Verizon's Denis Budniewski Talks About Agencies, Compensation, DEI and More

Bill Duggan: You made the transition from agency-side -- some 25 years there -- to client-side at Verizon a few years ago. What has most surprised you about that transition?

Denis Budniewski: I loved my career on the agency-side but haven't looked back since joining Verizon four years ago. While there are many similarities, there are differences between agency and client life, and the ability to adapt can make or break someone's transition. Understanding how to navigate a big matrixed organization and building cross functional relationships are critical to success. And on the brand-side, often individual compensation is more closely correlated to achieving your personal and company goals, which helps keep you focused on driving results.

Duggan: I love your title -- "Executive Director of Marketing Investment and Transformation." What are some of the transformation activities you are currently involved with at Verizon?

Budniewski: My transformation team acts as internal consultants in marketing to help drive and operationalize change. We are currently rolling out a new workflow management tool to all marketers and agency partners. This will bring transparency and time savings to how we operate as marketers. Other priorities are helping to navigate the intersection of media, content and personalization at scale from dynamic video content and the use of AI and machine learning.

Duggan: Can you broadly discuss Verizon's approach to agency compensation … and what is working particularly well? And is there anything new being considered?

Budniewski: I'm really looking forward to the ANA Financial Management Conference to speak more on this topic. The starting point for any compensation discussion should be talent. At the end of the day, clients don't hire agencies, they hire people. And you have to ask yourself fundamental questions such as, are you looking for a one-stop shop that does everything, or a holding company model or group of specialized agencies? Does your client organization work best when the agency is structured with more senior level talent, more doers or somewhere in the middle? These factors are your biggest variables and drivers of compensation. Then, the compensation model needs to be fair, transparent and aligned to the needs of the business.

Duggan: In 2021, Verizon, along with its agency partners, announced a plan to make a long-term commitment to DEI. What has the progress on that initiative been like and what has been the most exciting result for you so far?

Budniewski: In April of 2021, we publicly announced our Responsible Marketing Action Plan (RMAP) as a way to hold ourselves accountable to metrics from staff diversity to investments to brand standards. You know the saying, "What gets measured gets managed." Importantly, the elements in our RMAP program weren't new to us. Verizon has had a long commitment to DE&I, especially in marketing, so this public announcement was also a way to help other marketers. One of the most exciting results has been the growth in diverse talent. Across Verizon marketers and our external agency partners, at the end of 2022, our combined staff is now 40.8 percent people of color, which is significantly higher than the recent ANA average for marketing organizations at 32.3 percent.

Duggan: What advice would you give to other client-side marketers who are looking for more effective ways to evaluate their agency relationships and the value they bring?

Budniewski: First, do it! You owe it to your company, your marketers and your agency partners, to conduct regular and two-way evaluations. Agencies should always know where they stand in terms of talent, operating model, structure and, importantly, the work. And agencies should have the opportunity to provide clients with feedback as well. At Verizon, our agency review meetings involve the most senior agency leadership, not the day-to-day account leadership. The meetings provide a forum at the highest levels, to have direct and very candid conversations that result in action plans to drive continuous improvement.

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