Jim Surguy MD, Results Business Consulting

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Jim SurguyMD, Results Business Consulting
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From Downturn to Upturn Meeting the Challenges
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New complexities since the last recession

• Media neutral planning/communication integration
• Escalating procurement involvement
• Emergence of PBR
• Explosion of digital technology/channels
• Media proliferation

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Media growth
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New complexities since the last recession

• Media neutral planning/communication integration
• Escalating procurement involvement
• Emergence of PBR
• Explosion of digital technology/channels
• Media proliferation
• Faster turnover of client key staff
• The rise of CSR
• More communications literate and savvy consumers
• The rise of irreverence (cultural phenomenon)

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Content

• Public relations agency management
• Ideally
• At present
• Achieving business success
• The market reality
• The issues to address

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Agency management
DIRECTION
CONTROL
HARD STUFF
SOFT STUFF
PEOPLE DEVELOPMENT
CULTURE
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Agency management
DIRECTION (Leadership)
Vision Goals Strategic ambition Brand
proposition
HARD STUFF
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Agency management
DIRECTION
CONTROL
Vision Goals Strategic ambition Brand proposition
HARD STUFF
SOFT STUFF
PEOPLE DEVELOPMENT
CULTURE
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Agency management
CONTROL (Management)
Budgets Cost control Margin control Profitabili
ty Reporting systems
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Agency management
DIRECTION
CONTROL
Budgets Cost control Margin control Profitability
Reporting systems
Vision Goals Strategic ambition Brand proposition
HARD STUFF
SOFT STUFF
PEOPLE DEVELOPMENT
CULTURE
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Agency management
Attitudes Values Beliefs Common shared vision
and goals Employee engagement
SOFT STUFF
CULTURE
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Agency management
DIRECTION
CONTROL
Budgets Cost control Margin control Profitability
Reporting systems
Vision Goals Strategic ambition Brand proposition
HARD STUFF
Attitudes Values Beliefs Common shared vision
and goals Employee engagement
SOFT STUFF
PEOPLE DEVELOPMENT
CULTURE
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Agency management
Opportunities Support Career development Empowe
rment Training
PEOPLE DEVELOPMENT
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DIRECTION
CONTROL
Vision Proposition Strategic ambition
Financial controls Reporting systems
HARD STUFF
Support Career development Training
Attitudes Values Beliefs
SOFT STUFF
PEOPLE DEVELOPMENT
CULTURE
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Agency management
DIRECTION
CONTROL
HARD STUFF
SOFT STUFF
PEOPLE DEVELOPMENT
CULTURE
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• A new strategy for business success is needed

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(No Transcript)
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Marketplace reality

• The market continues to be over supplied
• New business is harder to come by
• Over servicing is endemic
• Scope creep
• Productivity problem
• Clients continue to squeeze on fees
• Margins and profits continue to be under pressure

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Operating Profit as percentage of Gross Income
Source Willott Kingston Smith Marketing Monitor
April 2004
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Marketplace reality

• The market continues to be over supplied
• New business is harder to come by
• Over servicing is endemic
• Scope creep
• Productivity problem
• Clients continue to squeeze on fees
• Margins and profits continue to be under pressure
• Clients have been taking work in-house
• Young people coming into the business are keener
  on a work/life balance
• Disciplines and solutions are converging

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Leadership Management
Business success
Marketplace reality
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Leadership Management
Business success
Marketplace reality
Competitive Advantage
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Competitive advantagelow cost or differentiation
Relative Cost
HIGH
LOW
Specialist Significantly different
HIGH
Winner
Degree of differentiation
LOW
Survive on low cost
Disaster
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Leadership Management
Business success
Marketplace reality

• Competitive
• Advantage
• Positioning
• Culture

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PositioningHedgehog Principle
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Hedgehog principle
What are we most passionate about?
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Hedgehog principle
What are we most passionate about?
What could we be best at?
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Hedgehog principle
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Culture
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What is culture?
A way to hold a company together GOFFEE JONES
The pattern of shared assumptions a given group
has invented SCHEIN
A coherent set of shared values PETERS
WATERMAN

• Many definitions, only one outcome
• Without a POSITIVE culture, a company lacks the
  values, direction, and purpose needed to succeed
  and optimise its potential
• Culture varies between companies and if not
  managed carefully it can vary between department
  and department and even team and team

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Why managing culture improves agency performance

• It delivers one dynamic force by
• Creating an organisation that works as a team
  towards shared success, common goals and values
• Unleashing the talent and creative energy of the
  people
• Creating confidence and a belief in future
  success
• Building an organisation that creates its own
  competitive advantage

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• Culture determines employee engagementdetermines
  your business success

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Leadership Management
Business success
Marketplace reality

• Competitive
• Advantage
• Positioning
• Culture

Delivery and Value
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Delivery and Value

• What are you delivering?

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Delivering value
Product quality service quality
VALUE
Financial deal hassle factor
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Delivering value
Effective results
Trust/ Integrity
Pleasure in relationship
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Delivering value

• You dont have to treat all clients the same

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Client evaluation matrix
High
Renegotiate compensation
Over service with value
Growth Potential
Lock and Load
Exit strategy
Low
Low
High
Profitability
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Conclusion

• If you successfully address all these issues you
  become must have not nice to have.
• Must haves do not get cut.
• You will be successful in
• Changed Times.