What are the New Rules for Madison Avenue’s Makeover?

Madison Avenue Manslaughter is the industry standard game amp160Most clients and agencies are playing it using a selfdefeating playbook amp160This game sees brands that do not grow CMOs who come and go like White House staffers clients who abuse their agencies declining fees ad hoc Scopes of Work vendor relationships agencies who abuse their staffs overwork downsizings lack of diversity depressed salaries unattractive career paths cost reductions positioned as agile initiatives executives who follow rather than lead and greater creativity described as the solution even though no one knows what it takes when funds have dried up amp160Profit margin not creativity is the real god and all is sacrificed on its altarWhat are the rules followed by The MakeoversRelentless problemsolving for clients The Makeovers know that clients are obsessed with the need to improve their businessproduct growth rates margins and share prices and having budgets and plans that will reliably get them there amp160This is not easily done amp160The default situation for most companies is chronic average underperformance the outcome of managementamp8217s best efforts over time amp160Corporate executives and managers are like undisciplined rowers in an 8man shell pulling like hell to move the boat but thrashing the water and one another instead amp160Rewards are there for executives and agencyconsulting partners who can help them focus and synchronize their efforts in an effective wayClient problemsolving is a mission and discipline for The Makeoversamp160 Their professionals are trained in the art and science of client performance turnarounds amp160What does it takeUnderstanding the nature of a clientamp8217s underperformance today The Makeovers ask amp160Why are brand growth rates stagnant amp160Is it pricing amp160Distribution amp160Product features amp160Competition amp160Technology amp160Customer experiences amp160Image amp160What explains todayamp8217s unexciting performance amp160The Makeovers analyze communicate and sell their findings to the clientamp8217s management organization amp160This underperformance analysis defines the starting point for a performance turnaroundDefining a clientamp8217s full performance potential if certain actions are taken amp160How much better could a client be if a different course of action was taken amp160What new plan of product development distribution changes media spend media mix and Scope of Work deliverables will lead to improved results amp160Why amp160What will it cost amp160Whatamp8217s the potential return amp160The Makeovers put their professional reputation on the line tabling a new vision of what can be achieved with all its supporting evidenceGaining agreement to implement the fullpotential plan and becoming a wellpaid performance partner for its execution Strategy and implementation go together The client and its Makeover partner work handinglove throughout the year to review and redefine the fullpotential plan amp160What is working amp160What is not amp160What changes need to be madeThe Makeovers are active not passive partners amp160They do not amp8220provide good serviceamp8221 amp160They fight for their right to be heard and to be in relationships that take them seriously amp160They have a POV amp160They negotiate their relationships at the top with CEOs CFOs CIOs CMOs CPOs to have the necessary air cover and support for their turnaround efforts and to weather the inevitable conflicts and disruptions that a turnaround will createThe management consultants of course have the edge as Makeovers because they have unceasingly focused on hitting home runs for their clients to justify 5x billing multiples for their highly paid Alist professionals amp160In 1973 Bain ampamp Company was the first to articulate a corporate mission to amp8220redefine the management consulting industry to focus on delivering client results not just producing reportsamp8221amp160 Its clients over time outperformed the SampampP by four to one setting an example for others in the consulting industry where it is now standard for a consulting firm to position itself as delivering improved results amp160Since consultants have been adding media and creative capabilities to their product portfolios they are increasingly capable of carrying out fullpotential plans for major advertisers and theyamp8217re winning at this gameMedia and creative ad agencies by contrast continue to work by Madison Avenue Manslaughter rules letting clients take all the key initiatives defining and arbitrarily cutting their fees growing their undocumented Scopes of Work moving SOWs inhouse etc amp160Agencies are far from being considered performance partners by their clients amp160That used to be the case back in the amp821660s and amp821670amp8217s but those days are long gone amp160Today agency client heads hang on to what theyamp8217ve got fearful of client losses the notion that they should be responsible for defining and implementing a clientamp8217s full performance potential is completely alien amp160amp8220The client does not give us this roleamp8221There are new rules for Madison Avenueamp8217s Makeover and a few insightful players are positioning themselves to dominate the gameAnd the others amp160Theyamp8217re receiving and giving a thousand small cuts slowly over time but every year is worse than the one before amp160Theyamp8217ve learned to tolerate the pain and theyamp8217re soldiering on to provide service and creativity even though itamp8217s not changing the outcomesOne day it will end sooner rather than later amp160The Makeover game is the only winning game in townCartoon courtesy of Michael Farmeramp160 Used with permissionClick the social buttons above or below to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writersamp160

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What are the New Rules for Madison Avenue’s Makeover?

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Michael Farmer

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What are the New Rules for Madison Avenue’s Makeover?

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