Fluid NetworksThe Next Agency Model?

Trevania Henderson

“I believe the traditional agency model is really obsolete. We are competing to see who can create the

best horseshoes.” Keith Reinhard, Chairman Emeritus, DDB Worldwide

“I believe the traditional agency model is really obsolete. We are competing to see who can create the

best horseshoes.” Keith Reinhard, Chairman Emeritus, DDB Worldwide

“The big agencies know they have to change; the old agency model is dead.”

Chip Bergh, President & CEO, Levi Strauss & Co.

“I believe the traditional agency model is really obsolete. We are competing to see who can create the

best horseshoes.” Keith Reinhard, Chairman Emeritus, DDB Worldwide

“The big agencies know they have to change; the old agency model is dead.”

Chip Bergh, Group President, Global Personal Care Procter & Gamble

“The threat is if agencies don't look at the model and explore newforms of connection and collaboration.”Brian Perkins, Vice President Corporate

MarketingJohnson & Johnson

“I believe the traditional agency model is really obsolete. We are competing to see who can create the

best horseshoes.” Keith Reinhard, Chairman Emeritus, DDB Worldwide

“The big agencies know they have to change; the old agency model is dead.”

Chip Bergh, Group President, Global Personal Care Procter & Gamble

“The threat is if agencies don't look at the model and explore newforms of connection and collaboration.”Brian Perkins, Vice President Corporate

MarketingJohnson & Johnson

“Change, Change or Change: Options for the Agency of the Future” Maurice Levy, Chairman and CEO

Publicis Groupe

“I believe the traditional agency model is really obsolete. We are competing to see who can create the

best horseshoes.” Keith Reinhard, Chairman Emeritus, DDB Worldwide

“The big agencies know they have to change; the old agency model is dead.”

Chip Bergh, Group President, Global Personal Care Procter & Gamble

“The threat is if agencies don't look at the model and explore newforms of connection and collaboration.”Brian Perkins, Vice President Corporate

MarketingJohnson & Johnson

“Change, Change or Change: Options for the Agency of the Future” Maurice Levy, Chairman and CEO

Publicis Groupe

What comes next?

What comes next?

Hypothesis:

Fluid networks—both of specialty agencies and of lone rangers—are the most effective partners for clients in the new marketing universe.

DISCLAIMER

I have a strong personal bias towards the fluid network.

Core Questions 1. The fundamental situation:What’s driving change?

2. The new norms: Why is change possible?

3. The framework: How does it work?

4. The promise:Does it really compare?

Question 1

The Fundamental Situation:What’s driving change?“ The old-fashioned supertanker model is already dead. Clients want smaller collections of people tied to nimble, innovative, evolving structures that can shape and mould themselves into

whatever form is needed to best solve their problems.”

Karina Wilsher Managing Director, Fallon

The Fiscal Crisis

“ This is an extinction levelevent.”

Nick Denton, Gawker Media

The Digital Revolution

“ An ad campaign ten years or so ago used the line, ‘The internet changes everything.’

It’s more true today than ever before.”

Chip BerghPresident & CEO,Levi Strauss & Co.

Marketing Today

The shouting is all over

“ The role of marketing is changing

from an Outbound perspective

(shouting longer and louder) to an

Inbound one (listening carefully to

more people).”

Eric Goldman, Principal, Gossamar

Creative Today

No boundaries means no pre-set solutions

“ Creativity is a much broader term these

days, as it encompasses everything from a

media strategy to a product development

cycle to the content strategy on a Facebook

page.”

Agency Evolution Report

Question 2

The New Norms:Why is change possible?

“ In the new network, it’s all about the brains, not the box.”

Juniper Networks ad

Work Today

Dialing it in has a whole new meaning“ Creativity and ability once

trapped in the agency space has

been set free.”

Brian FlingPresident, pinch/zoom

Where’s the talent?

Risk-taking, idea-generating senior creatives break out“ I had the dream job. The corner office, 175 people reporting to me, a company at the top of its game. And it was soul deadening. I felt like a princess trapped in a golden cage.”

Karen DawsonFormer EVP, ECD, Digitas

Where’s the talent?

Gen Y work to live, not live to work“ Creativity has a ten-year life span.”

Sir John HegartyChairman and Worldwide Creative Director, Bartle Bogle Hegarty

Virtual comfort

Electronic collaboration is the norm“ The generation coming up, they don’t want to be fully employed.”

Michael ConradFormer Vice Chairman and

CCO, Leo Burnett Worldwide

President, Berlin School of Creative

Leadership

Virtual connections

The cloud supports complete collaboration“ People are constantly collaborating with each other…the goal is to stay independent—to keep enough food on the table not to have to go work for one of these companies.”

Drew JonesCo-founder, Shift 101

Question 3

The framework:How does this work?

“ A few people who are very talented at getting the best creative out of others, plus some administration—that’s your agency.”

Shaun AbrahamsonFounder & CEO, Colaboratorie

Mutopo

Specialized. Nimble. Media agnostic. Cost-effective. These are the

watchwordsof the new marketing ethos.

Answering the call: a burgeoning crop of fluid networks,

organizations anchored by a few strategic thinkers and/or

creative leads,supported by a virtual army of

ideators, creators and producers of every ilk.

Club Hegarty

“ If I were starting an agency today, it would be like a club. We’d have a core group of 20 and then 100-200 freelancers flowing in and out.” 

Sir John HegartyChairman and Worldwide Creative

DirectorBartle Bogle Hegarty

Victors & Spoils

“ There are ways to control the self- aggregating group; you use the people who create value.”

John WinsorCEO, Victors & Spoils

Question 4

The Promise:Does it really compare?

“ The best agencies will still have the best people, the best ideas and the best

culture.”

Karina Wilsher Managing

Director, Fallon

Strong, committedclient relationships

“ This is the perfect idea for me; I get a diverse set of skills and a good price point [and] someone who stands between me and the talent.”

Theresa KaskeyMarketing ManagerJohn Hancock Financial Services

Earned client trust

“ I am very interested in someone who strategically understands the

essence of the company. They need to take the time to educate themselves and really listen to what

we are saying.”

Rebecca PetersonVice President, Corporate

Communications, Alkermes

“ We give you the ability to rapidly build teams with the best in the world.”

John WinsorVictors & Spoils

Global ReachLocal Knowledge

“ My clients never have questions about people shifting, whereas at big agencies it is always a question: Are you going to bait and switch? One

of the key value propositions I offer is that I am going to be working on your account.”

Maureen SudaPrincipal, Suda Communications

Dedicated teams. Honestly.

Spirit of collaboration

“ You can build [a strong team] pretty quickly if you get the right people. If you have worked with someone before, you have instant credibility. If you haven’t, they will challenge you until you satisfy them that you are good at what you do. That happens at big agencies, small agencies and on your own.”

Joleen McFaddenSenior Account Director, RAZR Marketing

Culture

“ The stronger the culture, the less need [there is] for structure.

Keith ReinhardChairman Emeritus, DDB

Worldwide

No bureaucracy

“ Creating new paradigms for the agency of the future, we are abandoning bureaucracies in favor of hands- on, down-and-dirty work, and we’re hiring fellow exiles to help us. The allure is in the chance to work directly with the decision makers without internal

politics and to see our work produced instead of reviewed, edited and ultimately deemed ‘too risky.’”

David Sklaverformer President, Wells, Rich, Greene

A fraction of the cost

“ We have found the cost is about 25% of the old model.”

John WinsorCEO Victors & Spoils

Up-to-the-minute expertise

“ I know there are agencies that do it all, but I am not sure I am getting the best, especially in areas like digital where everything is moving so quickly. I want someone whose life it is, who has to stay current because it is their bread and butter.”

Sara SampsonSenior Vice President, Marketing and Business DevelopmentIncentium

Open to innovation

“ The agencies that push the envelop and do the best work are the ones that are

constantly in flux, change every day. If you aren’t willing to do that. You aren’t

anywhere. You have to reinvent yourself all the time.”

John WinsorCEO, Victors & Spoils

“Different has already been done…whatever the model, it is

bound to become obsolete if it doesn’t

constantly evolve and adapt to constantly changing demands.”

 Carlotta Brentan

Account Executive, Saatchi & Saatchi

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