Interbrand Names 100 Best Global Brands

One of the highlights of my year is to attend the launch party in New York City for 
Interbrand's 100 Best Global Brands at the New York Stock Exchange.  The annual event is the culmination of months of analysis and vetting on the part of the analysts and brand experts at Interbrand, a division of DDB and holding company Omnicom. 

The New York Stock Exchange is decked out for the
launch of the 100 Best Global Brands

This is the 13th year Interbrand has published this study and it tells us a lot about the power of Brands, both in the marketplace and, as importantly, in the financial community.  As we learn in our MSBA marketing class, Brands are a valuable commodity with real value.

Writes Interbrand Global Chief Executive Jez Franpton;

"Those who manage the Top 100 Best Global Brands understand the role they play in peoples' lives and respond accordingly — building on successes and making up for mistakes. They are constantly nurturing their brands to keep pace in a rapidly changing world; they know that every market is different, every interaction counts, and every individual matters. Quite an achievement in such turbulent times. These strong, highly innovative brands have earned the respect and loyalty of many individuals who, collectively, contribute to their power and prosperity. They have also earned our respect and admiration, as well as a place in our report."

The methodology used by Interbrand "takes into account all the many ways in which a brand touches and benefits its organization -- from attracting and retaining talent to delivering on customer expectations. The final value can then be used to guide brand management, so businesses can make better, more informed decisions. There are three key aspects that contribute to the assessment:

• The financial performance of the branded products or services.
• The role of brand in the purchase decision process.
• The strength of the brand."

The 2011 list of Best Global Brands is headed by perennial winner Coca Cola with a total Brand Valuation of $77.8B.  It is interesting to note that after seeing this familiar Brand top the list, the rest of the top five Brands are all technology companies.  In rank order from 2 to 5 are Apple ($76.6B), IBM ($75.5B), Google ($69.7B) and Microsoft ($57.9B).  Pretty much tells you where the world is headed, doesn't it?  If you have any interest in Brands whatsoever, this is a must read report. 

The Stock Exchange by Day

The Stock Exchange in party mode

 But back to the launch event itself which attracts CMO's from around the world, it is an amazing spectacle.  I had no idea the NYSE could be transformed from the financial epicenter of the world at 4 PM to party central at 7 PM.

From left to right:
Mark OBrien, President of North
America DDB Worldwide,
MSBA Director Stewart McHie,
and DDB President and CEO
Chuck Brymer

And a sincere note of thanks to fellow University of Kentucky alum and DDB Worldwide President and CEO Chuck Brymer for allowing me to crash this prestigious event year after year.  I've known Chuck for many years, both as the former Chairman and CEO of Interbrand and in his current role as President and CEO of DDB, who handled the ExxonMobil Fuels Marketing Company global advertising account in my former life as Global Brand Manager for the company. 

Also shown at right is Mark OBrien, President of North America DDB Worldwide and former CFO of DDB Worldwide.  Mark has never let me live down our first global contract negotiation at the Mohonk conference center in upstate New York!

With  Jessica at the
bell stand at the NYSE.

And of course a shout out to my daughter Jessica McHie who is a Senior Associate in the Global Communications group at Interbrand and who sneaks my name onto the invite list every year.






Stewart McHie
Director, MS in Business Analysis program
mchie@cua.edu

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A Capitol Class

By Neil Watson
MSBA Class of 2013

The US Capitol

When we talk about capital in business school, it is usually in relation to economics.  However, for CUA’s MSBA Class of 2013 discussion last night, that was not the case.  Our discussion was less on capital and more on Capitol – Capitol Hill that it is.

Congressman
Jeff Fortenberry
(R-Nebraska 1st)

Of the many incredible professors that teach us here in the MSBA program, few have a better view from their office than Congressman Jeff Fortenberry.  It is a privilege and an honor to have a US Congressman for a professor – an experience unique among business graduate programs.  It is an especially great opportunity because his work on the Hill exemplifies the aims of this program – using a specific skill set in service to society.  Beyond the explicit lessons of his lectures, it is easy to learn from him because he “walks the talk.”

Congressman Fortenberry
with the author in his
Longworth Building office

From his office in the Longworth Building (complete with a sweeping view of the Potomac River), the Congressman welcomed the Leadership class he co-teaches with Prof. Brach for a lecture on several various topics ranging from American political philosophy to family life.

I was personally struck by our discussion on how and why a leader must communicate his vision in a compelling way.  The topic came up as we discussed the results of the recent election (an inevitable topic when you are meeting a Congressman on the Hill so shortly after an election).  Regardless of what side of the aisle my classmates and I sit on, we all agreed that one of the reasons the GOP did not perform better in the election was an ineffective communication of their vision.

A non-traditional classroom-MSBA
students met their professor,
Congressman Fortenberry
at his Capitol Hill office

To illustrate the point, the Congressman gave the example of a Republican leader who tried to make his point on economic growth with charts, graphs, and formulas.  His Democratic counterpart instead told the story of a young woman and her child living in a car.  Despite the logic of the Republican leader’s vision and strategy, the Democrat’s vision – communicated through a heart-rending story – will always win over the people.

From that conversation, I took away that being a leader requires more than just having a vision.  To lead effectively, one must be able to communicate his or her vision in a compelling way that moves the intended audience towards the right goal.  

Whether you are a politician trying to convince the electorate to vote for you or a CEO trying to grow your company, the ability to communicate a compelling vision is absolutely essential.  It is one of many lessons from our classes with Congressman Fortenberry that I think many of us will remember long after we leave CUA.

 

Neil Watson

MS in Business Analysis graduate Student

November 18, 2012

 

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Culture: It Starts at the Top

A lot is written in the press and the academic journals about culture and its importance in guiding the employees and activities of any organization.  The culture or tone of an organization has to be top down.  Its an essential part of leadership and one of the most important responsibilities of a leader.  

I was fortunate to work for 35 years in an organization that has a strong and unwavering culture; Exxon and ExxonMobil.  In all areas of the business; safety, financial controls, procurement, operations, dealing with vendors, business partners, shareholders and customers, there was no ambiguity about what was expected of employees.  There is a sense of discipline that permeates the organization.  Employees understand that there is a right and a wrong way to conduct business and it is good for the financial health of the business.  I have talked to many employees over the years that left to pursue other interests and without exception they missed the controls and standards the company established because it made their job easier and less risky.

So we shouldn't be surprised to learn recently that employees of the Metropolitan Airport Board have been abusing travel policies, contracting standards and hiring rules.  A recent article in the Washington Post listed numerous circumstances of ethical lapses by managers and executives, some of whom resigned after an audit uncovered some pretty outrageous violations.  It was just a month ago that I wrote a blog about the same audit uncovering the same types of violations among the appointed Board of Directors of the MWAA.   

And this is not the first hint of problems at the MWAA.  A decade ago, another audit uncovered problems in contracting practices.  This is an organization that oversees a budget of two billion dollars and employs 1400 people.  That's not trivial and they are stewarding the taxpayers money.

So let's connect the dots here.  The appointed board members violate policies and the managers and executives see this and decide the rules don't apply to them either.  You're left to wonder when the next shoe will drop as they drill down further into the organization. Will employees take their cue from their managers and rationalize it is also ok for them to violate policies?  It's not a stretch to think so.  That's how a culture works. 

Shanahan losing his cool

All organizations have a culture, not just businesses.  Consider our beloved Washington Redskins.  Does the culture start at the top?  Of course it does.  This is an organization that is the second most penalized team in the NFL.  And not just any penalties, fine generating penalties; Offensive Coach Kyle Shanahan berating an official ($25k), Josh Morgan throwing a football at an opposing player ($8k), DeAngelo Hall being ejected from a game for arguing with and cursing an official ($TBD).  If it's ok for the coach to do it, it must be ok for the players.  And let's not forget this is a team with a 3 and 6 record.

Fred Davis

To me the problems are more deeply rooted than just lack of discipline resulting in penalties.  Consider last year when first round draft pick Trent Williams and veteran tight end Fred Davis were suspended for half a season for substance abuse.  An organization with a strong and unwavering culture does not tolerate such behavior.   But the leadership of this organization named Fred Davis, who had just ditched his team for his selfish purposes, their franchise player at the end of the season.  Not only were there seemingly no consequences for his illegal behavior (other than losing a few paychecks), there was a reward!  The franchise player must be paid the average of the top 5 players at his position!  I think its a sign that the organization and it's leadership has not established the right kind of culture that enrolls employees in a higher purpose and provides them with a sense of personal responsibility and devotion rather than a selfish mindset. 

Culture is real and it's important and it starts at the top.

Stewart McHie
Director, MSBA Program
mchie@cua.edu

  

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