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    Home»Business»This Is the Real Reason Most Rebrands Fail to Drive Real Change
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    This Is the Real Reason Most Rebrands Fail to Drive Real Change

    Team_AIBS NewsBy Team_AIBS NewsFebruary 18, 2025No Comments6 Mins Read
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    Opinions expressed by Entrepreneur contributors are their very own.

    A company rebrand may seem to be a pure method to clean up your organization’s picture or redefine your market positioning. However rebranding is usually a dangerous choice, particularly if your small business has an worker expertise hole.

    An worker expertise hole occurs when staff see their organizations in a different way from the best way their employers assume they do. And this misalignment can derail even essentially the most thrilling rebrands as staff withhold the help and enthusiasm wanted to make the rebrand succeed.

    The 2023 Twitter-to-X rebrand is an instance of a rebrand that did not “land”, partially as a result of it did not resonate with staff. The rebrand got here on the heels of a well-documented worker ultimatum from CEO Elon Musk to go “hardcore” with Twitter 2.0 or resign. The ultimatum left staff feeling involved, undervalued, and upset. After the ultimatum got here some drastic headcount cuts, which additional rattled the corporate’s inner groups. By the point the rebrand to X was introduced, lots of the remaining staff had undergone a lackluster expertise that left them unconvinced to be company cheerleaders.

    Though the X rebrand wasn’t introduced down by the corporate’s worker expertise hole, it did not earn positive press or immediate client engagement. At this level, the general public nonetheless refers back to the platform by its former title, and stories present that X utilization and engagement dropped 30% between 2023 and 2024. That is a surefire sign that the rebrand at the very least faltered.

    In distinction, the 2018 Dunkin’ Donuts to Dunkin’ rebrand incurred a a lot hotter public and worker welcome. To make certain, selling the sale of sizzling espresso and pastries is much less controversial than renaming a social media channel. Nonetheless, meals rebrands aren’t assured to impress. Consequently, Dunkin’ stands out for its means to not solely reframe its firm’s id however to carry staff into the rebrand as a essential a part of the expertise.

    For example, Dunkin’ pledged $100 million to make sure that its rebrand included vital employee coaching and assets. In the end, Dunkin’ did extra than simply shorten its title and launch an up to date brand. The enterprise took steps to make sure that there was minimal worker friction in the course of the rebrand.

    If you happen to’re contemplating a rebrand, learn on to be taught the highest causes that rebrands battle because of the worker expertise hole, in addition to keep away from them.

    Associated: When to Know If Rebranding the Right Move For You — and What You Should Focus on When It’s Time

    Downside 1: The model modifications however the firm tradition would not

    Ideally, rebranding must be seen as a possibility to make a holistic change reasonably than a skin-deep one. Too usually, although, leaders see rebranding in a superficial mild and focus their consideration on enhancing the outward look of their firm. However they do not look deeper —and solely later uncover that up to date logos and a digitally superior web site cannot override the results of an outdated office tradition.

    In response to Hoot Design Firm, rebranding campaigns ought to at all times be embedded with a cultural change component. The company recommends beginning all rebrands by shifting by way of a culture-driven methodology that places a premium on worker engagement. By guaranteeing its staff really feel related to one another and to the corporate’s meant mission and goal, a rebranding enterprise can set itself up for resiliency and development.

    For instance, previous to rebranding, your organization might make clear its mission, imaginative and prescient and goal with the help of your workforce. Including this sort of high-level introspection to your rebranding encourages employee-employer alignment and helps cut back future worker expertise gaps and hindrances. It additionally provides you the possibility to determine any culture-related challenges that need to be corrected earlier than your rebrand launch.

    Downside 2: Workers aren’t given a voice throughout planning

    When staff are caught off-guard by a rebrand, they might be skeptical or brazenly hostile to it. And it is easy to grasp why: From their perspective, management did not care sufficient about them to bring them into the discussion. In consequence, they might converse negatively about their employer and its rebrand, inflicting the rebrand’s momentum to stall.

    Speaking upfront a couple of rebrand to staff is essential. Nonetheless, it may be onerous to know precisely when to inform staff a couple of rebrand that is not able to be unveiled publicly. That is when it could be applicable to ask for advice from human resources. HR executives might help decide precisely how and when to inform staff a couple of rebrand launch. In startups with restricted HR roles and capabilities, this accountability might fall to the person in control of worker wellness. (Typically, that is the early-stage founder!) Regardless, the target is to construct worker information into the general rebranding plan.

    But this cannot be a one-time outreach that leaves staff with none roles in the course of the rebrand. Workers must be given important obligations within the rebranding in order that they really feel a way of possession about any modifications being made, resembling providing beta suggestions on new brand designs or turning into client-facing model ambassadors on social media.

    Associated: When to Consider a Rebrand (and How to Do It Right)

    Downside 3: The rebrand would not resolve recognized buyer expertise flaws

    Placing a brand new title on an current drawback would not remedy the issue. It simply masks it. And staff (notably customer-facing ones) do not recognize it when their employer spends cash on rebranding and never on well-known flawed processes.

    A rebrand should not come on the expense of fixing techniques which are damaged. Quite the opposite, the rebrand could also be a very good time to deal with and proper issues to make staff’ jobs simpler. Accordingly, staff ought to really feel higher in regards to the rebrand as a result of they’re going to be capable of carry out their jobs extra confidently and effectively after the launch.

    If there’s one factor that the Nice Resignation taught the world, it is that staff will depart if they do not have employer help. In a 2021 Pew Research survey, 57% of staff who had give up a job cited being disrespected on the job as a motive. Anticipating staff to do their finest with none help may very well be interpreted as disrespect.

    Rebrands may be tough. If you happen to’re contemplating one, be certain that to shut any worker expertise gaps. Being proactive will take away one of many largest obstacles to efficiently driving the modifications you search.



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