Professional Documents
Culture Documents
1/4/2015
BRBB
ASSIGNMENT 2
Brand and Brand Building: Systemic Leadership Essay
Capitecs Gerrie Fourie
Kimbal Stokes
14018377
12 February 2016
Kimbal Stokes
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We are currently living in a connected world, one where the speed and
immediacy of a global village infiltrates the daily agenda of the public and private
sector. Traditional means of the planning, structure and performance of certain tasks
has become compromised as our world is increasingly fragmented. Fragmentation,
paradoxically, is occurring at a rate of increased interconnectedness (Lundestad,
2004). With the emergence of new markets, which is happening exponentially as
interconnectedness from information technology becomes further entrenched in
society, with their own specific prerequisites, philosophies and desires, a saturateddilution occurs resulting in weakened effectiveness of mass-marketing and a
corrosion of brand-loyalty (O'Hara, 2011).
For example when a glass of water has ink added to it, the water becomes colored
with that ink. It takes a small amount of ink to render the water no longer translucent.
However, when a glass of ink has water added, it takes massive quantities of water
for the ink to become non-existent changing the need for a glass to a swimming
pool. The latter situation is an example of fragmentation, when the glass of ink is
untouched it is rich and deep with color and meaning like a market without
fragmentation. Subsequent to the pouring of water (intercommunication
technologies), slowly the ink loses color and meaning becomes washed out and
unidentifiable while it gets moved to a large and unfocused container, a swimming
pool (our global village).
In this swimming pool of colorless water, traditional methods of creating meaning in a
brand no longer works as it did when there was only a glass. In this sense, the
classic model of brand management must be adapted and brands reconstructed to
allow meaning to become once again inserted; without compromising the benefits
offered by intercommunication technologies. In other words, ink of a different color
should be poured pack into the swimming pool. This re-inking would be done by
migrating from McElroys Classic Model of brand management to a Brand
Leadership Model, i.e from a tactical and reactive model to a model that is strategic
and visionary (D. Aker and E. Joachimsthaler, 2009).
Adapting the model would, in theory, prioritize the creation of meaningful brand
identity that can become effectively communicated to the consumer. Nonetheless, an
additional action would be required other than changing the model. That is a change
in perspective.
This change of perspective would be from a pure reductionist view to a combination
between a reductionist and a connectivist (Taylor, 2000). In other words, a shift from
a parts perspective with distinct boundaries, linear casualty, an adherence to
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suitable legs to stand the test against this increasingly fragmented market. There are
three groupings to these points:
1. From tactical to strategic management
2. From limited to broad focus
3. From sales to brand identity as the driver of strategy
In addition to Aakers points of separation, this paper will argue that an organization
needs more than simply an adaptation of business model but also a switch in
perspective. Illustrating this would require Carl Taylors Systemic Leadership (2000),
and his identification of the connectivists and reductionists difference in
organizational perspective. Furthermore, the paper would argue a combination of the
two perspectives as paramount to avoiding Hamels dystopian future; the two are not
mutually exclusive (Taylor, 2000, p. 8) but rather require a balancing of the tensions
of the two. Taylor creates a series to best represent tensions between reductionist
and connectivist outlooks. These tensions appear when we contrast what is
expected by tradition and with the realities of what we experience (Taylor, 2000, p.
7). These tensions are
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Bank and Nedbank) dominated South African banking industry, which has become a
market not necessarily fragmented as described previously, but rather stagnant as
the dominance of the Big4 corner the market, making space for a new brand to
emerge in South African banking difficult.
Fouries predecessor, Riaan Staasen, founded Capitec bank and fostered its
foundation under a Classic Model by being tactical and reactive in his approach
(Bonorchis, Capitec proves critics wrong, wins customers over in droves, 2015). Not
failing in his task to create a foundation, the tactics of delivering single products and
markets, remaining simple and focusing on a single brand image meant Capitec
failed to merge into the new market reality (in a general sense, not specifically in a
South African banking one). The result was the continued obscurity of Capitec
against the behemoth Nedbank, Standard, ABSA and FNB banks. Not necessarily a
failure, but the inability to hold ones own as a brand allows for a continued projection
into obscurity amongst customers. However, Fouries introduction as CEO in 2013
(Capitec, 2014) meant an introduction of values to Capitec that made a customercentric brand identity a possibility. These values are namely the sustained
conveyance of friendly, simplified and pioneering banking, with a strong inclination in
pioneering innovation to meet the customers everyday needs.
Innovation is not just technology. Yes it is part of it, but its much more ()
pioneering concepts, which hadnt been seen anywhere else in South Africa,
meant my job is to build further on these successes and to steer new and
Customer innovations that will improve the lives of our clients
-
This introduction has allowed for strong growth rates, increased customer relation
and greater brand awareness. The above noted difference between Staasan and
Fouries leadership modules illustrates the ease at which Fourie has navigated the
systemic leadership role, and the mastery of adaptation between models and an
example of Aakers three groupings, (i) tactical to strategic management, (ii) limited
to broad focus, (iii) from sales to brand identity as the driver of strategy.
Unpacking business leader Gerrie Fouries, who incorporates a systemic approach to
leading, contributions to Capitec is to analyze his response to the 4 challenges set
out by Aaker, and to understand how he navigates the tension between Taylors
connectivist and reductionist outlooks.
1. The Organizational Challenge
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price surge?, 2015). Nonetheless, he has also identified that the customer-centric
approach Capitec and himself has taken will inform their brand-building programs,
() However, we stick to our game plan. From the beginning, we said we
want to do a couple of things such as building our brand
- Gerrie Fourie (2015)
Fouries success in addressing the challenges associated with having an effective
organization that functions under the systemic leadership model, eases the tension
between the reductionist and connectivist leadership outlooks. His experimentation,
although informed, edges onto an expectation of first time perfection. However, this
hedges on the reductionist edge, contrastingly the setting of goals he manages to
create responds to a market that is permanently influx whilst not making promises
his organizational structure cannot keep (Taylor, 2000). Capitecs goals have been
met, whilst over achieving in other aspects. Their market growth continues whilst in a
time of bank unreliability (referring here to the downfall of African Bank) (Bonorchis,
Capitec proves critics wrong, wins customers over in droves, 2015), their ability to
tow the tension line between a conservative/traditional outlook in leadership and one
that is more dynamic and total has fostered an upwards direction for Capitec under
the direction of Fourie, as a systemic leader.
The fragmented market and Hamels dystopian future dont have to be the outcome.
With an outlook that focuses on the bigger picture, rather than an adherence to the
sums of a whole, as well as a leadership approach which is strategic, visionary and
focused on the brand identity rather than the brand image the saturated-dilution of
the market does not have to spell disillusionment with brand loyalty, or the
disintegration of the consumer/brand relationship. Instead, like Gerrie Fourie
demonstrates, its the adaptability of a brand that allows its lasting effectiveness in a
future that could involve moving the swimming pool to an ocean.