Branding Update

April 21, 2014

Website Structure and the Brand

Previous Branding Updates have pointed out that branding for utilities does not involve inventing new ideas of value, catchy phrases, or slogans.  It focuses on helping policy makers and community leaders properly categorize the utility’s value, competencies, and character.  One of the ways to do this is to consciously build the brand using the website’s structure and content.  A good example of this is the Cascade Water Alliance website at http://cascadewater.org

The Cascade front page has several branding features, including the following:

• Highlights the brand commitments or core values of the organization (in the boxes)
• Commitments are water supply, cost effectiveness, regional leadership, water-use efficiency, and the commitment to its members
• Emphasizes the need for long-term planning and proactive investments
• Clearly defines Cascade’s service area and member agency partners
• Emphasizes that Cascade’s members are the source of water quality and reliable service

The need for long-term planning is the central theme of the webpage’s video, “Cascade’s Vision for Today…and Tomorrow.”  Both the webpage and the video highlight the co-branding and co-messaging relationships between Cascade and its member utilities.  This partnership is reinforced by the fact that leaders from each community are the speakers in the video.

These concepts are simple but very important.  When communicating any information it is essential to give people a framework for thinking about the value and characteristics of the utility.  And when developing a website, the important point is to consciously address the brand when organizing the website’s content.  Without this structure, more detailed information will not have the proper context.  And out-of-context information rarely leads to desirable perceptions or trust.

Branding Update

April 7, 2014

The Appropriate Utility Brand

Past Branding Updates have covered a variety of topics related to consumer branding and branding as it applies to water and wastewater utilities.  The overarching point of these discussions is that branding absolutely applies to public utilities, or for that matter any person, product, or organization.  The following conclusions summarize key aspects of branding, and provide insights into the appropriate brand and branding activities for utilities.

Investment and Branding – Similar to the relationship between a product’s brand and its price, the purpose of utility branding is to ensure appropriate investment in water resources and infrastructure. 

Branding and Categorizing – Strong brands compete in or dominate a value category, for example Red Bull being a popular energy drink or Google being the leading search engine.  The important lesson is that people are constantly categorizing things, and these categorizations impact trust in organizations or people, and buying decisions about products.  The process of utility branding is defining how the utility should be categorized, and is being categorized, by those who make or influence policy decisions about rates and investment.

Categorizing and Trust – Utility categorizations are specific, and they determine the trust, or lack of trust, people have in the utility.  These trust categories typically relate to the utility’s roles, including water service reliability, customer service, public health, and protecting the environment. Furthermore, people want these services to be a good deal, so they need to know that the utility plans well, is efficient, and makes sound financial decisions.

Trust and Transparency – Transparency is a must for public utilities, but in order to build trust the shared information must be meaningful and important to the audience.  Sharing technical details or too much information is not being transparent and actually decreases trust.

Transparency and Standards – It turns out that one of the best ways to be meaningfully transparent is to highlight the motivations and standards driving activities and investment decisions. 

Standards and Compelling Value – Strong brands provide compelling value, and providing consistent and compelling value depends on standards.  Just think how many standards are at work when you enter a Starbucks store, including the strength and temperature of the coffee, the service, the look and feel of the store, and the standards that apply to every drink on the menu.

Compelling Value and Investment – Making a compelling argument for investment begins with sharing the standards that are driving the utility’s investment proposal.  This moves the dialogue away from opinions, vague ideologies, and technical minutia. This also allows staff and policy makers to focus on the suitability of the standards given the roles of the utility and the needs of the community.

Entrusted with Protecting the Public Interest - These conclusions remind us that there are strong links between brands, price, standards, transparency, trust, and investment.  It also leads us to the conclusion that branding for utilities needs to be appropriate given their duty to protect the public interest.  Customers cannot typically choose a different utility, so the need for trust is even greater than that of a consumer brand.  Because of this, appropriate utility branding is not based on logos, look, or advertising and it cannot involve spin or manipulation.  Utility branding must be substantive, focusing on customer service, standards, meaningful transparency, and making compelling arguments for investment.  The stakes are high, because service reliability and future quality of life in the community hang in the balance.

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.