Branding Update
February 4, 2014

Reaching the General Public?

The cartoon above reminds us how difficult it can be to get the attention of the general public. And with ever more sophisticated strategies by marketers to get inside the head of consumers, it will only get more difficult. Despite the critical need for reliable water services, it can feel like the mind share captured by water utilities is no better than a pickle relish brand. And the pickle relish brand may actually have more money to spend on marketing than the water utility. People are not busting down the doors to attend public meetings on water. This serves as a reminder for utilities to focus on outreach that is effective, including making a good impression during customer service interactions (when people are paying attention) and building relationships with specific members of the influential public.

Branding Update
December 11, 2013

Holding an Annual Efficiency Summit

Since most utilities are part of municipalities or are public agencies, people are often suspicious that they are not very efficient. This categorization occurs for a variety of reasons, one being that most utilities are monopolies, so they don't have a strong competitive incentive for increasing efficiency. Utilities do pay attention to efficiency, but it's difficult to benchmark. And having the lowest rates does not mean you are the most efficient. A "you're not efficient" brand is definitely a problem when it comes time to propose higher rates.


So, utility managers need to demonstrate to policy makers (and anyone else who is paying attention to the utility's finances) that efficiency is a core commitment of the organization. A good way to do this is to hold an annual efficiency summit. This meeting/workshop should focus on the status of current efforts, brainstorming new ideas, and setting goals for the upcoming year. This approach has several benefits. It helps to ensure that the organization is expending sufficient effort on efficiency improvements. It institutionalizes the process of increasing efficiency, which communicates the organization's commitment. And it will be a breeding ground for efficiency case studies. The summit should be billed as one of the year's most important events. This will generate publicity, and publicity builds brands.

Branding Update
December 4, 2013

Practicing Transparency

Most utilities are not trying to hide information. But despite their best intentions, they may appear to be holding back because they do not understand how to be meaningfully transparent. In past Branding Updates we have discussed the need to share the motivations and standards driving the activities, decisions, and proposed investments of the utility. This is especially true with respect to planning and finances.

However, in many cases standards are sprinkled throughout the strategic plan or other policies and procedures. Major standards may be called core values or goals. Standards can even be found in lists of activities. One way to facilitate increased transparency is to compile the important standards in a single document so they are readily accessible to the staff. The process of listing and reviewing the standards forces the organization to reconfirm their commitment to the standard, or revise it. It also reinforces the need to share these standards when communicating and making the case for needed investments. It is very difficult for utility managers and staff members to be transparent if vetted standards are not easy to find and use.

Branding Update

November 5, 2013

Internal Communications that Build Trust

In previous Branding Updates we have discussed how communicating standards and motivations is essential for providing meaningful transparency. Transparency not only applies to communicating with customers and the community. It is just as important, if not more important, for internal communications.

Use Standards to Build Trust with Employees - One of the most effective ways to build trust with employees comes into play when announcing important decisions. The announcement is meaningful and builds trust when the logic and motivations behind the decision are clear. And the most powerful motivations are the utility's standards. For example, if the utility announces that it is building an additional water pipeline to a given community, it is important to mention that the reason is to comply with the standard of having redundant water-delivery paths. The standard provides the logic and actually enhances the perceived value of the investment. Being clear about the standard also heads off questions like "why do they need an extra pipeline and who is paying the bill?" Remember, there may be several standards that apply to a given decision.

Standards Affect All Levels of the Organization - Every decision communicated by management to employees should include the motivations or relevant standards. Without this accompanying logic, employees will come to their own conclusions (often erroneous) or just brand the decision as another edict from management. Also, when employees understand the standards, they make better decisions while performing their duties.

Failing to Communicate an Important Decision - This is a trust buster. And every decision that directly affects an employee will be considered important by that employee. Failing to inform the employee of the decision tells them they are not important.

Standards Should Be Accessible - Notwithstanding the need to be transparent with the community, building internal trust is another reason why utility managers need to compile a list of standards that are driving their decisions and investments. Standards are usually sprinkled throughout the strategic plan, board or city council policies, and other management documents. Since they are essential for making the case for investment and providing meaningful communications, they should reside in a single document and be very accessible to management and staff. This document can also be used for periodically reviewing the standards and approving changes.

Branding Update
October 7, 2013

Using the "Branding" Word

Employing the term branding in connection with managing a water or wastewater utility triggers a variety of reactions, ranging from very positive to very negative. The negative reactions are often rooted in the following sentiments:

• Utilities are monopolies and don't have competitors, so there is no need for branding
• Branding is spin, and is designed to fool people into buying products they don't need
• The public will react negatively to utilities spending money on branding programs

Here are some of the reasons why the branding term is appropriate:

Branding Brings Attention to Needed Change - The term gets people's attention, which can inspire utility managers to improve planning, communications, and making cases for investment.

Utilities are Being Branded - Public utilities are being branded whether they like it or not, which means they are being categorized in ways that affect public trust. An example is the often-heard claim that government organizations are inefficient.

The Need for Category and Audience Focus - Branding efforts strive to ensure that a target audience properly categorizes a product's value (safe car, leading energy drink, best smart phone), and ultimately decide to buy the product. Similarly, utilities need to focus on ensuring that policy makers and the influential public (the target audience) trust the utility's planning and investment proposals.

Good Brands are Genuine and Long-Lasting - This is a testament to the power of branding and demonstrates that competent branding is not spin. Utility brands must be true, helping people to accurately categorize the utility's roles and expertise.

The Brand Determines Price - Likewise, perceptions about the utility by policy makers and the influential public ultimately effect rates.

Branding is Powerful and Cost Effective - Utilities need to tap into the power and efficiency that comes with being brand focused. In fact, good branding is more cost effective than unfocused outreach efforts that often fail to make an impression on the "general public."

It's Wise to Use the Term Appropriately - Announcing to the community that you are undertaking an expensive branding program that focuses on logos, slogans, or advertising is asking for trouble. Good utility branding is the quiet process of clearly defining your value and important standards, providing great customer service, making compelling cases for investment, and building meaningful relationships with those who can influence policy decisions on rates and investment.

Branding Update
September 17, 2013

Standards, Brands, and Transparency

Standards are the Essence of a Brand - In past Branding Updates we have discussed the terms above. However, it is interesting to explore how they are related. It turns out that the foundation for a good brand is its standards. These standards can be broad, like Rolex focusing on producing luxury watches. They can be more detailed, like Starbucks making sure the coffee in its stores is a certain temperature or strength. In every case, the value embedded in a product or service is determined by standards. Related terms are specifications or requirements. Regulations are an imposed standard, and failing to comply is a negative branding moment.

Utility Branding and Standards - A utility’s mission and brand commitments are its fundamental standards, for example ensuring water-service reliability, water quality, or public health. However, within each of these categories there are multiple standards that drive activities and proposed investments (and add meaning to the value that the utility provides). For example, stating that a community’s water supply will be climate-change resilient qualifies and enhances the meaning of the water-service reliability commitment. Deciding that each customer-service interaction must create a positive impression triggers the need to define more detailed standards that ensure this occurs. This would almost certainly include a maximum hold time for customers who call to report a problem. Making sure all important standards are identified and meaningful is an essential element of effective strategic planning and communications.

Standards are the Key to Meaningful Transparency – It is easy to think that transparency means sharing everything. But if we ponder this idea for a moment we know it is not true. No utility would go out of its way to share specific dimensions from the drawing of a pump, or the chemical composition of the chlorine product it uses for disinfection. However, utilities share information all the time that is not very meaningful or transparent. Content tends to focus on facts and figures rather than the motivations or standards driving a decision or activity. So, when communicating with the public or policy makers about needed investments or rate increases, the utility needs to articulate the standards pertinent to the recommendations. This must include relevant planning and financial standards. Without this information, the value embedded in the proposal will not be clear or compelling, and there is arguably no real transparency.

Branding Update
August 14, 2013

Focusing on Staff Proficiency

In past Branding Updates we have discussed some of the intricacies of building public trust through a conscious branding effort, creating compelling arguments for investment, and building relationships with the influential public. In case it is not yet clear, this is all about forging relationships. The trust being sought is trust in the leaders and employees of the utility. To build this trust, senior managers and staff need to be well versed in branding and communication principles, and be capable of taking effective action. So, it is essential to think in terms of increasing the staff's proficiency in specific areas.

Key Principles - Understanding the application of branding principles to water and wastewater utilities

Mission and Vision - Fully grasping the difference between the brand, the mission statement, and vision

Transparency - Creating transparency that builds trust...by sharing information that emphasizes the logic behind important policy decisions and investment proposals

Planning - Developing a strategic plan is that is brief, based on the brand, empowers the staff, and communicates the significant standards influencing activities and proposed investments

Relationship with Governance - Understanding and meeting the needs of policy makers

Investment Proposals - Making a compelling argument for an investment or rate increase

Policy Briefings - Creating and adopting a "policy brief" that outlines the information necessary to create a compelling argument

The Need for Investment - Developing an investment imperative that becomes the foundation for connecting with community leaders

Community-Leader Relationships - Systematically building relationships with the influential public

Meaningful Information - Properly categorizing shared information, so people reading the utility's communication materials immediately know what they are reading and why it's important

Focused Outreach - Prioritizing and designing outreach efforts that support policy makers and sound policy decisions

Website Effectiveness - Designing a website architecture that reflects the brand, makes it easy for customers to solve problems, is not loaded with unnecessary information, and provides important facts about long-term planning, needed investment, and rates

Case Studies that Build Trust in Specific Areas - Drafting and sharing return-on-investment and efficiency case studies

Annual Report - Producing an annual report that articulates the "good deal" that the utility provides to the community, using language that conveys relevant facts and is not perceived as self promotion

Opinions about Public Employees - Crafting communication strategies that enhance perceptions of public employees, including their value, professionalism, and compensation

This journey can be described as "practicing principles to achieve proficiency." The good news is that the process of becoming proficient also builds the brand. The result is managers and staff members that are able to increase trust with customers and community leaders, and secure the financial resources needed to fulfill the utility's mission.