Today, intangible assets are the dominant contributors to business value creation. Recognizing this, Cap Gemini Ernst & Young developed a rigorous, comprehensive model of business value creation called the value creation index. Its components include innovation, quality, customer relations, management capabilities, alliances, technology, brand value, employee relations, and environmental and community issues. Several of these relate to my previous blog post on multiple stakeholders.
I recently heard Doug Rauch, former president and 31 year veteran of Trader Joe's, speak. He spoke of the following as contributing to business success:
- A compelling purpose
- Focus - not being all things to all people
- The long-term view
- Taking risks
- Constantly monitoring the environment, including monitoring potential outside of industry threats
- Putting the employees first
Brand managers would do well to consider these as a part of their management of the brand. This includes creating non-financial metrics and a balanced scorecard.
Our BrandInsistence brand equity measurement system indicates that awareness, relevant differentiation, value, accessibility and emotional connection underly brand equity.
My latest book, Brand Aid, has more information on all of this topics.