Tuesday, September 15, 2009

Critical Talent in Advertising Agencies

Critical or strategic positions are positions that are essential for delivering the firm’s strategic capabilities. Critical talent therefore refers to the people who create the value that an organization needs to succeed. For example,
• In large pharmaceutical organizations, it is the researchers and clinicians who drive the development of “blockbuster drugs”.
• In the oil industry, it is the geologists and petroleum engineers who find and extract oil.
• In manufacturing, it is the machinists who perform precision manufacturing to Six Sigma standards.
• In retail, it is the inventory managers who get the right goods into the right stores at the right time.
• In a courier organization, it is the couriers who pick up and deliver packages.
• In a Disney amusement park, it can be the street sweepers who are in touch with millions of customers every year.

According to Becker, Huselid, and Beatty (The Differentiated Workforce), the process of identifying critical positions begins with two questions:
1. How will we compete (the firm’s strategic choice)?
2. What must we do exceptionally well to win (the firm’s strategic capabilities)?

For Advertising Agencies, the strategic choice (operational excellence, product leadership, and customer intimacy) tends to be unclear whereas creativity is the most frequently referred to strategic capability.

Hence, for an Advertising Agency, Creatives (Copywriters, Art Directors, and Creative Directors) that are particularly exceptional in originating new concepts and ideas are the critical talent.
As a result and in line with Becker, Huselid, and Beatty recommendations, Creatives enjoy differentiated access to resources, development opportunities, and rewards. A few examples include:
1. When resources are short, there is usually an extra budget for a Freelancer to join a Creative team.
2. Account professionals are often told to keep Creatives' happy, inspire them, and make their jobs easier.
3. Creatives get to go to international Award Shows.
4. A Creative Director may receive as much as twice the money that an Account Director or Planning Director.

Do you know any Agencies that would perceive Strategic Planning or Account Servicing as their strategic capability? Are there any Agencies that would view their Planners (who devise the strategies for clients' brands) or Account Service staff (who have direct contact with the customer and must make continual decisions that impact not only the client's satisfaction but also the efficiency and effectiveness of the project's delivery) as critical talent?

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