Top considerations for brands facing a divestiture
Divested brands shouldn’t be an afterthought. All parties have a vested interest in seeing the both the former and divested brands garner the greatest value, as well as achieve long-term success. With that in mind, we’d like to share a few insights from our many years of experience creating and managing new brands in similar circumstances.
Facts and data empower
Rebranding is comprehensive; the exercise will probably touch every aspect of the business before it’s done. Underestimating what’s needed is a common pitfall. Having an inventory of all assets and resources will not only illuminate the landscape but give you influence over the plan.
Note: We believe this is a pre-deal activity and cannot stress enough how important it is to complete as quickly as possible.
Consider
• What do you have, what needs to be retired, what will be missing when you’re fully divested, and what else haven’t you thought of?
• What do you need to do, how long will it take (or how long do you have), how much will it cost, and who will be responsible?
• Migrations are rarely simple swaps—completing a brand transition with greatest effect often includes strategy, design, copywriting and implementation development
• What has to be done today versus what can be done tomorrow? With so much to do it’s critical to understand what deserves your attention now and what does not.
Planning equals success
Budgets, timing, resources and approvals are all interdependent, requiring coordination. An informed, detailed plan helps clarify what’s both realistic and possible.
Consider
• Success is in the details—account for timing, understand dependencies and risk
• Setting up a transition team with representation from across the company
• Establishing a clear approval process with roles and owners
Meaning creates value
Strong brands drive business performance so it’s important to transfer equities from the former brand to the new. Seize opportunities to discard baggage and position your brand for differentiated growth.
Consider
• Leveraging the power of story to explain who you are, what you do, and how you do it
• Transferring equities while establishing clear differentiation from the former brand
• Signaling where you’re going, not just where you’re coming from
Confusion disrupts
Adapting to change can be difficult. In our experience, directional clarity and consistent communication help smooth transitions.
Consider
• Evolution not revolution, unless your audiences are truly ready for it
• Simplifying and clarifying your communications and market offerings
• Keeping an open channel of communication that sets expectations for both internal and external audiences
Employees matter
Per Harvard Business Review, one of the top reasons business transformations fail is unsuccessful cultural engagement.
Consider
• Stewarding employees through each stage with a plan for continuous communications
• Being transparent. Explain what the transformation means to them in both practical and inspirational terms
• Being inclusive. Involve employees in the rebrand by listening to their needs and developing brand ambassadors from across the company
Launch provides multiple opportunities
Not just a point in time, launch is a tremendous opportunity to reset relationships, set expectations, and capture employees’ enthusiasm about the brand.
Consider
• Using the opportunity to begin training and education
• Celebrating the past and looking forward to the future
• Launching your brand is only the beginning, the real work starts on day two
Team experience makes the difference
While you may have experienced a rebrand or two in your career, many people have not managed one. It can be daunting, you have a day job, and there’s a pandemic... But what a brilliant opportunity this change presents for fresh positivity, new growth, and the chance to create something great for the world.
Consider
• Utilizing internal resources to save money, as long as it does not pose too great a risk of overtaxing daily business operations
• Looking for teams who work well together, who have successfully launched brands of your scale before, who provide baseline processes and tools that can be tailored to your specific circumstances, and are flexible thinkers known for operating within ambiguity
• Engaging a dedicated program manager to ensure continuity, accountability, and risk mitigation
Did we mention COVID?
All this...and a pandemic. Unprecedented times call for adaptation, flexibility, empathy and positivity, grounded in reality.
Consider
• A variety of unsynchronized delays are probable and should be account for in addition to your planning and legal timing requirements—from material logistics to occupancy shifts within your global network of offices, find ways to leverage the “shut-downs” in your brand’s favor
• Capitalizing on employee engagement opportunities to reassure staff during this transition, as the entire world transitions to the new reality of COVID
• Finding ways to elevate positivity for external audiences with respect to the divestiture; i.e. why is this the best time to reclaim independence, double-down on core mission, adapt, change and adopt an even more lean stance in the marketplace
We hope that you find these points of consideration helpful as you look toward the transition of your brand. We’re here for you, ready to discuss any of these points in detail and offer support to your team during this transition.
To learn more about how we might help you, reach out to us. We’re ready to listen.
Top Considerations for Brands Facing a Divestiture was co-written with Christina Stanfield and our friends at Implementation Management Partners.