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      The past, present and future of transparency.

“Infodemocracy, and what it means for your brand”
Remember The Good Old Days?


             What is it?

             Who made it?

             What’s it made from?

             What does it taste like?
            $5
             Where does it come from?

             How can I get one more cheaply?

             Who would drink a beer like this?



                                                        2
                                                        
© Copyright Glasshouse Partnership
1950s-70s. The Opacity System
Focused on features and beneïŹts. A great
         model for an industrial economy.



         ‱  Opaque customers – marketing is based on inspired guesswork

         ‱  Opaque products – any colour you like, as long as it’s what we have in stock

         ‱  Opaque organisations – a golden age for conglomerates and aspiring monopolists
                                                                                         

         ‱  Opaque markets – persuasion ethos. Consumers trapped by choice, location,
            transportation and social class




                                                                                             3
                                                                                             
© Copyright Glasshouse Partnership
Brand value =
                          Opacity
                          Premium
                          (n) Branding: the art of making money by concealing knowledge
                          from targeted customers



                                                                                          4
                                                                                          
© Copyright Glasshouse Partnership
Opacity heroes





                                     5
                                     
© Copyright Glasshouse Partnership
So why on earth would you change all that
?



           Opacity:

           ‱  Enhances economic premiums

           ‱  Protects competitive advantage

           ‱  Develops deep emotional bonds and repeat purchase

           ‱  Obscures dubious sourcing, pricing and employment practices




                                                                             6
                                                                             
© Copyright Glasshouse Partnership
So why change
?
                                                                       STOP PRESS


                                                                       Retailers
           Because Opacity:
                                                                       start to
           ‱  is anti-customer
                                        destroy opaque
           ‱  locks you into a single static proposition
              brands by
                                                                       copying
           ‱  blindsides you to alternative value models
              SUPERFICIAL
                                                                       FEATURES

                              Opaque Brands concentrate and multiply
                              risk




                                                                                        7
                                                                                        
© Copyright Glasshouse Partnership
8
                                     
© Copyright Glasshouse Partnership
(n) Branding: the art of making money by selectively
                          sharing knowledge with self-selecting customers




                                                                                 9
                                                                                 
© Copyright Glasshouse Partnership
10
                                      
© Copyright Glasshouse Partnership
So why on earth would you change all that
?




                                                        11
                                                         
© Copyright Glasshouse Partnership
So why change
?
                                                                        STOP PRESS


           ‱  is grounded in stories - not stakeholder                  Consumer
              needs or organisational purpose
                          advocates destroy
           ‱  is still anti-customer – just selling                     translucent brand
              bigger dreams
                                            advantage by
           ‱  still locks you into static propositions –                telling MORE
              only with higher cost of change
                          TRANSPARENT
           ‱  still blinds you to alternative models –
                                                                        STORIES

              only reinforcing self-delusion
.

                               Translucent brands defuse and diffuse short-term
                               risk at the expense of long-term risk

                                                                                            12
                                                                                             
© Copyright Glasshouse Partnership
“What does the future hold ?”!



                                                                      13
                                                                       
© Copyright Glasshouse Partnership
But isn’t transparency a really bad thing
?



               Jetbluehostage.com

               Flickr.com/photos/ïŹlthywalmart

               Greenpeace.org/apple

               Exposeexxon.com

               Complane.typepad.com

               Ikeasuckz.blogspot.com




                                                        14
                                                         
© Copyright Glasshouse Partnership
Only if you ïŹght it
 

               You can always engage, answer
               criticism, respond, adapt,
               collaborate


               Open your doors, invite
               stakeholders in and start to
               learn





                                               15
                                                
© Copyright Glasshouse Partnership
MARTINI DIALOGUE
                           PUBLIC PASSIONS




                                     Individual   Social
                                       Identity
                                              
   Identity
                                                         




             THE BROADCAST SELF
                     SOCIAL NETWORKS


                                                                          16
                                                                           
© Copyright Glasshouse Partnership
INFORMATION GLUTTONY
         INDEPENDENT ENDORSEMENT




                                     Trust
                                         
      Trustworthiness
                                                              




       REAL-TIME COMPARABILITY
                         MARKETS-OF-ONE


                                                                          17
                                                                           
© Copyright Glasshouse Partnership
COMPETING VALUE-WEBS
               CORPORATE CITIZENSHIP




                                      Internalise      Externalise
                                     externalities
    internalities
                                                                   




             ACCOUNTABLE PROCESS-CHAINS
              INSTITUTIONAL LISTENING


                                                                                 18
                                                                                  
© Copyright Glasshouse Partnership
LEAN PRODUCTION
                  CONSUMER INFOSTREAMS




                                     Individual    Collective
                                      efïŹciency
                                              
   effectiveness
                                                              




               PERFECT INFORMATION
                       CROWD CLOUT


                                                                         19
                                                                          
© Copyright Glasshouse Partnership
Intention Aggregation
   Potential for Intention Economics




                                     Social Marketing
   Potential for Social Marketisation



                                                                                               20
                                                                                                
© Copyright Glasshouse Partnership
In summary: the twin forces of transparency



       The Marketisation of
            everything
                     
                                     The New
                                     “Social
                                     Market”
                                                The Socialisation of
                                                     everyone  



                                                                       21
                                                                        
© Copyright Glasshouse Partnership
(n) Branding: the art of making money by improving
                                     decisionïŹ‚ow for any stakeholder




                                                                                          22
                                                                                           
© Copyright Glasshouse Partnership
The rules of the new social market: “Information Symmetry”


                                1.  Products: Whatever must be known can be known

                                2.  Markets: Whatever can be known, must be made
                                    known


                                
    

                                
     
 Infodemocracy




                                                                                     23
                                                                                      
© Copyright Glasshouse Partnership
The rules of the new social market: “Social Symmetry”


                                1.  People: Whoever must be known, can be made known 

                                2.  Organisations: How you know matters more than who
                                    you know



                                
    

 Sociodemocracy

                                
    

 




                                                                                         24
                                                                                          
© Copyright Glasshouse Partnership
Prediction: This Social Market will play host to two long wars:


                                     Power: 
       Who will be in charge of brands? 

                                     
   

 The war for primacy between demand-side
                                         
 intentions and supply-side resources



                                     Control: 
     Who will get most value from
                                       
 
          
    individuals’ assets?

                                     
   

 The war for control of social information
   


                                                                                             25
                                                                                              
© Copyright Glasshouse Partnership
Who will win the wars? 2 predictions:


                            The Brand War

                            
        

 2020 ‘superbrands’ will be the best interpreters
                                     
 of demand-side signals, not the best spinners
                                     
 of supply messages


                            The Identity war 
         

                            
        

 2020 ‘superpeople’ will be empowered to
                                     
 actively manage personal and social ROI from
                                     
 their actions and intentions.

                            
        

 
                                                                                           26
                                                                                            
© Copyright Glasshouse Partnership
The Democratisation
                                          of brands
                                                  




                                          The New
The Marketisation                         “Social          The Socialisation
  of everything
              
                           Market”
           of everyone  




                                      The Liberation
                                       of the individual
                                                       
                                                                               27
                                                                                
© Copyright Glasshouse Partnership
Scepticism

                                     Listen
                     Learn

                                                 Integrity

                                     Wider
                      Deeper

                                                 Assurance

                                     History
                    Future

                                                Collaboration



                                                                           28
                                                                            
© Copyright Glasshouse Partnership
10 Don’ts for your Corporate Marketing


         1.  rganisational Scepticism: Don’t drink the koolaid. Be
           O
         sceptical of your own organisation. The rest of the world will be.

         2. Keep listening: Don’t assume that what you say is what
         get’s heard. Understand the implications of your brand.

         3. Keep learning: Don’t assume that your brand standards are
         good enough. Align expectations, promises and performance –
         constantly.


                                                                               29
                                                                                
© Copyright Glasshouse Partnership
4. Brand Integrity: Don’t imagine you can actually manage
                    reputation. Focus on managing your conduct.

                 5. Go deeper: Don’t stop with brand audits and
                    endorsements. Strive for brand assurance.

                 6. Go wider: Don’t stop at pleasing customers. Understand
                    all your stakeholders’ needs and understand your value
                    propositions to them. 



                                                                             30
                                                                              
© Copyright Glasshouse Partnership
7. Brand Assurance: Don’t promise. Deliver, and
                       prove you’ve delivered.

                       8. Think future: Don’t just protect license to operate.
                       Build your ‘license to innovate’ by engaging with critical
                       permission-brokers.

                       9. Think history: Don’t copy. Use your own history.
                       Empower your hidden assets: product backstory, human
                       expertise, supply-chain processes and corporate purpose. 



                                                                                    31
                                                                                     
© Copyright Glasshouse Partnership
10. Stakeholder Collaboration: Don’t compete on
                     the resources you own; compete on the resources you
                     can connect.




                                                                           32
                                                                            
© Copyright Glasshouse Partnership
Speaker biography
         Tim Kitchin, Partner
         Stakeholder Strategist
         Tim Kitchin is a broad-based brand communications expert with extensive
            experience of CSR, environmental and policy-making arenas. His passion is to
            help organisations develop deeper, wider and more proïŹtable stakeholder
            relationships.


         Tim is a founding partner of Glasshouse Partnership and an associate senior
            adviser to ethical thinktank AccountAbility, 
         He is also member of brand think-tank, the ‘Medinge Group’, responsible for
            the annual ‘Brands with a Conscience’ awards, was a member of the
            international advisory panel for the UN Environment Programme’s ‘Talk
            the Walk’ initiative and special editor of the journal of brand management
            for its ïŹrst issue on CSR.
         He was a co-author of ‘managing corporate reputations’ and ‘Beyond
            Branding’ (both Kogan Page).
         Tim leads Glasshouse’s brand integrity practice.



         Contact: timk@glasshousepartnership.com

                                                                                           33
                                                                                            
© Copyright Glasshouse Partnership

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Glasshouse Partnership - Transparency And Branding

  • 1. : The past, present and future of transparency. “Infodemocracy, and what it means for your brand”
  • 2. Remember The Good Old Days? What is it? Who made it? What’s it made from? What does it taste like? $5 Where does it come from? How can I get one more cheaply? Who would drink a beer like this? 2 © Copyright Glasshouse Partnership
  • 3. 1950s-70s. The Opacity System
Focused on features and beneïŹts. A great model for an industrial economy. ‱  Opaque customers – marketing is based on inspired guesswork ‱  Opaque products – any colour you like, as long as it’s what we have in stock ‱  Opaque organisations – a golden age for conglomerates and aspiring monopolists ‱  Opaque markets – persuasion ethos. Consumers trapped by choice, location, transportation and social class 3 © Copyright Glasshouse Partnership
  • 4. Brand value = Opacity Premium (n) Branding: the art of making money by concealing knowledge from targeted customers 4 © Copyright Glasshouse Partnership
  • 5. Opacity heroes
 5 © Copyright Glasshouse Partnership
  • 6. So why on earth would you change all that
? Opacity: ‱  Enhances economic premiums ‱  Protects competitive advantage ‱  Develops deep emotional bonds and repeat purchase ‱  Obscures dubious sourcing, pricing and employment practices 6 © Copyright Glasshouse Partnership
  • 7. So why change
? STOP PRESS
 Retailers Because Opacity: start to ‱  is anti-customer destroy opaque ‱  locks you into a single static proposition brands by copying ‱  blindsides you to alternative value models SUPERFICIAL FEATURES
 Opaque Brands concentrate and multiply risk 7 © Copyright Glasshouse Partnership
  • 8. 8 © Copyright Glasshouse Partnership
  • 9. (n) Branding: the art of making money by selectively sharing knowledge with self-selecting customers 9 © Copyright Glasshouse Partnership
  • 10. 10 © Copyright Glasshouse Partnership
  • 11. So why on earth would you change all that
? 11 © Copyright Glasshouse Partnership
  • 12. So why change
? STOP PRESS
 ‱  is grounded in stories - not stakeholder Consumer needs or organisational purpose advocates destroy ‱  is still anti-customer – just selling translucent brand bigger dreams advantage by ‱  still locks you into static propositions – telling MORE only with higher cost of change TRANSPARENT ‱  still blinds you to alternative models – STORIES
 only reinforcing self-delusion
. Translucent brands defuse and diffuse short-term risk at the expense of long-term risk 12 © Copyright Glasshouse Partnership
  • 13. “What does the future hold ?”! 13 © Copyright Glasshouse Partnership
  • 14. But isn’t transparency a really bad thing
? Jetbluehostage.com Flickr.com/photos/ïŹlthywalmart Greenpeace.org/apple Exposeexxon.com Complane.typepad.com Ikeasuckz.blogspot.com 14 © Copyright Glasshouse Partnership
  • 15. Only if you ïŹght it
 You can always engage, answer criticism, respond, adapt, collaborate
 Open your doors, invite stakeholders in and start to learn
 15 © Copyright Glasshouse Partnership
  • 16. MARTINI DIALOGUE PUBLIC PASSIONS Individual Social Identity Identity THE BROADCAST SELF SOCIAL NETWORKS 16 © Copyright Glasshouse Partnership
  • 17. INFORMATION GLUTTONY INDEPENDENT ENDORSEMENT Trust Trustworthiness REAL-TIME COMPARABILITY MARKETS-OF-ONE 17 © Copyright Glasshouse Partnership
  • 18. COMPETING VALUE-WEBS CORPORATE CITIZENSHIP Internalise Externalise externalities internalities ACCOUNTABLE PROCESS-CHAINS INSTITUTIONAL LISTENING 18 © Copyright Glasshouse Partnership
  • 19. LEAN PRODUCTION CONSUMER INFOSTREAMS Individual Collective efïŹciency effectiveness PERFECT INFORMATION CROWD CLOUT 19 © Copyright Glasshouse Partnership
  • 20. Intention Aggregation Potential for Intention Economics Social Marketing Potential for Social Marketisation 20 © Copyright Glasshouse Partnership
  • 21. In summary: the twin forces of transparency
 The Marketisation of everything The New “Social Market” The Socialisation of everyone 21 © Copyright Glasshouse Partnership
  • 22. (n) Branding: the art of making money by improving decisionïŹ‚ow for any stakeholder 22 © Copyright Glasshouse Partnership
  • 23. The rules of the new social market: “Information Symmetry” 1.  Products: Whatever must be known can be known 2.  Markets: Whatever can be known, must be made known
 Infodemocracy 23 © Copyright Glasshouse Partnership
  • 24. The rules of the new social market: “Social Symmetry” 1.  People: Whoever must be known, can be made known 2.  Organisations: How you know matters more than who you know Sociodemocracy 24 © Copyright Glasshouse Partnership
  • 25. Prediction: This Social Market will play host to two long wars: Power: Who will be in charge of brands? The war for primacy between demand-side intentions and supply-side resources Control: Who will get most value from individuals’ assets? The war for control of social information 25 © Copyright Glasshouse Partnership
  • 26. Who will win the wars? 2 predictions: The Brand War 2020 ‘superbrands’ will be the best interpreters of demand-side signals, not the best spinners of supply messages
 The Identity war 2020 ‘superpeople’ will be empowered to actively manage personal and social ROI from their actions and intentions. 26 © Copyright Glasshouse Partnership
  • 27. The Democratisation of brands The New The Marketisation “Social The Socialisation of everything Market” of everyone The Liberation of the individual 27 © Copyright Glasshouse Partnership
  • 28. Scepticism Listen Learn Integrity Wider Deeper Assurance History Future Collaboration 28 © Copyright Glasshouse Partnership
  • 29. 10 Don’ts for your Corporate Marketing 1.  rganisational Scepticism: Don’t drink the koolaid. Be O sceptical of your own organisation. The rest of the world will be. 2. Keep listening: Don’t assume that what you say is what get’s heard. Understand the implications of your brand. 3. Keep learning: Don’t assume that your brand standards are good enough. Align expectations, promises and performance – constantly. 29 © Copyright Glasshouse Partnership
  • 30. 4. Brand Integrity: Don’t imagine you can actually manage reputation. Focus on managing your conduct. 5. Go deeper: Don’t stop with brand audits and endorsements. Strive for brand assurance. 6. Go wider: Don’t stop at pleasing customers. Understand all your stakeholders’ needs and understand your value propositions to them. 30 © Copyright Glasshouse Partnership
  • 31. 7. Brand Assurance: Don’t promise. Deliver, and prove you’ve delivered. 8. Think future: Don’t just protect license to operate. Build your ‘license to innovate’ by engaging with critical permission-brokers. 9. Think history: Don’t copy. Use your own history. Empower your hidden assets: product backstory, human expertise, supply-chain processes and corporate purpose. 31 © Copyright Glasshouse Partnership
  • 32. 10. Stakeholder Collaboration: Don’t compete on the resources you own; compete on the resources you can connect. 32 © Copyright Glasshouse Partnership
  • 33. Speaker biography Tim Kitchin, Partner Stakeholder Strategist Tim Kitchin is a broad-based brand communications expert with extensive experience of CSR, environmental and policy-making arenas. His passion is to help organisations develop deeper, wider and more proïŹtable stakeholder relationships. Tim is a founding partner of Glasshouse Partnership and an associate senior adviser to ethical thinktank AccountAbility, He is also member of brand think-tank, the ‘Medinge Group’, responsible for the annual ‘Brands with a Conscience’ awards, was a member of the international advisory panel for the UN Environment Programme’s ‘Talk the Walk’ initiative and special editor of the journal of brand management for its ïŹrst issue on CSR. He was a co-author of ‘managing corporate reputations’ and ‘Beyond Branding’ (both Kogan Page). Tim leads Glasshouse’s brand integrity practice. Contact: timk@glasshousepartnership.com 33 © Copyright Glasshouse Partnership