A presentation exploring the evolution of creative agencies, where we are now, how we got here, and where we go next. Rooted in this original article published on AdAge in 2015: http://adage.com/article/agency-viewpoint/agencies-transform-a-generation-clients/301541/

1. HOW AGENCIES MUST TRANSFORM
FOR A NEW GENERATION OF CLIENT

3. THE BUSINESS CONTEXT

4. SOMETHING BIG HAS HAPPENED.
UNLIKE ANYTHING WE’VE EVER SEEN BEFORE.
THE RULES HAVE CHANGED.

5. Navigating the next industrial revolution
Revolution Year Information
1784
1870
1969
?
1
Division of labour, electricity, mass production2
3
4
Steam, water, mechanical production equipment
Electronics, IT, automated production
Cyber-physical systems
Source: http://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond

6. “We have to compete in a new way
that we've never experienced in the past”
– Kwon Oh Hyun, Co-CEO, Samsung

7. SCALING
KEY BUSINESS STAGES TODAY
TRANSFORMING STALLING

8. THE DISRUPTION CONTEXT

9. averagecorporationlifecycle(Years)
70
60
50
40
30
20
10
61 Years
25 Years
18 Years
1958 1980 2015
Source: http://www.innosight.com/innovation-resources/strategy-innovation/creative-destruction-whips-through-corporate-america.cfm

10. 70% OF THE FORTUNE 1000 FROM 15
YEARS AGO ARE NO LONGER ON THE LIST

11. BY 2027 75% OF THE S&P
500 WILL BE REPLACED
Source: http://www.innosight.com/innovation-resources/strategy-innovation/creative-destruction-whips-through-corporate-america.cfm

12. Source: https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

13. OUR INDUSTRY CONTEXT

14. NOT ONE INDUSTRY
LEADER HIGHLIGHTS
TRANSFORMING THE
AGENCY MODEL AS A
PRIORITY FOR 2016

15. ARE WE GUILTY OF
PERPETUATING THE MYTH
OF INDUSTRY INNOVATION

16. TRANSFORM
EXISTING
AGENCIES
DEFINE
NEW
AGENCIES
WITH NO CLEAR DIRECTION
WE MUST...

17. Where we are:
1. Consumers Change
2. Clients Change
3. Agencies Change
Where we should be:
1. Consumers Change
2. Agencies Change
3. Clients Change

18. AGENCY 2.0

19. ?(Pre 1990)
Commission (15%)
(1990 - Present)
Hours
Today
AGENCY 1.0 AGENCY 2.0

20. AGENCY 2.0
INCENTIVE MODEL
DO WORK.
BE BUSY.
VALIDATE FEES.

21. Source: Michael Farmer, Madison Avenue Manslaughter.
Fees: 2-3%
Workload: 2-3%

22. 15
YEARS!

23. Increasing
Workloads +
Declining Fees
Overwork
Teams
Morale
DipOutput
Quality
Dip
Unhappy
Client
Further
Morale
Dip
Hire new team -
that’ll fix it...
It doesn’t.
Loss of
account.
Fire MD.
Hire new
MD.
- Cycle Starts Here

24. Scale & Uniformity
Inability to innovate and be progressive
Unable to respond in real time
to an ever changing world
Complex infrastructures, process’ and layers
Talent & Capability Gaps
Ineffective Remuneration model
Linear Thinking
Won’t sell what they can’t do
Too big
Too slow
Uncollaborative culture
Focus on work, not value
AGENCY 2.0 ISSUESSYMPTOM
EFFECT

25. What if the scale and
uniformity that has
made ad agencies
iconic and essential
in the past is exactly
what makes them
vulnerable now?
Can model 2.0
agencies introduce
new ways of working
faster than their
dated infrastructure
declines?
What if the next
generation of client
doesn't want to foot
the bill of dismantling
and transforming a
company built to work
in a pre-digital world?
1 2 3
AGENCY 2.0 BIG QUESTIONS

26. CLIENTS OF THE FUTURE

27. MILLENNIALS!!!OR, A ‘CONTEMPORARY MINDSET’ MIGHT BE A BETTER WAY OF PUTTING IT

28. Connected
Tech-savvy
Digital Native
Purpose Driven
Work/Life Balance
Flexible
Collaborative
Transparent
Problem Solvers

29. They also have jobs...

30. Scale & Uniformity
Inability to innovate and be progressive
Unable to respond in real time
to an ever changing world
Complex infrastructures, process’ and layers
Talent & Capability Gaps
Ineffective Remuneration model
Linear Thinking
Won’t sell what they can’t do
Too big
Too slow
Uncollaborative culture
Focus on work, not value
AGENCY 2.0 ISSUES
Scale & Uniformity
Inability to innovate and be progressive
Unable to respond in real time
to an ever changing world
Complex infrastructures, process’ and layers
Talent & Capability Gaps
Ineffective Remuneration model
Linear Thinking
Won’t sell what they can’t do
Too big
Too slow
Uncollaborative culture
Focus on work, not value
WILL THE NEXT GENERATION CLIENT BUY AGENCY 2.0 ISSUES?SYMPTOM
EFFECT

31. BRANDS OF THE FUTURE

32. GONE ARE THE DAYS WHERE A
BAD PRODUCT CAN HIDE BEHIND
A GREAT TV SPOT

33. A GREAT PRODUCT IS NOW THE
BASELINE, AND A STORY WELL
TOLD WILL LIFT IT HIGHER

35. AGENCY 3.0

36. (Pre 1990)
Commission (15%)
(1990 - Present)
Hours
Today
AGENCY 1.0 AGENCY 2.0
(The Future)
Value
AGENCY 3.0

37. AGENCY 3.0
INCENTIVE MODEL
MOVE QUICKLY
BE EFFICIENT
ADD VALUE

38. A SMALL TEAM OF A PLAYERS WILL
RUN CIRCLES AROUND GIANT
TEAMS OF B & C PLAYERS
– Steve Jobs

39. CLARITY & SIMPLICITY,
NOT NOISE & CLUTTER

40. FLATTER STRUCTURES +
OPEN, EMPOWERED MINDS

41. RESPONSIVE TEAMS DESIGNED FOR AN
UNPREDICTABLE, FAST PACED WORLD

42. ACCOUNTABILITY, AND WILLINGNESS
TO SHARE IN THE RISK & REWARD

43. SPEED & AGILITY,
NOT SCALE & UNIFORMITY

44. AGENCY 3.0
ATTRIBUTES
AGENCY 2.0
ATTRIBUTES
Source: here
● CAPITAL
● BRAND
● CLIENTS
● INNOVATION
● AGILITY
● EXPERIMENTATION & RISK

45. ACTIONABLE STEPS
(AGENCIES)

46. REMUNERATION OPERATIONS PROCESS TALENT TOOLS
BILL FOR VALUE,
NOT WORK.
STOP THE
GLORIFICATION
OF BUSY
INCENTIVIZE
OUTPUTS, NOT
INPUTS
FORGET WHAT
YOU KNOW,
LEAVE THE OLD
MODEL BEHIND
HIRE
DIFFERENTLY
INVEST IN NEW
SKILLS
BE MORE
EFFICIENT.
EMBRACE NEW
TOOLS. THEY
WORK.

47. ACTIONABLE STEPS
(CLIENTS)

48. REMUNERATION OPERATIONS PROCESS TALENT TOOLS
PAY FOR VALUE
ADDED, NOT
WORK DONE.
INCENTIVIZE
OUTPUTS, NOT
INPUTS
CHALLENGE
PROCUREMENT
TO EMBRACE
NEW WAYS OF
WORKING
INVEST IN
AGENCIES BUILT
FOR TODAY &
TOMORROW
EMBRACE NEW
TOOLS. THEY
WORK.

49. DOING THINGS THE WAY YOU’VE
ALWAYS DONE THEM IS THE HIGHEST
RISK STRATEGY FOR TODAY

50. BE BRAVE, EXPERIMENT.

51. @thechrisjohns
chrisj@forever-beta.com

52. @DGLAW