship behaviour. In the view of Burmann and Zeplin, organizational commitment has been proven to involve practical extra-role behaviour, and they continue to note that brand commitment is acknowledged to be the underlying variable behind the seven brand citizenship behaviour aspects. Burmann and Zeplin explain that the three elements of brand commitment are compliance, identification and internalization, which are clarified on the next page. Compliance To comply with the brand’s identity indicates how behaviours are considered to be consistent with the desired brand identity, so Burmann and Zeplin (2005) state that as to receive certain intrinsic rewards or to escape punishment. Burmann and Zeplin argue that commitment grounded on compliance does not consist of any behaviour that goes past the role instructions, but it does guarantee obedience to rules and regulations, which is needed in brand citizenship behaviour. Therefore, they mention that compliance is motivated by both the organizational structure, by employing incentive systems to provide rewards and endorsements, and the organizational culture that establishes unofficial rewards and endorsements through social control. Identification Identification with the brand identity is illustrated by Burmann and Zeplin (2005) to describe the acceptance of social influence anticipated by the feeling of fitting in with the group, so as to practice and understand the brand with a collected view that the brand’s identity is consistent to the group identity. By enjoying a strong identification with the brand, as confirmed by Burmann and Zeplin, will assist to persuade brand citizenship behaviours to possess a sense of personal responsibility for the entire organization, from top to bottom. They also add that identification can be enhanced by the stressing of brand distinctiveness and competitive advantage by captivating leadership and individual mentorship, in addition to a strong organizational culture with familiar procedures and codes. Internalization Burmann and Zeplin (2005) claim that the internalization of the brand identity points out the character of the core brand values as interpreted from an individual’s perspective, and to what degree they influence an individual’s performance. The self-concept aspect, as highlighted by Burmann and Zeplin, features traits, competences and values that are recognized by the individual them self to be in accordance with personal and brand ideals.

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Burmann and Zeplin (2005) state that the three elements surrounding commitment are not interdependent, as the brand commitment of every person can be developed by any one or all three of the elements involved, which is acknowledged to differ from person to person. They add that brand citizenship behaviour is not manipulated by all the elements in a similar way, however, Burmann and Zeplin argue that a strong internalization is the most influential element of brand citizen behaviour, whereas compliance is the weakest. Mudie (2003) avows that internal marketing is a means to create a more committed, cooperative and enthusiastic workforce, by treating employees as customers, and through internal interaction and practices, behaviours, values and attitudes can be adapted to improve motivation and contentment and lead to greater productivity, efficiency and quality. However, the acknowledgement that a satisfied employee is a resourceful employee is not an accepted statement to date in organizational behaviour research. According to Mudie, in order for an organization to enjoy external success, the organization must first be in coherence internally, as employees need to be more aware of how they conduct themselves to audiences and therefore become more customer conscious. Ahmed, Rafiq and Saad (2003) highlight that previous studies have illustrated that there is a positive relationship between internal marketing (IM) activities and organizational efficiency and performance. Moreover, Ahmed, Rafiq and Saad (2003) reveal that a previous investigation from 1995 discovered that IM consisted of the three factors of rewards (rewarding and motivating employees), development and presenting a vision. There is even evidence stated by Ahmed et al. that IM should be implemented into a workplace that encourages personnel to respond to management’s instructions. This leads to Ahmed et al. to declare that the IM mix can consequently be divided into the “soft” and the “hard” characteristics of the organization. However, they affirm that these are not recognized generalizations in IM literature but instruments widely considered to be employed in effective marketing activities. Ahmed et al. highlight that to assist their study, the human resource management instruments employed to their IM mix were: strategic awards, internal communications, training and development, organizational culture, senior leadership, physical environment, staffing, selection and succession, interfunctional coordination, incentive systems, empowerment, operational or process changes. According to Ahmed et al., strategic awards focus on only motivating behaviours, actions and accomplishments which assist the organization to obtain certain business objectives, while they explain that incentive systems to be the necessary payment structures employed by the organization to assist the development of organizational culture by rewarding the business performance, behaviours and values that management want to support. In evaluating the Internal Marketing mix and organizational competencies, Ahmed, Rafiq and Saad (2003) highlight a method recognized as the resource-based process. They acknowledge that with this approach the IM mix framework is employed as a way to develop organizational competences, and underline that here IM is recognized as a view to organize a company’s human resources, by applying marketing activities to create internal competences in order to attain external achievements. Therefore, Ahmed et al. declare that the IM mix is proficient in connecting organizational competences and company performances. Ahmed et al. proclaim that the three components of organizational competences that correspond to IM developments are: customer/market orientation, employee satisfaction, and specific/individual competences. They highlight that the fundamental goal of IM in this framework is to interpret the business strategy in a way that adapts the IM mix to develop the needed competences, so as to enhance organizational performance. The conceptual model applied in Ahmed et al. investigation

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relied on the IM mix as a tool to support the progress of both managerial and technical competences, and highlight that overall the assisting of individual competences encourages organizational competences. They mention that the controllable organizational characteristics (the proposed IM mix) are employed to manipulate employees (internal customers) in attaining the desired competences that eventually results in achieving desired organizational performance. Figure 2.8 below presents the conceptual model of internal marketing submitted by Ahmed et al. in assisting their study.

FIGURE 2.8 Conceptual model of internal marketing Source: Ahmed, Rafiq and Saad (2003), p. 1226. In the view of Ahmed, Rafiq and Saad (2003) the model measures the relationship between the IM mix, organizational competences, the use of marketing-like philosophy, as well as marketing-like instruments and how these variables influence organizational performance. Firstly, they maintain that the IM elements are associated to organizational performance, and secondly they declare that organizational competences connect the relationship between the IM mix and organizational performance. Ahmed et al. stress that general market orientation, employee satisfaction and specific/individual competences are considered to be particularly prominent in connecting the link between the IM mix and organizational performance. In appreciating market orientation, Ahmed et al. verify that organizations are fully aware and prepared to validate for customer needs and compete in the marketplace, and they emphasize that strong market orientation requires an organization to offer a greater value on a regular basis to customers, so the possibility of attaining greater value must therefore be increased. Ahmed et al. add that in the view of customers, market orientation is a means to develop competitive advantage, which is an encouraging sign for an organization to attain desired organizational performance. According to Ahmed, Rafiq and Saad (2003), employee satisfaction assists enhancing organizational performance, due to the fact that the best employees are easier to attract and retain, thus they are more motivated and customer conscious, and therefore capable of providing a superior level of service. By developing specific/individual competences, Ahmed et al. claim that this may help to assist an enhanced and reliable quality of service, in addition to meeting customer needs more efficiently and developing a better employee self-efficacy, which in turn leads to an enhanced employee, then organizational performance. Ahmed et al. expose that IM consequently uses a marketing-like philosophy to deal with employees as

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internal customers, which entails the employment of marketing-like instruments and operations so as to obtain the desired results. They conclude by describing how IM is a means to motivate employees by dynamic market-like practices.

2.5 Conceptual Framework As stated by Miles and Huberman (1994), a conceptual framework illustrates, either graphically or in narrative form, the most important factors and their influences to be investigated. Furthermore, the authors suggest that constructing a conceptual framework is easier if research questions have been presented, as is the case in this study. With the purpose of answering the four research questions presented in chapter one, we will clarify the literature to support our data collection. The selected theories for our conceptual framework were deemed most appropriate for our study. Initially, we will present the literature concerning how can the alignment of brand values be described, secondly, the literature regarding how can the attaining of consistent brand values be described, then, the literature relating to how can organizational brand commitment be described, and finally the literature surrounding how can the sustaining of brand commitment be described.

2.5.1 Conceptualization – Alignment of brand values Urde (2003) presents three perspectives to how values surrounding an organization’s identity and brand building process can be examined and de Chernatony (2002) highlights the necessity of evaluating the three brand providers and their values, so as to create a consistent brand. We will employ a combination of these two theories due to the fact that Urde states that these values are independent, as well as interacting and de Chernatony illustrates the importance of aligning the mentioned interacting brand providers. Our criterion based on the aforementioned two theories is as follows: Values inherent in the vision

• Provide distinctive brand values Values of individual employees

• Aligned with generated brand values Values inherent in the organizational / Values that are related to the organization

• Shapes rules/religion • A cohesive mission and vision • Provides element of intellectual assets and storytelling • Essential source for core values and core practices

Values inherent in the brand / Values that sum up the brand

• evaluate alongside: o the values of the vision o individual employees o organizational culture

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• Core brand values o enhances identity o brand’s spirit and soul o assist corporate brand development o instrumental role in employee performance and communication

2.5.2 Conceptualization – Attaining consistent brand values Harris and de Chernatony (2001) comment on how brand identity is formed upon six elements and reveal de Chernatorny identity-reputation gap model of brand management. Ind (2003) states that with the assistance of an ideology an organization can connect and communicate the desired behaviour effectively with their employees. We will apply the first three aspects of vision and culture, positioning and personality of the identity-gap model, and compliment them with the two ideology aspects of clearly and truthfully defined and business benefits, in order to describe the attaining of consistent brand values in organizations. The two ideology aspects were chosen due to the greater amount of theory regarding internal focus, even though external relationships and influences are still appreciated. Our criterion is as follows: Vision and culture

• Provides consistent performance and character • Core values

o communicate working roles o guide working behaviour o aligned with organizational culture

• Consistent central core brand values • Adaptable core brand values

Positioning

• Brand core values and vision o represent the brand o distinguish brand from competition o indication of brand performance qualities

Personality

• Emotional features associated with brand core values

Clearly and Truthfully Defined • Organizational faith and trust • Ethical customer and stakeholder beliefs • Courage creates uniqueness and differentiation so as to develop loyalty and fondness

with customers Business Benefits

• “living the brand” motivates employees through both good and bad times

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2.5.3 Conceptualization – Organizational brand commitment Burmann and Zeplin (2005) have designed a holistic model for internal branding that affirms the factors which contribute to brand commitment in organizations. We found that there are various authors who support various aspects in regards to this way of thinking, but chose to apply Burmann and Zeplin’s model as it is a modern approach which thoroughly explains and provides a complete picture of organizational brand commitment. Burmann and Zeplin’s criterion is as follows: Ensuring Person-Brand Fit through HR Activities

• Strong personal identity-brand fit candidates selected and hired • Strong person-brand fit employees promoted • Socialization process for ensuring person-brand fit

o orientation training o through traditions, visions, values, capacity and character o informal approaches

Generating Brand Awareness and Understanding through Internal Communications

• Every employee consciously responsive to the brand identity in the day-to-day aspects of work

• Brand identity concept verbally communicated within the entire organization o clear and engaging o truthfully symbolizing o memorable

• Core brand values are to be remembered and employed in daily communications and work activities

• The brand statement is memorable, as well as short and concise

Encouraging Brand Leadership on All Levels • Influence of CEO and executive board on internal and external brand observations • Empowerment of employees

Aligning the Context Factors: Culture and Structure Fit

• Align brand identity concept with organizational culture and employee values • Align brand identity with organizational structure

o reward policies

• Institutionalized internal brand management o begins at the top o executive brand council o brand ambassadors

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2.5.4 Conceptualization – Sustaining organizational brand commitment Burmann and Zeplin (2005) describe that brand citizenship behaviour and its elements is an approach that focuses on the importance of employees in brand development, which leads to brand strength. Our reasoning for using this concept is based on the fact that brand citizenship behaviour is shown in Burmann and Zeplin’s holistic model to internal branding to develop and progress from initial organizational brand commitment. Burmann and Zeplin’s criterion is as follows: Brand Citizenship Behaviour

• Employee access to the necessary information and resources Compliance

• Consistent with brand identity • To rules and regulations • With influences of organizational culture and structure

Identification

• Group belonging • Collected view of the brand • Personal responsibility for the organization • Stressing brand distinctiveness and competitive

Internalization

• Brand identity characterizes the core brand values • Brand traits, competences and values recognized and in accordance with personal

ideals • Individual interpretations of brand core values to individual performance

The emerged conceptual framework is illustrated graphically in Figure 2.9 on the next page.

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Internal Branding Development

FIGURE 2.9 Illustration of the emerged conceptual framework

RQ 3. Organizational brand commitment Ensuring Person-Brand Fit through HR

Activities Generating Brand Awareness and

Understanding through Internal Communications

Encouraging Brand Leadership on All Levels Aligning the Context Factors: Culture and

Structure Fit

Burmann and Zeplin (2005)

RQ 1. Alignment of brand values Values inherent in the vision Values of individual employees Values that are related to the organization Values that sum up the brand

Urde (2003) and de Chernatony (2002)

RQ 4. Sustaining organizational brand commitment

Brand Citizenship Behaviour Compliance Identification Internalization

Burmann and Zeplin (2005)

RQ 2. Attaining consistent brand values

Vision and culture Positioning Personality Clearly and Truthfully Defined Business Benefits

Harris and de Chernatony (2001) and Ind (2003)

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METHODOLOGY

3 METHODOLOGY In this chapter we will present the methodology that includes the methods employed to answer the research questions. The chapter starts with the research purpose, which is followed by the research approach and research strategy. The data collection process will then be explained and next the applied sample selection is highlighted. The illustration of the data analysis is subsequently discussed and finally the quality standards are presented.

3.1 Research Purpose Saunders, Lewis and Thornhill (2003) state that studies can be categorized by a purpose or an employed strategy and Yin (2003) declares that research can be characterized as exploratory, descriptive and explanatory. Saunders et al. (2003) add that it is possible to have more than one purpose and strategy for research intentions and that the purpose may change during the course of an investigation. Exploratory investigations, according to Saunders, Lewis and Thornhill (2003), are processes employed to discover what is happening, to search for new meanings and to investigate the answers so as to be able to understand a problem. The authors declare that the benefits of exploratory research are its flexibility and adaptability to change, not that this method lacks a sense of direction, but to be capable of taking new information into consideration in order to gradually narrow the focus of the study. They mention how descriptive studies disclose an exact summary of people, events or circumstances, which can be employed before or after an element of an exploratory study. Saunders et al. (2003) highlight the importance of being very specific in the research area preceding data collection, as well as being proficient to evaluate and draw conclusions from a descriptive study. They illustrate that explanatory studies acknowledge the informal interactions between factors, which focus on the investigating of a situation or a problem and to explain the influence of the issues involved. Literature has been found regarding the alignment of brand values, attaining consistent brand values, organizational brand commitment and sustaining organizational brand commitment, therefore we have attempted to explain this phenomenon primarily in a descriptive manner. Our study is also partly exploratory as we tried to formulate and define the problems within the area of research, by reflecting on how internal branding is developed within organizations. However, the study is barely of an explanatory nature, since we only begin to explain the understanding of brand value alignment, attaining consistent brand values, organizational brand commitment and sustaining organizational brand commitment from the conclusions drawn in our study, so as to present information for further development and knowledge.

3.2 Research Approach This study will use a qualitative approach, as Denscombe (2003) states, to gain a better and profound understanding within the problem area. Denscombe (2003) highlights that qualitative research mainly focuses on description and employs words as the unit of analysis and in addition, these investigations have a tendency to be associated with small-scale studies,

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a holistic perspective, researcher participation and an evolving research design. According to Denscombe (2003), a qualitative research is better related to social phenomena, which our study warranted, so as to proficiently describe how brand value alignment, attaining consistent brand values, organizational brand commitment and sustaining organizational brand commitment influence the development of internal branding in organizations.

3.3 Research Strategy The strategy we decided to be most appropriate for our research was a case study. Saunders, Lewis and Thornhill (2003) state that a case study is a valuable way to explore existing theory, which can enable a researcher to challenge these theories and/or present foundations for new hypotheses. This strategy, as stated by Saunders et al. (2003), allows the researcher to apply multiple sources of evidence, in order to gain a strong perspective surrounding the area of research and its development. Yin (2003) highlights that case studies have a profound association with “how” questions, not involving the need to control the chain of events, and are based on contemporary events. In this study the use of “how” research questions were applied, it was not necessary to control the chain of events and the research area is a relevant topic for today’s business environment. These proved to be relevant factors in permitting us to attain a deeper insight to the four specified elements concerning internal branding in this study. A multiple case study, as confirmed by Yin (2003), has the benefit of being more reliable and convincing than a single case study regarding a researcher’s generalizations and conclusions. We selected to apply a multiple case study in our investigation due to the considerations of the previous statement, and opted to study our proposed research purpose from the perspectives of two companies from different industries, with approximately the same number of employees.

3.4 Data Collection Method Saunders, Lewis and Thornhill (2003) reveal that an interview is a method that helps to gather valid and reliable data for research questions and objectives. They add that an interview should be consistent with the research questions and objectives, as well as the purpose of the research and the chosen research strategy. Furthermore, Yin (2003) states that interviews are an essential source for case study research information, which allows researchers to focus on the case study topic. In light of the aforementioned discussion, we have chosen interviews as our primary data collection method. According to Saunders et al. (2003) telephone interviews may be regarded as beneficial when considering access to respondents, speed of data collection and lower costs. Due to the fact of access, distance and speed of data collection we personally conducted two telephone interviews and to insure that all the information gained was recollected, the interviews were both documented and recorded. Yin (2003) reveals that focused interviews can be open-ended and a degree of dialogue may occur, however, the researcher generally follows an interview protocol. The interview is usually quite short and often confirms particular aspects that are already known by the researcher (ibid). Our study applied the method of focused interviews, since the employing of

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an interview guide will support our conceptual framework and also gave us the opportunity to discuss the featured topic with the respondents. Yin (2003) mentions that the use of multiple sources of evidence allows the researcher to obtain numerous evaluations of the same phenomena, which increases the validity of an investigation. We complimented the information gained at the interview with documentation.

3.5 Sample Selection The purpose of this section is to illustrate how we selected the two case studies for our focused interviews, so as to describe the four elements involving the development of internal branding in organizations, by investigating the alignment of brand values, the attaining of consistent brand values, organizational brand commitment and sustaining organizational brand commitment. We started by contemplating on companies which are established international service companies from Great Britain and Sweden. We focused our attention to service brands as we believed this to be more beneficial for our study, as the relationship and the interactions between employee and customer are significant for the brand and its reputation, thus the internal message of the brand is fundamental for brand performance. Due to the dilemma of accessibility and time constraints, we then had to focus on established Swedish service companies to investigate so as to be able to answer our research questions, and by observing their websites, we decide which organizations best suited our research framework. We contacted Peab AB by telephone and this lead us to talk to Moa Welinder, a member of the Human Resource Department, who personally agreed to conduct an interview with us regarding our research area. A document was then sent in advance, pointing out the main topics to be featured in the interview. We also sent an e-mail to Elisa Saarinen, who is the Head of Communications at Svenska Handelsbanken AB, requesting to interview the appropriate individual within the organization regarding our investigation. Elisa Saarinen personally agreed to assist us in our research, and the same document as used in the Peab AB case was then sent to Elisa Saarinen in advance, pointing out the main topics to be discussed in the interview. These two organizations were selected for our study due to the fact that they operate in two different industries, but more importantly they possess approximately the same number of employees, which we believed enabled us to gain a better understanding to draw conclusions of the impact and influence of internal branding development in organizations.

3.6 Data Analysis Yin (2003) emphasizes that data analysis entails examining, categorizing, tabulating or otherwise recombining the collected data. Every case study should endeavour to attain a general analytic strategy to identify the main concerns of what to analyze and why. Relying on theoretical prepositions is the most favoured strategy that focuses on research questions which are based on the results of and compared to previous studies (ibid). Our investigation will use this strategy presented by Yin (2003), as we have developed the research on past studies and results. Therefore, the data analysis used in this study relies on theoretical propositions, and according to Yin (2003), this entails comparing the information collected

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and the literature presented, enabling the researcher to draw the necessary conclusions in a research. Miles and Huberman (1994) highlight that describing qualitative data concentrates on data in the form of words and the processing of these words is an aspect of the analysis procedure. Miles and Huberman (1994) also clarify the Three Concurrent Flows of Activity:

• Data Reduction: The practice of selecting, focusing, simplifying, abstracting and transforming the information, in an organized manner so that conclusions can be drawn and verified.

• Data Display: Allows the researcher to illustrate the findings and results of the data in

a structured way in order for conclusions to be easily drawn.

• Conclusion Drawing/Verification: The explanation of the relevant answers - noting regularities, patterns, explanations, possible configurations, casual flows and propositions.

When analyzing the data in this study we have decided to pursue Miles and Huberman’s (1994) suggested proposition of data analysis. Two types of analysis regarding qualitative data are stated by Miles and Huberman (1994) to be within-case analysis and cross-case analysis. For each research question we have compared the empirical findings to the literature and theories featured in our conceptual framework, in order to first make a within-case analysis for each case. Secondly, the data from the two cases will then be compared by the illustrating of a cross-case analysis, in order to finally draw conclusions of the patterns of similarities and differences determined in the data reduction and data display.

3.7 Quality Standards

3.7.1 Validity Denscombe (2003) explains that validity within a research indicates that the required information is studied and nothing more. By explaining to both Peab AB and Svenska Handelsbanken AB from the outset the purpose of our study, determined the fact that we were given access to talk to the appropriate respondent within the two companies. In addition, we sent a document revealing the main topics of the interview to both respondents before the scheduled interview, which as confirmed by Saunders, Lewis and Thornhill (2003), enabled us to help gain information to discuss the significant aspects surrounding our research area. To further increase validity of our study, a tape recorder was used during the telephone interviews, so as to confirm the collected data. The findings from our interviews were complemented with documentation, as Yin (2003) and Denscombe (2003) acknowledge that multiple sources of evidence strengthen an investigation’s validity. Yin (2003) highlights that key informants should regularly assess the outline of a case study report, as well as stating that an external observer of a case study should be able to follow the source of any evidence. For this investigation our supervisor has examined this study at regular intervals and approved our interview guide, and the first three chapters in this study

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describe the means and the methods used in our thesis so as to fully illustrate our intentions of investigating and answering our research questions. Yin (2003) notes that by testing a theory through the replications of results in different, but similar environments is a means for increasing external validity of a case study, therefore we applied a multiple-case study in our investigation. However, even due to the application of a multiple-case study, we appreciate that it may be difficult to draw any generalizations founded by the conclusions of the two companies presented in this investigation.

3.7.2 Reliability Yin (2003) and Denscombe (2003) mention that reliability within a research considers the fact that the study is conducted correctly, with the notion that the same conclusions could be obtained, if carried out by different researchers. Saunders, Lewis and Thornhill (2003) also reveal that telephone interviews acquire a longer time to build trust between the researcher and respondent, as well as the lack of visual cues and non-verbal behaviour which may affect the progress of the interview. Saunders et al. (2003) mention that the impact of bias behaviour and perceptions of the interviewer and interviewee, may possibly influence the substantiality of the answers received. As previously mentioned, all recollected material has been recorded and documented, so as to confirm that our results and conclusions in the study are trustworthy. However, Denscombe (2003) additionally states that the recording of an interview can be an intimidating situation for the interviewee that can inhibit them into revealing certain factors. But due to the fact that the respondents agreed to conduct a recorded interview to assist this study, as well as being experienced members of their respective companies, we regard the data in this research as a good foundation to support our findings and conclusions. Yin (2003) explains that a case study protocol and the developing of a case study database are ways of increasing the reliability of a research. None of the aforementioned measures have been used in this investigation; however, we believe that this methodology chapter, as well as the interview guide, clearly illustrates how we have conducted this multiple-case study.

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EMPIRICAL DATA

4 EMPIRICAL DATA In this chapter we will present the empirical data in the form of two case studies. The data was collected through telephone interviews and were based on an interview guide structured by our conceptual framework. In each of the cases we shall first introduce the company, its activities and our respondent and then proceed to present the empirical data in each of the four research questions.

4.1 Case 1: Peab AB Peab is a construction and civil engineering company, which is directed by the principle of quality in all steps of the construction process. In recent years Peab has focused all of its energy on only building and construction, after divesting all other operations that were also connected to the company. Peab was founded in 1959 by the brothers Erik and Mats Paulsson, and in 1967 the company was listed on the Stockholm Exchange. During its 47 years in operation, Peab has grown to become Sweden’s third largest building and construction company. Erik and Mats Paulsson along with their family and children own around 50% of the company today, while Mohammed Al-Amoudi owns around 10%. In 2005 the company had a revenue of 25 billion SEK, with the total number of employees in the region of 11 000. Peab’s markets consist of Sweden, Norway and Finland, where their total market share sales are 86%, 7% and 7% respectively (peab.se; Peab AB Annual Report 2005). Our respondent at Peab Sverige AB was Moa Wellinder, who works within the Human Resource Department at the company. In presenting the empirical data, we will refer to our respondent at Peab AB, as MW.

4.1.1 Alignment of brand values Values inherent in the vision Peab have four words that the organization always want to work by and remember, so as to maintain Peab’s high standards and quality, and these are down-to-earth, developing, personal and trustworthy. Then, it is up to the organization to translate these central meanings to the customer and the employees, so that Peab can covey a certain confidence and dependence to meet these expectations. These are the core values that Peab communicate internally and externally, and combing these values with the goal of providing the best work and quality possible is Peab’s main concern. Peab have a vision to be the best company in the business, and the company’s main aim is not to be the biggest organization in the market, but if this happens then so be it. Peab’s vision, as well as the four core brand values is how the organization strives to distinct the company from competition within the industry. Values of individual employees

It is important for Peab to align brand values with employee’s values because Peab want their employees to respect and work for the company, and to appreciate what the company stands for. Peab believe that this helps to enhance the company’s meaning and relationships with the

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customers, as well as employees performing to Peab’s standards and qualities. Peab appreciate that employees have their own values as individuals, but the company hopes that they feel something for the company and the way the company acts. Values inherent in the organizational / Values that are related to the organization Peab want everybody to follow the company rules and regulations, but as there are around 11 000 employees in the company, and as mentioned earlier, Peab also want to be regarded as a personal company, each employee is an individual that the company must trust to act in their own way and on their own instincts at times. MW stated that the four core values are very important, but they are not religiously communicated to all employees everyday, they are part of the company’s vision that should be remember in the daily operations within the entire company. Peab hoped that all their employees feel at home when working within these rules and values, so it is necessary that these are aligned with employees’ values. The CEO who started the company is still working today, and he is very influential for the company, as he meets and talks to employees on a regular basis. Therefore Peab is considered within the organization to be a “family company”. Peab’s vision and mission is to be the best company in the business within building companies, and declared that the company strive after achieving this, so Peab’s mission is very much aligned and consistent with the company’s vision. Peab have these four core values and a vision that are essential for core brand values and core practices, but as the company is very close, with few levels of management, the company does not need to point out these every day. MW clarified that she has only three managers in higher position in the company and that she is in constant contact with them, so in Peab it is very easy to talk to people, as there are no hierarchal communicational problems concerning the intellectual assets and the storytelling of organizational vision and values within the company. At Peab, the core values and vision are communicated throughout the company in a family way that enhances recollection, which in turn generates a feeling for employees towards the words presented in the organizational values and vision that reflect Peab’s service to external stakeholders. When Peab want to recruit employees, or are in the process of recruiting, the company always presents the organization along with their four core values and their vision, in order to communicate a clear company message to potential employees. Values inherent in the brand / Values that sum up the brand It is very important for Peab to evaluate the brand values alongside the values of the vision, individual employees and organizational culture, and this is a very important organizational matter for the CEO and executive board, as these matters affects so many people in the company. These issues concern the entire Peab organization and its performance and behaviour, so it is of great importance that these conclusions are transmitted to employees so that the whole company understands their significance and how Peab should operate and improve. According to MW, core brand values can enhance identity, because if the company and the employees do a good job, Peab’s identity will develop and improve, and the respondent declared that this works in a kind of a circle. By working within their values, Peab can help customers to recognize the company’s efforts and enhance the brand’s reputation, which then increases employee satisfaction, and hopefully creates a situation where Peab’s employees are proud to work for the company. So, Peab’s core brand values can be described

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as the brand’s spirit and soul, although not everyone in the company would state this, there is a certain feeling experienced within the company that represents these brand values. Core brand values do assist corporate brand development, however, MW also noted that we are living in a world that is changing every day and of course Peab must learn to adapt with their surroundings. Peab decided on their vision and their core values for five, six year ago, and so far the company has not changed them, but they are developed to operate and perform successfully within an industry. Peab hoped that core brand values play an instrumental role in employee performance and communication, but they are individuals, and it is impossible to connect perfectly with around 11 000 employees, so the company can only hope that employees believe in core brand values and work within them. Peab hope that all employees get a good feeling working for the organization, and that this feeling is important for them individually, so the company hopes that their core brand values are respected.

4.1.2 Attaining consistent brand values Vision and culture Peab’s vision does help to provide a consistent performance and character, and this message can be easily communicated throughout the organization due to the closeness and “family” feeling surrounding the organizational culture and structure at Peab. The respondent described again how the short decision line enhances the company when working on site, as the possibility confer and to change certain issues if needed can be applied on a daily basis. The closeness of the company and the easy access of communication helps Peab to communicate working roles and guide working behaviour in a positive way, as employees have the means to discuss all matters with their superiors at all times. Peab acknowledged that this two-way communication helps the company to perform in a consistent way, as well as operating in an appreciative company atmosphere. Peab trust that core brand values can therefore be aligned with the organizational culture, as managers and employees can operate with a great deal of responsibility and initiative, even when working within the boundaries set by the company, so that a consistent message is still transmitted to all stakeholders. Peab must be able to change with the times, and the company must therefore have central core brand values that remain the same, but they must be communicated to stakeholders in different ways, so as to reflect the modern aspects of the ever-changing environment. Peab must also be able to distinguish the difference of communicating the core brand values when communicating to different people, such as managers, customers and employees, as the core brand values must be communicated in the right way to all stakeholders. Peab always want to be recognized as the best in their market and convey the message that Peab is a company which is down-to-earth, developing, personal and trustworthy. However, MW did appreciate that there are brand values that must be adaptable due to the fact of the environment changing all the time, and that Peab must remain a modern, competitive company. Positioning The four core values of down-to-earth, developing, personal and trustworthy are what represent Peab, and with a company vision to be the best in the industry, this is how the company want to be experienced and recognized as by all stakeholders. Peab appreciate that

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they are not the biggest company in the market, but the company must be acknowledged to be very close to the customer, with a view of building very strong customer relationships, and by applying these core values and vision to organizational performance can assist Peab to distinguish the brand from competition. MW confirmed that the company has built up a reputation in their industry of having a high standard and quality in their service and that the brand core values and the vision have helped the company to attain this success. Personality For Peab there are emotional features associated with brand core values, as the company realize that there are many “season” employees that are only contracted to work during the summer, which come back and work for Peab year after year. Therefore Peab recognize that an employee/brand connection has been made with many employees in the company. Peab hoped that these feelings assisted employees to make Peab the best company in the market, which would then be communicated to all customers through their personalities and performance. Clearly and Truthfully Defined The respondent admitted that it is very important for employees to have faith and trust in the organization’s ideology, so that their performance and behaviour reflects the desired image Peab wants to generate. Peab’s employees must ethically believe in Peabs values so as to successfully communicate and perform in a way that can be appreciated by Peab’s customers and stakeholders, which can easily be recognized, especially over time, if these values are not presented to all stakeholders in the right way. By conveying these values to the targeted audience does take courage, but this will help to create uniqueness and differentiation for Peab in the marketplace, and by working very close to customers on projects, as well as constantly communicating with them throughout the entire order, will help Peab to develop loyalty and fondness to all stakeholders and customers. MW declared that this kind of customer relationship is a high priority for the company, in order for the customer to completely trust and operate with Peab. Business Benefits At Peab it is very important for employees to “live the brand” through organizational performance, and as this helps to complete the circle of enhancing corporate brand identity. MW declared that recognizing brand values and performing to be the best in the industry can increase job satisfaction and provide a greater recognition for the company, therefore this helps to motivate employees during good times, in addition to bad times, as employees feel something for the organization and they will want to improve the company’s current situation.

4.1.3 Organizational brand commitment Ensuring Person-Brand Fit through HR Activities When Peab are recruiting people, is it important that potential employees are very aware of and can identify themselves with the brand, but this is very hard, as the company only meets these potential individuals on one, maybe two interviews. Peab reveal their vision and core

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values to potential employees, as well as introducing them to the company in general, with a hope that these candidates can recognize or feel something which connects them to Peab and that they fit the image of the Peab brand, so as to make selection and hiring easier for the company. The respondent highlighted how potential employees are asked to describe and explain what they feel about the presented vision and values, with Peab then evaluating the answers received. Even when it came to promoting employees that have a strong person-brand fit, Peab believe that due to the organizational culture and structure of the company, employees normally feel a sense of attachment to the brand in a very natural way, that makes it easier for employees to commonly enjoy the organizational environment and progress within the company. Peab is to be viewed and experienced as a big family organization where everyone can talk to everyone on any level on a daily basis, and this helps the company to make decisions regarding promoting the strong candidates which have a strong feeling for the company. Although MW also recognized the importance for a strong person-brand fit, in order for the candidate to reflect Pead’s brand as desired. According to MW, Peab rely on their natural and friendly working environment to initiate socialization process throughout the company, but the respondent also mentioned a leader program. For two days every year, Peab leaders are designated to attend a leadership program and then it is up to every leader to translate this received information and put it into daily practice with their respective employees. This method can be regarded as Peab’s way for ensuring the person-brand fit through HR practices, so leaders receive a kind of orientation training, which is related to the main essence of the company and it is their responsibility to promote this feeling throughout the company. This practice of working may include leaders communicating traditions, vision, values, capacity and character, in both formal and informal ways throughout the organization. Peab then hoped that these leaders would become brand characters and mentors for the employees to look up to, although the respondent also noted that this is not always guaranteed. Generating Brand Awareness and Understanding through Internal Communications Peab hoped that the employees are very aware of the company’s identity when they are working every day, in a very normal and natural way. The respondent also added that in communicating core values in an everyday family environment would help to increase employees to remember these important aspects as much as possible. This implies that at Peab these issues must be conveyed in very clear and simple terms, so as not to lose their meaning and so that they can be perceived as interesting, engaging and memorable, as Peab want these values to reflect their everyday actions and performance, in addition to helping create a feeling for the company. Peab feel that it is very important to be truthful when you are promoting brand awareness internally, otherwise an ideal employee relationship to the brand can not be generated. Peab regard this as a very important matter for the company, as this conflict of interest could lead to the Peab brand being deemed by all stakeholders to be dishonest and unreliable. In the view of MW, the receiver of the brand message should get a good feeling about the company, where nothing appears strange or complicated, just very natural. Peab do not currently have a brand statement, but the company does rely heavily on the four concepts

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surrounding the core values of being down-to-earth, developing, personal and trustworthy being associated both internally and externally with the company. Encouraging Brand Leadership on All Levels Peab’s CEO and executive board are very influentially to the company, both internally and externally, as Peab is a very close company, with a family organizational environment, and that the CEO and executive board want to be a part of the company and its daily interactions, as well as being role models for employees. The respondent stated that regarding the empowerment of employees the company hopes that employees will think and believe in the “Peab way”, and the company tries to encourage this behaviour as much as possible. However, Peab acknowledged that it is hard to control everything that individual employees feel and do, so it is up to the company to promote the brand as best as possible, and then trust employees to perform to their abilities within the given parameters. Aligning the Context Factors: Culture and Structure Fit MW declared that “it is important to align corporate brand identity with organizational culture and employee values, as it is the employees that must perform to the high standards and qualities set by Peab, which is reflected upon by all stakeholders, as well as generating an image of the company”. Peab clearly functions by giving employees responsibility, in addition to the opportunity and support to work and think for themselves from the organizational culture and structure provided by the company, with the intention of consistently presenting the company in a positive light to the customer. MW asserted that “if the company enjoy good results, the reward policy of the company is to make sure that employees will benefit for being part of this success”. Peab operate on the basis that if the company does well, the employees do well, so to this respect the organization relies on the entire company to pull their weight and perform to the best of their ability, so the structure of being a close knit, informal company helps to highlight the importance of every individual for Peab’s success. MW also stated that their organizational structure allowed the CEO and executive board to enjoy a healthy employee relationship with everyone in the organization and provided the company with a decision-making process which is very quick and easy. Peab’s internal brand management does start at the top of the organization, with the CEO and the executive board, in order for employees to believe in the brand concept Peab employs. MW continued to note that “if the CEO, executive board and managers do not believe or perform to the brand’s vision and values, then they can not expect others to do so”, and mentioned that the leaders within the company can be recognized as types of brand ambassadors for the company, as they are trained to promote these matters in everyday operations to employees. However, an executive brand council, where the managers of departments within the company meet to discuss the development of the corporate brand does not exist at Peab.

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4.1.4 Sustaining organizational brand commitment Brand Citizenship Behaviour At Peab it is very important for employees to have the access to necessary information and resources in order for employees to successfully perform for Peab, and that if the company opposed this subject, a lot of time and money would be lost on every project. The respondent once again stressed the importance for the company to have a very strong belief in their employees and to trust them to work for the good intentions of the company, which can also be reflected by the performance by every individual employee. Compliance According to MW, it is very important for the company that the employees have a consistency in their behaviour for the Peab brand, but again mentioned that it is impossible to control 11 000 individual employees. Therefore a lot of trust and responsibility is placed on the shoulders of all employees at Peab, in addition to the company adopting a supporting organizational culture and structure. Peab are very strict to make sure that the safety rules and regulations of the company are followed, as the company must protect their employees and their working environment, but apart from that employees are trusted to promote Peab’s brand identity at all times. Identification Peab hoped that there is a group belonging and a collected view within the organization in regards to the identification of the brand, but once again reinstated that the company encourages this through their organizational culture and structure. Although Peab understand that the company can not force anyone to feel this or want to feel this. The respondent highlighted that many of their employees work away from home and that they travel on Sunday night and come back home on Thursday, maybe Friday night, and during this time the employees and the company become like family, working close together on many projects. Peab recognize therefore that outside of work, many employees want to be with their own families so it is very hard to do something extra, however, Peab do arrange outside work activities for their employees so that they can feel a big part of the company, and so that they can appreciate Peab as more than a company that they receive a salary from. Peab hoped that their employees did feel to a certain degree that they have a personal responsibility towards the organization and the brand, because as previously stated the company’s success is determined by employee attitudes and performance. The respondent also mentioned once again that the close-knit, family feeling found within the company helps to enhance the employees identification and feeling towards Peab, which allows to combine personal responsibility with company guidelines, so employees should therefore be dedicated and take pride in their work at all times. Peab is also perceived as one big happy family to all stakeholders, with employees being able to convey the message to others that Peab is a good company to work for. MW believed that this help to give the company brand distinction, as well as a competitive advantage in the market because if the employees like to work for the company, and they do a good job, their actions and performances will provide certain advantages. The Peab philosophy is very simple, if employees do not enjoy or like their job, this will effect the entire organization and performances, in addition to company success

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within the industry will suffer, so the more employees can identify with and feel responsible towards the company the greater reflection of commitment is generated to all stakeholders. Internalization Peab hope that their employees recognize the company’s vision and core values, so that these characterize Peab’s brand identity, although the company acknowledge that these aspects of the company can not be forced upon someone. As previously stated, Peab recognize that they must trust their employees to reflect the desired brand identity in all their working activities and operations. Peab believe that employees personally recognize the vision and the core values of the company to a certain degree in their own ideals, so that organizational and personal beliefs and ideals match as much as possible, however, MW declared once again that the company can not demand, but hope to create this. Peab believe that it is very important that employees have their own will, that they learn to think for themselves and use their intelligence for whatever they decide to do, believe in or how they choose to work. So at Peab each individual employee is allowed to interpret the company’s brand core value and the brand vision and translate that into their own individual performance. Peab believes that if employees do not feel more for the company than just a place to collect a salary, then they will change company, as Peab are not the highest paying company in the market. MW proclaimed that it is up to the individual employee to feel something for the company, and to have certain attitudes and beliefs to complement working at Peab. Peab encourage this behaviour and try to make sure that all employees feel a big part of this closely knitted company, by recognizing the efforts and performance of their employee in achieving company success. Although Peab have many of employees that only work during the summer, the company appreciate that many of these employees are committed to return year after year to work for the Peab organization.

4.2 Case 2: Svenska Handelsbanken AB Handelsbanken is one of the largest banks in the Nordic region, with an aim to be a universal bank that covers the complete banking sector, for example, traditional corporate transactions, investment banking and trading, in addition to consumer banking including life insurance. Handelsbanken started operating on July 1, 1871 in Stockholm and since 1970 the bank is a strong decentralized organization, which states that “the branch is the bank”. In Sweden Handelsbanken enjoys a strong position in the market with 456 branches and over the last 15 years the organization has been developing its universal banking activities in other Nordic countries, and to date Handelsbanken has 37 branch offices in Norway, 36 branch offices in Finland and 35 branch offices in Denmark. However, during recent years Handelbanken has also expanded their banking services to Great Britain, where there are 20 branch offices. And additionally, the organization has units in 13 countries which support the branch office operations in its domestic markets. As from September 2006 Handelsbanken had 10 127 employees and in 2005 the organization recorded a revenue of 15 700 million SEK (handelsbanken.com; Svenska Handelsbanken AB Annual Report 2005). Our respondent at Svenska Handelsbanken AB was Elisa Saarinen, who is Head of Corporate Communications at the company. In presenting the empirical data, we will refer to our respondent at Svenska Handelsbanken AB, as ES.

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4.2.1 Alignment of brand values Values inherent in the vision Handelsbanken does not have a vision, the organization instead builds their everyday working performance on the brand core values that guide Handelsbanken’s banking operations. Handelsbanken is only lead by these values and this does not change, the organization do not have to build on a specific vision as the target that Handelsbanken have is always the same, to be the best bank in the industry, and this is to be achieved by working with the core brand values of being cost effective, to have a higher profitability than the average for their competitors, as profitability is more important than volume, to provide their customers with the best service in the industry by meeting local customer needs due to their decentralized structure. Handelsbanken acknowledge that the banking industry is very competitive, but Handelsbanken does not sell products, the bank only has one target and that is to believe in their values and their decentralized structure in order to establish strong personal customer relationships, which distinctly separates the bank from their competitors, and has made Handelsbanken the most successful bank in the Nordic region. Values of individual employees Handelsbanken acknowledge that it is very important to align brand values with individual employee values, as Handelsbanken can not be seen to communicate different values. Handelsbanken recognize that these values must be totally integrated, because Handelsbanken’s values are the focus on their banking operations, so employees must have a sense of feeling for the bank in order to perform and serve the local customers as promised. Values inherent in the organizational / Values that are related to the organization Handelsbanken’s values do shape the rules for how employees can operate, and this can be considered as a religion, however, the organization does give a lot of support, trust and power to their workforce. Handelsbanken’s employees are given a lot of freedom to work within the guidelines of their core brand values, as the decentralized structure allows the bank to meet different customer needs in different ways. Handelsbanken believe that it is necessary for individual employees to try things, to test things, because they can never know if they do not try, as Handelsbanken’s policy is to trust and believe in their employees. Although Handelsbanken recognize that there are certain ethical and credit/transaction rules that must always be followed. Handelsbanken’s core brand values are consistent, and that these values have been the main focus of their banking operations for many years. Therefore ES stated that there is no need to discuss the terms mission and vision, as the core values have originated from these terms long ago and these same core values are the distinctive working objectives and guidelines that have made Handelsbanken successful. Handelsbanken’s organizational values do provide intellectual assets and storytelling for the bank, as this is what differentiates Handelsbanken from their competitors within the banking industry, and this has helped Handelsbanken to build the reputation the bank currently enjoys. Handelsbanken’s values are an essential source for core brand values, as they are the same, and that these values provide Handelsbanken with their core practices.

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Values inherent in the brand / Values that sum up the brand It is important for Handelsbanken to evaluate the brand values alongside the values of individual employees and the organizational culture, as these are significant aspects for the organization to operate within their guidelines. Handelsbanken’s values have originated and become more important than the vision, it is how the bank is recognized in the industry, and the bank’s organizational culture has developed alongside their values, which therefore entails the alignment of individual employee values with Handelsbanken’s core brand values. Handelsbanken believe that these elements are all aligned as the values are the guidelines for their whole decentralized structure, as each branch is recognized by the same values and this enhances the organization’s and the brand’s identity, in short, the brand core values are the spirit and soul of Handelsbanken. As the core brand values have not changed, this does not mean that Handelsbanken has not changed and progressed. Handelbanken’s local branches still work within the guidelines but work to constantly meet the needs of their local customers, and it is up to every branch manager at Handelsbanken to interpret how the bank’s core values best suit and adapt local markets. Therefore Handelsbanken’s core brand values do assist corporate brand development, but the bank, or more importantly the branch managers must be alert to observe these changes. Handelsbanken’s core brand values do play an instrumental role in employee performance and communication, as the bank’s identity depends on these, but at Handelsbanken there is a lot of freedom, support and trust placed on their employees to perform in the best interests of the customer, as well as the bank.

4.2.2 Attaining consistent brand values Vision and culture At Handelsbanken, the core brand values are the most important aspect of the bank’s operations, and ES stated that Handelsbanken’s CEO believes that the bank has an organizational culture that makes it unnecessary to have a vision, due to the significance of the bank’s consistent message to customers and employees over many years. Handelsbanken therefore requires all the members in their decentralized structure to believe in and perform to these guidelines, in order to make Handelsbanken a successful and interesting bank. For Handelsbanken their brand core values provide a consistent character and performance to everyone in the organization, with at the same time permitting the local branches to satisfy customer needs within these value guidelines. For the employees at Handelsbanken this provides them with working roles and influences their working behaviour, which must be aligned to their organizational culture so as to communicate these values consistently within their decentralized structure. Handelsbanken appreciate that the bank must remain competitive and progress, however, ES declared that Handelsbanken will not change their key values, their central values which represent the brand in the industry, and that have a significant focus on the customer. Although Handelsbanken acknowledge that they must adapt these core values to fit the local market and the ever-changing world, as the bank can not stand still, even though their core brand values and brand is very reputable. Handelsbanken very much appreciate that it must remain a local

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and cost effective bank, which trusts local branch managers to achieve organizational objectives. Positioning At Handelsbanken the core brand values represent the bank to the customers in the industry, and this is what distinguishes the bank from its competitors, to be able to apply these core brand values so as to sufficiently satisfy the local customer. Handelsbanken is well-known to be a decentralized bank that endeavours to meet the needs of local customers, that builds log-lasting customer relationships, as well as being cost effective. Handelsbanken does not employ any central campaigns, everything is done locally, and by applying the core brand values to each individual market indicates the brand’s performance qualities to the customer. Personality The main aim for Handelsbanken is to specifically take care of the individual needs of every customer to the best the bank’s ability, therefore Handelsbanken communicates emotional features of stability, trust and dependability to both customers and employees, in a way that builds confidence and a strong relationship between the customer, the employee and the brand. According to ES, by applying the core brand values in their daily working operations and communications helps the bank to provide with loyal and satisfied customers and employees over a long period of time. Clearly and Truthfully Defined For Handelsbanken it is extremely important for employees to have faith and trust in the organizations ideology, so as to apply the core brand values with the personal service each customer wants and expects. If there is a slight difference between the desired core brand values and service to the actual core brand values and service, ES described that this will affect the whole performance of the brand, it will communicate the wrong message to the customer. Therefore every Handelsbanken employee must be aware of and feel the need to know how to take care of individual customers within Handelsbanken guidelines in their daily working activities, and receive the needed support and trust from their branch manager. Handelsbanken’s employees must believe in the bank’s ideology so that they can ethically transfer these core values to the service that Handelsbanken provides for customer and stakeholders, in order for the whole concept to function. Handelsbanken must be able to trust and rely on their staff, as the bank has a decentralized structure, which places a lot of responsibility on their employees shoulders to provide the desired service and performance the customer expects and desires. It is this reputable service and performance that makes Handelsbanken unique and differentiates the bank within the industry from its competitors, and ES stressed that their decentralized structure and their individual perspective of every customer is a very courageous way of operating in the banking industry today, just as it was over thirty years ago when this structural system was put into action, but it does assist the customer to develop a long-lasting loyalty and fondness to the brand.

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Business Benefits At Handelsbanken it is vital that their employees “live the brand”, so as to convey the necessary message the bank wants to reflect to the audience, which implies that all employees must communicate the core brand values to all customers in order to successfully represent the brand in the market place. This helps to motivate the employees at Handelsbanken to provide the service that is expected of them, and this service and performance is supported and encouraged by all management within the organization, due to the yearly individual employee assessments regarding their performance in correspondence to the core brand values of the bank. Even through bad times, by consistently communicating and applying their core brand values and personal service, helps Handelsbanken’s employees to feel motivated to improve conditions and to develop customer relationships. ES even noted that employees that have worked in other banks, herself included, can evidently see and feel the difference when working at Handelsbanken in regards to the question of employees “living the brand”. Handelsbanken enjoys a good reputation and is very successful, even when the bank has exported its concept and services abroad, the actions of its employees are very influential to the brand, in particular as Handelsbanken has a decentralized structure. In England for example, Handelsbanken has proved to be a success. This is mainly due to the bank’s decentralized structure, which is uncommon of in England, and this had lead to Handelsbanken employing all the best branch managers in England as they all enjoy the concept of having the responsibility and freedom of running a bank within Handelsbanken’s values as a guideline.

4.2.3 Organizational brand commitment Ensuring Person-Brand Fit through HR Activities When recruiting potential candidates Handelsbanken start by informing them about the bank’s values, and how these influence the service Handelsbanken provides. ES explained that if these individuals do not approve of Handelsbanken’s values, the bank does not recruit them, as it is impossible to change a person from values that they personally do not believe in or appreciate. This is very important for Handelsbanken, in order to provide a professional and trustworthy service, as well as developing strong customer relationships, as these are significant aspects traditionally associated with Handelsbanken. Interviews and personal tests are applied by Handelsbanken as methods to ensure personal identity-brand fit when hiring and selecting potential recruits, where all discussions are focused upon Handelsbanken’s core brand values and how to successfully implement these in daily operations, which benefit the local customer’s needs. In regards to a strong person-brand fit for promoting employees, Handelsbanken can be observed to put a lot of attention to transferring and communicating their brand core values in their organizational culture, as all employees must be able to perform to these requirements from day one. Therefore employees that are not suited to work at Handelsbanken are either not recruited or leave within a short space of time, as employees are evaluated yearly on their duties and performance in accordance with core brand values. This entails that all employees must be strongly connected to the brand, due to the fact that Handelsbanken’s structure demands these value and service requirements in order to successfully operate within a consistent brand identity. As highlighted by ES, it has been a natural progression in her career

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from branch manager to regional manager to her current position of Head of Corporate Communications for Handelsbanken’s headquarters during her time at the bank. Handelsbanken’s socialization process does employ orientation training in all branches for its employees and managers, where the foundations of the discussions and team building exercises concentrate on the bank’s core brand values. This type of training is especially used to help initiate new employees and managers to Handelsbanken’s traditions, way of thinking, capacity and operating, as the core brand values are significant in daily working activities straight away. Handelsbanken’s orientation training usually lasts for about a week, and they are conducted regionally, as well as centrally, in particular for new managers who meet with senior management and the CEO. ES asserted that these discussions are truly focused upon the bank’s performance and how to be cost effective. The informal approaches surrounding Handelsbanken’s socialization process are mainly the responsibility of the branch managers, with many social events and gatherings locally arranged. This is considered to be an important aspect to the working life and development of Handelsbanken’s employees and brand, so as to generate a stronger organizational culture at each branch. At Handelsbanken it is fundamentally the responsibility of the branch manager to be a kind of mentor, more of a role model for employees in regards to the brand and its core values, and how this is implemented in the daily operations of the local branch. Generating Brand Awareness and Understanding through Internal Communications It is extremely important for all Handelsbanken’s employees to be consciously responsive to the brand identity in the daily banking operations, as it is their brand core values and customer service and relationship which enhance the Handelsbanken brand. It is this service which differentiates Handelsbanken from its competitors within the industry, so the impact of employee behaviour and performance is vital. The brand identity concept is clearly and engagingly verbally communicated within each local branch, as the brand’s core values must be understood and applied in all daily activities, by all employees. Handelsbanken realize that it is important to truthfully symbolize their brand identity concept, both internally and externally, so as to communicate the desired image of Handelsbanken to all stakeholders, and enhance the values and reputation that the bank represents. However, ES declared that this aspect of verbally communicating requires consistent attention and evaluation, in order for Handelsbanken to remain successful, in addition to distinctive. At Handelsbanken the core brand values must constantly be recognized and remembered, so they are always verbally discussed and communicated at every branch. To apply these values into Handelsbanken’s service in all activities all the time, along with the branch discussions, assists employees to experience the brand identity concept in a memorable way, which is a necessity for the performance of the brand and its reputation. Once a year Handelsbanken have a formal meeting within the organization, where every global management meets up to discuss the bank and the brand’s developments. ES also clarified that if someone calls her, as Head of Corporate Communications with a question, then she must think locally and not centrally to help answer the question, and support the branch manager by discussing the problem from a local perspective. A brand statement, or rather a brand book, called “Our Way”, is given to all members of the Handelsbanken organization, in order to clarify Handelsbanken’s values to the expected

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service and performance which is associated to the brand, which also helps employees to remember and apply the stated recommendations in their daily operations. This written document can be read quickly or more thoroughly, and according to ES it is memorable, although to observe and apply the brand core values in everyday banking activities is recognized as a much more effective way to experience them and to remember their importance. Branch managers and long-serving employees at Handelsbanken are considered to be role models for others, as their actions and behaviours should assist others to “live the brand” and perform the “Handelsbanken way”. Encouraging Brand Leadership on All Levels For Handelsbanken it is very important for the CEO and the Executive board to be role models for the entire organization, as these are very influential people regarding the internal and external observations of the brand. At Handelsbanken everybody is expected to perform the “Handelsbanken way”, and the empowerment of employees consists of freely working within the value guidelines, as well as being given a lot of responsibility and freedom, due to their decentralized structure. It is acknowledged at Handelsbanken that if the CEO, executive board or higher members of the organization do not behave or act as is desired then Handelsbanken can not expect by any other member of the Handelsbanken organization to do so. ES confirmed that “all members of the organization have to live, have to show that every decision they make reflects this decentralization concept and Handelsbanken must trust all individuals, for example when a senior manager travels to Amsterdam, Hong Kong or Singapore they must be able to behave in a way that appropriately represents Handelsbanken”. At Handelsbanken the local branch managers are trusted to run the bank to best meet the expectations of local customers, as they know their customer and market needs best. So Handelsbanken’s branch managers have the empowerment from head office to take all the necessary required decisions concerning the daily operations of the bank, as well as the responsibility of conveying the brand’s core values to employees and to recruit the best potential employees that suit the brand, in addition to their branch. Aligning the Context Factors: Culture and Structure Fit For Handelsbanken it is exceptionally important to align corporate brand identity concept with organizational culture and employee values in order for the bank to rely on their values to differentiate Handelsbanken from their competitors. Handelsbanken’s strong organizational culture enables the bank to continually assist their employees, which are aware and focused upon applying Handelsbanken’s core brand values, to freely perform and provide the service that is best required to adapt to local markets in their decentralized structure and therefore build on Handelsbanken’s reputation and success. In regards to reward policies, Handelsbanken prefer to take up matters concerning employee duties and performance at the yearly meeting between the branch manager and the employee. It is here that the branch manager will evaluate and measure the individual employee’s overall development and ability, and discuss how their work level is in accordance to Handelsbanken’s desired local service, and then maybe certain rewards can be negotiated, but these deals are very much individual and they are never planned.

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At Handelsbanken the internal brand management for the entire organization begins at the top, as the CEO, executive board, regional managers and branch managers are all acknowledged to be role models for all employees. At Handelsbanken they can even be considered as “brand ambassadors” for the core brand values and organizational culture, in particularly as Handelsbanken have a decentralized structure. Therefore a lot of trust is placed on Handelsbanken’s senior and branch managers, as they are very much the focus of employees’ attention on a daily basis, when controlling Handelsbanken’s local efforts. It can even be considered that employees after working at Handelsbanken for around five years can be regarded as “brand ambassadors”, due to the fact that these employees are very much at home with the bank’s organizational culture and aware of Handelsbanken’s core brand values, so they have built up a strong feeling for the organization/brand. There is no executive brand council within the Handelsbanken organization, however, ES confirmed that the CEO, herself and the HR manager regularly discuss brand aspects in a very informal way, so as to constantly communicate the right messages to senior management, which is then transferred down the line to employees. Handelsbanken believe that informal approaches are very influential, and acknowledge the fact that it is very hard to be formal in a decentralized structure, so informal measures and a decentralized organizational structure go very much together.

4.2.4 Sustaining organizational brand commitment Brand Citizenship Behaviour It is very important for the employees at Handelsbanken to have the access to the necessary information and resources for successful organizational performance, as Handelsbanken must truly believe and trust in their employees to be responsible for providing the desired Handelsbanken service at every local branch. As there are different problems at different branches, which can also change form day to day, it is unthinkable for Handelsbanken’s employees not to have the access to the required information and resources in order for employees to perform at each branch. At Handelsbanken there are only three levels of management, first of all there are the branch managers, then there are regional managers and finally there is the CEO, so there is very easy access to anyone within the organization So Handelsbanken’s hierarchal structure allows decisions to be made quickly locally, and centrally if necessary, although the CEO does not need to be involved in everyday business because every Handelsbanken branch should be able to take care of itself. Compliance It is deemed very important at Handelsbanken that there is consistent employee compliance with the brand’s identity, as the organizational culture which is fundamentally based on Handelsbanken’s core brand values, must always be aligned with performing and serving to local customers. Handelsbanken’s organizational culture therefore needs to be strong so as to covey the message of the values in a consistent and compliant way in the decentralized Handelsbanken branches, in order to develop trust and loyalty for a long-lasting and personal relationships. Employees at Handelsbanken are given the responsibility and freedom to work within the guidelines of the core brand values, although certain ethical and credit/transaction general banking rules and regulations must always be applied. As Handelsbanken enjoy a

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strong organizational culture the trust and responsibility placed on each individual branch, as well as every individual employee is considered to be a great advantage to locally enhance the brands identity in their decentralized structure. Identification The group belonging regarding the identification of the brand can be prominently found within Handelsbanken’s strong organizational culture surrounding the core brand values. There are distinct values that influence the way all Handelsbanken branches operate, and this helps to create a group belonging, as well as a collected view of the brand. They also assist Handelsbanken to differentiate themselves in a highly competitive market, as Handelsbanken are not a commercial bank, but a very traditional and dependable bank that believes in developing strong customer relationships in their local markets. So even though every Handelsbanken is different, the foundations are always the same, as ES highlighted that “the same story can be found about the values of Handelsbanken everywhere and this message is the same from employees and customers whichever Handelsbanken branch you visit, so internally Handelsbanken must have a certain group belonging and collected view of the brand”. Due to the strong organizational culture felt in all local branches, individual employees must be able to communicate the core brand values and “live the brand” in their daily routines, so Handelsbanken believe and trust that all employees do feel personally responsible towards the organization and the brand. Handelsbanken do not recruit anyone that does not connect with their core brand values, so the correspondence of these values is important for the organizational culture’s success, which in turn implies that each employee should have some feeling for the brand, as well as perform and behave in the desired “Handelsbanken way”. Handelsbanken’s management and employees consequently identify with the brand’s distinctiveness and competition advantage, and this influences and guides their working activities and performance towards their local customers. By also giving employees trust, responsibility and support, Handelsbanken believes that this helps them to develop and progress as a person and as a member of the Handelsbanken organization, which generates a strong feeling for the brand in this natural working environment. ES further mentioned that “if something negative is stated in the media about Handelsbanken, employees take this criticism personally, because they can not understand that anyone would say something bad about the bank, so there is a very strong feeling for the brand among employees at Handelsbanken”. Internalization For Handelsbanken the core brand values characterize the brand identity, as these are what the bank always focuses on. Handelsbanken’s entire organizational culture in every decentralized branch is built on communicating, as well as implementing Handelsbanken’s core values on a daily basis. These values are what distinct Handelsbanken from all competitors, and as these values are consistent and easy to associate with the bank, they have been internally and externally communicated successfully over many years. Handelsbanken acknowledge that their core brand values must be able to correspond with human traits, values and ideals so that the bank can relate to individuals, which makes it much easier for Handelsbanken to create a relationship with their customers and employees. Handelsbanken believe that this allows their employees to “live the brand” and provide the best service to their current and potential customers.

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In order to be recruited at Handelsbanken potential recruits must progress through interviews and personal tests, which are focused on discussing and promoting Handelsbanken’s core brand values, so the bank after evaluating each candidate only try to employ personnel that have the same values and ideals as Handelsbanken. Handelsbanken permit all their employees to be independent, as the bank places a lot of responsibility and trust on their employees, which means that individual employees are allowed to interpret Handelsbanken’s core brand values so as to perform and provide the best service in their local market. At Handelsbanken every individual employee is assessed and they have an individual meeting with their branch manager on a yearly basis, and all that is discussed at these meetings in how the individual’s own duties and performance correspond with the core brand values of Handelsbanken. Handelsbanken believe that this responsibility of interpreting the core brand values helps individuals to grow and to naturally perform as desired, as stated by ES “Handelsbanken only measure employee performance and the only guideline employees have are Handelsbanken’s core brand values”.

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DATA ANALYSIS

5 DATA ANALYSIS In this chapter we will analyse the empirical data presented in chapter four by firstly employing a within-case analysis to the selected conceptual framework outlined in chapter two in both cases. Finally, the findings from the two cases will be displayed and compared in a cross-case analysis, in order to draw conclusions in the following chapter.

5.1 Within-Case Analysis This section contains a within-case analysis for both cases presented in this study, by analysing the four research questions for the first case study: Peab AB and then for the second case study: Svenska Handelsbanken AB.

5.1.1 Within case analysis of Peab AB

5.1.1.1 Alignment of brand values Values inherent in the vision de Chernatony (2002) describes how brand vision values are a means for managers to differentiate between category values that are essential for competing in the given industry, and distinct brand values that promote the purchase of a product or service. Peab have a vision to be the best in the industry, Peab strive to work after their four core brand values of down-to-earth, developing, personal and trustworthy, so as to distinct the company from all other competitors in the marketplace. Values of individual employees According to de Chernatony (2002) individual employee values are to be aligned with the brand vision values which are selected by senior management, so as to be able to deliver the brand’s promise to the customer. Peab acknowledge that it is important to align brand values with employee values because Peab wants employees to respect the company they work for and to appreciate and understand what the company represent, thus helping employees to feel a big part of the service and performance that Peab provides. Values inherent in the organizational / Values that are related to the organization Urde (2003) states that organizational values provide the company with rules, or a religion that assist the organization with a cohesive mission and vision, vital core values and practices, storytelling and aspects of intellectual assets, as well as an essential source for brand core values.

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Peab want all employees to follow company rules and regulations, but it is hard to make sure that 11 000 individuals obey them, so the company must learn to trust their employees in everyday activities. Peab does not religiously keep on at employees about the company’s vision and core brand values constantly, but they are an essential source for core values and core practices, as they are communicated throughout the organization by closely working together like a big family, where a natural feeling of trust and support is felt when performing within the familiar rules and values of the company. Peab’s mission is very much aligned with the company’s vision, as well as the four core brand values, so as to provide a familiar message to all stakeholders, and this enhances the intellectual assets and storytelling of the brand internally, which is then reflected to the outside world. Values inherent in the brand / Values that sum up the brand As highlighted by de Chernatony (2002), the brand’s values can be evaluated in conjunction with the values of the vision, individual employees and the organizational culture, in order for management to recognize and understand the necessary procedures so as to create a more consistent brand. Urde (2003) mentions that by defining and explaining core brand values helps to enhance identity, and this is the most important part of the brand, as it can capture the brand’s spirit and soul. He continues to note that core brand values also assist corporate brand development and play an instrumental role in employee performance and communication. At Peab it is very important to evaluate the brand values alongside the values of the company’s vision, individual employee values and organizational culture due to the fact that these are significant aspects which affect the entire organization and its behaviour and performance. Peab acknowledge that this is an important matter for the CEO and the executive board, so as to ensure the whole company operates and progresses as it should. Peab recognized that core brand values can enhance identity, because if the organization and their employees perform as desired, this would lead to Peab becoming successful, then the company will receive more recognition and this would improve Peab’s reputation. Peab’s four core brand values can be described as being brand’s spirit and soul, as the company hoped that the entire organization could naturally communicate and feel these values and apply them to their daily activities. For Peab the four core brand values do assist corporate brand development, as these aspects have helped Peab to operate and grow within their dynamic working environment, although the respondent added that Peab must be able to adapt these values to meet all stakeholder expectations.

5.1.1.2 Consistent brand values Vision and culture Harris and de Chernatony (2001) confirm that an organization’s vision and culture is the hub to the brand’s identity, which helps to provide consistent performance and character for the brand. They explain how core values assist the communication of working roles, guide working behaviour, so they need to be aligned with organizational culture to enhance performance. In addition, Harris and de Chernatony (2001) describe that an organizational culture can only be considered to be a competitive advantage if the central brand core values are consistent, while other brand core values need to be adaptable.

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DATA ANALYSIS

Peab’s vision does help to provide a consistent performance and character for the company, due to the fact that Peab’s organizational culture and structure allows this message to be easily communicated throughout the entire organization in an informal way. Therefore, Peab’s core values have also helped the company to communicate working roles and guide working behaviour in a natural and familiar way. Peab consider therefore that their organizational culture is aligned with the company’s core values so as to enhance organizational performance, and Peab believe that this is a competitive advantage for the company if the central core brand values are consistent, but these central core brand values must be communicated in the right way to different stakeholders. Peab appreciate that other brand core values need to be adaptable in order for Peab to remain a modern and competitive company. Positioning In the view of Harris and de Chernatony (2001), the brand’s positioning should be based upon the linkage of the vision and core values, so as to be capable of representing the brand, distinguish the brand from competition and provide an indication of the brand’s performance qualities. Peab’s vision and four core brand values represent Peab as a brand in the marketplace, and that the company want all stakeholders to distinguish the brand as being the best company in the industry, and experience and recognize Peab as a down-to-earth, developing, personal and trustworthy company. Peab deem that these significant aspects associated to the company provided an indication of Peab’s performance qualities. Personality Harris and de Chernatony (2001) clarify that the emotional features of the brand are created through the brand core values, in order to develop a brand personality. Peab believe that there are emotional features associated with the company’s core brand values, and as Peab employed many seasonal contracted employees that have worked year after year for the company, so Peab believed that these have helped to develop a connection between the organization and its employees. In addition, Peab believe that employee performance and behaviour would communicate the brand’s personality to all external stakeholders and develop strong customer relationships. Clearly and Truthfully Defined Ind (2003) states that an ideology helps an organization to integrate and connect core values to the company, and that this requires the complete faith and trust of all members and employees of the organization so as to be successful. The ethical element of an ideology is also noted by Ind (2003) to influence customer and stakeholder beliefs, while courage is mentioned to create uniqueness and differentiation so as to develop a loyalty and fondness with customers. Peab feel that it is very important for employees to have completed faith and trust in Peab’s ideology, so that the desired performance and behaviour is achieved by the company, and this helps to enhance customer and stakeholder beliefs in regards to the ethical element of the

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DATA ANALYSIS

company’s ideology. Peab consider that by conveying these believed brand values to all stakeholders does take courage, but these are what the company stands for and these values are a way to create uniqueness and differentiation in the market, as well as developing a loyalty and fondness with customers. Business Benefits By focusing on employees, Ind (2003) illustrates that management recognizes the need to enhance the organizational performance by making sure that the entire organization “lives the brand”, which in turn encourages employees to be motivated through both good and bad times. Peab believe that it is very important for employees to “live the brand” as this helps the company to enhance identity and reputation, plus providing employees with the motivation to work for the company in both good and bad times. Peab believe that by “living the brand” employees can feel a greater sense of belonging to the company, which also increases job satisfaction.

5.1.1.3 Organizational brand commitment Ensuring Person-Brand Fit through HR Activities As stated by Burmann and Zeplin (2005), a brand-centred approach to human resource management helps to ensure that strong personal identity-brand fit candidates are hired and selected, and that employees with a strong person-brand fit are promoted. They continue to add that the socialization process for ensuring person-brand fit can be developed through orientation training; an organization’s traditions, visions, values, capacity and character; and informal approaches. At Peab it is very important that potential recruits are aware of and identity themselves with the brand, although Peab acknowledge that this is very hard to accomplish after only one or two interviews. During interviews at Peab candidates are asked to say what they feel in response to the viewing of Peab’s vision and core values, and that this helps the company to evaluate if the candidate is potentially a strong personal identity-brand fit before being hired and selected. In regards to promotion and strong person-brand fit, Peab hope that their organizational culture encourages all their employees to feel part of the brand, as well as part of their close-knitted, family working environment. However, Peab recognize that it is important for promoted employees to have a strong person-brand fit. Peab’s organizational culture is a method that encourages the socialization process for ensuring person-brand fit, as well as all the leaders of the company being subjected to a two-day yearly course which concentrates on applying the vision and the four core brand values into daily operations, and this method used by the company can be regarded as a kind of orientation training. At Peab this may include leaders communicating traditions, vision, values capacity and character, in addition to using informal ways to ensure a strong person-brand fit reaches employees in working conditions. Peab do arrange social events for their employees, as these informal approaches are recognized by the company to help build a strong employee-brand relationship.

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DATA ANALYSIS

Generating Brand Awareness and Understanding through Internal Communications Burmann and Zeplin (2005) acknowledge that every employee must be consciously responsive to the brand’s identity, in order to appreciate the importance of the day-to-day aspects of their jobs, as well as the interaction with customers. According to Burmann and Zeplin (2005), the brand identity concept must be verbally communicated throughout the entire organization, and that this process should be clear and engaging, truthfully symbolizing of the brand’s identity and features and also memorable. They explain how the core brand values are to be remembered and employed in all daily communications and work activities, and mention that a brand statement may be employed by the organization to assist procedures, however, the brand statement must be short, concise and memorable. Peab hope that employees were consciously responsive to the brand’s identity, but in a very normal and natural way, that made employees feel part of and believe in the brand. In light of the brand identity concept, at Peab this is verbally communicated internally in a very friendly and family way, so that it is very simple and clear to understand, as well as engaging and easy to remember as it is connected to daily activities, thus also memorable. Peab also recognized the importance of the brand identity concept to be truthfully symbolizing, so that the brand has a real meaning that can be experienced and believed in by all stakeholders, in addition to Peab having a reputation of being a trustworthy company. At Peab the core brand values are employed in all daily communications and work activities, and this helps to enhance the feeling of the brand internally, so as to reflect the overall organizational performance. However, Peab currently do not have a company brand statement, but the respondent claimed that the company always strive to work after the company vision and the four core brand values. Encouraging Brand Leadership on All Levels The CEO and the executive board are highlighted by Burmann and Zeplin (2005) to influence both the internal and external observations surrounding the brand. Burmann and Zeplin (2005) also state that the empowerment of employees is needed so as to be truly influenced by the leadership found within an organization. Peab are a company in which the CEO and executive board are very influential to both the internal and external observations surrounding the brand because of the informal hands-on approach within the company. Peab is a very close company, with a family working environment, so all members of the organization are included to represent the brand. Peab’s empowerment of employees entails that the comapny hope that their employees will think and believe in the “Peab way”, and the company try to encourage this behaviour as much as possible, by trusting in their employees, although it is hard to control 11 000 employees. Aligning the Context Factors: Culture and Structure Fit Burmann and Zeplin (2005) proclaim that the brand identity concept must be aligned with the influential aspects of organizational culture and employee values, so that the brand’s identity is recognized and experienced and committed to by employees. They go on to mention that the brand identity must also be aligned with the organizational structure, with reward policies and infrastructure being named as two important elements. The institutionalizing of internal brand management is described by Burmann and Zeplin (2005) to begin at the top of an

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organization, so as to completely represent the brand’s identity throughout the entire company, as it is not the responsibility of just the human resource department or the marketing department to control the many different organizational activities. Burmann and Zeplin (2005) highlight an executive brand council and brand ambassadors as two reliable methods that an organization can apply so as to institutionalize internal brand management. Peab realize that it is important to align the brand identity concept with the company’s organizational culture, in addition to employee values because all the aforementioned aspects are extremely significant to the performance and the reputation of the company. Peab acknowledge that this affects many people in the company, but in the end it is the employees which must perform to Peab’s high standard and quality, and Peab’s feel that their organizational culture and structure encouraged this alignment, as a lot of trust and responsibility is placed on their workforce. The fundamental reward policy at Peab is that when the company do well the employees are a big part of this success, and stated that they are appreciated by the company for the contributions and efforts. At Peab the institutionalization of brand management begins at the top of the organization, otherwise the company acknowledges that it can not expect anyone else to believe in the brand and what it represents. There is no executive brand council at Peab, but the leaders can or may at times be recognized as brand ambassadors for the company.

5.1.1.4 Sustaining brand commitment Brand Citizenship Behaviour Burmann and Zeplin (2005) claim that employees can only obtain brand citizenship behaviour, which enhances brand commitment, if they have the access to the necessary information and resources, so that their daily routines can be deemed to be effective. Peab acknowledge that it is absolutely vital for the employees at Peab to have the access to the necessary information and resources, so that they can perform to the best of their ability, as this helps the company to trust their workforce, in addition to saving a lot of time and money for the company, in particular on projects. Compliance Behaviours, as argued by Burmann and Zeplin (2005), are considered to be consistent with the desired brand identity only when they comply with the brand’s identity, and this entails obeying rules and regulations made by the organization. They then continue to note that the influences of organizational structure and culture assist the compliance of employees so as to maintain brand citizenship behaviour. At Peab it is important for employee behaviour to be consistent with the desired brand identity, but Peab also acknowledged that a lot of trust and belief is placed on the company’s employees to perform the “Peab way”, as it is extremely difficult to control 11 000 individuals, although the company feels that the company’s organizational culture and structure encourages the desired behaviour in everyday working activities. Apart from the company’s safety rules and regulations which are very strict and rigid, Peab’s employees have a lot of freedom to work within the guidelines laid down by the company.

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DATA ANALYSIS

Identification Burmann and Zeplin (2005) declare that the brand identity can be enhanced by the social influences of group belonging, in order for the brand to be practised and understood with a collected view which is consistent with the group identity. They contend that through a strong identification of the brand helps employees to attain brand citizenship behaviour, which implies that they posses a sense of personal responsibility to the brand, throughout the entire organization. Burmann and Zeplin (2005) also reveal that by stressing brand distinctiveness and competitive advantage increases brand identification for the whole organization. Peab hope that there is a sense of group belonging within the company, as Peab encourage a close working family environment, which in turn helps to provide a collected view of the brand identity. Peab believe that these feelings can not be forced upon anyone, but many employees work away from home and they do become close to one another, as well as the company. Peab hope that their employees did feel to a certain degree a personal responsibility to the brand, in addition to the organization, due to the fact that the company depends on employee performances to create a good reputation and Peab has an encouraging organizational culture, which promotes a close-knitted working company that wants their employees to take responsibility and use their initiatives. Peab believe that this provides the company with brand distinctiveness and competitive advantage, because if employees enjoy their work, take pride in their work and have job satisfaction, Peab as a brand will reap the rewards within the marketplace, due to employee commitment and responsibility. Internalization In the view of Burmann and Zeplin (2005), the brand identity characterizes the core brand values, which are interpreted from an individual perspective, and that these brand traits, competences and values are therefore recognized and in accordance with personal ideals, and provide the organization with individual employee performance. Peab hope that their employees recognized the company’s vision and four core brand values, which characterize the brand’s identity, when performing in their daily operations, so that personal ideals matched Peab’s ideals, in particular from an individual perspective. However, Peab acknowledge that these brand traits, competences and values can not be demanded or forced upon an individual, and that all the company can do is trust their employees to act in a way that enhances Peab’s brand identity. Peab recognize the importance for each individual employee to have their own will and to learn to think for themselves in their working conditions, and this includes interpreting the vision and the four core brand values in relation to their own individual performance. Peab are aware that the company has created an environment that encourages employees to feel a big part of the organization, and that this can be seen by the loyalty of their employees, which are not the highest paid workers in the industry, as well as the fact that many of them come back year after year on seasonal contracts.

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DATA ANALYSIS

5.1.2 Within case analysis of Svenka Handelsbanken AB

5.1.2.1 Alignment of brand values Values inherent in the vision de Chernatony (2002) describes how brand vision values are a means for managers to differentiate between category values that are essential for competing in the given industry, and distinct brand values that promote the purchase of a product or service. At Handelsbanken the distinct core brand values of being cost effective, to have a higher profitability than the average for their competitors, as profitability is more important than volume, to provide their customers with the best service in the industry by meeting local customer needs due to their decentralized structure are the organizational values that Handelsbanken always strive after. Therefore, Handelsbanken believes that their organization does not need to have a vision, as the entire Handelsbanken organization only works within the guidelines of the brand’s core values. Values of individual employees According to de Chernatony (2002) individual employee values are to be aligned with the brand vision values which are selected by senior management, so as to be able to deliver the brand’s promise to the customer. Handelsbanken believe that it is very important to align individual employee values with the brand’s core values, due to the fact that Handelsbanken want to communicate the same message to all their customers. Handelsbanken focus upon these core values in all their banking operations, so employees’ values must be integrated with core brand values in order for Handelsbanken to provide the promised service. Values inherent in the organizational / Values that are related to the organization Urde (2003) states that organizational values provide the company with rules, or a religion that assist the organization with a cohesive mission and vision, vital core values and practices, storytelling and aspects of intellectual assets, as well as an essential source for brand core values. Handelsbanken’s core values do shape the rules to how employees must perform, and Handelsbanken’s values can be regarded as a kind of religion, as they are the focus of all the bank’s daily operations. However, Handelsbanken’s employees are given a lot of responsibility and trust to freely work within these value guidelines, so as to adapt to the local customer needs better. As Handelsbanken’s core brand values have been a consistent and long-serving focus for their banking performance and practices, the terms of mission and vision are not used by the bank, although Handelsbanken’s core brand values originated from the bank’s vision many years ago. Handelsbanken’s values do provide storytelling and intellectual assets as they differentiate the bank from its competitors in the industry, and these values are an essential source for core brand values because they are the exact same values that have helped Handelsbanken to develop the reputation that the bank currently enjoys.

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DATA ANALYSIS

Values inherent in the brand / Values that sum up the brand As highlighted by de Chernatony (2002), the brand’s values can be evaluated in conjunction with the values of the vision, individual employees and the organizational culture, in order for management to recognize and understand the necessary procedures so as to create a more consistent brand. Urde (2003) mentions that by defining and explaining core brand values helps to enhance identity, and this is the most important part of the brand, as it can capture the brand’s spirit and soul. He continues to note that core brand values also assist corporate brand development and play an instrumental role in employee performance and communication. Handelsbanken evaluate the brand values alongside the values of individual employees and their organizational culture, as these are significant aspects which allow Handelsbanken to perform and serve as desired and promised. Handelsbanken’s values have originated from the vision, and these values are the fundamental elements of Handelsbanken’s organizational culture, which plays a daily instrumental role in employee performance and communication. The entire decentralized structure is guided by Handelsbanken’s core brand values, and these values can be recognized as Handelsbanken’s spirit and soul, so aligning individual employee values with the bank’s values is acknowledge to be a must in order for the bank to sustain and enhance their brand identity and assist corporate brand development.

5.1.2.2 Consistent brand values Vision and culture Harris and de Chernatony (2001) confirm that an organization’s vision and culture is the hub to the brand’s identity, which helps to provide consistent performance and character for the brand. They explain how core values assist the communication of working roles, guide working behaviour, so they need to be aligned with organizational culture to enhance performance. In addition, Harris and de Chernatony (2001) describe that an organizational culture can only be considered to be a competitive advantage if the central brand core values are consistent, while other brand core values need to be adaptable. Handelsbanken’s organizational culture is developed around and is aligned with the bank’s core brand values, so as to provide a consistent performance and character for Handelsbanken, and these core values help to communicate working roles and guide working behaviour for the entire decentralized organization. Handelsbanken believe that their organizational culture is a competitive advantage due to the fact that their central brand core values have remained the same for many years, as well as being adapted to best suit the ever-changing banking environment and local customer. Positioning In the view of Harris and de Chernatony (2001), the brand’s positioning should be based upon the linkage of the vision and core values, so as to be capable of representing the brand, distinguish the brand from competition and provide an indication of the brand’s performance qualities. The bank’s core brand values represent Handelsbanken to the customer and help to distinguish the bank from its competitors. Handelsbanken’s core brand values are addressed

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DATA ANALYSIS

and applied to best meet the expectations of the local market, in order to indicate the brand’s performance qualities throughout their entire decentralized structure. Personality Harris and de Chernatony (2001) clarify that the emotional features of the brand are created through the brand core values, in order to develop a brand personality. Handelsbanken specifically aims to take care of the individual local customer by applying their core brand values, so the emotional features of Handelsbanken are used to create a strong relationship between the bank and their employees, as well as providing a stable, trusting and dependable service from the bank, thus developing strong customer relationships over a long period of time. Clearly and Truthfully Defined Ind (2003) states that an ideology helps an organization to integrate and connect core values to the company, and that this requires the complete faith and trust of all members and employees of the organization so as to be successful. The ethical element of an ideology is also noted by Ind (2003) to influence customer and stakeholder beliefs, while courage is mentioned to create uniqueness and differentiation so as to develop a loyalty and fondness with customers. For Handelsbanken it is extremely important that their employees have faith and trust in the organizations ideology, due to the fact that Handelsbanken’s core brand values are the foundations behind the company’s service and promise. Handelsbanken acknowledge that their employees must ethically believe in the bank’s ideology in order to communicate this message to their customers and stakeholders, and perform to best meet the customers needs within the guidelines for Handelsbanken’ core brand values. Handelsbanken recognize that it does take courage to create uniqueness and differentiation for the brand, and this was proved by the forming of their decentralized structure many years ago. Handelsbanken also feel that it is courageous to be a decentralized organization in these highly competitive modern times, but Handelsbanken believe that by locally meeting the needs of the customers over the years has helped the bank to develop loyal and fond relationships with them. Business Benefits By focusing on employees, Ind (2003) illustrates that management recognizes the need to enhance the organizational performance by making sure that the entire organization “lives the brand”, which in turn encourages employees to be motivated through both good and bad times. Handelsbanken believe that it is vital for their employees to “live the brand” in order to communicate the desired message to the customer, and the bank recognizes that by having this feeling for the brand helps to motivate employees through both good and bad times. Handelsbanken’s core values are the focus of their banking operations, so their employees must perform within these guidelines to improve conditions and develop customer relationships. Handelsbanken’s only evaluate their employees on how their performance

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DATA ANALYSIS

corresponds to the given value guidelines, so Handelsbanken motivate their employees to be aware of and apply these values on a daily basis.

5.1.2.3 Organizational brand commitment Ensuring Person-Brand Fit through HR Activities As stated by Burmann and Zeplin (2005), a brand-centred approach to human resource management helps to ensure that strong personal identity-brand fit candidates are hired and selected, and that employees with a strong person-brand fit are promoted. They continue to add that the socialization process for ensuring person-brand fit can be developed through orientation training; an organization’s traditions, visions, values, capacity and character; and informal approaches. Handelsbanken try to ensure that strong personal identity-brand fit candidates are hired and selected by discussing their core brand values at interviews and personal tests to potential employees. Potential recruits are asked to state what they think and feel about Handelsbanken’s core values, and their answers are evaluated before being selected and hired by the bank, as Handelsbanken believe that it is impossible to change an individual’s personal values. Handelsbanken primarily concentrate on communicating their core brand values through their organizational culture, as Handelsbanken rely on their employees to perform to these values from day one, therefore Handelsbanken believe that all their employees must connect and fit with the brand in a strong way. Employee performance is yearly evaluated at Handelsbanken by measuring the individual employee performance in regards to the core brand values, so an association to the brand is deemed necessary at Handelsbanken for their employees to conduct their daily tasks, as well as for being promoted. At Handelsbanken the socialization process does include orientation training in all of its branches for employees and managers, in particular if they are newly recruited. During their orientation training, core brand values and team building are the priorities for Handelsbanken’s members so as to ensure person-brand fit for future performances, and to introduce or help to sustain the bank’s traditions, ideology, capacity and operations. The informal approaches of the socialization process at Handelsbanken are recognized by the bank as being important, and are mainly the priority of the local branch manager, who will arrange the necessary social events and gatherings for the employees and is primarily considered to be a mentor or role model for Handelsbanken to the employees at every branch. Generating Brand Awareness and Understanding through Internal Communications Burmann and Zeplin (2005) acknowledge that every employee must be consciously responsive to the brand’s identity, in order to appreciate the importance of the day-to-day aspects of their jobs, as well as the interaction with customers. According to Burmann and Zeplin (2005), the brand identity concept must be verbally communicated throughout the entire organization, and that this process should be clear and engaging, truthfully symbolizing of the brand’s identity and features and also memorable. They explain how the core brand values are to be remembered and employed in all daily communications and work activities, and mention that a brand statement may be employed by the organization to assist procedures, however, the brand statement must be short, concise and memorable.

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It is extremely important for all of Handelsbanken’s employees to be consciously responsive to the brand’s identity in their daily banking operations, as Handelsbanken’s brand’s core values are the focus point of employee performance, as well as a guide to building and creating strong customer relationships. Handelsbanken’s brand identity concept is clearly and engagingly verbally communicated within each local branch, as Handelsbanken’s culture is founded upon the core brand values of the bank and these are to be understood and applied in daily communications and banking activities. Handelsbanken believe that that it is important to truthfully symbolize their brand identity concept, both internally and externally, in order to communicate and enhance the desired image of Handelsbanken’s values, and the bank recognizes that this entails constant attention and evaluation so as to be successful. “Our Way” is the brand book or brand statement used by Handelsbanken to help assist every employee to be responsive to the brand’s identity and values, and this is believed by Handelsbanken to be memorable as it can be read quickly or more thoroughly. Although Handelsbanken acknowledge that working with core brand values in daily banking operations is a much better way for employees to remember and employ the bank’s brand values and recognize their importance. Encouraging Brand Leadership on All Levels The CEO and the executive board are highlighted by Burmann and Zeplin (2005) to influence both the internal and external observations surrounding the brand. Burmann and Zeplin (2005) also state that the empowerment of employees is needed so as to be truly influenced by the leadership found within an organization. The CEO, executive board and senior managers are considered to be role models at Handelsbanken as their behaviour is looked upon by others, so Handelsbanken acknowledge that these are very influential people in regards to the internal and external observations of the brand. At Handelsbanken local branch managers have the empowerment to take care of the daily running of their banks, so the organization also expects these individuals to be good role models for the brand and its core values. Even all of Handelsbanken’s employees have the empowerment to freely perform so as to reflect the brand and its values in a positive light, due to the responsibility and trust placed on them in Handelsbanken’s decentralized structure. Aligning the Context Factors: Culture and Structure Fit Burmann and Zeplin (2005) proclaim that the brand identity concept must be aligned with the influential aspects of organizational culture and employee values, so that the brand’s identity is recognized and experienced and committed to by employees. They go on to mention that the brand identity must also be aligned with the organizational structure, with reward policies being named as an important element. The institutionalizing of internal brand management is described by Burmann and Zeplin (2005) to begin at the top of an organization, so as to completely represent the brand’s identity throughout the entire company, as it is not the responsibility of just the human resource department or the marketing department to control the many different organizational activities. Burmann and Zeplin (2005) highlight an executive brand council and brand ambassadors as two reliable methods that an organization can apply so as to institutionalize internal brand management. For Handelsbanken it is exceptionally important to align the brand identity concept with organizational culture and employee values so that Handelsbanken can perform and serve

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local customers in correspondence to the core brand values associated with Handelsbanken. Handelsbanken’s culture needs to be strong in presenting the brand’s core values in order for the organization’s decentralized structure to be successfully aligned with the brand’s identity and communicate the same message of Handelsbanken’s core brand values to all stakeholders locally. Employees at Handelsbanken are only evaluated and assessed on their individual performance in regards to their duties and behaviour corresponding with core brand values, and every year each branch manager and individual employee will discuss this issue before any rewards can be negotiated. At Handelsbanken the institutionalizing of internal brand management begins at the top of the organization, and Handelsbanken believe that this is an important factor for the communication of the brand and its core values. The CEO, executive board, regional managers and branch managers can be considered as role models and brand ambassadors for Handelsbanken. Senior and branch managers at Handelsbanken have the most responsibility for transferring the brand and its core values on a daily basis, as they are in constant contact with employees, so these individuals are regarded to be the most influential brand ambassadors for the Handelsbanken organization. However, as Handelsbanken’s culture is so strong in featuring the core brand values, Handelsbanken expect all their employees that have worked longer than five years to be considered as good local brand ambassadors for the brand. To date Handelsbanken do not employ a formal executive brand council to discuss the brand and its development, however, the CEO, the Head of Corporate Communications and the HR manager regularly discuss these aspects in a very informal manner, which Handelsbanken considered to best way to continually communicate the right messages throughout their decentralized organization.

5.1.2.4 Sustaining brand commitment Brand Citizenship Behaviour Burmann and Zeplin (2005) claim that employees can only obtain brand citizenship behaviour, which enhances brand commitment, if they have the access to the necessary information and resources, so that their daily routines can be deemed to be effective. For Handelsbanken it is very important for their decentralized organization that all their employees have the access to the necessary information and resources, as Handelsbanken believes and trusts its employees to successfully perform at every local branch. Different branches have different problems, and as these problems are constantly changing from day to day, and all of Handelsbanken’s employees must therefore have the information and resources to help preserve the bank’s reputation. Compliance Behaviours, as argued by Burmann and Zeplin (2005), are considered to be consistent with the desired brand identity only when they comply with the brand’s identity, and that this entails obeying rules and regulations made by the organization. They then continue to note that the influences of organizational structure and culture assist the compliance of employees so as to maintain brand citizenship behaviour.

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Handelsbanken’s strong culture enables employees to consistently behave with the desired brand identity, as compliance to the brand and its core values is the fundamental focus of Handelsbanken’s banking performance. Handelsbanken’s employees have the organizational responsibility to individually obey the rule to work within the guidelines of the brand’s core values to successfully perform the bank’s expected service to customers. Handelsbanken’s strong organizational culture allows individual employees to successfully communicate and perform to the brand values associated with Handelsbanken at each local branch within their decentralized structure. Handelsbanken do acknowledge that there are certain ethical, credit and transaction rules and regulations that must be strictly followed by all employees that work at Handelsbanken at all times. Identification Burmann and Zeplin (2005) declare that the brand identity can be enhanced by the social influences of group belonging, in order for the brand to be practised and understood with a collected view which is consistent with the group identity. They contend that through a strong identification of the brand helps employees to attain brand citizenship behaviour, which implies that they posses a sense of personal responsibility to the brand, throughout the entire organization. Burmann and Zeplin (2005) also reveal that by stressing brand distinctiveness and competitive advantage increases brand identification for the whole organization. Handelsbanken believe that their strong organizational culture that focuses on the core brand values assists all employees to feel a group belonging towards the identification of the brand, as well as enhancing the collected view of the brand’s identity in order to compete successfully in the market. Even though Handelsbanken employs a decentralized structure, the same core values can be consistently found to be the fundamental foundations behind every local branch performance and service, therefore Handelsbanken expect and trust that their managers and employees feel personally responsible towards the brand and the organization so as to identify with the brand’s distinctiveness and competition advantage in each local market. Internalization In the view of Burmann and Zeplin (2005), the brand identity characterizes the core brand values, which are interpreted from an individual perspective, and that these brand traits, competences and values are therefore recognized and in accordance with personal ideals, and provide the organization with individual employee performance. Handelsbanken’s core brand values characterize the brand’s identity at all times in every local branch. Handelsbanken’s core brand values are the focal point of Handelsbanken’s culture so these brand traits, competences and values are to be recognized in individual employees’ personal ideals in order for Handelsbanken to successfully perform as expected. Handelsbanken acknowledge that their core brand values must correspond to human traits, competences, values and ideals so that the bank can create and develop strong relationships with their customers and employees, and no one is recruited by Handelsbanken until their individual perspective of the brand’s core values is evaluated. This recruiting evaluation method allows Handelsbanken to trust their employees to interpret the brand’s core values to enhance their individual performance, although individual employee performances are regularly assessed each year.

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5.2 Cross-Case Analysis This section contains a cross-case analysis which will analyse the within-case analyses of Peab AB and Svenska Handelsbanken AB. The findings and results will be first displayed in a table and then compared and analysed concerning the similarities and differences in the two cases for each of the four research questions in this study.

5.2.1 Alignment of brand values Table 5.1 illustrates the findings and results in each of the two case studies concerning the alignment of brand values. TABLE 5.1 Alignment of brand values

PEAB AB

HANDELSBANKEN AB

Values inherent in the vision • Provide distinctive brand values ++ - +

Values of individual employees • Aligned with generated brand values ++ ++

Values inherent in the organizational / Values that are related to the organization • Shapes rules/religion -+ ++ • A cohesive mission and vision ++ + - • Provides element of intellectual assets and storytelling + - ++ • Essential source for core values and core practices - + ++

Values inherent in the brand / Values that sum up the brand • evaluate alongside:

o the values of the vision ++ - - o individual employees ++ ++ o organizational culture ++ ++

• Core brand values o enhances identity ++ ++ o brand’s spirit and soul ++ ++ o assist corporate brand development ++ ++ o instrumental role in employee performance and communication ++ ++

The key to the coding employed in the table is as follows: ++ = They agree it is important and use it + - = They agree it is important but do not use it - + = They do not think it is important but use it - - = They do not think it is important and do not use it Values inherent in the vision Peab use both the company’s vision and core brand values simultaneously in order to distinct the company from their competitors within their competitive industry. At Handelsbanken the core brand values are the most significant aspects that help the whole organization to

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distinctly compete decentralized in their competitive industry, therefore Handelsbanken believe that the bank does not need to strive after a vision. Values of individual employees Both Peab and Handelsbanken acknowledge that it is important to align brand values with employee values. Peab want employees to be able to feel a part of the company, so as to respect and understand the values that represent the company in their performance. Handelsbanken want all employees to recognize the brand’s core values and implement them in all their banking activities, therefore employee values and core brand values must be integrated. Values inherent in the organizational / Values that are related to the organization Peab would like all their employees to work within the company’s vision and core brand values but Peab recognize that it is hard for the company to control their entire workforce. Peab have learned that they must trust their employees to naturally follow these rules, and do not religiously bring up their core brand values and vision all the time. At Handelsbanken the core brand values do shape the rules of the company and these values can be regarded as the entire organization’s religion, although all employees are freely trusted to apply these values in their daily performances. Peab’s mission and vision, as well as the company’s core brand values are very consistent and aligned to one another and are an essential source for core values and practices within the close-knitted company so as to provide a familiar message to all their stakeholders. Handelsbanken’s core brand values have remained the focus of their banking operations for many years, so they are essential source of core values and practices for the bank, however the terms of mission and vision are not considered necessary for Handelsbanken to operate successfully. Peab and Handelsbanken believe that their core brand values help the company to provide them with the possibility of communicating intellectual assets, in addition to storytelling, in order to reflect a consistent image to all stakeholders in very competitive markets. Values inherent in the brand / Values that sum up the brand Peab and Handelsbanken recognize that it is important to evaluate brand values alongside the values of individual employees and organizational culture as these are aspects that influence a lot of people and affect how both organizations operate. Peab also take the vision into account in this evaluation process, while Handelsbanken does not have a vision as this is not considered an important aspect for the bank to be successful, as the brand’s core values are so dominant features of the organization. Both Peab and Handelsbanken believe that core brand values enhance identity, can be described as the brand’s spirit and soul, as well as assist corporate brand development and be an instrumental role in employee performance and communication. At Peab all these aspects are naturally and informally communicated throughout the company and help Peab to compete and grow in their dynamic working environment. At Handelsbanken the brand’s core values are the fundamental aspect of the entire decentralized organization, and their

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organizational culture reflects how these values are to be used to compete and maintain performance in each branch locally.

5.2.2 Attaining consistent brand values Table 5.2 illustrates the findings and results in each of the two case studies concerning consistent brand values. TABLE 5.2 Attaining consistent brand values PEAB AB HANDELSBANKEN

AB

Vision and culture • Provides consistent performance and character ++ ++ • Core values communicate working roles ++ ++ • Core values guide working behaviour ++ ++ • Core values aligned with organizational culture ++ ++ • Consistent central core brand values ++ ++ • Adaptable core brand values ++ ++

Positioning • Brand core values and vision ++ ++

o represent the brand ++ ++ o distinguish brand from competition ++ ++ o indication of brand performance qualities ++ ++

Personality • Emotional features associated with brand core values ++ ++

Clearly and Truthfully Defined • Organizational faith and trust ++ ++ • Ethical customer and stakeholder beliefs ++ ++ • Create uniqueness and differentiation so as to develop loyalty and

fondness with customers ++ ++

Business Benefits • “living the brand” motivates employees through both good and

bad times ++ ++

The key to the coding employed in the table is as follows: ++ = They agree it is important and use it + - = They agree it is important but do not use it - + = They do not think it is important but use it - - = They do not think it is important and do not use it Vision and culture

Peab’s vision and organizational culture does help to provide the company with consistent performance and character, as their core values can be easily informally communicated throughout the entire company. Handelsbanken do not have a vision but their organizational culture is developed around their core values, and these values are the foundations for every branch in the Handelsbanken organization, so this helps Handelsbanken to have consistent performance and character. Core brand values are very important for both Peab and

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Handelsbanken as they enhance the performances of both organizations, as their core values communicate working roles, guide working behaviour and are aligned with their organizational culture. The organizational cultures of both Peab and Handelsbanken can be seen to give the companies a competitive advantage in their industries, due to the fact that Peab and Handelsbanken have consistent central core brand values that must remain the same, and at the same time both organizations realised that these core values must be able to adjust to their changing environments and the needs of different stakeholders. Both Peab and Handelsbanken also stated that they must have other adaptable brand values, so as to remain competitive. Positioning Peab’s vision and core brand values, and Handelsbanken’s core brand values are used in both organizations to represent the brand, distinguish the brand from competition and indicate the brand’s performance qualities to all stakeholders. Personality The core brand values of both Peab and Handelsbanken are important aspects regarding the personality of the two brands. The emotional features of the two company’s core brand values help both Peab and Handelsbanken to develop strong lasting relationships with their employees and customers. Clearly and Truthfully Defined For employees to have complete faith and trust in the organization’s ideology, is considered very important at both Peab and Handelsbanken, as both the brand images and reputations heavily rely on their employees to provide the expected services which are associated with the brands. Peab and Handelsbanken believed that if their employees ethically believe in the organizations ideology then employees would have no problem to communicate the brand values to all customers and stakeholders, thus enhancing the belief surrounding these corporate brands. Courage is recognized by both Peab and Handelsbanken to believe in and communicate the brand’s core values to all stakeholders in order to create uniqueness and differentiation for their brand, as well as developing loyal and fond relationships with their customers. Peab state that their core values represents what the company stands for to others, while Handelsbanken’s decentralized structure depends on their core values to develop customer relationships at all local branches. Business Benefits Both Peab and Handelsbanken feel that it is important for their employees to “live the brand” as this help to enhance their brand’s identity and image, in addition to keeping employees motivated through both good and bad times. For Peab this meant developing a greater sense of company belonging, while at Handelsbanken this meant developing and improving employee performance.

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5.2.3 Organizational brand commitment Table 5.3 illustrates the findings and results in each of the two case studies concerning organizational brand commitment. TABLE 5.3 Organizational brand commitment PEAB AB HANDELSBANKEN

AB

Ensuring Person-Brand Fit through HR Activities • Strong personal identity-brand fit candidates selected and hired ++ ++ • Strong person-brand fit employees promoted - + ++ • Socialization process for ensuring person-brand fit

o orientation training ++ ++ o through traditions, visions, values, capacity and character - + ++ o informal approaches ++ ++

Generating Brand Awareness and Understanding through Internal Communications • Every employee consciously responsive to the brand identity in the

day-to-day aspects of work + - ++

• Brand identity concept verbally communicated within the entire organization

++ ++

o clear and engaging ++ ++ o truthfully symbolizing ++ ++ o memorable ++ ++

• Core brand values are to be remembered and employed in daily communications and work activities

++ ++

• The brand statement is memorable, as well as short and concise - - ++ Encouraging Brand Leadership on All Levels

• Influence of CEO and executive board on internal and external brand observations

++ ++

• Empowerment of employees ++ ++ Aligning the Context Factors: Culture and Structure Fit

• Align brand identity concept with organizational culture and employee values

++ ++

• Align brand identity with organizational structure ++ ++ o reward policies - + ++

• Institutionalized internal brand management o begins at the top ++ ++ o executive brand council - - - + o brand ambassadors - + ++

The key to the coding employed in the table is as follows: ++ = They agree it is important and use it + - = They agree it is important but do not use it - + = They do not think it is important but use it - - = They do not think it is important and do not use it

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Generating Brand Awareness and Understanding through Internal Communications Peab hope that their employees are consciously responsive to the brand’s identity in a very natural way that associated them with the brand, while at Handelsbanken the bank’s employees must be consciously responsive to the brand’s identity in their daily operations as Handelsbanken’s core brand values are the pivotal focus of the bank’s performance. Peab verbally communicate their brand identity concept throughout the company in a very informal and friendly manner, which is applied to their daily communications and activities so as to be engaging and easy to remember, thus memorable. Handelsbanken’s brand identity concept is clearly, engagingly and memorably verbally communicated within each local branch, as their core brand values are to be remembered and applied in all daily communications and operations. Both Peab and Handelsbanken appreciate that the brand’s identity concept must truthfully symbolize the brand, as Peab and Handelsbanken state that this helped to create meaning between the brand and all stakeholders, as well as to enhance the company’s trustworthy reputation, with Handelsbanken recognizing that this aspect requires a lot of continuous attention and evaluation. At current Peab do not employ the use of a brand statement, but their vision and core brand values are significant elements for all members of their organization. However, Handelsbanken have a brand book which is called “Our Way”, and this can be seen as a brand statement that can be both quickly and more thoroughly read, and is considered to be memorable. Although Handelsbanken believe that daily banking operations are the best means to remember their brand’s core values. Encouraging Brand Leadership on All Levels The CEO and executive board are very influential to the internal and external observations of the brand at both Peab and Handelsbanken. Handelsbanken also mention the influence of their senior managers due to their decentralized organizational structure. Both companies believe that these important people within the organization are considered role models for all of their company members. At Peab the CEO has a very “hands-on” approach and the company is regarded as one big family. Peab’s and Handelsbanken’s empowerment of employees entails both organizations giving trust and responsibility to all their employees so as to reflect their brand’s core values through both individual and organizational performance, in order to enhance the brand’s identity and reputation. Aligning the Context Factors: Culture and Structure Fit Both Peab and Handelsbanken acknowledge the importance to align the brand identity concept with their company’s organizational culture and their employees’ values as these aspects significantly affect organizational brand performance. This is regarded as vital for Handelsbanken due to the fact of their decentralized organizational structure, so that all local branches perform and serve in correspondence to Handelsbanken’s core brand values, as each of Handelsbanken’s employee is yearly individually evaluated to how their performance is in accordance with Handelsbanken’s core brand values. Peab believe that their organizational culture and structure enables the natural interactions of all the company’s members, which

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allows the company to put a lot of trust and responsibility on their workforce to perform to Peab’s high standard and quality. Peab and Handelsbanken do not plan or design their rewards policies. At Peab it is acknowledged that if the company does well the employees do well, as they are noted to play a big part in the organization’s success. While at Handelsbanken employees are assessed one a year on their performance and this evaluation is then discussed by the local branch manager and individual employee before rewards can be negotiated. The institutionalizing of internal brand management begins at the top of both Peab’s and Handelsbanken’s organizations, as both companies believe that this is a very important way to communicate the brand and its core values. At Peab, the company’s leaders are to be regarded as brand ambassadors, whereas at Handelsbanken regional and branch managers are mainly considered to be observed as brand ambassadors, as they reflect the brand’s core values in the daily operations of each local branch. However, due to Handelsbanken’s strong organizational culture of promoting brand core values, the bank believes that every employee that has worked for more than five years can be viewed as a brand ambassador for the bank. Peab currently do not employ an executive brand council to discuss brand development within the organization, and Handelsbanken does not either, although an informal communication between the CEO, the Head of Communications and the HR manager are very common discussions regarding Handelsbanken’s brand development. These discussions are kept informal as Handelsbanken believe that informal communications and decentralized structures compliment each other.

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5.2.4 Sustaining organizational brand commitment Table 5.4 illustrates the findings and results in each of the two case studies concerning sustaining organizational brand commitment. TABLE 5.4 Sustaining organizational brand commitment

PEAB AB HANDELSBANKEN AB

Brand Citizenship Behaviour • Employee access to the necessary information and resources ++ ++ Compliance • Consistent with brand identity + - ++ • To rules and regulations + - ++ • With influences of organizational culture and structure ++ ++ Identification • Group belonging ++ ++ • Collected view of the brand - + ++ • Personal responsibility for the organization ++ ++ • Stressing brand distinctiveness and competitive - + ++ Internalization • Brand identity characterizes the core brand values ++ ++ • Brand traits, competences and values recognized and in

accordance with personal ideals + - ++

• Individual interpretations of brand core values to individual performance

++ ++

The key to the coding employed in the table is as follows: ++ = They agree it is important and use it + - = They agree it is important but do not use it - + = They do not think it is important but use it - - = They do not think it is important and do not use it Brand Citizenship Behaviour Both Peab and Handelsbanken acknowledge that it is absolutely vital for their employees to have the access to the necessary information and resources, as both companies give their employees a lot of trust and responsibility in performing their services. This saves a lot of time and money for Peab, in particular on their projects, while as Handelsbanken is a decentralized organization, with different problems arising at different branches on a daily basis, the performance of all employees is a must in order to meet the needs of their local customers. Compliance At Peab it is important for their employees to behave consistently with the desired brand identity, but Peab recognized that the company must trust and believe in their workforce to perform as requested, which is encouraged by Peab’s organizational culture and structure, as it is impossible for Peab to control 11 000 employees. Handelsbanken’s strong organizational

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culture enables employees to consistently behave with the desired brand identity, as compliance to the bank’s core brand values is fundamental to Handelsbanken’s organizational brand performance at all local branches. Both Peab and Handelsbanken allow their employees a lot of freedom to work within the guidelines set by the companies, vision and core brand values and core brand values respectively. Peab, however, maintain the safety rules and regulations must always be followed by all members of their organization in order to protect their employees and working environment, and Handelsbanken must ensure that certain ethical, credit and transactional rules and regulations are always respected and employed by all their employees. Identification Peab hope that there is a sense of group belonging and a collected view of the brand identity, as the company encourage this in their close working family environment, by again recognized that these feelings can not be forced upon any individual. Handelsbanken, however, due to their strong organizational culture, believe that a group belonging and a collected view of the brand identity is achieved so as to successfully compete in the market, and Handelsbanken know that their core brand values are represented at very local branch of their decentralized organizational structure. Peab hope that their employees do to a certain degree feel personally responsible for the brand, as well as the organization, as the company depends on employee performances to create distinctiveness and competitive advantage for Peab’s reputation in the market. Handelsbanken expect and trust that their employees do feel personally responsible for the brand, in addition to the organization, so that each local branch can promote the distinctiveness and competitive advantage that Handelsbanken offers their customers in the market. Internalization Peab hope that their employees recognize the company’s vision and core brand values when performing their daily operations, as they characterize the brand’s identity, and that personal and company ideals matched from an individual perspective. However, Peab recognize that these brand traits, competences and values can not be forced upon anyone, and the company encourage all their employees to have their own will and learn to think for themselves, as a lot of responsibility is placed on their shoulders. This means that Peab trust their employees to interpret the company’s vision and core brand values in relation to their individual performance, and as many of Peab’s are season-contracted employees that return year after year, Peab believe that their employees are loyal and do feel part of the company. Handelsbanken’s core brand values characterize the brand’s identity at all times, as they are the focal point of the bank’s culture and performance. So Handelsbanken’s brand traits, competences and values are recognized to match the personal ideals of their employees, which is why the bank trusts their employees to interpret the brand’s core values from an individual perspective. Individual performance is then evaluated at each Handelsbanken branch on a yearly basis so as to measure employee performance in relation to the brand’s core values.

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6 FINDINGS AND IMPLICATIONS The purpose of this study has been to provide a better understanding of the development of internal branding in organizations. In this final chapter, we will answer the four research questions as stated in chapter one and draw conclusions from the analysis in chapter five. We will also present the implications of our study for, practitioners and future research.

6.1 Research Question 1: How can the alignment of brand values be described?

The aspects surrounding an organization’s vision and brand values has been verified to be very important characteristics in order to establish the distinctiveness for a company to compete in a market. We have found that a company’s vision can be totally integrated with their brand values, or can even be observed as another brand value, as brand values are so important for the organization in regard to the brand’s identification to all stakeholders. Our empirical findings also revealed that brand values connected to an organization are so significant that they can even take the place of the vision so as to represent a much clearer and concise brand concept to an audience. Therefore, we discovered in our study that organizations recognize the importance of aligning individual employee values with a company’s generated brand values, in order to sustain a desired working performance. Our investigation exposed that service companies need their employees to respect and recognize the brand values promoted by the organization in order to develop a sense of responsibility and belonging towards a brand, which in turn assists a company to trust their workforce in all working activities, as it is impossible to control and supervise each individual employee within an organization. An organization’s brand values have proved to be identical to the organizational values in our study. However, we must also acknowledge the fact that the companies investigated in our study are well established companies that have created and formed strong organizational cultures which appreciate the importance of values linked to the brand. Thus, we have found that core brand values do have a considerable influence over the daily performance of service company staff and maintaining a company’s reputation. Our research revealed that core brand values are the pivotal source for aligning and evaluating all elements within an organization, as they provide and convey consistent internal rules and practices, as well as communicating significant features regarding a brand’s desired image to all stakeholders. The core brand values related with an organization have shown to enhance brand identity and assist corporate brand development, and can be considered as the brand’s spirit and soul, as they represent the ideals connected with a brand and generate an image to an audience. Consequently, the study revealed that core brand value alignment is fundamental for an organization, so as to first internally clarify how the brand must be characterized, in order for the brand to externally mirror the desired image. However, we have found that the industry that an organization’s operates in, its structure and type of service provided influences the enforcement and implementation of brand value alignment in regard to organizational performance and operations.

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FINDINGS AND IMPLICATIONS

We would like to make the following specific conclusions regarding the first research question:

• Distinctive brand values are more likely to support an organization’s vision by enhancing the brand’s identification to all stakeholders.

• The more specific brand values are the more they are aligned with the vision of the

organization.

• The alignment of brand values with employee values is vital for the successful performance of an organization.

• Employee trust and responsibility is expected to be achieved when brand values and

employee values are aligned.

• Strong organizational cultures are more beneficial for the alignment of organizational values with brand values as they enhance the communication of significant features surrounding the brand’s identification.

• Core brand values are considered to be the most fundamental aspects when aligning

and evaluating the organizational vision, employee values and organizational culture.

• The daily performance of an organization is more likely to be successful if core brand values are the focus of internal operations.

• Core brand value alignment is the pivotal factor to the development of internal

branding within an organization.

6.2 Research Question 2: How can the attaining of consistent brand values be described?

This study reveals that a company’s vision, core values and culture are instrumental for an organization in providing consistent performance and character, as they have proven to be features which are integrated and communicated successfully throughout the company, in both informal and formal manners. Core brand values, however, are indicated in our study to be the fundamental focus of service companies when considering the operational performance of the entire organization, therefore we found that they can be regarded as the principle factors in the developments of internal branding. We discovered that core brand values shapes employee behaviour and attitudes, as well as contributing to the development of organizational culture, so much so that these two characteristics collectively influence how strong the organization’s impact has on both internal and external stakeholders over time. Consequently, core brand values play an important part in the positioning and the personality of a company, as they represent the brand, distinguish the brand from competition and indicate brand performance qualities. We can further reveal from our study that core brand values are the essential features which are the focal point that assist the developing and maintaining of strong relationships with all stakeholders, therefore courage is acknowledged

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and appreciated by organizations to be needed when implementing and communicating a company’s core brand values. As these core values are the vital source for creating uniqueness and differentiation for a company to remain competitive in a business environment, this investigation found that organizations recognized the fact that a company must have consistent central core brand values, as well as adaptable core brand values, so as to remain competitive, in addition to being able to communicate with different stakeholders at all times. In order for core brand values to be successfully attained, these must be clearly and truthfully communicated within the organization, so that employees have complete faith and trust in the organization’s ideology. This proved to be a very important aspect for the consistent performance and the image of service companies in this study, as the ethical beliefs play an instrumental role to how the company is first internally, and then secondly externally observed. Our study also indicates that service companies consider the need for their employees to “live the brand”, so as to enhance the brand’s identity and image, as well as keeping the workforce motivated at all times, which can imply that employees can develop a greater sense of company belonging and improve individual and organizational performance. In addition, we discovered that there is a difference of importance in how an organization’s core brand values affect the working environment, which in our case depended on the structure of a company and the industry in which a company operates in. We would like to make the following specific conclusions regarding the second research question:

• The integration of organizational vision and culture, as well as core brand values is more likely to provide an organization with a consistent performance and character.

• Core brand values are the fundamental elements within the development of internal

branding as they guide the working performance of the entire organization.

• A strong organizational culture aligned with core brand values enhances the positioning and the personality of a brand, due to the fact that the organization and its members can consistently represent the brand.

• By having consistent central core brand values and adaptable core brand values,

organizations are expected to be able to compete more successfully in a market.

• The ideology of an organization and how it is communicated is influential to the success of a brand, as the beliefs of employees reflect the performance and service provided to external stakeholders.

• Communicating consistent core brand values is considered to be an important aspect

when creating strong relationships with all stakeholders, as it takes courage for a brand to successfully operate in a competitive market.

• The motivation of employees to perform and serve consistently is expected to be

greater if they “live the brand”.

• The fundamental nature of an organization’s structure and industry influences the communicating of consistent core brand values to internal stakeholders.

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6.3 Research Question 3: How can organizational brand commitment be described?

The selecting and the hiring of strong personal identity-brand fit candidates has proven to be a very important aspect, and we discovered in this study that service organizations have found it extremely hard to change an individual’s values and ideals. So ensuring personal identity-brand fit is taken very seriously in regard to all employees, as job interviews and personal assessments are conducted and measured against a company’s core brand values, as these are essential for the development of internal branding, by being the central focus of an organization and fundamental to a company’s service performance and success. We discovered that a strong organizational culture assists companies to create and form strong person-brand fit employees, so with this important aspect in mind, an organization can consider that all employees are automatically familiar with the core brand values of a company. As a result of these indications, we presume that promoted employees in the companies investigated are therefore evaluated by their individual traits and characteristics, as well as personal goals. In regard to the socialization process for ensuring person-brand fit, orientation training has been recognized in our study as an effective method to communicate and transfer an organization’s core brand values, which can also include the contribution of introducing and involving a company’s traditions, vision, capacity and character. However, we also discovered that informal approaches, both at work, in addition to social gatherings and events arranged by organizations for their employees, are a valuable means to convey the important aspects of a company to its workforce. By applying these formal and informal techniques, we found that organizations try to develop a strong relationship with their staff, in order to enhance the identification and the feeling of the brand within the entire organization, thus maintaining the brand’s quality and desired performance. In our study we found that it is important for every employee to be consciously responsive to the brand identity in the daily aspects of work, although the definition of the core brand values and their influence on working tasks and service differs from company to company. We discovered that core brand values are a way of dictating or guiding an employees working behaviour, which, consequently implies that the importance of brand awareness also differs in working operations and performances in service organizations on a daily basis. To internally verbally communicate the brand identity concept is also regarded as an important element of brand awareness for an organization. However, when a company’s core brand values dictates employee performance and service, we have discovered that a formal means of communication is more frequently used within an organization, but when a company’s core brand values guides employee performance and service, our results indicated that an informal means of communication is more frequently applied. When generating brand awareness and understanding through internal communications, we found that the brand identity concept must be verbally conveyed in a clear and engaging, truthfully symbolizing and memorable manner. This entails that it is easy for all employees to remember and apply an organizations core brand values, in addition to enabling an organization to develop and enhance the brand’s identification and image to all stakeholders at all times. We also discovered that a brand statement can be used by a company to introduce and/or emphasize core brand values or important aspects of the brand for employees, when the core brand values dictate employee performance and service.

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The influence of the CEO and executive board has proved to be a very significant and influential aspect in our investigation, in regard to internal and external brand observations. These important members of the organization are considered to be “role models”, which must behave and conduct themselves in an appropriate manner, if employees and external stakeholders are to believe and trust in the brand. Therefore the institutionalization of internal brand management must begin at the top of an organization, however, senior managers and leaders are regarded as the primary “brand ambassadors”, due to their responsibility and their interactions with employees on a regular basis. Furthermore, this study revealed that trust and responsibility are the two most important features surrounding the empowerment of employees working in service companies, as the core brand values are to be learnt and applied on an individual basis in order to enhance brand identification, image and performance. Our study revealed that it is extremely important for an organization to align the brand identity concept with their organizational culture and their employees’ values, in relation to the organizational structure employed. This is due to the fact that these significant elements’ concerning an organization influences all stakeholders’ outlooks surrounding the brand and its reputation. By ensuring a culture and structure fit, an organization allows core brand values to become the focus of organizational interaction, performance and service, maintains brand qualities and standards, in addition to encouraging responsibility and trust to employees, which as previously mentioned permits employees to achieve a greater connection to the brand and the organization. We discovered that no organizational reward policies were needed to be planned or designed, however, employees can be motivated by being given the accountability for their own actions, being individually yearly assessed and evaluated or by being recognized in contributing and to being part of an organization’s success, as the better it goes for the company, the better it becomes for the employees. We would like to make the following specific conclusions regarding the third research question:

• By evaluating against core brand values organizations are more likely to select and hire strong personal identity-brand fit candidates.

• A strong organizational culture is beneficial for ensuring person-brand fit employees,

due to the fact that it helps to create a consistent understanding of the core brand values.

• Both formal and informal communications are acknowledged to be necessary in an

organization’s socialization process for ensuring person-brand fit.

• The importance of core brand values to provide the expected performance and service influences how consciously responsive employees need to be in their daily working activities.

• The more core brand values direct working behaviour, the more formal

communications are regarding the brand identity concept.

• It is considered that the better the brand identity concept is internally communicated and understood, the greater employee belief, commitment and loyalty can be achieved by the brand.

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• The influence of CEO and the executive board are acknowledged to be just as important internally, as externally for the recognition and reputation of a brand.

• Senior managers and leaders of an organization are recognized as being “brand

ambassadors” as they are the daily role models for all employees.

• The greater employees are aware of the brand and its core values, the greater the empowerment of trust and responsibility is designated by an organization.

• Internal branding development and communications are considered to more effective

when a culture and structure fit is achieved by an organization.

6.4 Research Question 4: How can the sustaining of organizational brand commitment be described?

Due to the responsibility and trust placed on their work staff when serving and performing, our study highlighted that companies must allow their employees to have access to the necessary information and resources. We found that by supporting employees, organizations benefit from the attitude and behaviour shown by their workforce to perform with a greater conviction and loyalty towards the desired brand performance, in addition to developing a strong relationship with its employees. A strong organizational culture was discovered to effectively assist internal branding development, as the message of core brand values help employees to behave consistently with the desired brand identity. By complying to the guidelines of the core brand values and respecting the basic rules and regulations connected to a specific working environment, enabled an organization to rely and trust its workforce to perform with a great deal of freedom on an individual level. Consequently, we discovered that with dedicated individual employees applying core brand values in their daily working activities, creates a stronger organizational culture which in turn helps to enhance group belonging and a collected view of the brand identity. Our findings also indicate that organizations appreciate the need for employees to interpret and recognize core brand values individually, so that personal and company ideals, as well as brand traits, competences and values match, in order for consistent employee behaviour to coincide with the brand’s identity. Therefore organizations require their employees to feel responsible for the brand, as only loyal and committed employees will remain and have feelings for the organization and the brand over time. This study further revealed that by allowing employees to independently develop within company guidelines, helps the brand progress and become more competitive and stronger in the long run. We would like to make the following specific conclusions regarding the fourth research question:

• Employee access to the necessary information and resources is considered to be vital for the development of and the sustaining of brand commitment, as trust and responsibility assist the individual and the brand to progress.

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• A strong organizational culture increases the probability of employee compliance to the brand identity, as well as organizational rules and regulations, since core brand values are more respected and approved.

• With a strong organizational culture, employees feel more personally responsible for

the brand, given that a strong group belonging and collected view of the brand is experienced.

• By allowing employees to individually interpret core brand values is acknowledged by

organizations to be a method of respecting employees’ values and a way to develop a strong relationship with their workforce.

• The more an employee is related to the brand, the greater the probability is that the

employee will remain committed and loyal.

6.5 Implications The final part of this chapter will present our implications to practitioners, theory and for future research within the research area based on our findings and conclusions.

6.5.1 Implications for practitioners Implications to practitioners are regarded as proposals and suggestions to managers supported by our data and findings. The following implications are based on the two case studies and companies investigated in this study, therefore our empirical data, data analysis and conclusions qualify us to highlight the following implications.

• The alignment of brand values should be the fundamental basis of the development of internal branding, in order to create a solid platform to build upon.

• The vision and the values of an organization, as well as its employees’ values must be

considered when aligning brand values.

• To be able to compete in today’s business environment make sure that core brand values are distinctive.

• When considering the development of internal branding it is important to focus on

core brand values.

• Core brand values have the benefit of being able to communicate and guide working roles and behaviours.

• It is important for a brand to have consistent central core brand values and adaptable

core brand values so as to communicate to all stakeholders at all times.

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FINDINGS AND IMPLICATIONS

• In order to enhance the beliefs and trust of all stakeholders the ideology of an organization should be clearly and truthfully defined.

• The implementing of human resource activities to ensure person-brand fit employees helps to enhance the development of employee identification with the brand.

• The brand identity concept must be internally communicated in a clear, engaging,

truthful and memorable way, so as to generate core brand value awareness in everyday employee performance and service.

• The influences of the CEO and executive board should never be underestimated in

regard to the brand observations of all stakeholders.

• Senior managers and leaders can be observed as “brand ambassadors” by an organization due to their daily relationships with employees.

• Trust and responsibility are noteworthy attributes that organizations can give to

employees, so as to attain a committed workforce.

• An organization must take into consideration both its structure and its culture when developing internal branding operations.

• By giving employees the support of accessing the necessary information and resources

is favourable for enhancing desired brand behaviour.

• The compliance of employees to consistently perform and serve with the brand identity is advantageous for organizations to develop a strong relationship with its workforce.

• A strong organizational culture has the benefit to increase brand identification and

brand loyalty with employees.

• For employees to recognize brand traits, competences and values with their own personal ideals encourages the internal branding process.

• The interpretations of core brand values by individual employees are important for the

continuous success and progress of the development of the individual and the brand.

6.5.2 Implications for further research The topic regarding internal branding is extremely relevant in today’s business environment and in conducting this study we discovered some interesting aspects that could be taken into consideration for future research.

• To further investigate the development of internal branding in the two companies featured in this study. For example, by investigating both companies again at a later

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date by using the same variables as in this study and/or by investigating other variables connected to internal branding.

• To collect information by applying the same variables as in this study on the

development of internal branding from more companies in the same industries as the two companies featured in this study.

• To study data regarding the development of internal branding from companies in other

industries than the two featured companies in this study.

• To investigate the development of internal branding in a large multinational company.

• To greater examine the context of the influence of the structure of an organization in the development of internal branding.

• To investigate and collect research on the development of internal branding from an

employee perspective.

• To investigate information concerning the development of internal branding in new or young companies.

• To examine the influence of internal branding developments in acquired or merged

companies. • To further investigate the relationship between organizational culture and internal

branding. For example, when and why to focus more on organizational culture than internal branding and vice versa and/or how to bring these variables together so as to convey one coherent message in the development of corporate brand identity.

• New case studies with larger studies/samples, regarding the research of internal

branding development, in order to facilitate generalizations associated with this phenomenon.

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REFERENCE LIST

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APPENDICES

APPENDIX A: INTERVIEW GUIDE Company:

Respondent’s name:

Respondent’s position:

Alignment of brand values Values inherent in the vision How does the vision of the organization provide distinctive brand core values? Values of individual employees How important is it to align brand values with individual employee values? Values inherent in the organizational / Values that are related to the organization How do organizational values shape the company rules/religion? How do organizational values provide a cohesive mission and vision for the organization? How do organizational values provide intellectual assets for the organization? How do organizational values provide storytelling for the organization? How are organizational values an essential source for brand core values? How do organizational values provide the organization with core practices? Values inherent in the brand / Values that sum up the brand How important is it for the organization to evaluate the brand values alongside the values of the vision, individual employee values and organizational culture? How do core brand values enhance brand identity? How do core brand values describe the brand’s spirit and soul? How do core brand values assist corporate brand development? How do core brand values play an instrumental role in employee performance and communication? Do you have anything else that you would like to add about the importance of brand alignment?

Attaining consistent brand values Vision and culture How does the organization’s vision provide a consistent brand character and performance? How do brand core values provide working roles and guide working behaviour? • Aligned with organizational culture

How important is it for the organization to have consistent central core brand values? How important is it for the organization to have adaptable brand core values?

Positioning How do brand core values and brand vision represent the brand? How do brand core values and vision distinguish the brand from competition? How do brand core values and vision indicate brand performance qualities? Personality How important are the emotional features of brand core brand values?

Clearly and Truthfully Defined

How important is it for employees to have faith and trust in an organizations ideology? How important is it that employees ethically have customer and stakeholder belief? How important is courage for the brand to create uniqueness and differentiation so that employees can develop loyalty and fondness with customers? Business Benefits

How important is it for employees to “live the brand” for organizational performance? • Motivate employees through both good and bad times

Do you have anything else that you would like to add about the importance of consistent brand values?

Organizational brand commitment Ensuring Person-Brand Fit through HR Activities How important is strong personal identity-brand fit for selecting and hiring of employees? How important is strong person-brand fit for promoting employees? How important is the socialization process for ensuring person-brand fit through HR activities? • Orientation training • Through traditions, vision, values, capacity character • Informal approaches

Generating Brand Awareness and Understanding through Internal Communications How important is for every employee to consciously be responsive to the brand identity in the day-to-day aspects of work? How important is it to verbally communicate the brand identity concept within the entire organization? • Clear and engaging • Truthfully symbolizing • Memorable

How important is it that core brand values are remembered and employed in the daily communications and work activities? How important is it that the brand statement is short, concise and memorable? Encouraging Brand Leadership on All Levels How important are the influences of the CEO and executive board for the internal and external brand observations? How important is it for the organization to incorporate the empowerment of employees for the brand? Aligning the Context Factors: Culture and Structure Fit How important is the aligning of brand corporate identity concept with organizational culture and employee values? How important is the aligning of brand corporate identity concept with organizational structure? • Rewards policies

How important is that the institutionalized internal brand management for entire organization? • Begins at the top of the organization • Executive brand council • Brand ambassadors

Do you have anything else that you would like to add about the importance of brand commitment?

Sustaining organizational brand commitment Brand Citizenship Behaviour How important is employee access to the necessary information and resources for successful organizational performances?

Compliance

How important is consistent employee compliance with the brand’s identity?

How important is it for employees to comply with organizational rules and regulations?

How important are the influences of organizational culture and structure for employees to comply with the brand identity?

Identification

How important it group belonging for the identification of the brand?

How important is the collected view of the brand’s identity?

How important is it for employees to feel personally responsible for the organization?

How important is it for management and employees to identify with the brand’s distinctiveness and competitive advantage?

Internalization

How important is it that core brand values characterize the brand identity?

How important is it that brand traits, competences and values are recognized and in accordance with personal ideals?

How important are the employee’s individual interpretations of brand core values to individual employee performance?

Do you have anything else that you would like to add about the importance of sustaining brand commitment?