Business identity: who are you? And does it matter?

For practical ways to shape your business identity click here.

Every organisation has a unique culture, personality and character that affect its operations and future.

These three factors are closely related; in a way they are different views of the same thing, which we might call "identity":

• Culture is a view of what happens inside an organisation
• Personality is a view of how the organisation interacts with outsiders
• Character is a summary of the values that drive these two views

Why identity matters...to customers

People use their image of an organisation – it's identity to them – to determine if and in what circumstances they will interact with it.

Their view of identity shapes that interaction from the start, determining their expectations and the emotion they bring to the relationship, whether it is, say, suspicion, resentment or affinity.

The task of satisfying them in a successful transaction is made easier or harder; the chance of conflict raised or lowered, sensitivity to price heightened or eased.

...and to staff

People rely heavily in social cues to tell them how to behave in certain situations. That's why people can be different in varied roles: employee, parent, friend.

Most people want to do the right thing and they need to be told what that is.

When they come to work, the organisation's culture, character and personality – its identity – tells them what is expected of them. Mostly they comply.

If those expectations further the organisation's goals, management has an easier task in applying its resources to its goals. But if team members have a different view of the identity of their organisation, management will be forever struggling to drag them along, rather than being carried by them.

What you can do about it

An organisation's identity is an important factor in the creation of its future. Identity is tricky to pin down and measure, so ignoring it is easy, but working directly to shape and develop your organisation's identity will give you more control over your future.

Read more about the relationship between identity, brand and interactions with customers.

For practical ways to shape your business identity click here.