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).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies
feel that cost of money has still not come down to a level from where they can go for a rate cut. ICICI, in fact, has increased its home loan rates by 100 bps from 12% to 13%. No doubt, the Central Bank has been persuading banks to lend more to the troubled realty sector and to make it happen it has also reduced the risk-weights on banks’ exposures to the real estate sector from 150% to 100%. But this still has not been able to restore confidence among banks. So, for a rate cut, we think, the wait gets litter longer!
in India. When asked, Sunil Dutt, Country Head, Samsung Telecommunication India told this magazine, “As more consumers are made aware of the merits of an eco-friendly product, the demand for such products is sure to increase.” He however declined to comment on the present or future RoIs on Samsung’s green initiative. Clearly, the full potential of green market is yet to be understood fully by both analysts and marketers, but expectations are flying high. Seeing competition take the lead in the green segment, market leader Nokia too is finalising its plans to launch its mind-boggling range of a 40 bio-degradable products. Other handset players like Sony Ericsson have started trotting the innovation route to capitalise on the green opportunity. However, Rob Enderle, a handset expert from the Enderle Group hands out a word of caution. “Most companies are coming out for these phones for good PR and to meet regulatory standards,” he declares, pointing out that, “Currently the one aspect of eco-friendly that is driving higher prices is anything that reduces energy consumption; unfortunately phones don’t use enough energy to make much difference here.” So he reasons that green handsets may not add much greenery to handset makers’ revenue, unless they make consumers swallow their green pill at higher costs, earning them better margins.
the sea port of Carthage as a trading post by the ninth century B.C. In 533AD, the Byzantine Empire took control and for about 200 years from the end of the 7th century A.D when this important sea port was invaded by Arabs, and Islam was introduced. A succession of Islamic dynasties followed. In the last quarter of the 16th century, it became notorious, once again, when a hoard of Barbary Pirates ousted the Byzantines and threatened European merchant ships till the 19th century.
Since my country, like many others, does not have a legal provision for homosexuals, I got married in England where the law allows homosexual existence. In Iran and Saudi Arabia one might be put behind the bars, or even thrown out of the country for being a homosexual because the law of the land does not allow such an existence. The acceptance of homosexuality does not necessarily pertain to religious beliefs. It also depends on what the law of the land says. In Turkey, as far as the law is concerned, it is legal to be homosexual, but that does not mean that the mainstream Turkish society accepts it. They too look down upon homosexuality. Whereas, in countries like Iran and Saudi Arabia, it is a crime that can invite capital punishment. In Pakistan, socially, the idea of being gay is acceptable, but politically, not quite! I did not really come out and reveal my sexuality. My liking for boys over girls went around like a joke in my family. But ‘gay’ was an alien word! A big problem is that these terminologies have never been explained or told about. In our language (Urdu and Hindi), we are called g@%$#; people are not familiar with the term ‘gay’. In some languages, the terminology for homosexuality does not even exist. For e.g, a lesbian Palestinian friend of mine did not know how to tell her parents about being homosexual, because there does not exist any term for it in the Arabic language. And therefore, the ignorance and lack of acceptance.
the melodic performance of the acclaimed pop classical violinist Vanessa Mae. The show began with the notes of the sitar maestro Ustad Nishat Khan and a musical piece by the young prodigy Vanessa, followed by the much awaited jugalbandi between the renowned sitarist and the talented violinist. Sponsored by Seagrams 100 Pipers pure music, the packed auditorium and the cheering crowd were enough to give a ‘thumb’s up’ sign to the organisers. Bestowed with thunderous applause at the fall of the curtain, this perfect combination of talent and glamour definitely succeeded in making a mark among the music lovers of India as well.