Global Best Practices ICOM Regional Meeting Lisbon September 23, 2005

Best Practices is Not Standardization Globalization Centralization Rigid Control Half-and-Half Solution Compromise Lowest Common Denominator

INSTEAD Intelligent and Flexible Adaptation of Agency Management to Client Structure for Ultimate Satisfaction

International Clients „ Clients who are increasingly managing their business on a regional or global level prefer multinational ad agencies that can create a unified brand image and positioning around the world“ „They are looking for improved efficiencies and effectiveness of operations between the two parties“

The ICOM Promise „ A network of idependently owned and operated communications agencies in 55+ countries where every agency treats a network client as its own.“ „A lead agency and an account manager who directs the activities of the other ICOM agencies with a set of documents so that these clients see the same information presented in the same way in each country on their account“

The ICOM Promise „ A real alternative to the growing sameness and bureaucracy of the multinational networks“

Global Best Practices „ Next to Creativity the Best Practices model used is the only true differentiator between agency networks“

Global Best Practices Role Model No such thing

Global Ad Decision Controls 26% Centralized 34% Decentralized 40% Hybrid Strategy

Agency Responses The predominant organizational principle is to meet the needs of global accounts to adapt their structure to client requirements to standardize service delivery as much as possible

Delivery of Best Practices A shared understanding between agency and client of Responsibilities and lines of communication Tasks to be performed Strategies for maximum effectiveness Methods for exchange of learnings across borders

Shared Understanding Indispensible for a long-term profitable relationship Do not start work before a negotiated agreement Buying a creative idea is no guarantee for its delivery „Mutual respect“ is no substitute for operational clarity Anticipate all client demands made of the network Elevation of quality standards and human resources through training

Responsibility & Communication Harmonize Client structure with Agency network Appoint the individual that delivers Create and instruct support groups Tie down client responsibilities by name/function Agree procedures for approval, time, and recourse

Strategic Tasks & Delivery Be clear on what is and what is not bought by client Establish monitoring principles Agree patterns for client review and agency evaluation Ensure concurrence with all network offices Consider even the most unlikely

Execution of Strategies Here agencies lose money and clients lose faith Set standards that avoid waste and frustration Discourage „muddeling“ between agency and client but also within the network Agree adjustments with client asap when necessary Create an internal monitoring system

Manifestation of Best Practices Technically – a manual between all parties Emotionally – a personal contract for each team member with the client Personally – a way to advance knowledge and career Financially – an insurance for long-term income and profitability Competitively – a method that puts ICOM at par with big global networks while retaining individuality.

Global Best Practices Thank You