CarltonAssociatesIncorporated

The

PANCAKE

Advertising Agency

CarltonAssociatesIncorporated

Changing Forces At Work

AGENCY

CLIENT EXPECTATIONS

TALENTEXPECTATIONS

TECHNOLOGYFINANCIAL

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Client Expectations

• Agency Is A Vendor Not A Partner• Project Orientation• Fast Response• Low Cost• Diminished Loyalty

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Talent Expectations

• Freedom• Empowerment• Skill Growth• Financial And Psychic Rewards• Diminished Loyalty

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Financial

• Commission Decline• Project Orientation• Price Competition• Growing Overhead• Cash Flow Slowdown

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Technology

• Encourages New Competitors• Promises Are Not Being Fulfilled• Expensive• Hard To Apply

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REVOLUTIONARYCHANGE!

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The Eight Principles

That CanMake These

Changes

WORK FOR YOU!

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1. Let Client Needs

Drive the Agency

• Recognize The Difference Between Wants & Needs• Provide What They Need.. Not What The Agency Would Like To Sell Them• Measure Their Satisfaction

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Document...

Client Expectations

AgencyPerformance

Client A

Objectives

Success

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2. Organize The Agency

Around The Clients• Think Clients... Not Departments• Establish Client Teams• Some Clients Have Dedicated Teams... Others Ad Hoc• Tear Down Barriers

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Agency Organization

CLIENTA

CLIENTB CLIENT

C

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3. Convert Departments

To Skill Centers• Centers Of Craft Excellence• Mission... To Raise Skills• Leaders Become Teachers...

Not Managers

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Skill Centers

TRAFFIC

CREATIVEPROGRAM MGT.

PLANNING

MEDIAPRODUCTION

INTERNETETC.

PR

PROMOTION

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4. Establish Multi-Skill

Client Teams• Natural Team Leaders.. Not Always An AE• Very Fluid... Can Change Quickly• Eliminate Hierarchical Titles

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Client TeamsCLIENT

ACLIENT

B

CLIENTC CLIENT

D

TALENT POOL

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5. Maximize Client

Contact• Everyone Is Expected To Have Client Contact• No “Inside Only” People• Reduce Digested Input• Get Close To Client Customers

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The Client’s Customers

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6. Reward Team

Performance• Based On Measured Client Success And Satisfaction• Deemphasize Fixed Pay• Increase Variable Pay• Review Based On All Team Leaders

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Compensation Profile

FIXED

VARIABLE

Year1

Year5

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7. Reduce Top

And Bottom• All Are Professionals... Each Takes Care Of Self• Minimize Management... Maximize Leadership• Doers... Not Checkers• Minimal Staff.. Finance, HR, Administration

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Changes

MANAGEMENT LEADERSHIP

Command&

Control

Inspire&

Set Example

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8. Help People Change• Build Self Confidence• Build Entrepreneurial Spirit• Build Craft Skills• Trust Them... Each Has Information & Collaboration Tools

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Personal Work Tools

Others In Agency

Internal & External Data

Clients

Media

Suppliers

Work Process Collaboration

Anywhere!Anytime!

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TRAINING, TRAINING,TRAINING!

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HIGH PERFORMANCEPOWERFUL COMPETITOR

HAPPY CLIENTSMOTIVATED PEOPLEVERY PROFITABLE

AND... FUN!

The Pancake Agency

© 2003 Carlton Associates Incorporated