Nov 08

All Things Must Pass

I’ve always likened agencies to baseball managers and football coaches. We are hired to be fired.

Make no mistake. The termination clock starts ticking as soon as the letter of agreement is signed. The relationship may last a month, a year, a decade or, in the case of Ogilvy, 75 years. But it will end.

In Ogilvy’s case, the “Dear Agency” letter came from Ford when the latter decided it was time to seek a divorce from WPP (Ogilvy’s owner).

The reasons for the break-up included: “….Ford’s slumping sales, weak demand in Europe and trade tariffs with China.” Mix that toxic potion with the reality that “….clients are increasingly taking work in-house and using the giant online platforms of Google and Facebook” and you have the perfect storm for any freshly-minted CMO whose most logical first move would be to blame the incumbent agency and hire fresh thinking. It happens all the time.

Simultaneously, Ford is filling 100 new in-house global marketing positions (while Ogilvy probably laid off just as many employees who had worked on the account).

Expanding in-house marketing teams is a trend and Reuters says “….has stripped the big advertising groups of some of their income in recent years.” No question about it.

That’s why I’m so happy to be positioned as a mid-sized firm led by public relations but offering an array of strategic integrated services ranging from web design and employee engagement to societal crisis management and all forms of content creation.

The most vulnerable firms right now are in the digital and advertising spaces. That’s because those service offerings can easily be duplicated by an in-house team.

PR is a relationship-based business in which long-standing personal relationships with influencers, reporters, producers and editors are owned by individuals at the agencies. Those expansive and valuable relationships are difficult to replace.

Even if PR is slightly more strategic and less tactical than its sister disciplines, I know the clock is ticking with every single Peppercomm client (and we have terrific clients at the moment). I know the clock is ticking because I’ve experienced longstanding relationships end in a heartbeat due to:

  • A new CCO or CMO deciding they wanted their own team.
  • A major retailer deciding it made more sense to allocate the PR/social spend to upgrading their IT.
  • A clueless PR manager who believed that “….every relationship has a five-year window before things get old and tired.”

Having seen and experienced it all I totally empathize with the fine people at Ogilvy. And, I also know I need to double down on feeding the new business pipeline at my shop. What’s here today may be gone tomorrow. Or 75 years from tomorrow.

Nov 05

Ready for another walkout or two?

Get ready for another global organization to experience what went down at Google last week when employees around the world staged a walkout in protest of the company’s response to a widespread #MeToo scandal.

This time, though, I predict the spotlight will be on three of the world’s best known and most highly admired strategic management consulting firms: Booz-Allen, McKinsey and Boston Consulting Group.

That’s because The Sunday New York Times chose to devote front page coverage to the trio’s extensive (and incredibly lucrative) contracts with Crown Prince Mohammed bin Salman of Saudi Arabia, who was recently fired for his role in the murder of journalist Jamal Khashoggi.

Not only are the firms reaping ungodly amounts of money from the repressive Saudi regime but, critically, NONE withdrew from participating in last month’s Future Investment Initiative conference in Riyadh (at a time when virtually every other company, journalist and executive universally bailed in protest).

Making matters worse, the Big Three doubled down on their participation at the event:

  • McKinsey led panels on money and energy (One would think the Saudis don’t need much advice on either).
  • BCG focused on “unspecified intelligence” (Boy, does that ever sound shady).
  • Booz-Allen held meetings with representatives of Saudi’s army and navy to whom they provide counsel (I never knew white shoe consulting firms did Black Ops).

When pressed for comments, firm representatives either provided a weak, evasive response or no comment whatsoever. And therein lies the problem.

As was the case with Deloitte last month (see my blog), I don’t think the rank-and-file employees of these global powerhouses will “permit” their executives to keep padding their wallets with moola paid by sleazy, if not murderous, regimes. Employee activism has become a force to reckon with (and no longer ignored).

And if I were sitting in the corner office of Booz, BCG or McKinsey, I’d also worry about losing key clients whose corporate values and ethics won’t permit them to engage consultants with highly controversial contracts.

Now is the time for the Big Three to step up and speak out. They need to either terminate their contracts with the Saudi government or provide a very transparent reason why they will continue to bill, bill, bill.

It’s tough to walk away from billions of dollars, but more and more employees expect their organizations to possess a higher purpose and do their part to make the world a better place. They want to feel comfortable that their personal values are in alignment with their employers’ words and actions.

I hope all three consulting firms are taking this reputational crisis as seriously as they should. If they aren’t, watch for Google-like walkouts and Deloitte-like picketing.

Nov 02

Your Walkout is Coming

Today’s timely guest post is from Ann Barlow, the leader of our West Cost office and the current Board Chair for Watermark. 

Too many companies are caught by surprise when fed up people take action. It’s time for them to know where they’re vulnerable, where they need to do better, and step up.

Including Google.

In a year of so many #MeToo incidents laid bare, I wondered if I was becoming as numbed by reports of sexual harassment and discrimination as I am by the other outrageous behavior reported each day. So I was surprised, but also a little pleased when the New York Times piece and yesterday’s walkout by Google employees stirred up so much anger and frustration within me. Anger that company leaders over and over and over again look the other way when a rainmaker mistreats others. Frustration that even those companies that pledge to do better have so much trouble making real change happen.

But I also feel hope, because even beyond calling their leadership to account through yesterday’s walkout, the organizers put together a thoughtful, practical and actionable list of demands for change. The degree to which Google follows them will show just how serious it is about eradicating sexual discrimination, harassment and assault.  Nothing less will do.

As for other employers, no one should be foolish enough to assume that their environment is a place where women – and all employees — feel safe and equal because they espouse values, promote employee resource groups and win workplace awards. Unless employers dig in deep to truly listen to employees and understand their daily experiences, AND have the fortitude to toss out even the most powerful, their walkout is coming.

And it may not be just employees who walk away. People on both sides of ‘take a knee,’ gun control, transgender rights – and #MeToo – have shown a willingness to vote with their voices and their wallets.

What about your brand? Is your walkout coming?

 

Nov 02

Work Hard, Play Hard, Vote Hard

Today’s guest blog comes from our two U.S. office leads, Jackie Kolek of New York and Ann Barlow of San Francisco, ahead of next Tuesday’s election day. Go vote!

Peppercomm has always fostered a work hard, play hard culture.  We are constantly looking around the corner to see what’s next, creating new solutions and capabilities to prepare our clients for the new world of social activism and enabling them to address these challenges head-on and leverage the opportunities.

On November 6th we’ll temporarily put aside our relentless dedication to client service and put our employee’s civic duty at the top of our to-do lists.  While the past two years have delivered a seemingly never-ending cycle of negative news, personal attacks and arguing across party (and sometimes family and friend) lines, the upside has been the growing passion about, and attention to, the critical issues that matter to us as Americans and individuals. This Election Day we want to ensure our employees can exercise their right to have their voices heard and encourage them to do just that.  We’ve designated Election Day as a “Flex Day,” which means employees can work from anywhere, come in late, leave early, extend their lunch, or make any arrangement they need to make voting as easy as possible.  We’ve also marked it a “meeting-free day,” rescheduling all internal meetings to free up more time.  Since not all states make it as easy as it should be to vote, and we know some employees will face long lines or challenges voting by mail, it is our duty as an employer to help our team exercise their right to vote – regardless of the challenges.

In addition to ensuring our employees can vote, we want make sure we encourage them to vote and celebrate them for doing so.  We value diversity within our firm (our executive leadership team is 80 percent female) and believe that diversity can take place in many forms, including diversity of thought and values.  Therefore, we urge our employees to make their individual voices count on Election Day. We’re asking each of our team members to snap a selfie of themselves with their “I voted” sticker.  To celebrate these voices being heard, we’ll be hosting a free lunch for employees later in the week where employees will use their “I voted” sticker as their entry ticket (and in the spirit of inclusiveness, our non-US citizen employees get in for free).