part 1 - the best and all the rest: what makes great agencies great
Post on 18-Sep-2014
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An exploration of the practices of the most widely admired advertising agenciesTRANSCRIPT
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Tim Williams ignition consulting group www.ignitiongroup.com
The Best and All the Rest
What Makes Great Agencies Great
What Makes Great Agencies Great
Part 1 (of 3)
PurposePrinciplesPositioningProductPeoplePromotionProcessPlacePerformance
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12,000Agencies in the U.S.
“There are perhaps as few as 40 or 50 agencies in the United States that can actually manufacture a good campaign, and possibly 10 that do it consistently.”
Richard Kirshenbaum and Jon Bond“Under the Radar”
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If you just copy, you’ll always be left behind
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Exponential differences
Total Awards
1 Crispin Porter + Bogusky 695
2 TBWA Paris 335
3 Abbott Mead Vickers BBDO, London
290
4 DDB London 270
5 DDB Chicago 220
6 JWT London 185
7 Dentsu Tokyo 180
8 Forsman & Bodenfors, Sweden 165
9 Taxi, Toronto 165
10 Goodby Silverstein & Partners 155
*Total awards in major worldwide award shows, 2007
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BestPractices
NextPractices
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Lagging Indicators
Leading Indicators
(Effect)
(Cause)
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What are the leading indicators
of agency success?
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Purpose
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WHAT SEPARATES THE BEST FROM THE REST
They know what drives them from inside.
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“Every employee should feel that he or she is contributing to something that will actually make a genuine and positive difference in the lives of customers and colleagues.”
Gary HamelHarvard Business SchoolAuthor, “Leading the Revolution”
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7 to 1
Purpose-driven companies outperform
traditional companies by up to
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The market
The competition
The numbers
The client
OUTSIDE INSIDE
Purpose comes from the inside
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Business Movement
Money Meaning
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“Profit isn’t the purpose of a business, but rather
a test of its validity.”
Peter Drucker
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THE BIG IDEA
THE BIG IDEAL
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To be a catalyst for changing
popular culture.
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To create and own ideas and products that allow us to share in our clients’ success.
What business are you in?
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Purpose:
To organize all of the world’s information.
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“Do you want to sell fizzy
water, or do you want to change
the world?
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Testing Purpose
1.Is it inspiring and motivating?
2.Does it make a contribution to something greater than earning a living?
3.Is it a purpose or a platitude?
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WHAT SEPARATES THE BEST FROM THE REST
They set extremely ambitious goals.
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“The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.”
Michelangelo
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So how good do you want to be?
Pretty good.
Good.
Very good.
The best in your region.
The best in the world.
Source: Paul Arden, “It’s Not How Good You Are,It’s How Good You Want To Be.”
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Remarkable agencies aren’t just trying to create advertising, but in some small way change
the world.
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1.What would we like to create that never existed before?
2.What would we like to accomplish that would be considered extraordinary?
3.What could we do that’s insanely great?
Ambitious Goals
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“A big problem with working at ad agencies is that management is too often unwilling to stand up for their own people if it means taking on the
client.”
74% agree
2004 Study of advertising professionals by Euro RSCG
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Principles
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WHAT SEPARATES THE BEST FROM THE REST
They know there’s something more
important than money.
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The things we will never do
The things we will
always do
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Principles = Rules of Engagement
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“We don’t believe in defending current clients in a review.”
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*Written six months before the agency opened in 1981.
One Set Of Core Values* Drives Everything And Everyone.
• The single-minded devotion to, and the belief in, the power of creativity.• The unconditional belief in the dignity of the individual.• The belief in “family” as a business model.• Seeing risk-taking as a friend.• Success as a business imperative.• The importance of remaining humble.• The necessity of having fun.
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Charge for ideas instead of time.
Put some skin in the game.
Focus on building a catalog of intellectual property.
Allow individual employees to keep some ownership of great ideas.
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Bruce Mau Design
Make mistakes faster.
Don’t enter award competitions.
Avoid software.
Don’t clean your desk.
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No spec creative in new business presentations.Among top ten biggest agencies in U.K.
Among top ten creative award winners.Among top ten in IPA Effectiveness Awards.Most profitable agency in the U.K.
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“A principle isn’t a principle until it costs you money.
Bill Bernbach
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WHAT SEPARATES THE BEST FROM THE REST
They value greatness over bigness.
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“Growth for the sake of growth is the ideology of a cancer cell, not a strategy for a professional services firm.”
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Savings through “economies of scale”
Agency Holding Companies
= .25%Source: Study by Professors Alvin Silk And Ernst Berndt, as published in Admap, September 2005
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“Market share has nothing to do with
profitability.”
Herb KelliherFounder of Southwest Airlines
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BAKER’S LAW:
Bad clients drive out good clients.
Ron BakerFounder, VeraSage Institutewww.verasage.com
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Tim Williams ignition consulting group www.ignitiongroup.com
The Best and All the Rest
What Makes Great Agencies Great
What Makes Great Agencies Great
This concludes Part 1 (of 3) of this free slideshow version of “The Best and All the Rest” from Ignition Consulting Group.
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More information about seminars for marketing communications professionals on the Ignition website at www.ignitiongroup.com
www.ignitiongroup.com
Please direct inquiries to [email protected]