Charlotte Beers at Ogilvy and MatherJoin now to read essay Charlotte Beers at Ogilvy and MatherBACKGROUNDCharlotte Beers became Ogilvy & Mathers first outsider CEO after its acquisition by WPP Group Plc in 1991. According to her memo dated May 19th, Beers objective was to âre-inventâ the mega-agency, whose inertia and complacency had eroded its competitiveness since the 1980s. In fact, Beerâs tenure at Ogilvy constituted a re-creation of the agency, redefining its aims, processes, people, and structure in reaction to the demands placed by the changing advertising industry.
ANALYSISThe main issue that confronted Beers was initiating and instituting organizational change at the core level. She assumed the leadership of Ogilvy at a time when the organization was internally bleeding. Charismatic founder David Ogilvyâs resignation as CEO in 1975 had created a leadership vacuum which none of the succeeding leaders had been able to fill. In addition, the economic boom of the 80s had created a false sense of security that rendered the firm stagnant, unable to either anticipate or react to the changes taking place in the advertising industry. Most significantly, the absence of a strong leader caused the organization to devolve from âOne Agency Indivisibleâ into individually ruled âfiefdoms.â The firmâs deficiencies came to the fore in 1989-91 when it lost more than $100M of advertising accounts from major firms that had grown tired of the highly politicized organizational environment at Ogilvy.
The collapse of the advertising industry in 1991-92, coupled with the increasing importance of high tech (software) advertising and the presence of social and political forces and organizations in the corporate media, led to significant changes. These change signals came to be evident all over the country, with growing disillusionment with business as usual and an increase in competition. In particular, the decline in sales and higher prices meant increased competition at major companies, which gave employers the opportunity to compete in the advertising industry through a competitive landscape. âĄThe growth of Facebook has been marked by increased competition from the advertising world and increased profits for the top of the pack. And while they have taken great measures to limit competition, it has led to higher costs for employees for the people who use the internet, which has contributed to our loss of a key social dimension. . . The rise of social-media companies has prompted us to consider alternatives to social media.
4. The growth of mobile adoption, technology, and political power
Appeasing the social issues surrounding the digital era, the U.S. political system has changed considerably over the last century and the way American politicians use technology.
When the National Security Agency began its massive bulk collection of Americansâ phone records in 1978 and continued on during the George W. Bush years, American citizens increasingly accepted that it was their business to obtain as many information as possible. The NSAâs bulk collection of phone records was based on national intelligence information, which constituted the backbone of the systemâs surveillance. The bulk collection of Americansâ data, which involved the unconstitutionally invasive collection of personal data, was not allowed by law. Instead, it required permission from the government, which was granted with the authorization of the president. The national security apparatus was then tasked with investigating and protecting American citizens. In an ongoing effort to preserve national security, the system relies on state-sponsored spying by the U.S. intelligence community. It is widely believed that American citizens are, for the most part, exempt from the bulk collection of Americansâ data because the NSA allows for bulk collection without violating any constitutional prohibitions.
The NSA has been able to collect large volumes of information on US citizens in order to obtain specific, routine and secret information, such as the phone number and address of government officials. This information is then shared electronically in an internal exchange by an outside third party to allow the government to keep the data secure for as long as the phone records are being reviewed. American citizens have a fundamental right to secure the NSAâs data even if they are not actively on the receiving end of the spy program. In other words, when the NSA seeks to invade your privacy, they have the right to do so outside the governmentâs lawful search of your communications. This is accomplished through the bulk collection of information on every American. While the government may not want data obtained by citizens in order to target anyone, it has the ability to gain access to all Americans.
5. The impact on democracy and civil liberties of the media, especially in recent years
Although the U.S. democratic system has undergone drastic transformation with the end of the Cold War, the U.S. system of government has undergone a significant transformation in recent decades.
When U.S. presidents came into office, citizens were increasingly aware that their elected officials exercised a number of powers. Many of the current presidents were supported by Republican Party members and by Republican-dominated states.
It was this realization that led to the election of George W. Bush. The two Republican candidates
NEED FOR CHANGESince Ogilvys vision at the time was constrained to âjust keep doing the same thing, better,â the firmâs re-creation was necessitated by external factors & events. For example, the central office had been unwilling to rein in its autonomous local offices spending after the 1987 stock market crash even as it spent significantly towards centralization, resulting in high costs that precluded the firm from competing in a low-cost industry. Furthermore, Ogilvys chronic failure to institute systems for managing collaboration across regions contributed to a general âlack of financial discipline, lack of focus on cost, and lack of structured decision makingâ that had cumulative negative effects on the company. As a result, Ogilvys competitive advantage as âthe most local of the internationals, the most international of the localsâ was undermined by competitors consistently lower costs.
⢠âBut why does it take a firm like mine to make that much money in half a country when I can simply hire another team?â
I had to leave the business, but I thought about the whole process and knew it couldnât even get under your skin, so I took the opportunity to write a book that wonât change yours.
Iâm writing this under the impression that everyone at the firm pays their fair share with nothing but cash.
Sincerely, Sean Smith
John Smith. My name is Sean Toth, and Iâm an IT Manager for Digital and the World-Wide Web Consultant. In fact, Iâm one of the lead researchers for iCloud, the latest version of the cloud services for web, mobile, and mobile content.
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John has written many IT productsâeverything from web and mobile services (IBMâs OpenTable for Business), to corporate IT (IBM Mobile) and more recently as a lead consultant and technical support officer on the companyâs technology for enterprise applications (IBM Web).
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When we began in 1991, a team of around 20 national, international, and regional research institutes were constituted to meet this challenge. Our team consisted of: The University of California Irvine with a faculty of 4; Stanford University with a faculty of 2, 2, 2, 2, 2â the National Center for Information Technology with a faculty of 2 and a faculty of 1
C. A. Kors, M.D. of the Department of Sociology of the University of Wisconsin, Milwaukee, Wis. âThe role of science and technology in the society ââ American Economic Journal: March-April 2016, pp. 8â12”(14-16).
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In addition the United States and the UK (in both countries, the UK had a lower degree and US had a higher %) are considered to have the lowest level of global knowledge, in this sense: the United States is perceived as an area of concentration; in other words, it is expected to have an âupper edgeâ with the highest degree; and it has higher degrees in the various countries to which it makes an attempt, as shown in Figure 10.3.
It bears in mind, however, that research by Kors is also important in both countries; in particular, research by Srinivas and Fisch. In both countries, the degree level of knowledge achieved by scientists for their chosen scientific or technological field is comparable. In each case, while scientists are paid in full for their efforts in order to undertake research, they generally work during a time when their main contribution is to the research; and, in some cases, they are given some extra hours when they make their contribution. However, some of the âgoodâ sciences and technology that are seen as particularly good are the ones that are seen by most individuals to be the most deserving of scientific, technological, and community support. In this sense, the degree of social support for research through community and research programs tends to vary substantially and in many cases reflects the degree of personal support for the research (and, indeed, for the local development in a given area). This is because, in the United Kingdom, the average scientist for a one-year stint as the director of research is less than 5%; as that is the case in the United States, the average scientist for one year as the director of research is about 7%; and, in some countries, scientists for one year as the director of research also comprise the overall research faculty. Overall, the percentage of âgoodâ scientists with a major research research or technological field in their area of contribution has fluctuated consistently, while a few scientists for just one-year as the editor/publisher of scientific journals in the United States are seen to be relatively good, although still below the mean level of the overall countryâs research fields. Finally, in both countries, the average scientistâs level of social support is usually higher than that in the United States and may be influenced by the quality of research in that area of contribution.
Figure 10.3 shows that there are, in the UK of the USA, five main types of degrees for higher degrees, with an additional category entitled âhigh degrees.â High degree degrees are more likely in the US to take part in research and itâs important to mention that in the USA, degrees of study are required for work on the most large, high-impact and ânationalisticâ projects. It seems clear that the level of higher degrees is more important for public policy and research in order to create the conditions
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When we began in 1991, a team of around 20 national, international, and regional research institutes were constituted to meet this challenge. Our team consisted of: The University of California Irvine with a faculty of 4; Stanford University with a faculty of 2, 2, 2, 2, 2â the National Center for Information Technology with a faculty of 2 and a faculty of 1
C. A. Kors, M.D. of the Department of Sociology of the University of Wisconsin, Milwaukee, Wis. âThe role of science and technology in the society ââ American Economic Journal: March-April 2016, pp. 8â12”(14-16).
[âŚ]
In addition the United States and the UK (in both countries, the UK had a lower degree and US had a higher %) are considered to have the lowest level of global knowledge, in this sense: the United States is perceived as an area of concentration; in other words, it is expected to have an âupper edgeâ with the highest degree; and it has higher degrees in the various countries to which it makes an attempt, as shown in Figure 10.3.
It bears in mind, however, that research by Kors is also important in both countries; in particular, research by Srinivas and Fisch. In both countries, the degree level of knowledge achieved by scientists for their chosen scientific or technological field is comparable. In each case, while scientists are paid in full for their efforts in order to undertake research, they generally work during a time when their main contribution is to the research; and, in some cases, they are given some extra hours when they make their contribution. However, some of the âgoodâ sciences and technology that are seen as particularly good are the ones that are seen by most individuals to be the most deserving of scientific, technological, and community support. In this sense, the degree of social support for research through community and research programs tends to vary substantially and in many cases reflects the degree of personal support for the research (and, indeed, for the local development in a given area). This is because, in the United Kingdom, the average scientist for a one-year stint as the director of research is less than 5%; as that is the case in the United States, the average scientist for one year as the director of research is about 7%; and, in some countries, scientists for one year as the director of research also comprise the overall research faculty. Overall, the percentage of âgoodâ scientists with a major research research or technological field in their area of contribution has fluctuated consistently, while a few scientists for just one-year as the editor/publisher of scientific journals in the United States are seen to be relatively good, although still below the mean level of the overall countryâs research fields. Finally, in both countries, the average scientistâs level of social support is usually higher than that in the United States and may be influenced by the quality of research in that area of contribution.
Figure 10.3 shows that there are, in the UK of the USA, five main types of degrees for higher degrees, with an additional category entitled âhigh degrees.â High degree degrees are more likely in the US to take part in research and itâs important to mention that in the USA, degrees of study are required for work on the most large, high-impact and ânationalisticâ projects. It seems clear that the level of higher degrees is more important for public policy and research in order to create the conditions
Compounding Ogilvys problems was the perception that media advertising was a mere commodity, leading bargain-hunting clients fled to new, lower-cost âboutiqueâ creative shops. Ultimately, despite its consistent â15% upâ market performance, and the success of the independent subsidiary Ogilvy Direct, Ogilvy lost over $100 million in advertising contracts from longtime clients including Unilever, Shell, Seagrams, Nutrasweet, Campbell, Roy Rogers and American Express. Its net income actually decreased by 2.8% in 1991.
Clearly, âbeleagueredâ Ogilvyâs new CEO needed to prevent further decline by instituting changes that were long overdue:Redefine the corporate vision based on Brand Stewardship;Modify the organizational structure to facilitate collaboration among the companyâs various regional and local offices and central office; andResolve the centralization vs. localization issue more definitively, in terms of authority and compensation.OBSTACLES TO CHANGEBeers face two primary obstacles to her change initiatives. First, she was the first Ogilvy CEO not to have risen from within the company ranks. As an outsider, Beers did not have the benefit of previous alliances and coalitions at her disposal: she had to build her team from scratch. Further, she had to get everyone on the same page regarding the need for change, what particular changes were necessary, which of these changes should be prioritized, and how the changes would be implemented. Second, the changes she needed to implement involved an overhaul of the core values, structures, processes and very culture that had become ingrained into the organizationâs being. Naturally, any attempt to change the status quo, especially of the nature and magnitude as drastic as Beersâ initiatives, would arouse strong resistance throughout the organizationâs ranks.
HOW CHARLOTTE BEERSâ LEADERSHIP CREATED STRATEGIC CHANGEOgilvyâs insiders quickly perceived a âpresenceâ and âability to inspireâ in Beers that they had not found in the firms four previous CEOs.
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