Kimbal StokesSystemic Leadership: Gerrie Fourie 1/4/2015 BRBB ASSIGNMENT 2 Brand and Brand Building: Systemic Leadership Essay Capitec’s Gerrie Fourie Kimbal Stokes 14018377 12 February 2016 1 a shift from a ‘parts perspective’ with distinct boundaries. is occurring at a rate of increased interconnectedness (Lundestad. the classic model of brand management must be adapted and brand’s reconstructed to allow meaning to become once again inserted. structure and performance of certain tasks has become compromised as our world is increasingly fragmented. an adherence to 2 . This change of perspective would be from a pure reductionist view to a combination between a reductionist and a connectivist (Taylor. when a glass of ink has water added. The latter situation is an example of fragmentation. without compromising the benefits offered by intercommunication technologies. In this sense. Joachimsthaler. an additional action would be required other than changing the model. With the emergence of new markets. one where the speed and immediacy of a global village infiltrates the daily agenda of the public and private sector. a swimming pool (our global village). That is a change in perspective. 2011).Kimbal Stokes Systemic Leadership: Gerrie Fourie 1/4/2015 We are currently living in a connected world. traditional methods of creating meaning in a brand no longer works as it did when there was only a glass. This ‘re-inking’ would be done by migrating from McElroy’s ‘Classic Model’ of brand management to a ‘Brand Leadership Model’. with their own specific prerequisites. Traditional means of the planning. 2004). which is happening exponentially as interconnectedness from information technology becomes further entrenched in society. Adapting the model would. ink of a different color should be poured pack into the swimming pool. In this swimming pool of colorless water. For example when a glass of water has ink added to it.e from a tactical and reactive model to a model that is strategic and visionary (D. in theory. slowly the ink loses color and ‘meaning’ becomes washed out and unidentifiable while it get’s moved to a large and unfocused container. i. it takes massive quantities of water for the ink to become non-existent – changing the need for a glass to a swimming pool. In other words. It takes a small amount of ink to render the water no longer translucent. In other words. Nonetheless. linear casualty. the water becomes colored with that ink. However. paradoxically. Aker and E. Subsequent to the pouring of water (intercommunication technologies). Fragmentation. a saturateddilution occurs resulting in weakened effectiveness of mass-marketing and a corrosion of brand-loyalty (O'Hara. 2000). prioritize the creation of meaningful brand identity that can become effectively communicated to the consumer. 2009). when the glass of ink is untouched it is rich and deep with color and meaning – like a market without fragmentation. philosophies and desires. To see this in effect. with blurred boundaries. Aker and E. 1. Aker and E. p. struggling to adapt to a decrepit business model to someone else’s business concept innovation. 4. 6) is imperative. 3. no longer can an organization simply be reactionary and tactical. but this does not mean a ‘defensive’ approach is needed in adapting to ‘someone else’s model’. 2009).Gary Hamel (Hamel. the other becomes superfluous and ineffective (D. the effective adaption to a brand leadership module cannot gain synergy in an increasingly fragmenting world and. The future of the brand does not need be one of confusion. without the adaption to the brand leadership model. A strong brand identity and a brand leadership model go hand in hand. and a belief in broad influence rather than incremental changes (Taylor.” . minus a personalized brand identity. business strategy is no longer the comfort it once was and yes. “Everyday companies get blind sided by the future. What is needed in order to not get ‘blind sided by the future’ is simply identity. this complex relationship between fragmentation and effective business strategy for the future (a bright future. The Organizational Challenge The Brand Architecture Challenge The Brand Identity and Position Challenge The Brand Building Program Challenge Understanding these challenges will not be effective without fully comprehending Aaker’s points of separation between McElroy’s ‘Classic Model’ and the Brand Leadership Model (D. Simply put. Without the one. These points of separation are based on the concept that the ‘Classic Model’ is outdated. there are 4 challenges as outlined by David A. Everyday dozens of organizations find themselves suddenly on the defensive. 2000. Joachimsthaler. Yes. Aaker in ‘Brand Leadership’ (2009).Kimbal Stokes Systemic Leadership: Gerrie Fourie 1/4/2015 incremental change and belief in controllability to something where a whole system perspective. not Hamel’s) is to understand the challenges presented to achieve brand leadership. where companies lose faith in the comfort of effective business strategy. dynamic flux. 2. 2009). and no longer has the 3 . No. Joachimsthaler. dissolution and the disenchantment with brand. effective brand identity cannot gel with the fragmentation presented by interconnected technology. a non-linear casualty. 2002) Hamel’s quote paints a picture of a dystopian future market. From tactical to strategic management 2. pp. 7). 2000. 2000. 7-8) In order to illustrate these various arguments. the two are not ‘mutually exclusive’ (Taylor.Kimbal Stokes Systemic Leadership: Gerrie Fourie 1/4/2015 suitable legs to stand the test against this increasingly fragmented market. one would need to outline a brand which has practically succeeded in adapting a business model from the McElroy’s ‘Classic Model’ to the Brand Leadership Model. Standard Bank. Furthermore. From limited to broad focus 3. These tensions are fig. There are three groupings to these points: 1. 1 (Taylor. and who’s integration of perspective from the traditional reductionist or a connectivist one to a management of tensions between them. Taylor creates a series to best represent ‘tensions’ between reductionist and connectivist outlooks. Under the leadership of the new CEO Gerrie Fourie Capitec has emerged as a motivated brand in the seemingly ‘Big4’ (First National Bank. this paper will argue that an organization needs more than simply an adaptation of business model but also a switch in perspective. and his identification of the connectivist’s and reductionist’s difference in organizational perspective. From sales to brand identity as the driver of strategy In addition to Aakers points of separation. 8) but rather require a balancing of the tensions of the two. ABSA 4 . the paper would argue a combination of the two perspectives as paramount to avoiding Hamel’s dystopian future. Illustrating this would require Carl Taylor’s ‘Systemic Leadership’ (2000). p. These tensions appear when “we contrast what is expected by tradition and with the realities of what we experience” (Taylor. 2000. p. but the inability to hold one’s own as a brand allows for a continued projection into obscurity amongst customers. 1. Not necessarily a failure. contributions to Capitec is to analyze his response to the 4 challenges set out by Aaker. The Organizational Challenge 5 . and the mastery of adaptation between models and an example of Aaker’s three groupings. However. Standard. Unpacking business leader Gerrie Fourie’s. Fourie’s introduction as CEO in 2013 (Capitec. ABSA and FNB banks. 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” - Gerrie Fourie (2013) This introduction has allowed for strong growth rates. “Innovation is not just technology. with a strong inclination in pioneering innovation to meet the customer’s everyday needs. Fourie’s predecessor. These values are namely the sustained conveyance of friendly. (iii) from sales to brand identity as the driver of strategy. Capitec proves critics wrong.Kimbal Stokes Systemic Leadership: Gerrie Fourie 1/4/2015 Bank and Nedbank) dominated South African banking industry. founded Capitec bank and fostered its foundation under a ‘Classic Model’ by being tactical and reactive in his approach (Bonorchis. but it’s much more (…) pioneering concepts. who incorporates a systemic approach to leading. Riaan Staasen. 2014) meant an introduction of values to Capitec that made a customercentric brand identity a possibility. Not failing in his task to create a foundation. The result was the continued obscurity of Capitec against the behemoth Nedbank. 2015). Yes it is part of it. remaining simple and focusing on a single brand image meant Capitec failed to merge into the new market reality (in a general sense. wins customers over in droves. not specifically in a South African banking one). making space for a new brand to emerge in South African banking difficult. (ii) limited to broad focus. (i) tactical to strategic management. which hadn’t been seen anywhere else in South Africa. but rather stagnant as the dominance of the Big4 corner the market. The above noted difference between Staasan and Fourie’s leadership modules illustrates the ease at which Fourie has navigated the systemic leadership role. increased customer relation and greater brand awareness. the tactics of delivering single products and markets. simplified and pioneering banking. which has become a market not necessarily fragmented as described previously. and to understand how he navigates the tension between Taylor’s connectivist and reductionist outlooks. could rally behind externally and internally. will bring clarity to customers. working alongside the previous CEO Riaan Staasen in the construction of the brand’s organization (Bonorchis. The role of each brand should be determined and their relationship to each other and the brand ID rendered paramount. However. the construction of this organization comes second to the establishment of its head. either by directly creating it’s structure or by having first hand experience of the function of it (D. 2014). The head is someone who has a long-term commitment to the organization and not a vested interest generated by a short-term stay. A successfully conceived architecture. The result is a unified organization that shares a clear vision. p. and the ability to leverage assets. real synergy between the brands and the communication programs themselves. since the past has established a timeline of understanding and passion with the company. This is all achieved by fostering a unified brand identity. Gerrie Fourie has considered carefully what points should the Capitec brand ‘stretch’ in terms of the products it could offer. Joachimsthaler. and (ii) common output and input. all forms of it’s structure from horizontal (industry) to vertical (client position). their respective roles and their relationship with the customer. the candidate should have sufficient knowledge of the working of the organization. Gerrie Fourie named as new Capitec head.Kimbal Stokes Systemic Leadership: Gerrie Fourie 1/4/2015 The organizational challenge is the difficulty in establishing a brand nurturing structure where the sharing of ideas. 2013) and had been expected to supersede Staasen once his leadership had run it’s course. which it had. This is done by establishing and fostering a communication system that provides (i) a common vocabulary. 2014). 2. simplified and pioneering banking (…) with an even stronger focus on innovation and meeting the client’s needs” (Capitec. “the delivery of friendly. Additionally to a ‘long term’. The ‘long term’ aspect creates a ‘future’ looking perspective. Aker and E. The Brand Architecture Challenge Brand architecture refers to the identification of brands and subbrands that are to be supported. His organizational challenge response was to create a brand identity that the majority of those who existed in the structure. Gerrie Fourie has worked for Capitec from its foundation years in 2000. and brand building initiatives becomes paramount to the stability of the organization and it’s ability to exist on synchronized collaboration. 2009. 6 . it’s expansion into other geographies other than South Africa and additionally it’s creation of a sub brand (Fourie. and therefore the challenge. After another strong year Capitec CEO sees lots more growth to come. experiences. 26). Aaker also goes into detail on the level of execution needed. p. When focusing on Capitec. 2014. and it distinguishes the organization from competition (including it’s products. to the capacity that this paper has done. transparency and an adherence to customer-centric products. have this forefront due too proximity as well.Kimbal Stokes Systemic Leadership: Gerrie Fourie 1/4/2015 3. Aaker outlines that execution elements of the brand building challenge makes strategies more vivid. The reason for this is it communicates to customers. as described in 'The Brand Architecture Challenge’ portion of this paper. Since brilliance needs to cut through existing strategies and programs. In other words. However. 4. 1) has fostered a relationship between Capitec and it’s customers – one of trust. In an interview with Alec Hogg for Biznews (2015) Fourie outlines that they have ‘hit a wall’ in this sense (Fourie. too. whether it’s due to Fourie’s inability to identify exactly what brand programs are needed or if it’s the effect of the market domination by the Big4. no synergy and focus or the ability to cross manage in the splintering globalized platform. The Brand Building Challenge is to realize the brand identity building programs that are needed. reinforcing attitudes and deepening customer relationships. other sub brands. The Brand Building Program Challenge Considering Fourie’s success in the previous challenges. and to implement in order to define the brand identity. Capitec’s ability to maintain it’s brand identity. external and internal organizations. The Brand Identity and Position Challenge As previously stated in the paper. Capitec seems to lack the exposure needed to bring in new clients. it is important to note his ambiguity in this particular challenge. whilst fostered by Fourie’s vision for the brand itself has filtered down the organization creating exactly unity/synergy. there is no Brand Leadership model with an ambiguous or confused brand identity. it’s easy to identify the brand identity since the proximity and research needed would put this forefront. less ambiguous and provides confidence in new and existing clients. but more importantly distinguishes it from competitors. emphasizing the need for brilliance and not just a level of ‘good’. External and internal organizations would. Capitec CEO Gerrie Fourie: Sparkling results but do they justify 150% share 7 . The focus on consistent value. Already garnered clients would also know the brand identity. not only by competitors but by the organization itself. offerings and services themselves). and the client’s ability to ‘know what they get and know what they pay’ (Capitec. if the brand identity is confused the listed benefits wouldn’t come through in the brands favor but instead only increase market fragmentation. 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. rather than an adherence to the sums of a whole. as well as a leadership approach which is strategic. His experimentation. we said we want to do a couple of things such as building our brand” .Kimbal Stokes Systemic Leadership: Gerrie Fourie 1/4/2015 price surge?. like Gerrie Fourie demonstrates. Capitec’s goals have been met. edges onto an expectation of first time perfection. although informed. The fragmented market and Hamel’s dystopian future don’t have to be the outcome. 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. eases the tension between the reductionist and connectivist leadership outlooks. Instead. 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. he has also identified that the customer-centric approach Capitec and himself has taken will inform their brand-building programs.Gerrie Fourie (2015) Fourie’s success in addressing the challenges associated with having an effective organization that functions under the systemic leadership model. “(…) However. 2015). or the disintegration of the consumer/brand relationship. With an outlook that focuses on the bigger picture. wins customers over in droves. 8 . as a systemic leader. From the beginning. 2015). Capitec proves critics wrong. Their market growth continues whilst in a time of bank unreliability (referring here to the downfall of African Bank) (Bonorchis. Nonetheless. However. we stick to our game plan. this hedges on the reductionist edge. it’s the adaptability of a brand that allows it’s lasting effectiveness in a future that could involve moving the swimming pool to an ocean. whilst over achieving in other aspects. 2000).