Strategic Naming For Merging Healthcare Companies

Propr ietary & Confiden0al

brandgrowthstrategy

StrategicnamingformerginghealthcareprovidersAfacilitatedworkshopwithcompanyCEOs

MichaelMillion

[email protected]

PROPRIETARYANDCONFIDENTIAL

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Situation

Thethinkingaroundtheenterprisebrandisfluid

§  FROM: Thecombined“ABC+XYZHealthPartners”holdingcompany

§  TO: Amorepubliclyfacingandsingularmasterbrandwithcertain endorsedentities

IFamasterbrand,keyquestionsremain:

§  Whichisthebestnametouse?

§  Howshouldwetransitiontothatmasterbrand?

§  Howcanweretaintheheritageandequityofbothstrongbrands?

§  Whatshouldthenewbrandidentitylooklike?

§  Whatisthebesttimingfortransition?


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Today’sObjectives

Todiscussfactorsandconsiderationsinbuildingtowardalong-termmasterbrandforthemergedenterprisebysharingourperspectivesonthesituationandpossiblestrategiesgoingforward


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§  Namingthenewmasterbrand

§  Puttingpossibleend-statesintocontext–how“masterbranded”togo?

§  Transitioningtoanend-state-factorstoconsider

§  Alternativelogotreatmentsthatmergethetwoidentities

§  Insummary-roadmapandconsiderationsgoingforward

Agenda


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ConsumersintheXmarkethavealotofchoice


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Themergedentityhasanopportunitytobreakthrough

Defineanewbrandbe@erposiConedfortoday’smarketthatleveragestheequiCesandheritageofboth

CompanyXandCompanyY

NEWMASTERBRAND

EquiCesEquiCes

CompanyY

CompanyX


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§  Perceptionsofyourcompanythatdirectlyorindirectlydrivedesirableactionsresultinginabusinessbenefitis“brandequity”

§  Whiletheseperceptionscome,primarily,frominteractions,anamecancertainlysettherightdirectionforintendedassociations

§  Anamecanhaveintrinsicvalue,andcanbeanimportantsignalofwhatthebrandstandsforandwhatitbelievestobemostimportant

§  Alocation(NorthShore)

§  Aroleinsociety(Advocate)

§  Afounder(Mayo)

§  Acorebelief(HonorHealth)

Oneofthefirstissuestoresolvewillbethename


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Optionsforthename

ABC+XYZHealthPartners

ABCHealthCare

XYZHealthCare

NewName

Combineexistingnames

Chooseoneoftheexistingnames

Createanewname

Company

YCompany

X


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Ourperspectivesonthename

Thebestcorporatebrandnameshavecertainthingsincommon:

q  Theyarememorable/easytouse/generally,theshorterthebetter(Google,Twitter,Microsoft)

q  Theyhaveinherentmeaningofahigherorderthattranscendsfunction(Amazon,Oracle,Apple)

q  Theydon’tlimittheorganizationrelativetoproduct,geography,etc.,asitgrowsintothefuture(GEasopposedtoGeneralElectric)

q  Theyarerelevantto,andhelppositiontheorganizationwithin,thecategorytheyoperate(HonorHealthasopposedtoTenetorPresenceHealth)

q  Theyhelptheorganizationstandoutandgeteasilyrecognizedindifferentcommunicationforms(written,conversation,digital)


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Ourperspectivesonthename

Giventheseobjectivecriteria,webelieveABCisthebestoptiontouseforthenewmasterbrandname

q  Memorable/easytouse

q  Hasinherentmeaningofahigherorder

q  Notlimitingastheorganizationsgrows

q  Veryrelevantwithinthehealthcarecategory

q  Helpstheorganizationstandoutandgeteasilyrecognized(startingwithan“A”actuallyhelps,especiallyindigitalsearch,andlistrankings)

Inaddition,it’salreadyanexistingnamewithhighequityandscaledpresenceinthemarket,andthuswon’trequireinordinateamountofresourcestobuild,likeanewnamewould

Additionally,webelieveithasnonegativeassociationsorissuestobeconsidered


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Later,we’lldiscusshowtoleveragebothbrandswhilebuildingnewmasterbrandequitiesthroughdesignelements

NewMasterBrand

Company

YCompany

X

Name(discussed)

Color

SymbolDesignElements

Typography


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Agenda


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BrandArchitectureSpectrum

BrandedHouse HouseofBrands

InvestmentBankingTrading&PrincipleInvestments

AssetManagement&Securities

CustomerSegments/Need-states

BrandManagementResources

Competitors

Homogeneous Heterogeneous

Centralized/limited Decentralized/Abundant

Few/Large Many/Small


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BrandArchitectureSpectrum(HealthcareExamples)

BrandedHouse HouseofBrands

Hospitals/MedicalCenters

Enterprise

MedicalGroups

InsCtutes

Health Network Affiliate


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Ourperspec0vesonthebrandarchitecture–postmerger

§  Movingtowardamasterbrandstrategymakesalotofsense,BUT…

§  ….choosingwhichnametogowithandwhichentitiestoretainlegacyidentitiesforwon’tbeaneasyone(awholesaleconversionmightnotbeadvisable)

§  Bothinstitutionshavebuiltpowerfulmasterbrandsuntothemselves(clearlybothhavea“masterbrandphilosophy”),unlikeotherswhoneverunifiedtheirbrandsandmaintainedafragmentedportfolio

§  Ensuringthetransferofequityintothenewmasterbrandwillbekey,aswellasstrategicallydeterminingwhichentitiesshouldretainthelegacyname

§  Stepsandtiminginthistransitionwillalsobekey,asweareabouttodiscuss….


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Agenda


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Afteranend-stateisdetermined,atransitionstrategywillbekey

Current End-StateTransition

Processtowardintegratingtheinstitutionsfromanoutward-facing/brandperspective

Howdoweeffectivelyandefficientlybuildtowardamasterbrand?

Entities•  Hospitals

•  Departments

•  Centers

•  Institutes

Offers•  ClinicalAreas

•  WellnessPrograms

•  LabServices

Illustrative–tobediscussedlater

Company

Y

Company

X


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Casesthatillustratedifferentapproaches

Delivery/OfficeProduction Energy


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FedEx/Kinko’s2004

TransitionalCo-brand2008

Transitiontofamilybrand

Today

Kinko’sbrand,whichhadhighequityinthecategoryisretainedfor4yearstotransferequitytoFedEx

NewsymbolintroducedtocallattentiontonewtypeofentitywithintheFedExenterprise

Transitionlinetoreinforceequitytransferandestablishnew,familybrand

Priorto2004

Descriptorlineaddedtoeasetransitionandclarifyfunctionofco-brand


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§  FedExHistorically—Verydisciplinedinmanagingitsbrandarchitecture,post-M&A

§  Leveragesitsmasterbrand

§  Drivessynergiesthroughoutitsportfolio

§  Clarifiesbreadthofoffers

§  KinkosAcquisition—Migrationto“FedExOffice”

§  Intotal,a4-yearmigrationtosuccessfullytransferequitytoFedExmasterbrand

§  "Kinko'sPrintingInside”signshelpedreduceconfusionduringtransition

§  SkillfullyuseddesignandcopytoindividualizetheKinko’sofferduringmigration

FedEx/Kinkos–HighlightsofTransition


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§  UPSmadenobigbrandchangestoMBEafteritacquiredthecompanyfortwoyears(from2001to2003)

§  In2003,UPSre-brandeditselftoreflectitsbroadenedcapabilities,andevolveitspositioningtocaptureahigherorderbenefitof“synchronizingthecommerce”

§  Aspartofthesystem-widere-brandingeffort,allMBElocationswereconvertedto“UPSStores”

§  TheMBEbranddidnothavethesamelevelofequitythatKinko’shad,andthuswaseasiertoeliminate

AcomparisontoUPS/MailBoxesEtc.

2003UPSre-brandsitself/convertsMBE

2001UPSacquiresMBE

2004Sold500newUPSStorefranchise

locations

2012MallBoxesEtc.changeditslegal

nametoUPSStore,Inc.

Synchronizingtheworldofcommerce


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Movingtowardamasterbrandrequiresforethought,systemsthinking,andflexibilityforentitiesthatrequiretheirownidentitiesormoretimetoconvert

§  Establishahigh-levelvisionbeforeyoubegin…

§  Clearlyarticulatetheenterprisebrandstrategy

§  Accrueequitytomasterbrandasquicklyaspossible;whileminimizingcosts

§  …andatthesametime,paycloseattentiontodetailsandnuances

§  Needadetailedmigrationplan

§  It’sabout“substance”(e.g.,positioning)notjust“optics”(e.g.,name,logo)

§  Clarifyimpactoftransitiononallrelevantstakeholders

§  Berealisticontiming.Someentitiesmaybeabletobeconvertquicklywhileotherwillrequiremoretime

Ourperspec0vesontransi0oningtoamasterbrand


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CaseExamples–EnergyIndustry

LegacyCompanies Transi0on EndState(Corporate) RetainedLegacyBrands

-

Cobrand,withanemphasisonChevronidentity.Overtgraphicdisplayofmergedentities

Cobrand,withanewfonttreatmentfor“word-mark”;symbolborrowedfromBPvisualidentitysystem

StationBrands

ProductBrands


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§  Allthree“BigOil”mergersresultedinasinglecorporatemasterbrand

§  ExxonMobilimmediatelymergedlegacybrandsintoanewmasterbrand

§  BPandChevrontransitionedtoasingleexistingmasterbrand

§  LegacyCorporatebrandswereretained,butnotatsamelevelofbrandarchitecture

§  Corporatebrands“demoted”tostationbrands(e.g.,Texaco,Mobil)

§  Corporatebrands“demoted”toproductbrands(e.g.,AmocoUltimate)

§  Productbrandsretainedandextended(e.g.,MobilSpeedpass)

EnergyIndustry-HighlightsofTransition


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§  FromanamingperspecCve,BPandChevrongotitright—Movingtoasingle,exis0nglegacyCorporatebrandisbe@erthanmergingtwolegacybrandsintoone§  Customers—Nearly20yearslater,customersandotherstakeholdersconCnuetorefertothemergedenCtybyitspreviouslegacyname(Exxon)

§  Employees—combiningtwolegacybrandnamesintoone(ExxonMobil)didmoretoperpetuatedifferencesthantoinspireunity

§  Expression—ExxonMobilhasstruggledwiththecumbersomenatureofitslogo,andhasperiodicallytoyedwithdevelopingashorthandversionofitsname

§  IfCompanyXandCompanyYfollowtheChevron/BPexampleabove(single,exisCnglegacy),theotherbrandshouldbeconsideredforotherpartsofbrandarchitecture§  Landmark(e.g.XYZEvanston,anABCHospital)

§  Building/wingcarryingdonornames(e.g.,ZTPAmbulatoryCare)

§  Prac0ce/treatment(e.g.,XYZNameCancerCenter)

Ourperspec0vesontransi0oningtoamasterbrand


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Considerationsinmovingfastvs.slow

Cost §  There’softenatrade-offbetweeninitialandlong-termcosts

SignaltotheMarket

§  Aprudentlyrapidpacewillsignaldecisiveleadership

Confusion §  Gofast…butnottoofast.Neversacrificeclarity,internalorexternal

Equity §  Effectivemanagementallowsforfasterspeed

§  Differentcategoriescandictatedifferentspeeds

§  Whilemore“comfortable,”aslowtransitionmissesanopportunitytobuildequityintonewbrandsooner

StrategicPreparedness

§  WhenfutureM&Aactivityisanticipated,afastertransitionisrecommended(tospeedadoption/minimizeconfusion)


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Agenda


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§  Youshouldadoptamasterbrandstrategybecauseofthestrength,“criticalmass,”andoperationalandfinancialefficienciesthatresultsfromasinglemasterbrand

§  ABCisthebestnametouseforthatmasterbrandbecause

§  Itisanexisting(i.e.,notnew)name

§  Hasapositive,benefit-orientedconnotation

§  Allowsforgreatestdegreeoffuturegeographicalexpansion

§  Therearewaystohonorandleveragetheheritageofbothbrands,whiletakingadvantageofthis“momentintime”opportunitytocreateanewbrand(i.e.,beyondjustthename)

§  But,alotofworkisrequiredtodothiswell…

Ourperspec0vesinsummary


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Long-termBrandBuildingRoadmap

§  STRATEGYSETTING

§  Segmentation/Targeting

§  EquityResearch§  BrandStrategy§  BrandArchitecture§  TransitionPlanning

TimePeriod1(6months–1year)

TimePeriod2(6months–1year)

TimePeriod3(Ramp-upinyear2/3)

STRATEGYSETTING

STRATEGYSETTING

§  NameDevelopmentandTrademarking

§  VisualIdentitySystem

§  Guidelines§  BrandMessaging

CREATIVEDEVELOP.

STRATEGYSETTING

§  EmployeeTraining

§  Integrationintokeyoperations

§  Governance§  EventCoordination§  Int.Communications

LAUNCHPLANNING

STRATEGYSETTING

§  Ext.Communications

§  Marketing

§  StakeholderExperience§  Identityconversion

(e.g.signage)

FOCUSEDACTIVATION

STRATEGYSETTING

§  Continuedbrandintegrationintobusiness,offers,etc.

§  System-wideidentityconversion

§  print§  digital§  environmental

§  BrandManagementSystem

§  people§  process§  tools

§  OrganizationalDesign

§  Monitoring&Management

SCALEDOPERATIONALIZATION&MANAGEMENT


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§  Thinkbeyondthelogo-howthebrandshouldbestrategicallypositionedandarchitectedtoachievebusinessandmissionobjectives,andhowitshouldbeexpressedinentitytoevokethehumansideoftheenterprise

§  Thinkaboutthesystemofentitiesandoffers,whattheend-stateshouldbeforbrandarchitecture,andhowtotransitiontheminefficient/effectiveways

§  Thinkaboutkeyinteractionswithdifferentsetsofstakeholders-requiredtogeneratemomentum,shapeperceptions,andbuildequityovertime

§  Thinkaboutthesequencingofworkrequiredtobuildtowardastrongmasterbrand–whatcomesfirst,second,third

§  Thinkabouttheteam,operatingmechanisms,governance,andthemetricsrequiredtoensureprogressandaprofessionallymanagedprocessin-tunedwiththesensitivitiesofdifferentconstituencies

Considerationsgoingforward


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Strategic Naming For Merging Healthcare Companies

Marketing

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