CLIENT CHALLENGE: TACKLING THE CHALLENGES OF A CHANGING ADVERTISING LANDSCAPE
Agencies are increasingly finding themselves under tremendous pressure to transform or watch their influence with CMOs wane. Brands are turning to in-house agencies, advertising budgets and fees face constant pressure, and consultancies are swooping into the industry to take advantage of the deteriorating relationship between the CMO and agencies.
One of the ways an advertising company can grow and survive is through acquisition.
When WPP (a multinational advertising and public relations company) began to focus on the acquisition of Elevator, there were many challenges to face. The size of the deal, the number of people, facilities, cultural differences and systems involved, suggested a potentially rocky road to success. How was Elevator going to deliver on potential synergies and create a path to future growth and sales?
While Elevator’s lawyers worked on financial diligence, OP Consulting focused on HR and organisational integration. I created an operating model and organisation structure for the new company, developed an HR integration plan, led the retrenchment of 5% of the workforce and developed Day One and an integration communications plan.
By collaborating closely with my client, I was able to take a tactical approach to the many challenges of integration. As Elevator’s leadership team faced new questions and issues, I was able to step in and offer advice as to the next steps.
IMPACT: BIG SALES, AND A PATH TO THE FUTURE
When the transaction was complete, leaders identified an incremental 30% in synergy opportunities. Financial results reported by Elevator showed growth in net sales and improved operating income.
Today, my client is extending its geographic footprint and discovering new revenue streams around the world. OP Consulting is still working with Elevator, assisting with hiring new capabilities into the company to support the strategic vision, building a newly formed management team and providing ongoing executive coaching to the Founder.
“Nicola has helped our business grow wiser. She nurtured our senior leadership team (whilst not losing the savviness from her time spent in the legal fraternity) to think bigger, broader and be braver. Nicola is not afraid to challenge old beliefs. She encouraged open mindedness to think differently, taking us out of our comfort zone, into areas of growth and ultimately, acquisition by WPP.”
– Mike Silver Founder of Elevator