1. The PANCAKE Advertising Agency

2. Changing Forces at Work AGENCY CLIENT CLIENT EXPECTATIONS EXPECTATIONS TALENTEXPECTATIONS TECHNOLOGYFINANCIAL

3. Client Expectations Agency is a vendor not Agency is a vendor not a partner Project orientation Project orientation Fast response Fast response Low cost Low cost Diminished loyalty Diminished loyalty

4. Freedom Freedom Empowerment Empowerment Skill growth Skill growth Financial and psychic Financial and psychicrewards Diminished loyalty Diminished loyalty Talent Expectations

5. Financial Commission decline Commission decline Project orientation Project orientation Price competition Price competition Client “procurement” Client “procurement” Growing overhead Growing overhead Cash flow slowdown Cash flow slowdown

6. Technology Encourages Encourages new competitors new competitors Promises are not Promises are not being fulfilled being fulfilled Expensive Expensive Hard to apply Hard to apply

7. REVOLUTIONARYCHANGE!

8. Eight principles that can make these changes WORK FOR YOU!

9. 1.Let client market needs drive the agency Client wants vs. needs Client wants vs. needs What they need.. What they need.. not what you sell not what you sell Track market success Track market success Measure client satisfaction Measure client satisfaction

10. Document... Client Expectations AgencyPerformance Client A Objectives Success

11. 2. Organize the agency around the clients Think clients... Think clients... not departments not departments Establish client teams Establish client teams Some clients have Some clients have dedicated teams... dedicated teams... others ad hoc others ad hoc Tear down silos Tear down silos

12. Agency Organization CLIENTA CLIENTB CLIENTC

13. 3. Convert departments to skill centers Centers of craft excellence Centers of craft excellence Mission... Mission... to raise staff skills to raise staff skills Leaders become teachers...not managers Leaders become teachers...not managers

14. Skill Centers PROJECT MGT. CREATIVE PROGRAM MGT. PLANNING MEDIA PRODUCTION INTERNET ETC. PR PROMOTION

15. 4. Establish multi-skill client teams Natural team leaders.. Natural team leaders.. not always an AE not always an AE Very fluid... Very fluid... can change quickly can change quickly Eliminate hierarchical Eliminate hierarchical titles titles

16. Client Teams CLIENTA CLIENTB CLIENTC CLIENTD TALENTPOOL TALENT POOL

17. 5. Broad-based market & client contact Everyone is expected to Everyone is expected to have client contact have client contact No “inside only” people No “inside only” people Reduce digested input Reduce digested input Get close to client Get close to client customers customers

18. The Client’s Customers

19. 6. Reward team performance Based on measured client Based on measured client success and satisfaction success and satisfaction Deemphasize fixed pay - Deemphasize fixed pay - increase variable pay Review on individual and Review on individual and team performance team performance

20. Compensation Profile FIXED VARIABLE Year 1 Year 5

21. All are professionals... All are professionals... each takes care of self each takes care of self Minimize management... Minimize management... maximize leadership maximize leadership Doers... not checkers Doers... not checkers Minimal staff.. finance, Minimal staff.. finance, HR, administration HR, administration 7. Throw out the pyramid

22. Changes MANAGEMENTLEADERSHIP Command&Control Inspire& Set Example

23. Build self confidence Build self confidence Build entrepreneurial Build entrepreneurial spirit spirit Build craft skills Build craft skills Trust them…give each resources, information Trust them…give each resources, information & collaboration tools 8. Help people change

24. Personal Work Tools Others in Agency Internal & External Data Clients Media Suppliers Work Process Collaboration Anywhere! Anytime!

25. TRAINING, TRAINING, TRAINING!

26. High performance Powerful competitor Successful clients Motivated people Very profitable and... FUN! The Pancake Agency © 2005 Carlton Associates Incorporated