Launched in 1999, OK Cashbag is Korea’s first integrated loyalty points program and widely known among Korean consumers. As similar programs emerged, the brand image of OK Cashbag was aging and its brand preference was declining. But the company’s sales team did not notice this
shift and was experiencing marketing myopia.* The sales team challenged and complained to the strategy team, saying spending money on advertisement was wasteful.
To resolve conflicts between strategy and sales teams, I created a cross-functional consultative body. To enact a sustainable change, it was important to build strategic directions and performance indicators both parties could agree. Our solution was to develop Brand Power Index and to engage all levels of employees (from juniors to executives) in every single process. It took long time, but its strategic outcome was widely accepted and supported by both strategy and sales teams.
RESULT AND LESSON LEARNED
It was the first time in SK Energy to develop a key performance indicator based on brand image. I learned that the organizational conflict does not always mean a crisis. If managed properly, it provides an opportunity for organizational members to discuss and reach consensus on what are shared strategic objectives and how to achieve them.