In today’s dynamic and rapidly evolving energy sector, brands face increasing pressure to align their Vision, Culture, and Image (VCI) to ensure long-term resilience and relevance. A misalignment of these three components can have serious and long-term implications for a brand’s success and competitive edge and can lead to customer confusion, employee disengagement, and strategic drift in the business. For energy brands, particularly those transitioning from oil and gas to renewable energy, a coherent and authentic alignment of VCI elements is not just beneficial—it’s essential.
Is your brand’s VCI in harmony or causing harm?
At Fifth Ring, we have an adapted and proven VCI Model, first outlined by Hatch and Schultz (2001), this model serves as a diagnostic framework to assess whether a company's strategic elements are in harmony or are causing harm. Each element is driven by distinct forces within and outside the organisation:
Ultimately, effective brand strategy requires a (near) perfect alignment of these three components: of course, no brand can ever achieve ‘perfection’, as markets move, perceptions shift, and macro and micro level changes occur daily.
Identifying where a brand has significant misalignments or strategic "gaps" in its brand uncovers where actions need to be taken to ensure the business is optimised for growth, has long-term differentiation and is able to lay claim and own it target market space.
Some misalignments are easier to identify than others, for instance, a vision-culture gap emerges when management sets an aspirational direction that employees do not understand or support, creating internal dissonance and often a stagnation in the business.
Why VCI alignment matters more today
In a post COVID-19 world, and with shifting workforce demographics (that brings with it new and fresh attitudes to working practice) the importance of brand alignment has been elevated. Customers increasingly expect brands to stand for values that align with broader societal goals, like environmental sustainability, diversity and inclusion and ethical business practices. This is especially true for energy companies currently navigating the volatile and pressurised market conditions of a sector in transition.
There has been a noticeable shift in employee expectations too as employees now prioritize working for companies that align with their values and offer a ‘higher purpose’ than previous generations. This underscores the need for energy brands to ensure that their vision for sustainability, corporate culture, and public image are tightly aligned and authentic. In the absence of this alignment, companies risk eroding their credibility and alienating both employees and customers.
Expectations are high and, often, contradictory for energy brands that are challenged with the need to deliver on operational goals that may be entirely misaligned to the brand’s established Vision, Culture and Image.
What are the threats of a misalignment in Vision, Culture, and Image
Misalignment in VCI for B2B brands, particularly in transformative sectors like energy, can lead to serious repercussions:
Employee Disengagement: If the internal culture does not reflect the company’s stated vision, employees may become disengaged. For energy brands moving into renewables, an unaligned culture may manifest as employees who are unmotivated or sceptical about the transition, which can seriously hinder operational efficiency and innovation.
Erosion of Stakeholder Trust: Energy brands face a unique challenge: public and stakeholder perceptions are often deeply rooted in the company’s historical activities. Misalignments, such as claiming environmental stewardship while continuing practices that are known or perceived to harm the environment, create a credibility gap that can damage a brand’s reputation in perpetuity.
Strategic Drift: When a company's vision does not align with its image or culture, it can drift from its strategic goals. This drift may be especially dangerous for energy brands that need a clear direction as they pivot from oil and gas to renewables, a shift that requires both organisational clarity and stakeholder buy-in.
Key steps for energy brands in prioritising VCI alignment
For energy companies undergoing transition, a strategic approach to aligning VCI elements is crucial. Here are several key steps:
- Define and communicate a clear Vision: the development of a forward-looking, ambitious vision that reflects the brand’s authentic ‘desires’ for the future is an imperative step for any organisation navigating change, transformation or seeking growth. This vision must resonate with internal stakeholders, particularly employees who may be accustomed to traditional oil and gas operations. Clearly communicating the vision, emphasizing both long-term goals and immediate actionable steps, fosters a shared sense of purpose across the organization.
- Cultivate a culture, unique to the business: A shift in vision requires a corresponding cultural shift. For instance, companies may implement training programs focused on renewable technologies or restructure teams to promote sustainable practices. Every corporate culture is unique, shared and pervasive, and ultimately needs to support, drive and reinforce the vision.
- Shape an image that resonates: In an era where public trust is paramount, the external image of a brand must be authentic, credible and engaging. The only way to achieve such an image is to know, understand and resonate with your key target stakeholders – developing a brand that truly connects, from the visionary direction to the internal behaviours and out to external audiences, is the fine art of strategic brand positioning.
- Regularly assess and adjust for VCI alignment: VCI alignment is not a ‘once-and-done’ activity. It requires continuous assessment, management and optimisation. At core intervals every brand should run a ‘health-check’ against its Vision, Culture and Image, to ensure that a (near) perfect alignment is delivering strategic success and increasing a brands value over time. If you’re in doubt as to the health of your brand strategy, start to ask:
- Does the current vision inspire and guide all employees, or is there scepticism about the company's direction?
- Are employees genuinely motivated by the culture? or do they perceive it as superficial?
- How do external stakeholders, such as investors and environmental groups, perceive the company's brand?
Artful Brand Positioning – the way to truly own your space
For B2B brands, VCI alignment is more than a marketing exercise; it is a strategic necessity, it is finding the perfect balance of critical factors, an elegant blend of art and science – it’s what we call Artful Brand Positioning.
