The business of transformation

WPP is now a ”creative transformation” company.

I am cautiously optimistic about this facelift. I hope there is more to come. And that WPP will go beyond the facelift and the simplification. fingers crossed.

But…

After Ogilvy‘s ‘refounding’ and Publicis’ marcel attempt and now WPP’s structural simplification & brand identity ‘reveal’, it feels as if the creative industry is in serious short supply of imagination & ambition.

I guess, it will be worthwhile to understand WHY these agencies feel the need to change.

Tumbling down the priority list

Firstly, mass communications’ relevance to fuel business growth is in decline. Digital has opened up newer ways of creating products and reaching, engaging and servicing consumers. So businesses now have far more levers to crank growth, whereas in past it had just a few – mass communications being the most ‘scalable’. Now distribution, service and even products are scalable.
So the obvious implication for advertising agencies is to –
a. Accept the reality  that brand building remains important, but it is one among many things that a company needs to do. So premiumise our services, increase the value of creative offerings. After all, branding might not be essential to everyone, but it still remains essential to many. But we are not doing that.
b. Or accept the elevation of other service partners at the table. Consequently accept the declining share of client’s growth spends. And go find ways to ‘scale‘, reach more clients.
c. Or, grow capabilities to service newer needs of business growth.

The key thing here is to commit to a path – either of these three. If we try to straggle two paths, we are bound to falter. WPP, Publicis and the rest seem to be trying to straddle.
In this light, the ‘creative transformation’ doesn’t signal a strategy at all. It simply feels like an articulation to assuage fears of irrelevance. It is not committing to any one path. It is more of the same old. It is simply reducing silos, but still functioning with silos. It doesn’t understand true integration of capabilities. They seem to operate with the logic that to gain a capability, we need to simply add a department. But they have no point of view on enabling people with different capabilities to work together, learn together. This remains a crucial problem to solve. 

The incremental evolution perhaps is in the right direction, but not big enough, not fast enough. WPP, Publicis and most other creative agencies are bound to be turned into second tier vendors in the new economy, unless they fundamentally change the way they work.

Theater of precision

Secondly, digital tools create the theater of precision. Data gets sliced, diced, bundled, anonymized, aggregated, dimensionalised, granulated, distilled, contextualised… and so on. Much of it is useful, much of it isn’t. For now though, data enjoys the hype among CxOs that advertising enjoyed in the last century. Advertising relished in the indeterminate and chaotic nature of human creativity, while data gives a false sense of certainty and precision. In absence of scientific temperament, a theater of rationality is stealing the show. Advertising industry’s reluctance to engage with scientific processes meaningfully has given rise to a generation of clients who feel that the industry is opportunist at best, incapable-of-reason at worst.

The advertising industry needs to rationally dismantle both, the theater of precision and the theater of mystic creativity. It needs to stop acting as an opportunist salesman that uses complexity and mysticism to its advantage. The time is up for that. Scientific temperament can help gain confidence & value.

So my question is, how exactly does ‘creative transformation’ take place? what is the thesis? what is the scalable process here to deliver this transformation? Is there a precedent to this approach? How do we know that this strategy is superior to others in helping clients grow?

Instead of starting with a brand identity & design exercise, I believe WPP should have started with a rational approach to define a new way of working together, a new way of being more consistent with driving results.

Start: The industry needs to focus on their ability to create real value for businesses seeking growth.
Stop: Focusing on justifying our existence, articulating our way into relevance, feeding the parasites.

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2 Comments

  1. The real question to answer is whether or not creativity is even scalable as a business. How can agencies promise a profitable outcome for client’s businesses when the value of our output merely is determined by the creative talent we happen to have or not on any given day.

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