Power Agency Company

Here’s a true story to shine a light on what can happen to top marketers in the face of failure. Details have been changed to protect the innocent.

The Alpha Company has recently brought in a new marketing department head to drive revenues. Three months ago, company leaders sought outside counsel to reduce the marketing budget by 25% to compensate for downward trending revenues. Advisors said the lower budget could work if several marginal programs were cut and all remaining dollars were focused on the most important market segments.

Upon arrival, the marketing leader is confronted with entrenched programs and people resistant to change. To new eyes, it is hard to spot the sacred cows because the organization does a poor job of tracking results. Another department head served as interim marketing leader and is not at all happy to lose the responsibility. Rather than help the new person sort things out, he makes it his job to alert the CEO about missteps the new marketing leader makes. This, in turn, makes the new marketing leader less willing to take risks. As a result, the 25% cut in the marketing budget is across the board, and the programs that can most likely improve financial results are rendered 25% less effective. Revenues decline fast. New marketing leader is under tremendous pressure just two months into her new job.

Everyone who has been in marketing for any length of time has faced failure. Success and failure are close companions. Smart companies realize this and encourage a certain amount of marketing experimentation. Test markets are just that — a way to try bold new things. The best marketing people are aggressive by nature and willing to stand up to corporate pressures that would eliminate risk and good ideas.

What marks exceptional people and organizations is not whether they can avoid failure, but how they tackle it when it comes. Like our new marketing leader, you may also face a really tough situation. Here are some ways to get back on track from someone who has faced the possibility of serious failure a few times.

Pick Yourself Up. Our tendency is to focus on consequences at the point we are confronting truly difficult circumstances. Focus on what you would do if fear wasn’t standing in your way. Fear clouds judgment and suppresses creativity required to solve the problem.

Change Course. The one great thing about failure is that it has a stopping point. No organization will sit still for long when confronted with big problems. In an odd sort of way, failure opens doors that success seldom does. Management is more willing to change course and try new things. People who are obstructionist tend to stand out more and are easier to sweep aside. At the failure point, there is more risk in maintaining the status quo than in doing bold things. This is when true leaders emerge.

Assess Available Resources. The new marketing leader in our story has a big challenge to drive revenue with a small remaining budget. Her first order of business is to assess what is left and to reprioritize everything. This should then be compared with a strong plan of action to change the outcome by having the courage to make tough calls.

Let Truth Be the Guide. Marketing failures are often due to inadequate budgets in the first place. In today’s cost-saving business environment, marketing department budgets are easy trim targets. When goals are being met, it is easy to take a don’t-rock-the-boat attitude when fighting for resources. At point of failure though, an honest assessment of required resources is vital to reverse the failure. In our story, new marketing leader has little to risk and much to gain by demanding more money.

Involve the Whole Team. At failure point, many people tend to hide the facts from the very people who can change the outcomes. Resist the tendency. This is the time to gather the team and lay truth on the line. Rather than increase fear, this move actually disperses anxiety. Everyone knows things are not going as planned and shares concern about consequences. Give your team members a chance to shape the solution with their own great ideas. Most important of all, believe in yourself and stick to the job until the problem is solved.

Bill Fritsch is president of Hydrogen Advertising, an award-winning, Seattle-based advertising agency emphasizing superb ideas efficiently produced. Reach him at 206-389-9500, ext. 224 or email bill@hydrogenadvertising.com. For more information, visit http://www.hydrogenadvertising.com.

If you want to drive your organization to a higher level of success, here’s a word of advice: set some ambitious goals. No one ever unlocked the leadership capabilities, creativity and passion of their employees by asking for modest gains. Unfortunately in our “prove-it-before-you-do-it” ROI world, some organizations limit risk-taking and inadvertently penalize those who consistently think outside the box. The result is an organization as demoralized as it is bored.

In advertising, this propensity can be deadly. The best advertising people thrive on risk-taking because that’s where the big breakthroughs live. And breakthrough advertising helps build brands and profits. When the pressure to limit risk and drive down costs is overwhelming, it shows in safe, lackluster work.

Lou Tice, personal coach extraordinaire, reminded Seattle’s downtown Rotary last month that setting unrealistic, audacious goals actually increases the likelihood that the goal will be achieved. This may sound counterintuitive, but it’s actually good common sense. Those who set small goals never stretch and grow. So sacred cows thrive, people stay in their comfort zones, the quality of their work suffers, and they influence others to underachieve. Conversely, when people set outlandish goals, the only way they can achieve them is by changing the way things are done, moving into a new zone where innovation can flourish, and turning sacred cows into hamburger.

One of the most dramatic examples of the benefits of setting big goals can be found right here in Seattle. Several years ago, City Librarian Deborah Jacobs and Executive Director of the Seattle Public Library Foundation Terry Collings decided to dream big. In what became the “Libraries for All” initiative, her team set about rebuilding the entire public library system here in Seattle. Not content with providing a much-needed facelift to the facilities, they wanted to show the world that Seattle was serious about opening our doors to anyone who was hungry for information. Reaching this goal required better facilities, more resources for books and programs, and innovative thinking about the role of the library in the digital age.

An amazing thing happened. Their goal was so breathtaking, and the leadership so resolute about achieving it, that momentum started to build. In 1998 Seattle voters approved a $196.4 million bond measure, the largest library bond measure in American history. This funded construction of the new library buildings. Private support flowed into the foundation as momentum built and this provided much needed support to buy books and expand programs. As an icon of this bold, new initiative, the foundation hired the controversial Dutch architect, Rem Kulhaus, to design what has since become the new Central Library, a building universally lauded for both its architectural merit and for bringing the library into the 21st century.

When the Central Library opened, The New York Times architectural critic wrote: “At a dark hour, Seattle’s new Central Library is a blazing chandelier to swing your dreams upon. If an American city can erect a civic project as brave as this one, the sun hasn’t set on the West. In more than 30 years of writing about architecture, this is the most exciting new building it has been my honor to review. I could go on piling up superlatives like cars in a multiple collision, but take my word: there’s going to be a whole lot of rubbernecking going on.”

Today, every single community library in the Seattle system is being renovated or rebuilt.
And I’m sure it’s no coincidence that in 2005 we were named the “most literate city in America” by an annual Central Connecticut State University study.

Most people involved in this monumental accomplishment consider it a career-crowning achievement. It started as a goal that seemed too big to achieve, but teamwork, tenacity and out-of-the-box thinking brought this bold idea to its unabashed triumph.

With its unrelenting focus on ROI, corporate America may be crushing the kind of innovation that built our new Central Library. And what is particularly ironic is that bold action often provides a better ROI in the long term than a so-called safer approach. That’s why it’s incumbent upon those of us in advertising and marketing to make the case for risk-taking. We need to push back on the money people and request budgets that allow for innovation, and even the occasional failure. The more conservative, risk-averse philosophy may look sensible, but an approach that guarantees conventional thinking, bland solutions, and modest returns is far from it.

Bill Fritsch is president of Hydrogen Advertising, an award-winning, Seattle-based advertising agency emphasizing superb ideas efficiently produced. Reach him at 206-389-9500, ext. 224 or email bill@hydrogenadvertising.com. For more information, visit http://www.hydrogenadvertising.com.

If companies used the same process to hire chief marketing officers that they use when selecting advertising agencies, the wheels of commerce would grind to a halt. Imagine a CEO saying “We need a new marketing vice president. Call purchasing.” This is happening in corporate America as the advertising business is seen as a commodity entrusted to the lowest possible bidder.

Gone are the days when advertising agencies were selected on chemistry, powerful ideas, and personal insights that translate into industry defining work.

Today, among the last considerations are chemistry and quality of interaction between agency teams and client. Many clients are dictating price, service terms, and advertising strategy in a take-it-or-leave-it approach that leaves agencies scratching their heads.

“Advertising purchase decisions are often handled by corporate purchasing agents. The process is becoming ritualized around return on investment,” says Jim Copacino, founder of Copacino+Fujikado. “I don’t see this changing soon. The only way that agencies can combat this is to focus on creativity and their ability to demonstrate that powerful ideas can change consumer behavior.”

That’s tough to do when more advertising reviews often keep contact with agency people to a minimum. Good matches between clients and agencies used to be made by with a healthy dose of interaction between parties looking for the right talent match, expertise and fit. Agencies inspired to invest in learning a client’s business were greeted with an open door. Clients would form an opinion of an agency by the quality of the questions asked and the thoroughness used in investigating the opportunity.
Today’s politically correct advertising review process deemphasizes interaction. For example, my recent request for an input meeting with a potential client was met with this voicemail reply: “Send me your questions in writing, and we will respond via email to all the agencies. It would be an unfair advantage if we were to answer your questions in person.”
The process isn’t about being fair. It is about finding the firm best suited for the job.

If companies hired marketing leaders the way many select agencies today, hiring mistakes would be rampant. Several candidates would be expected to write complete marketing plans without any interaction with the company or its people. Research wouldn’t be shared. Budgets would be kept secret. Each candidate’s first meeting would be in front of several people where they would be expected to present their plan. Chemistry would be inferred from how the candidates present to a group.

Hiring success is not about skills alone. Attitude, chemistry, leadership skills, personality, building bridges between departments, personal charisma, and personal interest in the product or category are what matter most. This is why companies invest so much management time getting to know their top candidates and finding out what makes them tick.

When the right ad agency joins your team, revenues can escalate and market share can advance. To make the right choice, invest time and effort to narrow the list of candidates to appropriate finalists. Then, invest more time to get to know them in a way that will help you predict what it will be like to work with them over the long haul. Resist all temptation to make the review process an arm’s length transaction. Rather, develop a three-tier process that:

1) Allows you to look at many agency portfolios. The more the merrier. You will be surprised by what you see, and this will help you to develop a quality list of semi-finalists. And, by all means, don’t require submission of 100-page capabilities statements and financial details at this stage. Chances are the best agencies will decline participation. That won’t serve the process of finding superior talent to get the job done.

2) Provides opportunities for semi-finalists to present their capabilities. This should be an open process, inviting each agency to interact with you as they see fit. This will tell you a lot about working with each.

3) Narrows the field to no more than two or three of the most qualified firms. These are the firms that will invest their time, creativity, and resources into demonstrating that they are best for you. Part of the evaluation process should be to rate the way they gather information and how capable they are in gaining insight into your markets. Most of all, let the process be a bit messy. It will tell you a lot.

If clients and agencies alike would follow this process, we’d all be in a better position to do the best work of our lives, and what could be better than that?

If this column hits a collective nerve, let’s continue the conversation by phone or e-mail and possibly organize a seminar or webinar with industry leaders on the RFP topic for a later date.

Bill Fritsch is president of Hydrogen Advertising, an award-winning, Seattle-based advertising agency emphasizing superb ideas efficiently produced. Reach him at 206-389-9500, ext. 224 or email bill@hydrogenadvertising.com. For more information, visit http://www.hydrogenadvertising.com.