Perspectives · Customer portrait

Shareholder company: branding projects die due to lack of process

The approval loop keeps going, no one is wrong, but the project remains stagnant.

Quick summary

In a joint-stock company with many stakeholders involved in brand approval, the deadlock often does not stem from the quality of the design. The cause is that the group lacks a clear consensus mechanism before starting. The solution is to establish a transparent decision-making process right from the project initiation phase, rather than trying to find a design that everyone likes.

Your brand project has gone through three presentation rounds. Each time, the committee had different opinions. No one completely vetoed, but no one nodded enough to move forward. This week, Mr. A prefers a minimalist approach, next week, Ms. B wants to add traditional elements, while Mr. C believes both are not "modern" enough. The design studio continues to revise. The budget keeps flowing. The project is at a standstill.

This is not just anyone's story. In multi-member joint-stock companies, brand deadlock is a predictable risk and can be entirely prevented if recognized in time.

The issue is not about aesthetic taste

When a brand project stalls in a company with many stakeholders, the first diagnosis is often: "Everyone has different tastes." This is true, but not the root cause. Different aesthetic preferences are a natural characteristic of any group. The real issue is that the group lacks a mechanism to transform those differences into a single decision.

In brand design, if the approval process is not established beforehand, it effectively becomes a gallery: everyone views and reacts based on personal feelings. Without common criteria, all opinions hold equal value, resulting in an endless loop.

A brand is not a logo. A brand is the perception in others' gut feelings about your product, service, or organization.

Marty Neumeier, The Brand Gap

If even the definition of "what a brand is" has not been shared among the founding team, then evaluating a design based on "feelings" is entirely subjective. And when everything is subjective, the loudest voice, or the most patient person, wins, not the best option.

Approval structure: common blind spots

Most joint-stock companies enter brand projects with an implicit approval structure: all shareholders have the right to provide input, and no one has the right to make the final decision. This is a formula for creating systematic deadlock.

Research on group decision-making behavior shows that as the number of approvers increases, the decision-making time also increases. The quality of the decision does not improve. The group tends to choose the "least controversial" option rather than the best one. In design, the least controversial option is often the blandest.

71%An organization needs seven or more people to approve a brand asset. Source: Marq / Demand Metric, Brand Consistency Report, 2021.
~30%among organizations with truly consistently implemented brand guidelines, although 85% report having guiding documents. Source: Marq / Demand Metric, Brand Consistency Report, 2021.
The two figures come from Marq's self-reported survey (a brand management platform), not independent research. The data may reflect their customer base more than the entire market. However, the trend they indicate is still noteworthy: a significant gap between "having documentation" and "being executable." This aligns with what Sinh Vũ has observed while working with clients.

The issue is not that shareholders lack goodwill. The issue is that the decision-making structure has not been designed for this type of problem.

Three common bottlenecks

Through projects with joint-stock companies, there are three recurring bottlenecks:

  • No role assignment beforehand: who is the advisor, who is the decision-maker? When everyone advises but no one decides, or when everyone thinks they are the decision-maker, each opinion will carry equal weight. The result is that no round can conclude.
  • No evaluation criteria before viewing the samples: the group looks at the design and then asks, "Do we like this?" Instead, they should ask, "Does this align with the positioning and target audience?" These two questions lead to completely different outcomes.
  • Confusing personal preference with strategic judgment: Stakeholder A likes blue because it has been his color since childhood. Stakeholder B dislikes the thin font because he finds it "weak." Both are personal aesthetic reactions, not assessments of market fit.

Consensus process: build before starting

The solution is not to find a design sample that everyone likes. That is almost non-existent when the group is diverse enough. The solution is to establish a decision-making process before viewing any samples.

Some practical principles:

  • Narrow the approval group: identify two or at most three people with final decision-making authority. Other stakeholders should be consulted during the discovery phase, not during the sample selection phase. This needs to be documented, not just agreed upon verbally.
  • Establish evaluation criteria from the brief: before looking at any samples, the group needs to agree on the design evaluation criteria. These include positioning, target audience, usage context, and differentiation from competitors. With criteria in place, judgment shifts from "I like it" to "does this serve the goal?"
  • Separate the strategy presentation from the design presentation: approve the strategy first, then the design. If everyone has not agreed on the positioning and target audience, no template will be approved because each person is evaluating based on a different equation.
+32 percentage pointsThe superior revenue of companies in the highest quartile for design compared to the rest, in a study of 300 companies over 5 years. Source: McKinsey, The Business Value of Design, 2018.

Companies that achieve this do not do so because they have a uniformly tasteful board of shareholders. They succeed because they have a clear decision-making mechanism that allows design to be executed without being eroded through each approval round.

The role of the design studio in the stalemate

One thing that is rarely stated outright: design studios also bear responsibility in this loop if they take on projects without clarifying the approval structure from the start.

The studio receives the brief, presents samples, gathers diverse feedback, revises in a synthesized direction, and presents again. Each round of revisions dilutes the original perspective and blurs the design logic. After four or five rounds, what remains is often no longer a well-reasoned design. It is merely a collection of compromises.

A good studio does not just design. They help clients structure the decision-making process before the project begins. They ask questions: who has final approval? What are the evaluation criteria? How many rounds of revisions are contractually allowed? Not because they want to control, but because without these, the project will drag on to a point no one wants.

When to stop and reset

If your brand project is in the third or fourth round without a decision, that is a signal to stop. At this point, what needs to be done is to review the project structure, not to continue revising the samples.

Some questions for self-assessment:

  • Who really has the final decision-making power in the current team?
  • Has the team agreed on positioning and target customer segments before looking at any samples?
  • Are the feedback in the recent rounds strategic judgments or personal aesthetic reactions?
  • Is the original brief clear enough for the design studio to create something justifiable?

The answers to these questions often indicate where real intervention is needed, and it is rarely "we need another round of samples."

References

Marty Neumeier, The Brand Gap (2003). Byron Sharp, How Brands Grow (2010). McKinsey & Company, The Business Value of Design (2018). Marq / Demand Metric, Brand Consistency Report (2021). Barry Schwartz, The Paradox of Choice (2004).

Frequently asked questions

Why does our branding project keep dragging on despite working with multiple design agencies?

The problem often does not lie with the design unit. When the approval group has many people with equal authority and no common evaluation criteria, each round of feedback creates new directions instead of narrowing down options. Prolonged projects are a symptom of decision-making deadlock, not creative deadlock.

Who should have the final say on branding in a shareholder company?

There is no single answer, but there needs to be a clear answer before the project starts. Typically, the approval group should be narrowed down to one or two people with final decision-making authority, while other stakeholders serve in an advisory role. This needs to be documented or included in the project terms, not just agreed upon verbally.

Can we hold a vote to choose the design sample?

Majority voting on brand design often yields the worst results. The winning design is simply the one with the least opposition, not the one that best fits the strategy. Instead, evaluate each option based on pre-agreed criteria, such as positioning, target audience, and usage context. Then score according to those criteria.

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