Becoming a Brand

Author Steven Van Yoder says a CEO’s reputation and personal marketing efforts are increasingly important to the bottom line.

Martha Stewart, Jack Welch, Steve Jobs—all are examples of the power of CEO branding. CEO reputation is becoming an essential component of successful companies’ overall branding strategy. And although you may not aspire to the CEO stardom of Bill Gates, there’s nothing preventing you from pursuing a CEO branding program for your company on a smaller scale.

Today, a corporation’s reputation is indelibly linked to that of its leader. A recent study by global communications consultancy Burson-Marsteller indicates that the CEO’s reputation is responsible for approximately 50% of a company’s reputation, directly translating into achieving key business objectives and increasing sales.

The survey noted that based on the reputation of the CEO:

• 95% decide whether to invest in a company
• 94% will believe in a company under pressure from the media
• 93% would recommend a company as a good alliance/merger partner
• 92% maintain confidence in a company when the share price lags
• 88% recommend the company as a good place to work

“CEOs and corporate reputation are inextricably linked and have a proven impact on the bottom line,” said Leslie Gaines-Ross, chief knowledge and research officer at Burson-Marsteller and author of CEO Capital: A Guide to Building CEO Reputation and Company Success (Wiley, 2002).

Although recent scrutiny about corporate behavior has led many CEOs to prefer a lower profile, this is shortsighted, according to Gaines-Ross. “Consumers now care more than ever about the authenticity of the corporate brand, and CEO reputation is critical ingredient. Similar to any wealth-creating asset, CEO reputation needs to be invested in, earned, and leveraged over the long term to reap enduring benefits.”

The CEO drives the brand

Regardless of the size and complexity of the organization, the person in charge sets the tone, defines the style, and becomes the company’s public face. Employees, customers, shareholders, analysts, and the media all monitor the CEO for insights into the corporation’s culture, values, and commitment to what the brand represents.

Lillian Vernon, one of America’s most accomplished and well-known leaders in the catalog industry, is a well-known example of CEO branding and its power in building a strong company. According to an Opinion Research poll, more than 39 million Americans are familiar with the Lillian Vernon name.

“When I first launched the company in 1951, my marketing plan was simple. I wanted to establish a memorable face behind my company to add a personal touch to our business,” said Vernon. “I wanted my customers to feel that I am their personal shopper. My persona is the key to maintaining our loyal customer base.”

After her catalogs grew in popularity, she created a bond with customers by including a personal letter and photograph in each catalog. Her letters became such an inspiration that Hillary Rodham Clinton once told a group of leading business women that she felt that she knew Lillian Vernon by reading her letters long before they met at the White House.

In 1995, when Lillian Vernon went online, the Internet turned out to be a natural vehicle for selling her products and promoting her brand. “The Web site helped us further promote the brand and reach new people,” said Vernon. “Our Web site includes a page called Lillian’s Corner, devoted exclusively to my life, complete with a baby picture and the first ad in Seventeen that launched our company.”

Chief brand advocate

In the Burson-Marsteller survey, credibility claimed a top position among factors driving CEO reputation. CEOs who develop ongoing personal branding campaigns report that the exposure they receive is more credible than advertising.

These branding initiatives start with a comprehensive strategy to communicate with all relevant centers of influence in key industries. This includes editors, analysts, columnists, trade associations, and local community stakeholders.

David Silverstein, CEO of Breakthrough Management Group (BMG), a business improvement consulting firm, has actively worked to cultivate his reputation as a thought leader in the performance enhancement industry. Since BMG’s inception, he’s written and commented on relevant topics for trade publications that reach BMG target markets, including financial services and healthcare. He is now a sought after keynote speaker and has chaired numerous high profile and industry events.

Silverstein’s personal branding efforts have helped him grow BMG into a global organization with eleven offices on five continents in just six years. “My efforts to brand myself as a leader in my industry helped BMG grow from a start-up to a globally recognized firm,” said Silverstein. “Through my articles and talks, I became the flagship for BMG’s reputation, which has helped our global expansion tremendously. In Asia and Latin America, for example, where name recognition goes a long way, my industry reputation has helped BMG’s sales team get their foot in the door in key overseas markets.”

Michael Wright, president and COO of Entgris, a supplier of materials integrity management technology, recently authored The New Business Normal. Wright was motivated to author a book that addressed the new business landscape and position himself as a commentator on contemporary business issues. “I wrote my book to address the new realities all CEOs now face that business leaders must face in the current business landscape,” he said. “The book will also put position me as a commentator on contemporary business issues.”

Brand validity is a key factor in building and sustaining corporate reputation. Some CEOs are making a personal commitment to embrace social causes that align with their company’s overall mission. Cadence Network is an expense management firm serving the banking, restaurant, retail, and grocery industries. For year, the company has led an energy consumption initiative to preserve finite natural resources like water and recyclable waste.

Cadence recently partnered with The Arbor Day Foundation to promote the use of trees in beautification and energy conservation. “Our two organizations align on several strategic initiatives—conservation of natural resources and a reduction of paper,” said Jeffrey Hart, Cadence CEO. “Trees reduce energy dependency while also protecting our environment for future generations.”

The biggest challenge for the brand marketer is to get over the “big bang” approach to marketing where a heavy concentration of effort and expenditure is followed by periods of relative inactivity. To be effective, CEO branding initiatives need to be consistent and meaningful. 

Consumers, shareholders, employees, and other stakeholders expect consistency between a company’s brand messages and the behavior or their key executives. Brand validity can only be fully achieved if the CEO embodies the brand and its values to meet the new challenges of an increasingly critical and demanding marketplace.

Steven Van Yoder is the author of Get Slightly Famous: Become a Celebrity in Your Field and Attract More Business With Less Effort and owner of Get The Word Out Communications, a San Francisco marketing firm specializing in CEO branding. He can be reached at steven@getslightlyfamous.

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