TMF-MCR-JUNE 2011-13955174

Title page:

Corporate Branding

For

A Health Insurance Organization in Nigeria

Candidate Declaration: I confirm that in forwarding this assignment for marking, I understand and have applied the CIM policies relating to word count, plagiarism and collusion for all tasks. This assignment is the result of my own independent work/investigation except where otherwise stated. Other sources are acknowledged in the body of the text and/or a bibliography is appended. The work that I have submitted has not previously been accepted in substance for any other award. I further confirm that I have not shared my work with other candidate.

Total words Used: 4019

CIM NO: 13955174

Page 1

TMF-MCR-JUNE 2011-13955174

Table of Contents Illustrations:

1. The difference between product brand and corporate brand 2. The Organization Stakeholders 3. The Company Credo 4. Foundation for Successful Corporate Branding 5. Framework for Corporate Strategy and Governance 6. Framework for Strategy Brand Management Title Page................................................................................................................................................1 Introduction ............................................................................................................................................ 3 Definitions ............................................................................................................................................... 3 Type of Corporate Brands .................................................................................................................... 3-5 Corporate Character Evaluation .......................................................................................................... 6-8 Corporate Branding Potential for the company ................................................................................ 8-12 Recommendation and Validation for identity Mix and corporate branding ................................... 13-16 Implications..........................................................................................................................................16 Appendix..........................................................................................................................................18-19 References...........................................................................................................................................20

Page 2

TMF-MCR-JUNE 2011-13955174

Introduction
Aaker, D.A (2004) opined that brand assets are complicated and expensive to extend, sustain and acclimatize. The proliferation of products brands, forceful market framework with emergence of new branding categories make it challenging to offer support. In the light of this, the corporate brand was birthed to play a major role in the management of the brand portfolio. Branding is not longer products/services only that are brands, organizations are also brands. The competitive marketplace and increasing demands by various stakeholders on organizations have caused most corporate citizen to have a rethink on how they are accessible, perceived and interact. All forward thinking organizations are concern with the images people form as result of interpreting signals the organizations transmit and every effort is consistently put to transmitting favourable signal.

What is a corporate Brand?

Van Riel, C. B.M and Fombrun, C.J (2010) explained that corporate brand involve personalizing the company as its entire in order to generate value from the company planned position, institutional activities, organization, employees and portfolio of solutions. Today organizations are using corporate brand as a platform to generate positive circle of light effect about everything the organization does and demands a commitment to the usage of coherent and consistent communication if sustain benefits are expected from the corporate branding strategy.

Types of Corporate brands

The corporate brand architecture depends on the organization marketing frontier with the stakeholders. However, Petromilli et al, (2002) opined two brand types of architecture: 1. Branded house and 2. House of brands. The Branded house uses a single brand for all of its offerings. Like Zenith group, Philips, IBM; and the house of brand architecture is characterised by collection of brands that operate independently. These two approaches depict two extreme and most organizations operate a mix.

Page 3

TMF-MCR-JUNE 2011-13955174

Each stakeholder demands and seeks specific information; and for the organization to develop its corporate brand, it must develop a mix of integrated communication programme for their key stakeholders group that guide it positioning strategy. Van Riel and Fombrun, (2010) cited Olins branding strategies that include Monolithic, Endorsed and branded strategies; they also cited Kammerers action type branding strategies that includes four typologies- financial orientation, organizational oriented, communication oriented and single company. However, the focus here will be on the following: Monolithic strategy the whole company uses the same visual style and it can be recognize with the same symbol everywhere. Endorsed Strategy here the subsidiary have their own style, however the parent company stay behind the background. Branded Strategy- the subsidiaries have their styles; however the parent company is not notice. To this end, going by the discussion above, one thing is fundamental clear that once an organization had concluded to develop corporate brand, it has to decide which strategy to pursue. The latest development shows that there are other types of corporate branding relationship and a single corporate brand may creek around a variety of premeditated understanding and in addition to the aforementioned influentially corporate brand strategies cited by Van Riel and Fombrun, (2010) are added: FAMILIAL- the acceptance of the identical corporate brand by two entities within the similar industry. SHARED - as above, but with companies operating in divergent markets. SURROGATE- a franchise agreement whereby one organizations products/services are labelled as those of another. MULTIPLEX- the multiple uses, and sometimes multiple ownership/rights, of a corporate brand among a variety of entities in a variety of industries. Example: VIRGIN FEDERAL- the formation of a new corporate brand by disconnects companies that pool their possessions in a supportive endeavour. Example: AIRBUS SUPRA- brand used to supra-endorse any number of corporate brands.

Page 4

TMF-MCR-JUNE 2011-13955174

Having highlighted a few of corporate brand types, it is important to look at the difference between product and corporate brand in the level of responsibility. Corporate brand is a managerial responsibility and product brand is a middle management marketing function. The table below shade more light on the difference between the two:
Responsibility Management Communication mix Deliver by Time Horizon Importance of company Product Brand Middle Manager Marketing communications Marketing Short( Product life) Functional Corporate Brand CEO Total corporate The whole company. Long(life of company) Strategic

Source: Balmer, (2007) Product and corporate brand differences. Going by the above table, it is clear the strategic position the corporate brand of an organization plays and the strategic responsibility the corporate brand bring on the CEO to ensure the corporate promise is fulfilled as expected by the stakeholders.

The Organizations Stakeholders:

To help move forward in this discourse, it will be imperative to also have a pictorial view of the organizations stakeholders. The diagram below depict the Key

stakeholders Figure 1: the Organizations Stakeholders

Page 5

TMF-MCR-JUNE 2011-13955174

As highlighted in the diagram above, the various stakeholders currently influence the company strategic thinking, strategy formulation as well as communication and by implication will determine the choice of corporate branding strategy.

Advice on Brand Options:

In giving an opinion having examined the various types of corporate brands options in line with the organization key stakeholders, corporate structure, service portfolio, values and identity, mission and vision, I would advise the company adopt a monolithic corporate brand strategy to effectively position itself in the emerging health insurance industry in Nigeria.

Why the Choice of Monolithic Corporate Brand Strategy:

First of all, the monolithic branding strategy is a brand option that uses one visual style for the whole organization everywhere. Monolithic branding strategy was recommended because of the internal inconsistency and external confusion with regards to it strategy implementation. The monolithic corporate branding strategy will enable the organization align its communication strategy with the market in focus and easily differentiate thus defuse the inability of customers to quickly associate it services with the company. The planned opening of hospitals across the country with Mediplan as the brand mantra and the continuous repositioning that has been going on since the company name was changed made me advocate this branding strategy as the ideal. A good example of a company/s that has successful use this monolithic branding strategy is Philips with a tagline of Sense and Simplicity and it makes a lot of difference in it healthcare imaging unit; and others are Heinz, BMW, Apollo hospitals etc Also the company service benefits are 95% locally consumer which is also the reason why recommending monolithic corporate brand strategy is ideal for the company because of it regional operations and would be the platform for continuous expansion. [Task 1 Word: 1026]

Corporate Character Evaluation The Mediplan Healthcare in Perspective

The assessment of organizations character has become vitally important today because most companies pay title attention to understanding what the customer is actually experiencing as a

result of the prevailing internal culture, strategy mindset and communication structure.
Page 6

TMF-MCR-JUNE 2011-13955174

For example, enrollees (health insurance buyers) go through challenging situations receiving quality healthcare from providers (hospitals) in spite of huge amount of money paid to HMOs (health maintenance organization) in Nigeria and people are asking questions about the role of HMOs in the entire healthcare cycle. A sustainable corporate brand reflects the reality of the companys character which is a combination of the appropriate balance of the various components of character. To evaluate in detail the corporate character of the organization we will examine the following component of character: 1. culture, 2. strategy and 3. Communication structure as applied in the organization.

Culture
First of all what is culture? Want, J. (2006) defined culture as the collective belief that people within the organization have about their ability to compete in the marketplace and how they act on the belief systems to bring value-added services to the customer in return for financial rewards. The organization culture evolved around its credo and this guides their systematic developmental strategy of the organization. An interview with the CEO and some employee revealed that its ability to compete effectively today with other HMOs is rooted in the culture of the company that is internally differentiated by employees alignment from the recruitment process, continuous training, innovation and market oriented thinking. The internal culture is such that accepts positive failure and promotes continuous learning as well as strongly recognize that the employee as a vital hub between the organization and customers. The culture is gradually moving away from a blame game towards support system. The company has a less rigid and bureaucracy culture, high standards for ethical conduct are frequently communicated, accountability and responsibility is expected from everyone in the organization. The company work philosophy is illustrated below:

Page 7

TMF-MCR-JUNE 2011-13955174

Figure 2: The Company Credo Source: 2011 Company Corporate Profile.

To establish the conformity of the organization to its philosophy, an in-depth evaluation was carried out using a personalize approach and summary of the outcome is as follows: An analysis of the questionnaires was done using mean average and the outcome indicated that there where gaps between the internally held corporate character of the organization and what was externally seen as the organization corporate character. The customers and healthcare providers did not see the company as responsive and prompt in settling claims as well as meeting clients needs. See appendix A1 and A2 for the questionnaires, research methodology and responses.

Corporate Strategy Development:

The starting point for strategy development in the organization is outside- in approach with priority on the marketplace, competition and the optimal customer as the beginning of strategy formulation. It is normally developed at top management and board retreat with little feedback from the company wide input then cascaded down according. The strategy drive is innovativeness and differentiation in their solutions to the market thereby offering customized solutions to specific market segments at premium prices. The communication is structure around creating alignment of it vital human resource asset in order to achieve coherency and distinctiveness from the competition. However, as a service company over centralization of strategy development without decentralizing for companywide feedback and input may result in strategic gaps, hinder collaboration and it is imperative the company advocate collective involvement in order to achieve complete buy-in and commitment.
Page 8

TMF-MCR-JUNE 2011-13955174

The Organization Communication Structure

The internal communication is influence by official channel of reporting and it cut across horizontal and vertical formats. Information is disseminated through formal structure as well as through informal structure. Official communication to a large extent is centralized and this ensures consistency of message and content. The communication climate is positive and show openness with some element of a buy in, a degree of commitment and loyalty to the organizational values. Channels like emails; intranet and service memoranda are used to disseminate information. The communication messages are structured such that the character of the organization is express beneath the advertorial whether internally/externally. To this end having examined the organization character from the various components, it is obvious that the organization is in the developmental state and it is striving towards ensuring that it held corporate belief systems reflect internally and externally is consistent. To realize this, coherent communication, continuous staff training and development, signage, positive corporate behaviour and culture, and the continuous echo of its corporate philosophy will enhance its reputation and get everyone in alignment. [Task 2 word: 742]

Critical Appraisal of Organizations Potential for Corporate Branding Overview Corporate Branding:
First of all before going into detail evaluation of the organization potential for corporate branding, it will be good to explain what corporate brand is and also highlight some strategic benefits. The corporate brand is special; it describes the firm that conveys and position at the back of the offering that the customer will buy and use; it is a master brand and plays a pilot responsibility. Some examples are Dell, UPS, Sony, IBM, and others. It is obvious as the branded house with solutions brands consists largely of corporate brand with a descriptor and a platform to support communication to broad company stakeholders (Aaker, D.A. 2004). It is also important to point out that flourishing corporate brands relax on the basis of relationship connecting strategic vision, organizational culture and corporate image. The strategic vision is the focal element behind that house and communicate top managements aspiration for what the company will achieve in the future.
Page 9

TMF-MCR-JUNE 2011-13955174

Organizational culture is the inside ethics, attitude, and fundamental assumptions that encapsulate the legacy of the company and expresses its significance to its members. Culture manifests itself in ways that staffs in various positions have an experience of the company they are working for.

Corporate image- is the view of the outside world about the company that has developed over time. It includes the views of the media, customers, shareholders and the general public.

Hatch and Schultz, (2001) depict in the diagram below the relationship of the factors that make for success corporate branding. The strategic vision and company culture must consistently project what the organization stance for and eventually a positive image. This corporate image is owned by the stakeholders and is form over time from the totality of the company actions.

Figure 3: Foundation for Successful Corporate branding In the light of the above, Hatch and Schultz corporate brand tool kit was applied in the organization using a focus group interview and the result was huge potential for corporate branding of the organization and five identity perspectives where used: 1. Actual 2. Communicated 3. Conceived 4. Ideal and 5. Desired
Page 10

TMF-MCR-JUNE 2011-13955174

The Organizations Potentials for Corporate Branding: 1. Well Articulated Vision and Mission:
The organization has a well articulated vision and mission that is displayed in the company reception, advertorial materials and at their website. However the solid value intention should be clarify to streamline communication as to what to expect and what is expected from various perspectives thus better position the employee to appreciate and act upon the core corporate values. To this end, the corporate branding pursue will be fully maximize thus fulfilled internally and externally.

2. A highly Skilled and Committed Workforce

The organization has highly skilled and committed employee who are open and willing to live the corporate brand currently if the organization can integrate further available resources more than its competitors at its disposal that encourage complete employee engagement like increasing internal relationship, robust HR policy, and step up its product brand to corporate brand to catch the spirit in the organization Credo, then the company can direct what will be happening in the health insurance industry in Nigeria. Hatton and Hilpern, (2010) said that to market an organization effective every member of staff must live the brand. In other word, if the organization does not live the brand internally, how would it delivered externally? And concluded that experts have agreed that achieving this, requires engaging and motivating staff using the brand values themselves. The employee must be consistent in what they say and do, be people of accountability and responsibility in conduct and behaviour. In other words, the staff must be connected to the corporate brand value and exemplify with whoever comes in contact with them.

3. A well structure Organisational Chart

It current organizational structure also support corporate branding and the organization can make it more coherent yet open to facilitate free communication with space for propositions, sharing of apprehension; and with the level of commitment as well as dedication in the organization, employees should be encouraged to internalize and deliver the company Credo. The eventual outcome will be strong reputation for excellence services to all stakeholders. The decision making process in the organization support corporate branding and should further be enhance to support complete loyalty and extra mile commitment. That is, having the brand values serve as the guiding principles for running the business.

Page 11

TMF-MCR-JUNE 2011-13955174

4. High Market Potentials for Corporate Branding

In addition, there is also huge future in the health insurance industry that if the organization can align its current corporate and employee values together by equipping them to exhibit the core value at work and in their lives, embarking on the journey of corporate branding is a plus and the employees will become corporate brand ambassadors. The framework below further explains why corporate branding is critical success factor to Mediplan by way of brand and reputation leadership resulting in alignment of objectives and activities at all levels.

Management Strategy

Source: Adapted from Balanced Scorecard Collaborative 2003 cited in (Schreiber, 2008 Brand and Reputation: Leadership Perspective)

As shown above in the framework, corporate branding will provide the company with a structure for corporate strategy and governance thus enhance coherency in its corporate communication.

5. Legacy and Success business heritage Advantage

The organization has profound legacy in the business arena in Nigeria particularly in its board of directors that will help strengthen its corporate branding and these are good stories that the organization could use to add authenticity of the corporate brand and differentiation to completing brands. Example GE tracing itself back to Thomas Edison days; Honda engine progress going back to the 1940s and 1950s all help in shaping the brand today.

Governance

Page 12

TMF-MCR-JUNE 2011-13955174

6. The Nature of Business

Mediplan Healthcare Ltd is in the service industry and this weighty service element provides the platform for corporate branding. How? Considering it current sector potential and as a player, if the organization come into view as occupied, interested in customers, empowered, more approachable, and proficient, then going into corporate branding will attract liking, esteem, and eventually respect from all the stakeholders. That is, if the current CEO/MD of Mediplan Healthcare Ltd with his vast expertise in the health insurance can be the visible spokes person like Bill Gates at Microsoft, Dangote at Dangote Group of Companies, Michael Dell at Dell and Richard Branson at Virgin, the company will stand out getting involve in corporate branding. The CEO/MD has to be an epitome of the brand values

7. Financial Soundness and IT Robustness

Another potential advantage for considering corporate branding initiative for Mediplan Healthcare Ltd is it financial soundness and information technology strength. These core strengths will help the organization leverage and execute a successful corporate branding as well as sustain it over time.

8. Positive Organizational Climate

The company also has innovation, quality, and customer concern as bedded in it corporate climate and these three key drivers commonly tinted priorities for company brands and with that budding, Mediplan has what it takes for corporate branding initiative. Inclusively too, the generic nature of offerings and high tendency for similarity in services offering in the industry also makes corporate branding initiative as inevitably strong point of differentiation for Mediplan Healthcare Ltd. Finally, an interview with the management of Mediplan Healthcare Ltd reviewed that they all appreciate the managerial challenge of corporate branding and the conflicts that arises balancing between opposing forces during the various stages of corporate branding process. The ability to shift between the different stages is fundamental and the diagram below illustrates a framework for strategy Brand Management decision.

Page 13

TMF-MCR-JUNE 2011-13955174

Source: California Management Review, 2003 The conflicting areas in deciding whether corporate branding is an option are highlighted in the cited framework and having carefully considered that along with the management team, the decision for corporate branding was viable. [Task 3 word: 1219]

Recommendation and Validation for identity Mix and Corporate Brand

Several definitions of organization identity have been proffered and for the purpose of this assignment I will go with the definition of Pratt and Foreman cited by Fombrun and van Riel, (2010: p67) in their book Essentials of Corporate Communication that organizational identity include distinctiveness of an organization that its associates agreed are central, distinctive, and enduring (Pratt and Foreman, 2000). In other words, this attributes are critical, unique and exist within the organization. In order to have a sound recommendation having examined the company corporate character, potential for corporate branding and identified its stakeholders, it is fundamentally necessary to assess as well as validate the internal characteristics in line with centrality, continuity and uniqueness as a guide to proffering an identity mix that enhance it corporate communication message eventually corporate reputation. To this end, the centrally shared characteristics as sample in the organization are

Page 14

TMF-MCR-JUNE 2011-13955174

Integrity, frankness, commitment, dedication, responsiveness, promptness, accountability, trust, quality, professionalism, and excellence

Continuity Characteristic Integrity Heritage Goal orientation

Uniqueness characteristic Promptness and speed to claim settlement, discipline, trust, openness, and responsiveness to client needs The exercise resulted in the above characteristics in each section and further analysis was carried out in order to substantiate the gap between the management team and the employees. The management team under each of the following headings had the following characteristics Central Shared Characteristics - Integrity, Promptness, responsiveness, performance, goal-orientation, effectiveness and efficiency, commitment, resourcefulness, professionalism, innovation and creativity, value oriented. Continuity Characteristics Integrity, goal-orientation, promptness.

Uniqueness characteristics Here there was near 95% similarity of characteristics except openness and trust that management team included but the employees did not. A comparison shows that there are slight gaps in centrally and continuity characteristics and with a synergy at uniqueness characteristics. A further analysis comparing all of the above characteristics with the Mediplan Credo shows that both the management staff and the employees know the company core values. However, experts have opined that there is huge gap between knowing and living the core values; relating and connecting to the core values.

Page 15

TMF-MCR-JUNE 2011-13955174

Going by earlier evaluation of the company corporate character and attempting to align with above centrally, continuity and uniqueness characteristics exercise; identity mix that would be appropriate for both internal and external stakeholders is becoming clearer with focus on - Integrity, promptness, responsiveness, innovation, trust, professionalism and openness.

The corporate identity Mix (Birkigt, K and Stadler, M.M, 1988) Proposal for Mediplan
The corporate identity mix of the organization should constitute a balance using communication, symbols and behaviour in the right mix to achieve a consistent corporate image. 1. The communication: The verbal message should emphasize promptness, responsiveness and professionalism and innovation. Mediplan Healthcare Ltd is marketing medical services solutions and benefits that are intangible and demand high level of expertise, swift action in knowing what to do and meeting clinical needs of patient anywhere anytime once they are contacted. The message should be targeted at their key audience customers and potential prospects, healthcare providers, regulatory authority and internal customers. The message should also emphasize integrity and openness (transparency) to all stakeholders to seek for explanation on anything they wish to know which are not explicit at moment. The company also do not sponsor/engage in verbal message via media except during advertorial for recruitment. The company has to strategize on how to balance up. Internal communication also should be introduce and sustain in order to bridge the slight gaps between the management and the employees as to what the core characteristics of the organization are and the CEO, all management team should live and walk what they say. 2. Behaviour The action of the company should gear towards creating different healthcare solution plans with different benefits for different strata of society thus making it possible even for the unemployed to be able to access quality healthcare if the need arises. For instance the company has an internal reputation of prompt claims settlement and a more innovative way of doing it is using efund transfer/ electronic banking with arrangement with their banker thus reducing cost from both ends should be introduce and indeed show to stakeholder what the organization stance for.
Page 16

TMF-MCR-JUNE 2011-13955174

Employees that have daily contacts with various stakeholders should be train on certain behaviour display during services delivery, sales negotiation and other critical behaviour that communicate the corporate identity. 3. Symbolism The company has a logo as you can see below and can be redesign to emphasize major characteristics that communicate it identity and in alignment with its stakeholders. The fonts and colour should be consistent anywhere the logo is used or displayed.

The Company Logo A tagline should also be use to explain the name further and what the company does. Lapel for staff use should be introduced. Birkigt and Stadler (1988) depict in the framework below elements of identity mix:

External audience

Symbolism Internal Audience Communication

External audience

External audience

Behaviour

The Corporate Identity Mix Balance elements (Birkigt and Stadler, 1988) The diagram above explains the interplay and relationship between the three key elements of having a balance in deciding on the right blend of communication.
Page 17

TMF-MCR-JUNE 2011-13955174

Implications
Political: As a local operating organization there may not be any political implications as the current existing laws do not restrict corporate branding so long as the exercise is within the prescription guiding branding in the country. However, the multi-dimensional stakeholders that are involved in the healthcare industry with varying degrees of influence could political sponsor bills that may halt progress in the industry. Financial: Corporate branding requires huge investment and resources. However, considering the long term contributions, Mediplan Healthcare is better position now with the available resources at it disposal to shift from current product brand strategy to corporate brand strategy on all levels. In doing this, care must be taken in balancing resources accordingly. The federal allocation on federal civil servants to HMOs on a monthly or quarterly, and other corporate organizations that are tired of managing their deficit medical budgets are buying into the health insurance because of pooling factor, burden sharing principle and with this financial resources coming in if prudently management, the journey to corporate branding will not be too challenging. In conclusion, I strongly recommend that Mediplan Healthcare shift from product branding to corporate branding to create a niche for itself. [Task 4 Word: 996]

Page 18

TMF-MCR-JUNE 2011-13955174

Appendix A1 The table below shows the distribution and responses from external stakeholders and total of 10 questionnaires with 20 items were administered to each organization Questionnaire for Healthcare Providers (Hospitals) and Mediplan Clients

Descriptors 1 Does Mediplan Healthcare promptly pay medical bills incurred by enrollees in its provider list? How would rate the capitation payment by the company? How would rate the company response to your complaints and enquiry on all issues as concern your business relationship? Are your healthcare needs within the coverage adequately met? Please rate How skillful and tactful are the employee of Mediplan Healthcare in handling issues? How explicit is the healthcare coverage? How would your company relationship with Mediplan Healthcare in the last 2 years? Do you consider this relationship a mutually beneficial one? Please rate.

Very Poor =1

Poor =2

Average=3

Good =4

Very Good=5

6 7

If you where to suggest improvement, what would want improve about the relationship?

10 11 12

How interact and friendly is their online portal? How long does it take the company to response to your letters or email How would rate the sincerity of the company in keeping to its promise? How would rate the capitation and the healthcare coverage per patient bearing in mind the pool principle of resources? Do you consider Mediplan Healthcare as straight forward company in financial matters? Please rate. How would rate the healthcare services you are receiving from providers? If you where given a choice to choose between HMOs offering the same benefits, would you still choose Mediplan Healthcare?

13

14 15

16

Page 19

TMF-MCR-JUNE 2011-13955174

17

How would rate the health insurance industry in Nigeria? How you rate Mediplan healthcare solutions against other HMOs? Describe Mediplan Healthcare in two words What else do you to say about Mediplan Healthcare Ltd

18

19 20

APPENDIX A2: Responses

External Stakeholders

Very strong disagree =1

Strongly disagree = 2

Partial agree =3

Agree = 4

Strongly agree = 5

1 2 3 4 5 6 7 8 9

Compact Manifold British America Tobacco Linkage Assurance Plc Eurobridge Industries BI-Traxxcent Royal Infirmary Hospital Crystal Specialist Hospital EKO Hospital JON KEN Hospital 10 5 3 10 5 10 5 10 5 30 15 40 20 25 32 15

40 50 30 25 35 35 30 45 35

60 35 50 35 45 15 35 15 25

10

Gold Cross Hospital

10

40

30

28

Page 20

TMF-MCR-JUNE 2011-13955174

Methodology for Appraising Corporate Character

A personification approach was adopted in appraising the corporate character of the organization and to help in identifying the potential traits that make the corporate personality as well as evoke the idea of what make the organization different in the eyes of the stakeholders and trust level both internally and externally. Four study focus groups where generate to give descriptive adjectives of the organization character and two represent their internal stakeholders and two external stakeholders to enable me have an objective comparison and an informed conclusion. The groups where randomly selected from a list of 50 employees, 30 corporate clients and 50 healthcare providers hospitals in Lagos and the breakdown is as follows: Internal Stakeholders: Top Management Staff = 5 Managers Other employees = 10 External Stakeholders: Customers (companies) 5 Healthcare Providers (Hospitals) = 5 This exercise was to help me understand in-depth the dominant personality/character mindset that exists in the company and what the key customers and stakeholders perceived as the company character. The managers were asked to each describe the company character with five adjectives and the same process was repeated with the other employees. At the end a total of 75 adjectives where generated; and out which repeated adjectives were eliminated and what was left after the process was 40 adjectives. The mission, vision, and advertorial materials of the company where also analysis to validate the final list of items in the first exercise to established if it reflect the main themes used to promote corporate character internally and externally. At this point my aim was to identify specifically the dimension of corporate character common to what the organization holds as their credo as highlighted above in the diagram.
Page 21

TMF-MCR-JUNE 2011-13955174

The outcome of the appraisal shows there was slight gaps between management perspective and what the other employees perceived as the Mediplan corporate character.

Questionnaire Design
Based on the available collected and harmonized items, questionnaires of 20 items was evolved using five point Likert type scale with very poor (1) to Very good (5) and administer to staff of key Mediplan Healthcare external stakeholders, employee that have contact with customers, healthcare providers (hospital) and that put the total questionnaire administered to both customers, hospitals and employee at 100 questionnaires. The total of 90 of the questionnaire were completed and returned. Company Background The company started operation in Nigeria in 2001 in the health insurance industry as a limited liability company though with strategic alliance for foreign evacuation in cases of medical emergency. The company initial share-up capital was N100 million, fully paid and it was among the first 5 accredited national health insurance companies to lunch the National health insurance scheme in the Country. After three (3) years of operation and the need for strategic repositioning of the brand as a national insurance company instead of regional as perceived in the market resulted in name change by the board of directors and happened in January 2004. The company immediately positions itself as prefer healthcare maintenance organization (HMO) in the country because of its attractive capitation and prompt payment of bills to other stakeholders in the chain of care delivery. However, it was attributed to its affiliation with then Allstate Trust Bank and competition were by this financial strength. However, after the extinction of the Bank because of corporate governance issues it appears things are not longer looking as it was when I was there as the Head of Marketing and Business Development.

Page 22

TMF-MCR-JUNE 2011-13955174

The company has staff strength of 50 employees, 5 regional offices and with head office located at Victoria Island, Lagos- Nigeria. Structure of the organization The Organization somehow runs a decentralize structure and the regional offices are head by medical directors who manage and coordinate the operations of their respective regions. There are other functional areas like administrative officers, Marketing and Business Development officers, and Enrolment officer. The Managing Director manages and oversee the running of the entire organization with the assistance of the head of each department that make up the management team of the company. The board of directors meets from time to time to review operation and approve policies put forward by the management team. The board of directors in Mediplan Healthcare Ltd is so powerful that it has the power to sack any of the management team whose performance is unacceptable though with the support of the Managing Director. The organogram below depict the structure of the organization

Managing Director Managing Director Head, Medical Operation Head, Human Resources and Administration Head, Marketing and Business Development

Head, Accounts and Finance

Medical Directors

Human Resources and Administration Team

Marketing and Business Development Team

Account and Finance teams

Page 23

TMF-MCR-JUNE 2011-13955174

Product Portfolio: The organization has basically two types of products corporate products and private products. Each of these products is further broken down into basic health plan, Medium Health Plan and Comprehensive health plan with medical benefits varying according to plan. However, they also offer specialize health packages like the travel health insurance, pre-employment check, annual medical examination and medical consultancy to general insurance companies on medical issues. Market Position and target market: The organization is among the top 5 health insurance maintaining a relative position of 3rd in the industry. At the moment, their key target markets are the corporate organizations with 10 and above employees, state ministries, territory institutions and private individuals. Market Conditions and Competition The market conditions are not too favourable because there is no enabling law that made it compulsory for employers to offer medical coverage for its employees thus medical coverage in Nigeria is more of a company choice. The regulatory body of the health insurance also does not have enforceable authority to ensure strict control, measure and framework to ensure uniformity in pricing and medical coverage thus giving room for stiff competition in pricing instead of value added services.

Page 24

TMF-MCR-JUNE 2011-13955174

Reference:
Aaker, D. A. (2004) Leveraging the Corporate Brand. California Management Review , 46 (3). Aaker, D. A. and Jacobson, R. (1987) The Strategic Role of Product Quality. Journal Of Marketing , 51/4. Aaker, D. A. and Jecobson, R. (2001) The Value Relevance of Brand Attitude in the high Technonlogy Market. Jornal of Marketing Research, P 485-493. Anisimova, T.A (2007) The effects of corporate brand attributes on attitudinal and behavioral consumer loyalty, Journal of Consumer Marketing, 24, 7, p395-405 Balmer, J.M.T and He, H-W (2007) Identity Studies: multiple perspectives and implications for corporate level marketing, European Journal of Marketing, 41, 7/8, 765-785 Balmer, J.M.T et al (2007) Social identity, Organizational Identity and Corporate Identity: Towards an integrated understanding of processes, patterning and Products, British Journal of Management, 18, 1 P1-16 Birkigt, K and Stadler, M.M. (1988), The Corporate Identity Mix, Online: http://www.marketingmentor.com. Accessed: April 20th, 2011. Elliots S Schreiber, P. (2008) Brand and Reputation: A Leadership Perspective. Reputation Conference 2008 Henley Business School: Philadelphia, Pennsylvania, USA: College of Business, Drexel University. Esso, (2002) Should the Tiger Change its Stripes? Reputation Impact. Journel Of Marketing , P16. Davies, G. and et al, (2004) A Corporate Character Scale to Assess Employee and Customer Views of Organization Reputation. Corporate Reputation Review , 7 (2), 125-146. Hatch, M. J. (2003) Bringing the Corporation into Corporate Branding. European Journal of Marketing , p1,3,8. Hatch, M.J and Schultz, M (2000) sealing the Tower of Babel: relational differences between identity, image, and culture in organizations, Oxford: Oxford University Press

Page 25

TMF-MCR-JUNE 2011-13955174

Hatton, A and Hilpern, K (2010) the 20 minutesbuilding brands internally. Online: http://www.themarketer.co.uk/article/professional-developer(December/January2010. [Accessed: April 20, 2011] Melewar, T.C (2003) Determinants of the corporate identity construct: a review of the literature. Journal of Marketing Communications, 9, p195-220 Schultz, M. and Hatch, M. J. (2003) The Cycles of Corporate Branding. California Management Review, p 23. Schreiber, E.S (2008) Brand and Reputation: A Leadership Perspective, Reputation Conference 2008 Henley Business School, John Madejski Centre for Reputation, November 25, 2008. Online: http://www.instituteforpr.org. [Accessed: 21st April, 2011] van Riel C. B.M. and Fombrum, C. J. (2010), Essentials of Corporate Communication: Implementing practices for effective reputation management, London and New York: Routledge. Want, J. (1995), Managing Radical Change: Beyond survival in the New Business Age, Wiley. Want, J. (2006), Corporate Culture: Illuminating the Black Hole- Key Strategies of High Performing Business Cultures New York, St. Martins Press.

Page 26

TMF-MCR-JUNE 2011-13955174

Title page:

Article on Stakeholder Impact on Reputation

For

Publication in the National Health Insurance Scheme Quarterly magazine

Candidate Declaration:
I confirm that in forwarding this assignment for marking, I understand and have applied the CIM policies relating to word count, plagiarism and collusion for all tasks. This assignment is the result of my own independent work/investigation except where otherwise stated. Other sources are acknowledged in the body of the text and/or a bibliography is appended. The work that I have submitted has not previously been accepted in substance for any other award. I further confirm that I have not shared my work with other candidate.

Total words Used: 2171

CIM NO: 13955174

Page 27

TMF-MCR-JUNE 2011-13955174

Contents: Title Page...............................................................................................................................1 Overview................................................................................................................................3 Historical Perspective............................................................................................................3 Practitioners Perspective.....................................................................................................3-4 Critical Appraisal of ways in which key stakeholder influence organization........................4-6 (A case of Mediplan Healthcare) Critical evaluation of other forces influence on the organizations reputation....................7-8

Recommendation................................................................................................................8-10 References...........................................................................................................................11

Page 28

TMF-MCR-JUNE 2011-13955174

Overview: What is stakeholder? According to Van Riel and Fombrun, (2010: p162) defined the term stakeholder as any group or individual that can affect or is affected by the achievements of the organization. Also the business online dictionary defined the term stakeholder as a person, group or organization that has direct or indirect stake in an organization because it can affect or be affected by the organizations actions, objectives, and policies (Online Business dictionary, 2011) Historical Perspective of Stakeholders: The term stakeholder can be trace back to 1930s when it first appears in the management literature and many research works are going on covering different areas on the management of stakeholders. However, the evolvement going on in the healthcare sector globally has caused a shift from the traditional approach to healthcare delivery in the industry to a more competitive and integrated multilevel chain of parties involvement in the care delivery circle. This has called for a strategic approach in managing and controlling all parties as their actions grossly impact on the organization reputation either positively/negatively, today these parties are refers as stakeholders. Practitioners Perspective on Stakeholders impact on reputation: To further validate the important of establishing stakeholder impact on reputation of health maintenance organizations, three managers of other HMOs Total Healthcare Trust, Multishield, and Healthcare Intl where interviewed and the following are extract from the session: Stakeholders in the healthcare industry in Nigeria are powerful and not consistently assessing the consequence of their action on the organization is suicidal (Manager, Total HealthTrust, 2011) In Nigeria where Medical Directors are key stakeholders and to a large extend determine what happen in the sector form the strategic policies formulation team at the political level,
Page 29

TMF-MCR-JUNE 2011-13955174

it will be the undoing of any HMOs in Nigeria not to take such players seriously(Femi Oyegade, Multi-shield Healthcare, 2011) ignore them and you pay the price, recognize them you enjoy the benefits. It is a choice that every manager must make and deciding as often as possible to scan the environment in order to establish what implications their actions will bring on the organization(Manager, Healthcare Intl, 2011) It is obvious from the above statements that assessing stakeholder impact on the organizations reputation is critically important and from a holistic perspective, most managers who understand the long term implications appreciate it. Critical Appraisal of Key Stakeholders influence on organization Reputation: A Case of Mediplan Healthcare To fully understand the influence of key stakeholders on the organization it will be important to know who the key stakeholders are. The framework below shows Mediplan

Healthcare key Stakeholder: Figure 1: Source: 2011 Organizations corporate journal

Page 30

TMF-MCR-JUNE 2011-13955174

Research and Analysis: The Mendelow framework and focus group interview will be use to analyze the relative individual power and interest each stakeholder has in influencing the organization reputation. The matrix below shows the kind of associations which organizations typically might create with stakeholder groups in the different quadrants with various strategies to adopt in managing its reputation.
Level of Interest Low Power Low High A Minimal effort C Keep satisfied High B Keep informed D Key players

Source: Adapted from A. Mendelow, Proceedings of the Second International Conference on Information Systems, Cambridge, MA, 1991.

Using the above matrix to categorize the organizations stakeholders, the following groups resulted in the process looking at the degree of influence each of the stakeholders has on the organizations reputation and consequence of their actions on the organizations reputation if not address. 1. Low Interest and Low Power Quadrant None of the companys stakeholder

2. High Interest and Low Power Quadrant. Corporate organizations

3. Low interest and High Power Shareholders Legislature

4. High Interest and High Power. Employee and management Healthcare Providers Enrollees(Customers) Regulatory authority (NHIS)

Page 31

TMF-MCR-JUNE 2011-13955174

All the stakeholders in high interest and high power quadrant are critically important to the continuous operation of the organization and this group is currently influencing the reputation of the organization. Second Research and interview with Management of the Organization A focus group discussion and interview including all the management and middle management staff was fixed to also ascertain the degree of influence the key stakeholders in the high interest and high power quadrant has on the reputation of the organization. Employee and Management:

As deduced from the discussion and analysis of responses, it was obvious that the policies, structure, culture, strategy and communication of the organization were greatly influence by this category of stakeholders. A recent survey by KORN/FERRY International 2003 corporate reputation watch survey on CEOs reviewed that the kind of treatment management melt out to their employee influence an organization reputation by 37% and this support the findings in the interview. Healthcare Providers (Hospitals)

These groups of stakeholders are a vital link in the chain of care delivery in the HMO arrangement. They are made up of Physician, Nurses, Pharmacist, Dentist, Radiologist, Hospital Administrators, and other auxiliary staffs. Base on my discussion and analysis of certain cases bearing on price fixing between the HMOs, Hospitals and Regulatory authority; it was clear the healthcare providers could influence company reputation either positive/negative. Available data shows where healthcare providers have influence on the company as follows: Pricing policy of the organization, Acceptable service coverage within the monthly capitation Fee charge for case-by-case healthcare provision and several other cases. The scheme overall policy framework as it where.
Page 32

TMF-MCR-JUNE 2011-13955174

These analysis and discussions clearly point out as at today that the reputation of the organization will be influence if these particular sets of stakeholders are neglected by the company. For example the recent industrial action by Lagos State Medical Association of Nigeria is a case in hand that validates their degree of influence on the reputation of any organization. Hospital activities were paralysis in all public hospitals in the state resulting in untold hardship to patients seeking medical attention. Enrollees (Customers) The actions of this group of stakeholders impact on the organization reputation is either positively/negatively. The strategic framework of the organization and the continuous existence of the organization is largely influence by this group. They have the power to demand their employer contract another HMO. Meaning any negative action will impact on Mediplan reputation grossly. Regulatory Authority (NHIS) The policy and strategic framework of this stakeholder to a large extend influence what goes on in the industry as a whole. Their actions and policies determine the strategic and tactical focus most HMOs adopt including Mediplan. They are interest in every facet of the industry and have the power to cancel/suspend the operating license of Mediplan Healthcare. For example, they are in-charge of accrediting all HMOs and a recent increase in the security deposit affected some HMOs financial reputation viability. [Task 1: work: 1016] Critically evaluate, using relevant examples, the extent to which other forces might influence the organizations reputation: The following are other external forces that also influence the reputation of Mediplan Healthcare: Lack corporate Governance structure:

This is a fundamental factor that impede on the reputation of any organization over time when it is absence. The Pfizer case in Northern Nigeria is a recent example that resulted in dead and permanent medical complications of over 100+ children and the company reputation was grossly influence particularly in the northern part of Nigeria. Another
Page 33

TMF-MCR-JUNE 2011-13955174

example is the Enron case; this did only influence the reputation but resulted in the complete extinction of the company. Print Media

The media could positively/negatively influence the reputation of any organization depending on what side of coin they are operating on. The recent publication in the Punch news paper of 20th April, 2011 expressing how one of the HMO in collaboration with the state government in Nigeria facilitated healthcare services to state civil servants is a positive influence on the company reputation. Survey confirmed that an organization reputation is influence by 48% by print media. (Forbes CEO Forum, 2003) and across European CEO Research shows an impact of 76% on reputation. Services Problems

In the healthcare industry the quality of services received by the patient from the hospital could have a chain affect on the HMOs reputation. The response time for authorization to treat cases that are not covered within the generic list of healthcare benefits provided by the Mediplan Healthcare for pay per care if not prompt and swiftly attended to, and eventually the patient developed complication will definitely be a minus on its reputation particularly when it is a consistent behaviour of working with the organization. Financial performance:

Return on investment and sound balance sheet that shows positive financial performance is a plus on the reputation of the organization. When the investing public and financial analyst sees upward trend of consistent growth in business the reputation of the organization is positively influence. For example, there is an HMO currently in Nigeria that closed shop because of bad financial management and the shareholders decided to disinvest. The reputation of the management was been questioned by various players in the industry and resulted to no business.

Page 34

TMF-MCR-JUNE 2011-13955174

Reliability and Creditability

In the service industry reliability and creditability is critical and every important. The intangible nature of services and how vitally important the service offer by Mediplan Healthcare via a network of hospitals is to life, reliability is an important factor if compromise will affect the reputation of Mediplan Healthcare Ltd. Customers

The customer is every important external force that drastically influences the reputation of organization if their expectations are not met any action by this group will affect the organization. They carry their action by way of public protest, going to media to complain, write the regulatory authority etc. Organizations that understand this truth manage their customers as king. They have the power to bring to nothing the reputation of any organization if not treated well. As matter of fact, they are the most powerful external force and research shows an impact of 78% on a company reputation (Forbes CEO Forum, 2003).
[Task 2: Words 488]

Recommendation for Better Management of the Organizations Reputation Reputation management is becoming a top strategic priority among CEOs and increasingly be managed from a strategic standpoint. To this end, and in the light of the above forces as well as stakeholders of Mediplan Healthcare Ltd, I recommend thus: 1. Improve Employee commitment:

Mediplan Healthcare should put in place support and practice structures that encourage employee engagement in the form of resources, explicit communication internally is important, social support that touches on professional as well as personal related issues among coworkers and managers should be encourage, mentorship programs and performance feedback should be a regular session in the company. When this is done the atmosphere in the organization will be total commitment and attitude change.

Page 35

TMF-MCR-JUNE 2011-13955174

2. Value and Priorities:

The whole essence of business is value and priorities; what it considered most important. Mediplan should further unearth what it will not compromise no matter what? Build and manage it reputation around this priorities. In the service industry creditability, reliability, customer concerns are some drivers of corporate brand that organization can leverage to manage its reputation. The organization should strive to delivery on it corporate brand promise, stand behind it offerings and be continuously innovative. 3. Concern for customers

Mediplan Healthcare should in actuality show concerned about its customers and treat each customer irrespective of social status with respect. They should make customer experience a top priority cascaded down the chain of care delivery as well as a priority for recruiting healthcare providers into their network. They should be willing to refund back expenses incurred from out of pocket for care that should have been provided by them 4. Good Media Relationship: Another recommendation for Mediplan Healthcare in managing their reputation is to enhance their relationship with the print media by way of be transparency, creating news worthy publications in form corporate social responsibility, sponsorship and free medical education around the neighbourhood. The media should be seen as friend and once the company operations are open and transparent, they will be the one projecting the reputation.

Page 36

TMF-MCR-JUNE 2011-13955174

In addition the following framework should be adopted in managing the various relationships in order to enhance its reputation:
Stakeholder Importance categorization Critically Importance Important but Not Critical High Environmental improbability improbability Low improbability Stakeholder Partnerships Stakeholder Management Boundary Spanning Scanning and Monitoring the Environment Source: Adapted from A. Mendelow, Proceedings of the Second International Conference on Information Systems, Cambridge, MA, 1991.

This will enable the organization group it stakeholders both internal and external along this line for effective management. 1. Critical Important with environmental improbability high- this group of both internal and external stakeholders require proactive measures by the management to constantly ensure its reputation is in the positive weight by doing boundary spanning that is focus and specific. 2. Critical Important with environmental improbability low management focus in stakeholder management is monitoring of trend and scanning of environment for forces and keep them informed. 3. Critical with environment improbability low- management should focus in customer market research, lobbying effort, initiate public relation with the pressure group etc in order to manage it reputation.

4. Critical with environmental improbability high- management should focus on stakeholder partnerships to manage it reputation. This type of strategic move allows the organization to build bridges as they pursue common goals.

Page 37

TMF-MCR-JUNE 2011-13955174

To properly integrate and manage both the internal stakeholders as well as the external forces impact on the organization reputation there is a need for the organization to completely align its structure from the command and control nature that stifles innovation to a more flat structure that allow for flow of information on both direction. The staff should be allow to act on behalf of the management with a define level of permission.

Its strategy framework should support collaboration, staff support, innovation and openness for constructive feedback; the company should also align its culture to be more of dialogue, association, encourages independent thinking and action as well as inclusiveness. The communication should also be more specific to address each stakeholder concern rather than generalize message using the necessary medium. Conclusion: Reputation management is an ongoing strategic responsibility that the management must take as a top priority by constantly engaging all key players toward ensuring the organization has positive image.[Task 3: Words: 667]

Page 38

TMF-MCR-JUNE 2011-13955174

Reference: Campbell, D. (2008), all about stakeholder - part 1. Retrieved April 22, 2011, from Student Accountant: http://www.accaglobal.com/pubs/students/.../sa. Hill, K. and et al (2003), Corporate Reputation Watch Survey on CEOs, *Online+ Accessed: April 21, 2011, from http://www.corporatereputation.com. Hospital Authority, (2003), Report of the Hospital Authority Review Panel on the SARS Outbreak . Hospital Authority. Huber, D. M. (n.d.) TNS Stakeholder Management, [Online] Accessed: April 21, 2011, from http://www.tnsglobal.com. Johnson, G & Scholes, K. (2002). Exploring Corporate Strategy, Text and Cases. Ed. Prentice Hall, Pearson Education Limited. Mediplan Healthcare Ltd, (2011) Key Stakeholder: Corporate Profile Mendelow, A. (1991), Proceeding of the second international conference on information systems Cambridge, M.A Online Business Dictionary, (2011) Online: http://www.businessdirectionary.com. [Accessed: April 20, 2011] Oyegade, F. et al (2011), Other Manager thought on stakeholder management: interview with managers of Total Health Trust, Multi-shield, and Healthcare Intl. Van Riel, C.B.M and Fombrun, C.J. (2010) Essential of Corporate Communication: implementing practices for effective reputation management, Routledge, London & New

Page 39