L

ong ago, it was common for companies to bombard their messages through advertisements in various media. Some companies even concocted a not-so-authentic differentiation to be able to stand out from
the crowd and support their brand images.

Technology has, however, transformed the company-customer relationship, making it increasingly inclusive and horizontal. The positions of the two have become increasingly aligned. Customers can easily access information about a company from various sources, so what’s right on the surface will be easily caught and identified by customers as differentiation.

In today’s digital era, a company should be able to cultivate an authentic uniqueness — one that cannot be easily copied by its competitors. B. Joseph Pine II and James H. Gilmore (2007) give three key drivers behind the demand for authenticity.

First, they acknowledge the growing supply of commercial experiences, from birthday parties given at local restaurants to extreme adventures such as exploring the world’s hidden places.

When consuming experiences, consumers are sensitive to whether the experience is “real” or not.

Second, Pine and Gilmore argue that the industry is becoming increasingly impersonal as people are replaced by machines. As the age of technological revolution progresses, people will look more and more for something genuine and authentic.

Third, deceit from major corporations has resulted in many consumers losing faith in institutions. Consequently, consumers look up to organizations that come across genuinely as socially responsible entities; ones who are what they say they are!

To create a sense of authentic uniqueness, a company should be able to extend the internalization of brand DNA beyond the marketing department. Brand DNA constitutes the unique components of a brand, which should be a common language for all employees of a company, not only those on the frontlines who deal directly with customers.

In fact, brand DNA should animate all the important processes in the company, ranging from leadership, recruitment, performance appraisal and culture building (Barlow & Stewart, 2004). This is what we call codification.

A uniqueness that has been coded will certainly be difficult to imitate. That said, it also poses a challenge as codification is a long process and requires serious commitment from all stakeholders in the company, not just the marketing department or division.

If the codification of brand DNA can be successfully achieved, then every employee will stand for a representation of the company’s brand in each of his or her interaction with a customer.

The codification of brand DNA in a company is done by implementing three interconnected layers. The first layer is the most tangible aspect and most easily executed. The next layer, while somewhat intangible, and requiring more effort and time, also has an increasingly fundamental role.

The first layer is “symbols and styles.” In the concept of differentiation, if we know context as a way to package a product or service to the customer, then Layer 1 would be about the way a company “packages” its look outside the organization and the employees with symbols and styles that reflect the brand DNA.

If a brand aims to be considered as young and energetic, the symbols installed as artifacts within the company (office room, office branches, service center, lobby, channels of distribution, etc.) should reflect the same young and vibrant spirit.

Google makes a case in point, in that its offices and campuses around the globe reflect the company’s overarching philosophy, which is nothing but “to create the happiest, most creative workplace in the world”.

Google allows many of its hundreds of software engineers — its core intellectual capital — to design their own desks or work stations out of what resembles over-sized Tinkertoys. The result may look a little chaotic, perhaps similar to some kind of a high-tech refugee camp, but Google says that’s how its engineers like it. Those symbols and styles are meant to codify creativity and innovation as Google’s brand DNA.

The second layer consists of “System and Leadership.” Codification would not yield the desired results if it stops at the surface, it should penetrate the characteristics of brand DNA deep into organizational processes or systems, as well as into the leaders’ decision-making.

By systems, we also mean systems encompassing the process of hiring a new employee, employee training, performance appraisal and promotions.

Companies must incorporate elements of their brand DNA in this process to acquire and develop relevant skills and attitudes among its employees. The role of leaders at all levels is also important in order to execute and evaluate each process. In addition, they also serve to be a role model for subordinates.

One concrete example in the effort to build Codification throughout the system is Starbucks. At the time of recruitment, Starbuck’s interview process consists of screening techniques that can help determine whether a prospective employee has the right “on-brand” attitude and behavior.

New employees must also attend a full-day paid course on “first impressions,” while it is mandatory for new retail managers to take part in brand-focused management training for 10 weeks. These practices help in the creation of Starbucks’s brand DNA among its employees.

The third layer is “shared values and substance.” The shared values and basic assumptions existing within an organization may appear as intangible, yet have a deep impact on the conduct and interaction of its members.

Through a continuous process of codification applied through the first and second layers, the long periods of shared values would become a sort of “soft control” on the behavior of employees in general.

If the system in an organization acts as a form of “hard control” that provides a reward for behavior that is consistent with the brand DNA and punishment for the deviants, then the shared values and substance would provide a “soft control” through social pressures among organization members.

These are the three ways a company can develop Codification of its brand DNA. But most importantly, it cannot be built instantly; it may even take years.

Therefore, consistency would be a key.
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Hermawan Kartajaya is founder and executive chairman of MarkPlus, Inc. Ardhi Ridwansyah is director of EMBA SBM-ITB/MarkPlus Institute.