Does the advertising industry follow a set of formal processes for succession planning?
There are two kind of scenarios. When there is an existing management team, which has acquired clients over a certain period of time, then the potentially successors are normally picked up out of all the departments. Just like any other company, there would be two or three people who might succeed and you might not exactly be the shortlisted one. But people who have proved themselves over a period of time are always on the radar. So basically, what we refer to as a second line of defence is always built up like that. On the other hand, if the management structure changes, then it is a different issue altogether.
The quality of people coming in to the advertising industry has dramatically changed over time. The level of commitment is not the same as it used to be. Do you think this is true? If yes, what impact has it had on succession planning?
It is true because a) Advertising today is not the best of businesses that people would want to join. It’s unlike the past when the best of B-school graduates and the most outstanding creative guys wanted to join the industry. Salary structures were much higher then as compared to today. Over a period of time, the best talent has migrated to other industries.
How has migration of talent impacted succession planning?
Not much, because if you are looking at someone from the point of view of succession planning, the assumption is that the guy has been there for 15-20 years because posts like CEOs, CFOs, et al demand a certain level of experience and a proven track record. During this tenure, these people also develop their professional relationships with the client. So there is an equity attached to these people.
Despite being a people driven business, the advertising industry has one of the highest attrition rates. How does it go hand in hand?
Attrition has always been there and will be there. Mainly, the percentages have changed over a period of time. It is not the kind of business where people come to retire in one organization. Secondly, due to certain impressions, people keep on doing parallel moves to take a higher position in another organization. The lack of talent and high demand has resulted in poaching becoming a continuous processes. There is little sense of loyalty in this business.
There are two kind of scenarios. When there is an existing management team, which has acquired clients over a certain period of time, then the potentially successors are normally picked up out of all the departments. Just like any other company, there would be two or three people who might succeed and you might not exactly be the shortlisted one. But people who have proved themselves over a period of time are always on the radar. So basically, what we refer to as a second line of defence is always built up like that. On the other hand, if the management structure changes, then it is a different issue altogether.
The quality of people coming in to the advertising industry has dramatically changed over time. The level of commitment is not the same as it used to be. Do you think this is true? If yes, what impact has it had on succession planning?
It is true because a) Advertising today is not the best of businesses that people would want to join. It’s unlike the past when the best of B-school graduates and the most outstanding creative guys wanted to join the industry. Salary structures were much higher then as compared to today. Over a period of time, the best talent has migrated to other industries.
How has migration of talent impacted succession planning?
Not much, because if you are looking at someone from the point of view of succession planning, the assumption is that the guy has been there for 15-20 years because posts like CEOs, CFOs, et al demand a certain level of experience and a proven track record. During this tenure, these people also develop their professional relationships with the client. So there is an equity attached to these people.
Despite being a people driven business, the advertising industry has one of the highest attrition rates. How does it go hand in hand?
Attrition has always been there and will be there. Mainly, the percentages have changed over a period of time. It is not the kind of business where people come to retire in one organization. Secondly, due to certain impressions, people keep on doing parallel moves to take a higher position in another organization. The lack of talent and high demand has resulted in poaching becoming a continuous processes. There is little sense of loyalty in this business.
Source : IIPM Editorial, 2012
An Initiative of IIPM, Dr. Malay Chaudhuri
and Arindam chaudhuri (Renowned Management Guru and Economist).
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