A presentation by Andrew Pinkess of the IPA's Professional Development Group which outlines the evidence linking training and development to the growth of marketing and advertising agencies.

1. AMVBBDO
Continuous Professional Development –
Fancy Window Dressing or Key to Agency Commercial Success?
Andrew Pinkess, Director of Business Innovation / Co-Chair of IPA PDG

2. AMVBBDO
• Introduction to Professional Development
• Making the Case for Talent
• What the Numbers Tell Us
• Real-life Examples
- Hunter Lodge
- M2M
- AMV BBDO
• What This Means for You and the IPA
Agenda

3. AMVBBDO
Introduction to Professional
Development

4. AMVBBDO
• The IPA’s Professional Development Group champions training and Continuous Professional Development (CPD)
• We promote a culture of learning in member agencies as a platform for business success
• Our courses and qualifications enhance individual careers and set benchmarks for best practice across the advertising,
media and marketing communications professions
• Courses have been running for more than 15 years; 10,000 certificates awarded
• Leading the debate on Talent and CPD at the IPA
Introduction to IPA
Professional Development Group

5. AMVBBDO
The IPA Professional Development Team
Director Patrick Mills and his team

6. AMVBBDO
IPA Continuous Professional Development
Career Wheel

7. AMVBBDO
Our courses and qualifications

8. AMVBBDO
Measuring success – CPD Gold
25%
revenue
increase due to
CPD
65%
pitch conversion
rate
£123k
saved in
recruitment fees
85%
staff retention v
70% industry
average
64%
organic growth
87%
positive client
ratings
94%
client retention
20%
Improvement in
margin
11
new business
wins due to CPD
initiatives
48%
increase in
digital revenue
Source: Averages taken from 2013 IPA Gold submissions

9. AMVBBDO
Making the Case for Talent

10. AMVBBDO
Should We Invest in People?
Source: Max Blumberg et al

11. AMVBBDO
Talent Adaptathon
Fifth strand in Ian Priest’s APADT agenda
Strategies to attract, develop and retain the right talent and skills
Competing amongst ourselves, but also with other industries and countries
150 people from IPA member agencies and beyond
Mix of expert presentations and 3 x Adaptlabs:
- Filling Future Skills Gap; Retaining Talent; Making the Industry more Diverse

12. AMVBBDO
Mastering Complexity – Max Blumberg*
* = CEO Blumberg Partnership; Research Fellow Goldsmiths, CIPD Consultant
‘Human capital plays an increasingly important part in generating shareholder value’
‘One asset most difficult to copy or replicate in business is human capital’
‘But organisations are not necessarily as important to talented individuals’
‘High impact learning culture and personal growth opportunities are key to agency success’
‘Investment in training and development could be a differentiator between competing companies’
‘Challenge to agencies: Track your investment in human capital as a % of revenue’

13. AMVBBDO
Investing for Growth – Sydney Hunsdale*
* = Former COO/ CFO of international agencies (DDB, Razorfish, VivaKi)
‘We are all in a relationship business and without people we are nothing’
‘People are a critical asset and a financial liability – we can influence but never control’
‘Cost of staff turnover in media/ advertising = £184m (20 weeks+ to reach peak productivity)’
‘Replacing senior level staff can cost 200-400% of salary; mid-level = 150%; junior = 30-50%’
‘Hidden costs of staff turnover could wipe out 5% of profits’
‘Finance and HR Teams should be joined at the hip’
‘Reducing churn should be a mandatory management KPI’
‘What if agencies could reduce turnover by reinvesting some of churn costs in training?’

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RelationshipbetweenCPD andIncome Growth
What thereal numbers tell us

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IPA Commercial Team Research
Objective
To establish if there is a relationship between agency commitment to staff
training and income growth
Hypothesis
Those agencies that show the greatest level of commitment to CPD
through external courses and qualifications have greater levels of growth
than their counterparts

16. AMVBBDO
How we answered the question
1. Gross Income growth between 2010/11 and 2012/13
2. Number of CPD hours based on successful completion of IPA qualifications and
courses over 3 year period
3. Agencies are split into 3 x gross income groups using 2010/11 income as the base
(<£5m; £5-15m; £15m+)
1. Agencies include: media; creative; digital; integrated
Source: IPA Commercial Team

17. AMVBBDO
Gross Income Band Number of IPA Member Agencies
1. <£5m 97
2. £5-15m 26
3. £15m+ 32
Total 155
Wecollected datafrom 155 member agencies
Source: IPA Analysis

18. AMVBBDO
0
10
20
30
40
Up to 50 51-100 101-200 201-500 500+
# Agencies
# Agencies
1.1 Agencies with <£5m Gross Income
Hours CPD
Total agencies
= 97
Source: IPA Analysis

19. AMVBBDO
0
10
20
30
40
50
60
70
Up to 50 51-100 101-200 201-500 500+
% Showing growth of 10% or more
% Showing growth
of 10% or more
1.2 Agencies with <£5m Gross Income
Hours CPD
All = 48.4%
Source: IPA Analysis

20. AMVBBDO
-5
0
5
10
15
20
25
30
Up to 50 51-100 101-200 201-500 500+
Median level of growth %
Median level
of growth %
1.3 Agencies with <£5m Gross Income
Hours CPD
All = 9.7%
Source: IPA Analysis

21. AMVBBDO
1.4 <£5m Gross Income - Summary
Hours of CPD Learning No of Agencies
% showing growth in income
of 10% or more
Median level of growth
Up to 50 37 40.5% -0.8%
51 to 100 21 52.3% 16.1%
101 – 200 18 55.5% 21.8%
201 – 500 13 46.2% 10.3%
More than 500 8 62.5% 26.3%
All 97 48.4% 9.7%
Source: IPA Analysis

22. AMVBBDO
0
5
10
15
Up to 250 251-500 500+
# Agencies
# Agencies
2.1 Agencies with £5 -15m Gross Income
Hours CPD
Total agencies
= 26
Source: IPA Analysis

23. AMVBBDO
0
20
40
60
80
100
Up to 250 251-500 500+
% Showing growth of 15% or more
% Showing
growth of 15%
or more
2.2 Agencies with £5 -15m Gross Income
Hours CPD
All = 50%
Source: IPA Analysis

24. AMVBBDO
-30
-20
-10
0
10
20
30
40
Up to 250 251-500 500+
Median level of growth %
Median level
of growth %
2.3 Agencies with £5 -15m Gross Income
Hours CPD
All = 13.7%
Source: IPA Analysis

25. AMVBBDO
Hours of CPD Learning No of Agencies
% showing growth in
income of 15% or more
Median level of growth
Up to 250 11 27.3% -20.1%
251 - 500 5 40.0% -11.9%
More than 500 10 80.0% 36.0%
All 26 50.0% 13.7%
Source: IPA Analysis
2.4 £5m - £15m Gross Income - Summary

26. AMVBBDO
0
2
4
6
8
10
Up to 500 501-1500 1501-3000 3000+
# Agencies
# Agencies
3.1 Agencies with £15m+ Gross Income
Hours CPD
Total agencies
= 32
Source: IPA Analysis

27. AMVBBDO
0
20
40
60
80
100
Up to 500 501-1500 1501-3000 3000+
%Growing by more than 15%
%Growing by
more than 15%
3.2 Agencies with £15m+ Gross Income
Hours CPD
All = 53.1%
Source: IPA Analysis

28. AMVBBDO
0
5
10
15
20
25
30
Up to 500 501-1500 1501-3000 3000+
Median level of growth %
Median level
of growth %
3.3 Agencies with £15m+ Gross Income
Hours CPD
All = 15.7%
Source: IPA Analysis

29. AMVBBDO
Hours of CPD Learning No of Agencies
% showing growth in
income of 15% or more
Median level of growth
Up to 500 8 12.5% 4.6%
501 - 1500 9 44.4% 14.4%
1501 – 3,000 7 71.4% 28.4%
More than 3000 8 87.5% 23.5%
All 32 53.1% 15.7%
Source: IPA Analysis
3.4 >£15m Gross Income - Summary

30. AMVBBDO
Conclusions
• Agencies that invest more in CPD and training through IPA courses and
qualifications have greater levels of income growth than counterparts
• Agencies that invest less in CPD and external training deliver lower levels
of income growth, particularly in middle tier
• Irrespective of income group, the more agencies invest in CPD hours, the
faster they are likely to grow

31. AMVBBDO
Income
Growth
Training/C
PD
Income
Growth
Training/C
PD
CPD + Income Growth = Virtuous circle

32. AMVBBDO
Real-life examples

33. AMVBBDO
1. Hunter Lodge – Smaller integrated agency
2. M2M – Medium-sized media agency
3. AMV BBDO – Large creative agency
Putting it into practice

34. AMVBBDO
• Integrated agency with 20+ people based in Rickmansworth
• Creative, digital, media and strategy
• Key clients include: Action for Children, Canon, Cats Protection, NFL, Post Office,
VWFS
• All staff have IPA Leg Regs & Touchpoints
• All client facing staff have IPA Commercial Certificate
• Agency staff with >1 year tenure average 200 hours of CPD per annum
(8x IPA agency average)
• Gold accredited at IPA CPD awards for 7 consecutive years + Platinum for 2
• ISO 9001 accreditation + Investors in People Gold Award
• Agency re-brand based on ‘Unquenchable Thirst for Knowledge’
• £16 return on every £1 spent on CPD
Hunter Lodge
‘CPD is bedrock ofoursuccess’

35. AMVBBDO
HunterLodge
‘CPD is bedrock ofoursuccess’
“Holding qualifications such as the Eff Test and Advanced Certificate means
our staff are hard wired to only suggest solutions that will generate the
highest possible ROI and payback. With business results such as these, it
is not hard to see why CPD plays a pivotal role in our business
development strategies”
Robert Hunter, MD & Founder,
Hunterlodge Advertising

36. AMVBBDO
M2M- ‘Longterm commitment to
peopledevelopment’
£180m
Billing
120 people
(30% growth
y.o.y)
100% client
retention
2014
Recent
wins
Scale
clients
Awards
success
Shortlisted for Media
Week’s Agency Of The
Year in 2013 and 2014
People development is founding tenet
Increasing L&D investment YoY
Mix of IPA/ OMG/ M2M courses
Applied for CPD Gold in 2013 & 2014
Achieved both years!

37. AMVBBDO
M2M- ‘Longterm commitment to
peopledevelopment’
To help build a case for investment,
we take time to understand the ROI
from CPD.
Looking at:
1. Initial Feedback
2. Learning demonstrated
3. Behavioural Change
4. Specific results
STAFF RETENTION
85% target met
NON CORE MEDIA
INCOME
Targets more than
exceeded
IMPROVE
OPERATIONAL
EFFICIENCIES
IPA Commercial
Certificate pass
rates measured
CLIENT RETENTION
100%
E.g. 2014
Objectives

38. AMVBBDO
M2M- ‘Longterm commitment to
peopledevelopment’
Alistair MacCallum, CEO
“Amongst many points of pride, the CPD Gold Accreditation ranks very highly.
We understand the importance of a culture of continuous learning and development in
sustainable business success. But it is more than that. It is also about our founding
principles and vision. We have always existed to deliver motivating and rewarding
experiences for our people alongside long term relationships built on shared success with
our clients.
Therefore, to receive formal recognition of what we see as a long term commitment to our
people and their development, was celebrated hard.
It’s a key success metric for us””

39. AMVBBDO
• UK’s largest creative agency with 400+ staff
• Key clients: BT, Camelot, Guinness, Mars, Mercedes, Pepsi,
Sainsbury’s, Walkers
• Full range of strategic, creative and production services across
all channels
• World’s most successful agency in strategy and effectiveness
awards
• Part of BBDO Global network – Most creatively awarded in Gunn
Report
• Long-standing commitment to CPD produced IPA Platinum
award this year
AMVBBDO
UsingCPDtostay ontop

40. AMVBBDO
• 99% of staff in client-facing roles have 24hrs+ CPD
• All grads take IPA Foundation Certificate
• All grads attend AMV Academy = 100+ hours of training for >100 staff
• All Account Directors take IPA LegRegs
• 70% of Account Directors take IPA Commercial Certificate*
• 100% of Commercial managers receive negotiation training
• All job functions attend Spark Masterclass to promote full range of agency services
• High performers attend BBDO/ Omnicom University alongside international peers
• Training partnerships include: Google, Facebook, YouTube, Decoded, National Theatre
• Specialist sessions on data, coding, UX, leadership, understanding client business
• Internal and external mentoring
• Charity and good causes (AMV Bud, AMV Grow)
AMV’s CPD& Training programme
UsingCPDtostay ontop
* = Colin Fleming, AMV BBDO COO, helped to develop this

41. AMVBBDO
“CPD plays a big role at AMV BBDO and helps ensure we maintain high
standards across the agency. We are committed to encouraging a learning
culture and ensuring that everyone is given the opportunity to develop and
build on their strengths, in both client-facing and non-client facing roles.
CPD not only encourages and supports the talent within the agency, but
also provides added value through increasing knowledge, skills and
experience.”
AMVBBDO
UsingCPDtostay ontop
Richard Arscott,
Managing Director, AMV BBDO

42. AMVBBDO
Implications for You and the IPA

43. AMVBBDO
• Research shows clear link between investing in people and business growth
• IPA provides strong training backbone and access to best practice – blends well with in-house courses
• Agencies can merchandise training investments to win and retain business
• Track and measure ROI for CPD investment to maintain virtuous circle
• Use median figures to check if you are outperforming competitors
• Commercial teams to ask: ‘Are we spending enough on training’?
• Senior management support is key
Implications for Agencies

44. AMVBBDO
• Position training and CPD as part of wider challenge about finding, retaining and motivating talent
• More investigation of link between training and financial performance (eg, profitability)
• Connect training and CPD investment to agency and client business success
• Keep refreshing and developing the training and CPD offer
• Drawing on the best brains and talent from across the industry
• Promote closer collaboration between commercial and talent groups
• Celebrate success through CPD Gold and Platinum awards
Implications for IPA

45. AMVBBDO
Talk to Patrick Mills or Tom Lewis
Patrick Mills,
Director of Professional Development, IPA
Direct Line: 020 7201 8208
Mobile: 07954 357 087
patrick@ipa.co.uk
Tom Lewis,
Finance Director, IPA
Direct Line: 020 7201 8215
Mobile: 07785 612 779
toml@ipa.co.uk
Andrew Pinkess
Director of Business Innovation
Direct Line: 0203 787 0148
Mobile: 07967 460 586
pinkessa@amvbbdo.com
IsittimetoupyourinvestmentinCPDandtraining?

46. AMVBBDO
Thank you