IPA report produces magical and logical results for business-minded agencies
A 14% improvement in productivity, 30% greater efficiencies, a 10% increase in profits and a 50% budget saving. These are just some of the transformational effects, outlined in the IPA’s latest report Magic and Logic Successes published today (21st May), that 23red, DDB, RMG Connect and BBH have experienced by employing the principals of the IPA’s Magic and Logic white paper in the re-engineering of their agencies.
Magic and Logic: Redefining sustainable business practices for agencies, marketing and procurement was a joint initiative produced by the IPA, CIPS and ISBA, designed to produce a win-win for all parties. The report advised agencies in particular to: be more business-minded, develop more formal processes and ways of working, proactively seek ways to improve their value to clients and to be more results focused. Three years on from this initial publication, Magic and Logic Successes reveals the astounding results from agencies that have successfully employed the tenets of Magic and Logic:
23red - From ‘logic to magic’
23red employed the doctrine across the areas of new business, client service, creative services and commercial management. This involved improving the commercial process, tightening up on the pitching process, breaking down the barriers to creativity to involve the entire agency and involving the creative team from the outset to ensure on-time campaign delivery.
Says Jane Asscher, Chairman and CEO, 23red, “We are now forecasting a 14% improvement in productivity (Gross income per head). Once you see the real benefits of using the approach of logic you can then focus on the magical business of creativity."
DDB - ‘You don’t have to be chaotic to be creative’
Realising that the agency needed to urgently overhaul its processes and structures, Stephen Woodford, following advice from Magic and Logic, set new KPIs, redefined the agency roles – specifically that of the project manager and upgraded the status of the project manager.
Says Jonathan Hill, Group Business Director, DDB, “The effects were rapid, marked and quantifiable. Hours worked dropped rapidly, especially in creative. The agency saw up to 30% greater efficiencies within a matter of weeks and the quality of the work itself, already high, notched up another level.”
RMG Connect - 'Working smarter’
Tim Hipperson, CEO of RMG Connect, used the Magic and Logic learnings to restructure the agency and to rebuild the trust of their clients. He did this by bringing in White Door Consulting who implemented a series of ‘WorkSmart’ measures. These involved redefining the roles of his account and project teams, giving the project managers direct access to clients, insisting upon weekly KPI reports and by introducing a programme of personal success maps for RMG employees.
Since the launch of ‘WorkSmart’ RMG Connect’s profits have increased by 10%, £4 million worth of ‘at risk’ revenue has been retained, there has been organic growth of £1 million, the agency has won £2 million worth of new business and over 90% of projects are delivered on time and on budget.
BBH - 'Beating decoupling'
BBH followed the Magic and Logic advice to “avoid the trend of decoupling by demonstrating added value” in order to continue to retain the significant fee income that production delivers for the agency (14% in 2007). They achieved this by raising the structure of their production people; producers are now part of the account leadership teams and are client-facing. They have also ensured that their procure-ment credentials are clearly scrutinized and demonstrated to their clients.
Says Ben Fennel, CEO, BBH, “Modern communications have led to new types of creativity with hybrid skills. That’s why we need hybrid producers. If we don’t learn to respond to client briefs faster and at lower cost with new hybrid skill sets, then we simply won’t be in the game for much longer.”
‘Magic and Logic Successes’ costs £10 for non-IPA members and £5 to members and is available to purchase here.