WPP AUNZ ‘significantly changes operating model’ as it posts full-year loss driven by market and account losses
WPP AUNZ will continue to strip back the number of brands in its portfolio, introduce a new leadership model, and establish ‘campuses’ in every major Australian city as part of an overhaul under new CEO Jens Monsees.
The unveiling of the new strategy coincides with the holding company’s full-year results, in which headline earnings before interest and tax (EBIT) were down 8.7% to $91.8m and net sales down 2.6% to $712.5m. Its statutory results show a net loss of $227.57m. Driven by challenging economic conditions, soft ad spend, and local account losses, the company said the results are in line with its previous market guidance.
Monsees presents to the WPP team
This is what happens when you remove managers who clearly understood what was wrong with the acquisition led strategy.
hmmm, I suspect this strategy will fail.
I can see why as the CEO of a holding group he would want to move more to a campus based model with everything that goes with that…he’ll cut costs and bring more power into the holding group and away from the agency brands.
I can understand that this model might be appealing to a certain type of massive client.(mainly global but perhaps some $5m + local ones)
I’m dubious that many normal sized clients will see that model as at all motivating and believe most will find it unattractive
I’m convinced that this model won’t be at all attractive to employees both current and prospective who choose to join agency brands and with distinct cultures, ethoses (ethea) and management teams rather than clusters of skills and competencies
this is going to put a huge amount of pressure on the leaders of the current agencies during an already difficult time
More words than strategy here…..
yep, there’s a full card of buzzword bingo
Sounds like some positive change is on the way. About time…but seems to make a lot of sense
Actually sounds generally logical to me. For clients though, hard to imagine there won’t be a significant level of distraction and jostling for position internally, in the time-honoured agency fashion.
Good time for clients to look at independent agencies – proper ones, that is – where the existential stability of the agency is a function of creating value for clients locally, not internal politicking. And local agencies and consultancies aren’t looking for 30% margins on bloated local and international overheads – looking at you, Big 4 + Accenture Interactive – which have got to be resulting in 2 x price to client for often no better capability.
Sounds like the same “horizontality” talk from a few years back
“Horizontality” is now “connected solution portfolio”
Have good ideas, connect them to experiences that solve your clients problems, keep your staff happy.
Clients like these things they pay you handsomely.
It’s that simple.