by mark visosky

Patrick CollingsSagacitePatrick CollingsSagacite

Branding in Banking & Finance Conference 201126 - 27 September 2011

VUCAVUCAbranding in the age of branding in the age of

Branding in Banking & Finance Conference 201126 - 27 September 2011

an argument for a new mindset and toolset for branding in socio-economic environments that are volatile, uncertain, complex and ambiguous

the argument rests on two key pillars

photo by Mike Bitzenhofer

a traditional view of marketing

Speaker Note: This slide referred to the fact that marketing was often bolted onto strategy developed elsewhere in the corporation.

marketingbrands

“...many enlightened organizations are moving branding entirely away from communications

and toward connecting strategy, culture, and a wider stakeholder involvement.”

Nicholas Ind & Majken SchultzStrategy + Business

brand strategyequals

business strategy

a turbulent socio-economic &business environment

photo by tenisca

Speaker Note: The second pillar of the argument refers to the market conditions that brands have to compete in.

the world is facing increased turbulence over the next

decade and beyond Global Trends 2025: A Transformed World

released by the National Intelligence Council

caused by leadership change in emerging markets, major policy shifts by governments, increased armed conflict, interlinked economies, budget cuts by local and national government

photo by Beacon Radio

welcome to the age of VUCA

image by Herr Kaczmarek

volatility, uncertainity, complexity and ambiguity are also keeping

executives awake at night

relentless innovation

demand for results

in endless conversations

history is no guarantee of tomorrow

the recessionary climate remains

by alex e proimos

Speaker Note: This slide and the next three slides refer to challenges facing the banking and !nancial industry.

Photo by Ronn Aldaman

banking the unbanked

A F T E R T H R E EY E A R S A N D

T R I L L I O N S O FD O L L A R S , O U R

B A N K S S T I L LD O N ’ T W O R K

TIME MAGAZINE, SEPT 26 2011

photo by Robert S Donovan

the brand management toolbox is limited

marketing mindset and marketing-focused tools

rationalistic management tools developed decades ago

methodologies and tools that rely on historic and static data

tools that are cookie cutter in nature

photo by SomeDriftwood

is needed

starting with a new mindset

by maessive

one that accepts that we can’t predict the future and should concentrate on being

flexible enough to successfully engage it, in whatever form it may take

“Giving up the illusion that you can predict the future is a very liberating moment. All you can do is to give yourself the capacity

to respond to the only certainty in life - which is uncertainty. The creation of that

capability is the purpose of strategy”

Lord John Browne, former CEO BP

“Nearly all of the Best Global Brands have embraced the idea of constant change,

evolution and innovation, and are able to continually meet the changing requirements

of their customers.”

Interbrand Best Global Brand 2010

and the tools to go with the mindset

flexible thinking applied flexibility

scenario planning

near future budgeting

disposable factories

customizable complexity

dynamic pricing

shadow portfolios

Speaker Note: The list of strategy tools listed in the right column is not comprehensive. At Sagacite we refer to these tools by the collective name of rapid adaptive strategies.

scenarios

photo by drew herron

photo by drew herron

the aim of scenarios is to reveal multiple, equally realistic and foreseeable futures

Royal Dutch/Shell & Global Business Network

The French School

The Futures Group

Wilson and Ralston

Lindgren and Bandhold

Reference scenarios

Decision Strategies International

Procedural scenarios

Industry scenarios

Soft creative scenariosap

pro

ac

he

s

help connectsthe dots

picture by gato-gato-gato

relaxation of banking

regulations

instrumentsthat shifted risk

off balancesheets

monetarypolicy keeping interest rates

low

evaporationof reasonable

credit standards

consumer’s limited

financial knowledge

2008FinancialMeltdown

photo by victor cavazzoni

scenarios allow us to see beyond the headlights

distance into the future

forecast scenarios hope

uncertainty

now

and avoid panic when the future deals us a bad hand

image by luna di rimmel

rapid adaptive strategy

by kenteegardin

near future budgetingSpeaker Note: Near future budgeting refers to the trend to shorten the budgeting period given that people can’t predict three to !ve years out.

Disposable Factories

photo by slinky2000

Speaker Note: Disposable factories belongs to the real option group of rapid adaptive strategies. It refers to limited investment in production facilities until a product proves itself in the market.

image by Pixel Placebo

customizable complexity

Speaker Note: This slide refers to companies allowing consumers to determine their individual brand offering.

photo by Greg Woodhouse

Dynamic Pricing

Speaker Note: An example of dynamic pricing is insurance companies who calculate motor insurance based on how a customer drives their car as recorded by an onboard device.

portfolioBrand

Speaker Note: The same way opposition parties have a shadow cabinet so they are ready to govern, brands should have a shadow portfolio of different offerings for drastically different market conditions.

“We have made tremendous progress in our ability to operate complicated systems... We have made less progress to operate complex

systems, which defy conventional modelling and challenge traditional management practices.

Leaders need to use better tools for understanding how these system will behave - tools that can help us understand the constant

interaction of numerous elements and the impact of rare but extreme events.”

Gökçe Sargut & Rita Gunther McGrathLearning to Live with Complexity

Harvard Business Review September 2011

not just about survival but also opportunities

“In the next few years, successful companies will distinguish themselves by managing

uncertainity better than do their competitors. The very best will create uncertainity for their competitors to struggle with - and there will

be hell to pay by those who fall behind.”

George StalkSenior Partner and Managing Director

The Boston Consulting Group

Speaker Note: Apple is a company that adds to the VUCA environment of their competitors by releasing innovative products and services that immediately rede!ne the market.

Ordnung braucht nur der dumme ein genie beherrscht das chaos

Order is needed only by fools, the genius controls the chaos