Balanced Scorecard Meets Lovem arks
W ho W e Are… Clients such as: 1 of the world's leading creative organizations $ 7 billion (USD) in annual billings 1 3 8 offices in 8 4 countries 7 0 0 0 employees and many others. We are positioned not as an advertising agency but an ideas com pany .
Hello An advertising agency, no! An ideas company that is always best in category, yes!
W e Capture the I dentity of an I deas Com pany in 3 Statem ents Our Focus "To be revered as the To fill the world with hothouse for world- Lovem arks , which are Our I nspirational Dream super developed brands changing creative ideas 1 To be revered as the hothouse for that inspire loyalty world-changing ideas that create sustainable beyond reason. The that transform our clients' growth for our clients. relationship businesses, brands and Lovem arks have is built on emotion first reputations.” and function second. 2 3 These goals w ould support the new Vision Our Spirit Nothing is Impossible, One Team, One Dream And with the help of the Balanced Scorecard (BSC) we would achieve it...
Our I deas Are Focused On Creating Transform ation For Our Clients To Help Build: 1 . The business 2 . The brand and 3 . Their reputation ...And we give our employees the inspiration and the tools to make a difference...
Reel
But it W asn’t Alw ays this Good
Before W e Becam e the I deas Com pany and the Agency Lovem arks W e Had Som e Dark Days… 1 9 8 0 's - overextension through acquisition 1 9 9 0 's -first half of the decade 1 9 9 5 –debt was brought severe out of hand and financial pressures the company was brought on by a running on recession fumes… Enter Bob Seelert, a new CEO, to start plotting the course
1 9 9 7 w as a W atershed Year for Problem s and Opportunity 1 9 9 7 The demerger from Cordiant Communications permitted Bates and S&S to go their separate ways A burning need for organizational restructure & cost reduction is the opportunity; Saatchi & Saatchi stock relists on the London and New York Stock Exchanges for 1£ per share
The New Managem ent Team in 1 9 9 7 Had I ts W ork Cut Out for Them ... Bill Cochrane , WW CFO Kevin Roberts , WW CEO Bob Seelert , Chairman
W e Need to Act Quickly W ith Goals that W ould Act as a Prom ise to the Markets… 2 We would convert 30% of that 1 We would grow incremental our revenue revenue to operating base BETTER 3 We would than market rate PROFIT double our EPS
Great W ork W as Getting Done BUT 45 globally dispersed offices presented logistical challenges Each unit was working its own agenda There was no commonality of purpose, cohesion or identity
I m plem enting the Vision is a Tw o Step Process … before moving to this next level. 2 Ideas Company that transforms our clients’ businesses, brands Each office must do and reputations. this brilliantly... 1 Traditional advertising with best in category creative
W e Needed a Managem ent Tool that w ould Help us Get Things Done
A Managem ent Tool that W ould… Track Monitor Help us improve And would address: - The Client - Financials Provide feedback - Product and Process - People and Culture
Achieving our Vision – the Map Build S&S Reduce Financial Grow Double EPS Brand Costs Revenues Equity Client Create PICS Permanently Infatuated Clients Focus Excel at Business Identify and Win Global Product Financial Work Account Development Implement Fame for Discipline & Smarter Management (New Appropriate Our Idea (Eliminate Across the Process & Create clients & Communication Leadership Inefficiencies) Network Great Ads assignments) Services create a rewarding, People One Team, One Dream: stimulating environment where & Culture nothing is impossible
The Results • Acquisition by Publicis Groupe • A price per share 5X the opening • Converting 30% of our incremental revenue to operating profit • Meeting our 3 objectives and exceeding them in under 3 years!
The I ntroduction of the BSC in EMEA We reintroduced the Balanced Scorecard across the EMEA markets to achieve regional success
W inning w ith the Balanced Scorecard
Chief Executive Officer
Saatchi & Saatchi Germ any in 2 0 0 7 • Perceived as a traditional ad agency • Business decline after loss of biggest client • Our brand without clear identity and lack of appeal • Yes, but – culture • No new business • Talents not being attracted
External Dynam ics • The consumer is boss • New technology abounds • Clients need answers • Our value is under threat
Launch of Reinvention @ Saatchi & Saatchi Germ any 1. Ideas Company Lovemarks Company 2. Classic Advertising Integrated Content Solution 3. Functional Structure Integrated Brand Teams 4. Service departments sisomoProductions 5. One location Several locations 6. Financial goals Balanced Scorecard 7. Full Service Eco system 8. Recruitment Human Resources 9. Greatness on special projects Greatness on client business
Our Vision Saatchi & Saatchi Saatchi & Saatchi Berlin Düsseldorf Saatchi & Saatchi Frankfurt All three locations lead to a consolidated margin of 16% in 2012 and bring the new purpose to life.
7.+ 8.11.07 9.11 .0 7 15.1 1 .07 7.12 .0 7 13.1 2 .07 Reinvention Reinvention 1. Audit Quali Session Presentation Accelerator Announcement and Results to of qual+ quant with Plan MM team results to agency 17.1 2 .07 Nomination and Kick of Reinvention Schedule Change agents 24.0 7 .08 07.0 1 .08 Lovemarks Update Agency Academy Priorities of Purpose Focus Areas Mgt Principles 22.0 7 .08 Quick wins Results to agency 15.0 1 .08 04.0 7 .08 Focus of Change Results Presentation agents: Physical to MM Team environment, etc. 9.-20.0 6 .08 08.0 2 .08 Evaluation with Update Agency 2nd wave of reinvention First Draft Structure Feedback Session 16.0 5 .08 14.0 2 .08 Lovemarks Academy Valentine‘s Day for Creatives and Planners Presentation New Structure 17.0 3 .08 04.0 3 .08 17.0 4 .08 Moving Plan Execution Follow up 30 days later – everyone changes Session Feedback Session office and floor Structure Details
I t’s all About the Purpose Fill the world with Lovem arks
Clients and Em ployees Needed to Experience the New Approach Leading Products and Services Culture Leadership Development Application Economic Social Client Em ployee Experience Experience
I nternal Launch First
I ntroduction of a New W orking W ay: The Path to Love The core principles of Lovemarks development are captured in The Path to Love , a framework that equips the Saatchi & Saatchi network with a shared process and with best practices from around the world. The Path to Love is comprised of five core steps: Discovery Lovem arks Attraction Organizing OI I C I dea Xploring
A New Structure to Mirror the New Stragegy Brand Team I I Brand Team I Brand Team I I I W. Schlutter, O. Rosenthal + E. Kirchhoff + Th. Kanofsky D. Hook + D. Neugebauer A.Petri+ M. Henkel Clients: Em irates, Sony Ericsson, Visa, Clients: Clients: Schott Solar, neckerm ann.de, Pam pers, T-Mobile, Volvo, Novartis Ariel,BAM+ BAD, h&s, Gauselm ann, Kandoo, W orld of W arcraft, Bel OoO, NB, Scout 2 4 , dm , Cam pari, NB Messe Frankfurt, NB NB Praktiaker, Horex LOVEMARKS . . . I dea Managem ent Connectors Grid RASCI . . . Account Management Multi-Media-Traffic Discovery . . . Team Assistance I dea Creation . . . Xploring Strategic Planning Creative . . . Tribes Lovem arks Organising I dea I dea Production . . . Interactive Production TV Production Print Production Art Buying . . . IT I dea Visualisation . . . I dea Support I dea Execution Human Resources Finance Public Relations I DEAS New Business Acquisation I nnovation Team
Consolidation of all Production Services Head Head Head of of Head of of Art I nteractive Print TV Traffic Buying Prod. Adcost Events Adm in TV Traffic Print Online Departm ent TV Producer Traffic Art Buyer Producer Producer Head of Creative Services Print Print Online Art-Buying Art Buyer Traffic Production TV Producer Producer Producer Online Print I llustration Art Buyer Production TV Producer Producer
Launch of Germ an Edition of the Lovem arks - Effect Book
A New Credential to I ntroduce S&S Germ any
The Foundation W as Set
W e Celebrated Short Term Success
Need for a Managem ent Tool to Guide the Strategy
The Fram ew ork 1. The Balanced Scorecard as our agency management tool and crosses all areas of the agency operations. 2. It can be applied by individual units to drive strategy and measure business results to advise peak performance. 3. It is actionable and driver focussed there by allowing each unit to customise it to reflect unique business situations. 4. While we focus on growth and winning new business our priority is to maintain our existing clients by providing value and greater efficiencies.
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