How directors can build a purpose‐driven brand

• Published date: 01 December 2020
• Author: Linda Henman
• DOI: http://doi.org/10.1002/ban.31185
• Date: 01 December 2020

Editor: Nicholas King

Visit us at wileyonlinelibrary.com/journal/ban

© 2020 Wiley Periodicals LLC • All rights reserved

View this newsletter online at wileyonlinelibrary.com • DOI: 10.1002/ban

How directors can build a purpose-driven brand

BY DR. LINDA HENMAN

People serve on boards of nonprofits because

they feel enthusiasm for the mission of the orga-

nization. Yet, many directors struggle to tell the

story behind their passion. From the moment

founders of the nonprofit opened their doors,

people began crafting this story behind the mis-

sion. Every product they released, service they

provided, individual they served or cause they

supported helped them carve out a unique niche

that helped them build brand identity. Too often,

however, directors don’t understand the role they

should play in telling that story to build purpose

into their growth strategies. However, when they

simplify their brand so people understand it, they

create more effective messaging that allows them

to connect with customers and donors. This cre-

ates the advantage that differentiates them and

allows them to stand out from the crowd.

In 1990, the most valuable brands were General

Motors, Ford, Exxon and IBM. By 2020, not one of

those brands would be among the most valuable.

Instead, 30 years later, Apple, Amazon, Google

and Microsoft led the list of most powerful brands

by distinguishing their goods, services and people

from the competition. They found ways to stand

out from the crowd and to win better opportuni-

ties. A Google search of the most powerful non-

profit brands doesn’t bring the same results, sim-

ply because directors of nonprofits haven’t devoted

enough time to building brand recognition. Savvy

directors of nonprofits understand, however, that

brands influence how people perceive an organiza-

tion or an individual, both the impressions that

can be controlled and the ones that can’t.

When directors think about their roles in build-

ing and sustaining a brand, they usually concen-

trate on the organization’s brand, too often ignor-

ing their personal brands. Organizational brands

and personal brands, however, must march in

lockstep precision to guarantee growth. When peo-

ple connect emotionally—because they share the

same values and beliefs as those who made deci-

sions about the brand—it leads to higher produc-

tivity and better brand differentiation. A resilient

brand encourages loyalty, advocacy, and innova-

tion. Since people often pay more for a brand they

recognize, a strong brand can even protect price

in times when competitors rely on promotional

discounts to drive sales.

In businesses, names, products, logos, colors,

fonts, voices and reputations contribute to or de-

tract from the brand. Similarly, individuals build

personal brands through recognition of their faces,

personalities, communication styles, talents, traits

December 2020 Vol. 37, No. 4

continued on page 4

INSIDE THIS ISSUE

Simple exercise can help bolster

board discussions 2

Consider advantages of board member

term limits 3

Nonprot CEO salaries on the uptick 5