Your Name Carries More Weight Than You Think

Inc.

A family name (for a brand) is a reputation that travels far and wide. Just one careless moment or one complaint can undo years of trust-building.

What’s in a Name? When It Comes to Family Business, Everything

Author: Matt Allen

I have heard families say that “protecting the family name” is more important than anything. 

That may be a bit of an exaggeration, but it highlights the truth that the name on the door of a family business, or any company, is critical to protect and manage. It is part and parcel of reputation and legacy. Yet businesses often take for granted the importance of their name, and they miss opportunities to promote or protect it. 

What a family name on a truck revealed about trust

As a positive example, I once observed a pickup truck with “last name” and sons painted on the side bump another car when parking. The truck was driven by a teenager and because the family name was on the vehicle, I was extra curious about what would happen next.  

I watched the clearly shaken driver exit the truck and enter the store, returning a few minutes later with the owner of the vehicle he had damaged to exchange information.  My estimation of the family and company represented on the side of that vehicle went up several notches that day.   

A negative example of the importance of a business name is the “sticky” situation iconic chocolate-maker Hershey found itself in recently.   

Hershey learned the value of a name the hard way  

Last February Brad Reese, the grandson of the inventor of Reese’s Peanut Butter Cups — which was acquired by Hershey in 1963 — posted about a negative experience with a mini-Valentine’s peanut butter cup product.  

Reese said, “it didn’t taste like milk chocolate.” Offended by the taste, he literally threw the candy in the garbage. He then took to social media to complain about the cheaper ingredients Hershey is using as a substitute for milk chocolate and peanut butter.  

Hershey responded, creating a bit of a kerfuffle that ultimately yielded Hershey’s pledge to return to the original recipes for core products.  

This may seem like a quick-to-fade story that captured the public interest based on the social media element and the household names involved. That, however, is exactly why it’s important for family businesses to pay attention to the power of their family name and what people associate with it.  

The 70-year-old heir would have been about 7 years old when the brand was purchased by Hershey more than 60 years ago. Reese isn’t involved in the business. Yet, he was able to raise an issue that made national news for the wrong reasons.  

All this because he shares a name with the brand, which highlights the longevity and stickiness of name and legacy. The moral of the story: never underestimate the power of a name, especially when it’s tied to your brand.  

Protect your name proactively. 

Here are specific steps families can take to protect their name and ensure it’s an asset rather than a liability. 

1. Recognize that legacies are sticky. A family name endures for better or for worse. As the Hershey example illustrates, the power of a name can last a long time, even beyond a name change, sale, or other type of distancing. Make everyone in the family appreciate this truth.  
2. Respect all stakeholders. Often, the public’s focus is on the CEO or other family leader with the name. It’s critical to remember and respect everyone who shares the name. Obscure or uninvolved shareholders who share the name can still damage brand image. Work to keep them informed, engaged, and happy through regular updates and addressing any questions or concerns they may have within reason. 
3. Create rules for all family members. Set specific, practical rules about expected behavior for shareholders. These should include how members represent themselves in public in general, but also what they can post on social media. Some families require training on the topic and even approval of posts beforehand.  
4. Emphasize integrity and how one lapse can change everything. Of course, you want to associate integrity and other positive elements with the business, through how you present it through both traditional and digital communications. This includes sharing stories and examples of enacted values and doing the right thing. Remember, however, that one negative incident can undo decades of positive actions due to humans’ natural negativity bias.  
5. Get in front of it. It’s worth repeating. Be proactive and deliberate in managing the family name and what it means to the world. Don’t let this happen organically.  

Your name is your brand.

The Hershey’s experience should be a reminder to all business families of the value of the family name. Many families focus on the potential positive aspects of connecting the family name with the business. Smart families will recognize and manage both ways and take a thoughtful, strategic approach to managing and protecting it. Do this so your brand won’t leave a bitter taste in anyone’s mouth. 

Credits: TCA, LLC.