Corporations do lots of things to tell you the economy is doing well.
Like changing their names.
In tough times, corporate leaders have better things to do than tinker with their image. Like reviewing every expense to make sure payrolls can be met and the banker is paid off.
When we’re in good times, like today, those chores become routine. Bosses have brief delusions of growth. There’s even enough spare cash for new business cards.
Thus, new identities are born. Revising a company persona reflects a dream that a corporate makeover can propel the institution to new heights. The reality is often only confusion.
I often question the logic behind most name changes because it takes years to successfully build a new brand. More troubling is that the new name is often laughable.
Please ponder Conexant, born in 1999 as a spinoff of a communications technology business created by the old Rockwell defense contractor.
It is Orange County’s worst corporate name ever.
Here’s how it was explained: “The ‘connect’ root signifies bringing people together through communications, putting ideas into motion and merging technologies into integrated solutions. The ‘next’ root represents a forward-looking orientation, with a disciplined next-step application. The suffix ‘ant’ implies a proactive action-oriented approach to business.”
Only an engineer could think that way. And worse, at its birth, this was one of the largest makers of gear that enabled Internet connections – remember dial-up modems? Today, Conexant is a tiny maker of audio and imaging technologies.
Sadly, three recent Orange County name changes came awfully close to unseating Conexant with this dubious honor.
GOING GLOBAL
Some companies change their names in an attempt to hide a checkered past.
Look at four hospitals owned by Integrated Healthcare Holdings, a small chain of Orange County hospitals that have struggled with numerous challenges since being spun off from Tenet Healthcare in 2004.
Profitability has been challenging. An ugly fight broke out between senior management and certain doctors. The reputation of ownership has been questioned.
So last June, Western Medical Center in Santa Ana morphed into Orange County Global Medical Center; the West Med in Anaheim became Anaheim Global; Chapman Medical became Chapman Global; and Coastal Communities Hospital became South Coast Global. And Integrated became KPC Health – the initials are of its owner.
The new hospital names – a mix of a local place name and “global” makes no sense to me. The company sees it as a message for patients to take a broader view of services offered.
I think the only way a hospital name means anything to patients is if it’s listed as an “in-network” facility with their insurance carrier.
GOING BICOASTAL
Corporate mergers apparently spur an urge to name change as the combined entity tries to craft a new personality – both internally as well as to the consuming public.
When Orange County homebuilder Standard Pacific merged with Ryland Group last year, CalAtlantic was born.
“The CalAtlantic Homes name points to the breadth of the new company’s footprint expanding from coast to coast and all points in between,” a company statement said.
But tell me: Where does California meet the Atlantic?
Forget geography, think about style and culture. Surf vs. stuffy. Cool vs. cocky. Wine vs. whiskey. Any similarities?
Standard Pacific builds upscale housing, primarily in the West. Ryland largely creates more affordable options in the East.
Yes, it may look like a match on paper. But the awkward name suggests some challenges ahead.
GROWING TENFOLD
Some companies think their old name inhibits future growth.
Take Auction.com, the Irvine-based online pioneer of distressed property sales. In January, it became Ten-X.
Apparently, the company wants to tell everyone that it’s no longer just an auction house as its grows its share of transactions of non-distressed properties and tries more traditional sales processes.
There’s a slim chance I could buy this argument, but what does Ten-X mean?
In what I must admit is a bold statement backing up the new name, the company said: “Our vision is to make buying and selling real estate ten times better for everyone involved.”
As an occasional consumer of real estate transaction services, I hope the lofty goal sticks. But I fear nobody will ever get this corporate moniker.
Contact the writer: jlansner@ocregister.com
