All there in black and white

By SIMON HENDERY

When the stock exchange unveiled its new NZX branding late last week, reactions ranged from delight to disdain.

That mix of sentiment is not surprising, given this is a makeover of a venerable institution that has already undergone a tremendous shakeup over the past year.

"Very responsible, rational, and even visionary. Straight like pins," was one observer's reaction to the bold white-on-black NZX logo.

"The product is the problem, to my limited knowledge of the market, not the name."

The man leading the exchange's transformation, chief executive Mark Weldon, agrees a brand is not the be-all-and-end-all of selling the revitalised organisation to the public and the business community.

"Your public perception is partly your brand and partly your logo but mostly what you do to back that up," he says.

The company chose to change its corporate identity on the eve of listing on its own board because "we've completely changed our corporate structure, we've changed our mandate, we'll be changing our ownership".

"The current management team have been in the job for about a year and feel like we've fixed a lot of the things that needed fixing and it's time to really focus on going forward. It felt like a really appropriate time to do it. If we weren't going to do it now, we were never going to do it."

Although some in the broking community lament the severing of ties with the past, Weldon is unrepentant about the loss of "brand equity" in making the change.

"We felt the existing brand had mixed equity - it was very well known but there were a lot of people who associated it with events which we, quite frankly, don't want to be associated with any more."

He says the new branding also makes the point that the exchange is about more than just trading stock. Its alternative market, warrant and debt markets, and data services are all represented by a comprehensive range of sub-brands under the new branding.

"Calling it the New Zealand Stock Exchange is a bit limited.

"We are a bit wider than that and want to be seen in a much wider scope and play a wider role in unlocking value in the economy."

And although many of the previous components of its identity have disappeared, Weldon says it was important for the exchange to retain the "NZ" side of its heritage.

"We are a New Zealand company. Black and white are New Zealand colours, which was a critical part of it.

"The actual shape and structure of the letters themselves is pretty bold, straight up and down, not too much fuss, and pretty strong. And we like that."

Brand strategist Howard Russell says the mixed reaction shows how a corporate makeover is limited by existing impressions.

"Far too many organisations pretend that communication is a process of injection - ie, you put information into a hypodermic needle and you inject it in a passive process into a receiver.

"But the fact is, it is not a process of injection, it is a process of release. The real essence of a communication is not what you want to put in but what you want to get out."

Reaction ... from delight to disdain:

A sample of business community opinions on the exchange's new look.

Looks good to me. Clearly retains the meaning of the old, but moves it forward in line with the business proposition. The whole scheme seems well thought through.

- financial communications consultant

* * *

Why would you choose to remove any inherent good will that exists from the NZSE history? "NZX" is a nothing and "New Zealand Exchange" could be a car sales yard. "NZ Stock Exchange" clearly stated the primary function of the entity.

- senior chief executive

* * *

Makes sense and is logical in a structural, financial-markets way, but I can't see it's going to get anyone excited. Distinctly underwhelming.

- financial management consultant

* * *

I can see the intent and appreciate the effort Weldon and team have put in - but it's a teeny tiny board with a teeny tiny capitalisation, flat-lining like the rest of the world's exchanges.

- public relations firm principal

* * *

Nice. Has the power to be what a good name should be eminently functional as well as iconic and powerful.

- design agency principal

* * *

I think they're hoping a new name will help them escape some of their poor reputation. But, the customer brands the company.

- senior communications manager