ThThee

PANCAKEPANCAKE

Advertising AgencyAdvertising Agency

Changing Forces at Changing Forces at WorkWork

AGENCAGENCYY

CLIENTCLIENT EXPECTATIONSEXPECTATIONS

TALENTTALENTEXPECTATIONSEXPECTATIONS

TECHNOLOGYTECHNOLOGYFINANCIALFINANCIAL

Client ExpectationsClient Expectations

• Agency is a vendor Agency is a vendor notnot

a partnera partner• Project orientationProject orientation• Fast responseFast response• Low costLow cost• Diminished loyaltyDiminished loyalty

• FreedomFreedom• EmpowermentEmpowerment• Skill growthSkill growth• Financial and Financial and psychicpsychic

rewardsrewards• Diminished loyaltyDiminished loyalty

TalentTalent ExpectationsExpectations

FinancialFinancial

• Commission declineCommission decline• Project orientationProject orientation• Price competitionPrice competition• Client “procurement”Client “procurement”• Growing overheadGrowing overhead• Cash flow slowdownCash flow slowdown

TechnologyTechnology

• Encourages Encourages new competitorsnew competitors• Promises are notPromises are not being fulfilledbeing fulfilled• ExpensiveExpensive• Hard to applyHard to apply

REVOLUTIONARYREVOLUTIONARYCHANGE!CHANGE!

Eight principlesEight principlesthat canthat can

make these changesmake these changes

WORK FOR WORK FOR YOU!YOU!

1.1. Let client market needs Let client market needs drive the agencydrive the agency

• Client wants vs. Client wants vs. needsneeds• What they need..What they need.. not what you sellnot what you sell• Track market Track market successsuccess• Measure client Measure client

satisfaction satisfaction

DocumentDocument......

ClientClient ExpectationsExpectations

AgencyAgencyPerformancePerformance

Client A

Objectives

Success

2. Organize the 2. Organize the agencyagency

around the clientsaround the clients• Think clients...Think clients... not departmentsnot departments• Establish client teamsEstablish client teams• Some clients have Some clients have dedicated teams... dedicated teams... others ad hocothers ad hoc• Tear down silosTear down silos

Agency Agency OrganizationOrganization

CLIENTCLIENTAA

CLIENTCLIENTBB CLIENTCLIENT

CC

3. Convert departments3. Convert departmentsto skill centersto skill centers

• Centers of craft Centers of craft excellenceexcellence• Mission...Mission... to raise staff to raise staff skillsskills• Leaders become Leaders become teachers...not teachers...not managers managers

Skill Skill CentersCenters

PROJECT MGT.PROJECT MGT.

CREATIVECREATIVEPROGRAMPROGRAM MGT.MGT.

PLANNINGPLANNING

MEDIAMEDIAPRODUCTIONPRODUCTION

INTERNETINTERNETETC.ETC.

PRPR

PROMOTIONPROMOTION

4. Establish multi-4. Establish multi-skillskill

client teamsclient teams• Natural team leaders..Natural team leaders.. not always an AEnot always an AE• Very fluid...Very fluid... can change quicklycan change quickly• Eliminate hierarchical Eliminate hierarchical titlestitles

Client Client TeamsTeams

CLIENTCLIENTAA

CLIENTCLIENTBB

CLIENCLIENTTCC

CLIENTCLIENTDD

TALENTTALENT POOLPOOL

5. Broad-based market & client5. Broad-based market & clientcontactcontact

• Everyone is expected to Everyone is expected to have client contacthave client contact• No “inside only” peopleNo “inside only” people• Reduce digested inputReduce digested input• Get close to client Get close to client customers customers

The Client’s The Client’s CustomersCustomers

6. Reward 6. Reward teamteam

performanceperformance• Based on measured client Based on measured client success and satisfactionsuccess and satisfaction• Deemphasize fixed pay - Deemphasize fixed pay -

increase variable payincrease variable pay• Review on individual andReview on individual and

team performanceteam performance

Compensation Compensation ProfileProfile

FIXEDFIXED

VARIABLEVARIABLE

Year1

Year5

• All are professionals...All are professionals... each takes care of selfeach takes care of self• Minimize management...Minimize management... maximize leadershipmaximize leadership• Doers... not checkersDoers... not checkers• Minimal staff.. finance, Minimal staff.. finance, HR, administrationHR, administration

7. Throw out the pyramid 7. Throw out the pyramid

ChangChangeses

MANAGEMENTMANAGEMENT LEADERSHIPLEADERSHIP

CommandCommand&&

ControlControl

InspireInspire&&

Set ExampleSet Example

• Build self confidenceBuild self confidence• Build entrepreneurial Build entrepreneurial spiritspirit• Build craft skillsBuild craft skills• Trust them…give each Trust them…give each

resources, resources, informationinformation

& collaboration tools& collaboration tools

8. Help people change8. Help people change

Personal Work Personal Work ToolsTools

Others in AgencyOthers in Agency

Internal & External DataInternal & External Data

ClientsClients

MediaMedia

SuppliersSuppliers

Work Process CollaborationWork Process Collaboration

Anywhere!Anywhere!Anytime!Anytime!

TRAINING, TRAINING,TRAINING, TRAINING,TRAINING!TRAINING!

High performanceHigh performancePowerful competitorPowerful competitorSuccessful clientsSuccessful clientsMotivated peopleMotivated peopleVery profitableVery profitable

and... FUN!and... FUN!

The Pancake AgencyThe Pancake Agency

© 2005 Carlton Associates Incorporated