Revisit the slides from Michael Farmer's keynote presentation on the opportunities facing...
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HOW TO AVOID MADISON AVENUE MANSLAUGHTER: The Opportunity Impera=ve for Independent Agencies MICHAEL FARMER – FARMER & COMPANY LLC WEDNESDAY 12 TH OCTOBER 2016 Copyright © 2016 Farmer & Company LLC
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Transcript of Revisit the slides from Michael Farmer's keynote presentation on the opportunities facing...
HOWTOAVOIDMADISONAVENUEMANSLAUGHTER:TheOpportunityImpera=veforIndependentAgencies
MICHAELFARMER–FARMER&COMPANYLLC WEDNESDAY12THOCTOBER2016
Copyright©2016Farmer&CompanyLLC
MOREIMPORTANTTHANTHEBURNINGISSUESOFOURDAY:
GOINGTOTHEDOGS(OZ) KITTEN-GRABBING(USA)
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SAGEScien%ficAnalysisofGermaneEvidence
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WHATISMADISONAVENUEMANSLAUGHTER?WHATISTHEPHENOMENON?
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DECLININGPRICEFORAGENCYSCOPESOFWORK-63%FROM‘92
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MANSLAUGHTER#1
FEESINDECLINE
WORKLOADSGROWING
PRICEINDECLINE
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PRICE=FEE$DIVIDEDBY
WORKLOAD#*
*WorkloadsmeasuredinScopeMetric®Units(SMUs)
DECLININGPRICE
AGENCYDOWNSIZINGS
INCREASEINOUTPUTPERHEAD
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IFPRICEDECLINES,
COSTS(andheadcounts)MUSTDECLINEASWELL
INCREASEDOUTPUTPERCREATIVE+128%FROM‘92
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MANSLAUGHTER#2
IncreaseinSMUsperCreaUveperyear
AGENCYRESOURCES
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COMMISSIONERA TODAY
CURRENTORGANISATIONALTHEORY“WHATWEDO…CAN’TBEMEASURED!”“WE’RERUNNINGACREATIVEBUSINESS!”
10SaulSteinberg,TheNewYorker,TheCartoonBank.Withpermission.
CURRENTORGANIZATIONALPRACTICE:“WHATWEDO…CAN’TBEMANAGED!”“EVERYANTKNOWSITSJOBANDHASTHEFREEDOMTODOIT!”
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MANSLAUGHTER#3:NEWBUSINESSWINS
1. The“lifeblood”ofagencies…2. …replaceclientlosses3. …donotgrowagenciessustainably4. …wonatcommodityprices
…fromfee-cu`ngcompeUtors
Everynewbusiness“win”isalossfortheindustry
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ALOSER’SGAME
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LOSER’SGAME
1. Clientsdictatefees2. ClientsgenerateSOWsandout-of-scopework
3. Briefingandadapprovalprocessesarepoor4. Agenciesstrugglewithinadequateresources5. Clientsdon’tgetthebrandperformancetheyneed
6. Agencies‘underperform’andarefired
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TRANSFORMYOURAGENCYTOSOLVETHREEPROBLEMS:
1. MISSIONCHALLENGE:REDEFINEYOURPURPOSEPROVIDEYOURCLIENTSWITHWHATTHEYREALLYWANT(results,notcrea%vity)
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MISSIONCHALLENGE
1. Premise.Allbrandsunderperform.Theyhave“unrealizedperformancepotenUal”
2. Role.Toiden%fyandrealizebrands’“fullperformancepotenUal”
3. Requirements.Aself-consciousrela%onshipwithmutualresponsibili%es“Thepurposeofourrela=onshipistoachievetheunrealizedperformancepoten=alofyourbrands.Here’showwe’lldoit”
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TRANSFORMYOURAGENCYTOSOLVETHREEPROBLEMS:
1. MISSIONCHALLENGE:REDEFINEYOURPURPOSEPROVIDEYOURCLIENTSWITHWHATTHEYREALLYWANT(results,notcrea%vity)
2. WORKLOADCHALLENGE:CREATE,MANAGE,MEASURETAKELEADERSHIPFORSCOPESOFWORK(youhavetoownthem)
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WORKLOADCHALLENGE
1. Premise.Well-conceivedSOWshavethehighestprobabilityofachievingbrands’fullperformancepotenUal
2. Role.TheAgencyhastheresponsibilitytodevelopandmakethecasefortheSOW
3. Requirements.Anunderstandingofcurrentandpoten%albrandperformance.Goodstrategicandcompe%%veanalyses.Consul%ngins%ncts.Commitment.Perseverance.Risk-taking.Focus
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TRANSFORMYOURAGENCYTOSOLVETHREEPROBLEMS:
1. MISSIONCHALLENGE:REDEFINEYOURPURPOSEPROVIDEYOURCLIENTSWITHWHATTHEYREALLYWANT(results,notcrea%vity)
2. WORKLOADCHALLENGE:CREATE,MANAGE,MEASURETAKELEADERSHIPFORSCOPESOFWORK(youhavetoownthem)
3. ACCOUNTABILITYCHALLENGE:GOALS….andREVIEWSCREATEMANAGEMENTACCOUNTABILITY(manageyouragency)
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ACCOUNTABILITYCHALLENGE
1. Premise.AccountHeadsmustbeheldaccountableforfees,workloads,resources…andresults
2. Role.AgencyExecuUveManagementmustsetgoals…andmeasure,reviewandraUfyAccountHeadacUons
3. Requirements.Workloadmetrics.SOWtracking.Reviewoffees,SOWs,resourcesandresults.CorrecUveacUonplans.SancUonsfornon-performance
4. Policy.“EveryAccountHeadineveryofficewilldocumentandmeasureitsSOWsinauniformwayasamaNerofAgencypolicy”
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AGENCIESAREBUSINESSESTHATNEEDTOBEMANAGEDREFOCUSRELATIONSHIPSTOCREATESUCCESSUPGRADETHEVALUEYOUGENERATEMANAGEANDMEASUREWORKLOADSIMPROVEDREMUNERATIONWILLFOLLOW 21
YOUCANDOANYTHINGYOUSETYOURMINDTO
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