Bubble it up

Great ideas rise the top like bubbles. What the Obama campaign has taught us is how to let go – empower rather than control, and let your audience help shape the brand. Done with finesse, the result is a highly resonate and powerful brand that is authentic because it’s built from the roots up, rather than architected from the top-down. (The Wiki-Way to the Nomination) A powerful lesson in the world of brand management, and how to build strong brands in a web 2.0 world.

How Much Did You Say the Kinko’s Name Was Worth?

Sadly, FedEx took a write-down on the Kinko’s acquisition to the tune of $891 million -- that’s about 30% of the original 2004 deal amount of $2.4B attributed to the Kinko’s brand, which when you think about it is amazing in itself. (FedEx drops Kinko’s name)

But what this also says is that the FedEx brand management team lost nearly a billion dollars in brand equity and customer goodwill (directly reflected in market cap). Equity that could have been transferred to the FedEx brand long ago.

So starting today, FedEx will no longer be using the Kinko’s name and will instead focus on extending the FedEx brand to include those capabilities associated with Kinko’s -- an excellent decision, too bad it took so long and at such a cost.

Making Talent Based M&A's work

Great article today in the NYT’s re: Disney’s acquisition of Pixar. (NYT article on Disney Pixar Acquisition). For talent-based M&As, take time to build a relationship founded on trust and respect first while explicitly mapping out what underpinning business drivers will be sustained… or better yet, infused into the acquiring company. And communicate, communicate, communicate. Simply resisting the urge to move quickly with these types of deals, will increase the odds of a successful M&A.