Stop Using ‘Category Experience’ as a Criteria to Hire an Agency

If I had a penny for every time a client Request for Proposal (RFP) document asked if the agency has relevant category experience, I would be rich and retired today…

Not sure if this is something clients are taught in some secret “client” school but it has become a global epidemic and I for one am completely unable to understand why. For those not from the wicked world of advertising and marketing – when a prospective client is looking to hire a new ad agency they send out an RFP and it always asks if the agency has relevant category experience (they are most often eliminated if they do not). For example, Mercedes-Benz would look for an agency with automotive experience and Benadryl for one with pharmaceutical/healthcare category experience.

I have never understood why it is so important for an automaker to only find someone who has sold a car before. Or why they believe that an agency that has sold cars is the only one capable of selling another car. One would think that clients would seek out agencies that have the greatest salespeople. People who have done great work across many different categories; rather than limiting themselves to car salesman. If I were a client I would never limit myself when selecting a new agency partner. There is good reason why it is so hard for consumers to tell automotive, financial services and pharmaceutical advertisements apart. The best way to illustrate my point is by using a golfing analogy.

All professional golfers play on many different courses around the world. With every new course they need to navigate a totally different layout, wind conditions, sand quality and even climate and vegetation make a dramatic difference in everything from distance control to putting green speeds. Most good golfers are able to negotiate these aspects and sufficiently play a competitive round but great golfers have the ability to raise their game. They can take their past experiences and combine it with innate skills and talent, adapt their game, and excel in new and varying conditions. As a result, after spending a very short time learning the intricacies of the new course, they are able to master it and win.

Great agency practitioners are the same way. They have the necessary skills to adapt to the needs of any category and client because the fundamentals of great advertising never change – a great strategy, a powerful customer insight and creative work built on an idea. This is what differentiates iconic brands from regular brands and courageous clients from clients.

I have also found that agencies and agency folk with strong cross-category experiences bring not only a fresh set of eyes to a challenge but also richer perspectives that ultimately lead to better solutions for their clients. Over my career I have sold ice-cream, complex CRM solutions, baby products and even launched a television channel. It is our wealth of cross-category experiences that ensures we are well-versed enough to develop a corporate M&A strategy one day and help market a dandruff shampoo the next.
So the next time you are selecting a new agency, look for diversity of experience versus specific category experience – you might just end up being delighted by the ground breaking and category re-defining work your agency delivers.

How Facebook Can Fix

When I first heard about this initiative, called, I was thrilled and thought it extremely charitable of Facebook to give free mobile internet access to the poorest people in the world. People for whom the decision often boils down to choosing between adding a data plan and putting food on the table. It just felt like the right way to give back; for a large, super wealthy corporation that has profited from a free internet. The logic seemed altruistic; access to knowledge empowers more people. The mission almost poetic; provide free access to “two thirds of the world that doesn’t have internet access.”

The one thing that struck me as curious is that Facebook was always included in the basket of so called “basic services” they were providing free access to; this basket included education, government, NGO, job listing, and e-commerce portals. But I was willing to accept this self-serving move for the greater good they were arguably doing.

However, as a result of neutrality debate in India, large web companies have now publicly dropped out of initiative due to a severe consumer backlash and based on how it might actually skew the level internet playing field. All this based on the curtain being lifted on a startlingly important fact, that was previously not made clear – the “basic services” internet (i.e. which websites to include in each country) is going to be determined by Facebook.

I will not waste ink talking about how this new information about the initiative clearly violates the core principles of net neutrality; while arguably trying to turn poor customers into Facebook addicts. SavetheInternet coalition has written an article here about why we should be concerned about the seemingly arbitrary and anti-competitive nature of the decisions on which services to include; e.g. in India the world’s largest search service, Google, has not been included but Microsoft’s Bing has.

With his pet project under attack, Mark Zuckerberg also penned an Op-ed in Livemint defending While I agree with his basic argument that giving the poorest people access to “some” internet services is better than no access at all – I also believe that Facebook must let people decide which sites and services they want access to. So I want to offer Mr. Zuckerberg some suggestions on how he can fix this initiative to genuinely deliver on his mission of empowering the poor.

The way it could work is under the same basic principles they have outlines (large internet companies would still pay telecoms for the data costs, and Facebook could pay for smaller sites that cannot afford to):

  1. Customers would choose from a list of the top 10 sites (based on traffic rank, in each country) for each category of basic service e.g. ‘SEARCH” would include Google, Yahoo, Bing, Ask, etc. and so on and so forth for ‘JOBS’, ‘TRAVEL’, and every other category offered
  1. If necessary, for cost reasons, the total basket of basic sites could be limited to the same number allowed now; I have seen between 12-15 sites depending on the country
  1. Consumers would be able to change the list of sites at the beginning of each month AND go beyond the initial top 10 based on personal experiences, level of satisfaction with a service, word-of-mouth from friends and family, or due to their own discovery on the internet

By doing this Facebook would achieve their noble goal but also ensure that EVERY person has access to a free, fair and service-competitive internet – the way God and Tim Berners-Lee intended it.

Has LinkedIn Lost Its Relevance?

For now there is no question that LinkedIn remains the go to platform for business and working professionals. It is often said that you will no longer be able to find employment without a LinkedIn profile; a whole industry of so called LinkedIn profile builders has also mushroomed around it. People who charge serious money to help navigate the platform’s features; everything from creating a profile to claiming to help you get higher search rankings and better visibility with prospective employers.

In the early days, I found LinkedIn an extremely valuable tool for professional networking. It was the best way to connect with friends from school and college, on a professional level, and with people connected to your industry. It was a tool for networking and making valuable and relevant new connections through the small degrees of professional separation we all had but never knew how to tap into. And it was the greatest way to showcase your background and professional experience, without geographic limitations, or the far more cumbersome and time-consuming alternative of physically mailing or dropping off a CV to each and every prospective employer.

Today, it is a vastly different network. For one, everybody and their uncle has a profile. Tons of random people are now able to click a button and ask to connect with you for no rhyme of professional reason; from banana farmers in Bolivia to bakers in India. I cannot count the number of times, when I ask someone why they want to connect, they tell me they accidentally hit the button or had no real reason other than finding my profile interesting. A large number of people seem to feel that by just connecting with as many people as possible, it will help them boost their career prospects and/or search rankings. I for one cannot fathom this logic because it does more damage to their prospects, if they serially invite friends of friends and random strangers to connect for no legitimate business reason.

When LinkedIn first introduced the InMail as part of their premium offering I was excited and willing to pay monthly fee to be able to reach out to people I wanted to do business with and vice-versa. It offered a professional method that did not entail having to go find common connection to get a soft introduction, or simply email someone cold. However, this feature has also turned into spam marketing of sorts. While I do still get a number of legitimate emails, I get many more from telemarketing and lead generation companies looking to sell me databases; they now just as unsolicited as those pesky tele-marketing calls we get at home.

LinkedIn is now trying to become a publishing platform; taking a page out of Amex OPEN’s book. Unlike OPEN theirs was originally a closed platform. In order to publish content you had to be classified an ‘Influencer’; and unless you were the likes of Richard Branson you were not be granted this rarefied title. I guess they realised pretty quickly that being successful did not mean that people were good writers, or able to offer meaningful content on a routine basis; at least not enough to keep it fresh and interesting for the rest of us non-influencer minions. LinkedIn has since learned this lesson and opened content posting to everyone with a profile and an internet connection. Sadly, this step in the right direction has also been rather catastrophic.

While I laud the decision to be democratic, the problem is that not everyone who has something to say has something of value to say. So while I am not suggesting that they close the doors and once again allow only super successful people or great writers to post; I do believe they urgently need to find some method to curate the vast volume of mediocre and useless content that now invades our streams every hour. The point of this curation is not to play judge and jury but to find some smart crowd sourced way to weed out the utterly useless content that only bubbles up and gets eyeballs because of sensational and provocative headlines with the content rarely ever delivering on the argument suggested.

I have found the vast majority of ‘popular’ and ‘recommended’ posts lack substance. They simply offer a provocative headline, based on recent high-profile events in the news, to bait the reader and then at best offer an extremely tenuous (and most often nonsensical) connection to the subject matter they are sensationalizing in their headline.

Recent examples of such posts are one that used the iCloud celebrity photo leak to try and link Jennifer Lawrence’s decision to bare her breasts in Vanity Fair to faulty PR and marketing decisions. Another was about sexual harassment in a CVS store that tried to make a link to sexual harassment at the workplace (which is a serious issue that this article made feel less serious). The same author just recently posted an article about the Uber PR fiasco and then halfway through started talking about the issue of rape with no relevance to her argument.

I have nothing against provocative or controversial points-of-view but the problem is that none of these articles come close to delivering on their headline’s premise; they are merely sensational for the sake of sensation. Sadly, these have overwhelmingly become the posts that seem to garner the most attention and get recommended in the Pulse stream.

If LinkedIn wants to be regarded as a destination for business-related, thought-provoking content, then this is doing nothing to further their cause and in fact damaging their credibility. It has seriously reduced my opinion of both the articles and the quality of the posters. It seems that publishing on LinkedIn is designed purely to drive eyeballs and offer no other real business insight or value; a BuzzFeed for business.

I am not suggesting that this is the end of LinkedIn by any means but that its value proposition for people like myself will erode over time if this level of ‘clutter’ and ‘noise continues to grow without substance. Even forum posts and discussions have started to suffer the same malady with people consistently asking deep and penetrating questions like “Would you rather be a good person or a good CEO” and “How do you define power in one or Two words?” As a result, I have started to drop my membership to many of these professional forums and groups on the site.

It is also not just me they should fear losing but the fact that they are about to face some serious competition for the first time; with Facebook announcing the launch of a “at work” professional network and WeWork (shared workspace for startups and freelancers) also planning to launch a networking site that would allow their physical entrepreneurial tenants, all over the world, to connect online. I suspect LinkedIn is about to get a run for my eyeballs!

HBO Go or No Go?

HBO’s announcement about launching a streaming only version of their popular service has been received with great joy and serious apprehension depending on which side of the fence you sit. For many years now consumers, specifically people who have cut the cable cord (cord cutters) have been clamoring for services like HBO and ESPN to go rogue. Cord cutters have said that they are willing to pay a monthly fee for these premium services if they were stand-alone and not part of a cable bundle; one that includes hundreds of channels nobody wants to watch. So for cord cutters and consumers like me, who currently live in both worlds, this is a big win and giant step in the right direction towards a la carte programming.

However, on the other side of the fence sit the cable and broadband companies who have balked at HBO’s move because it will disrupt their lucrative and outdated business models and threaten the uncomfortable status quo. Incidentally, the business model the cable companies are trying to protect is akin to going to a restaurant and being told that in order to eat your favourite desert you will have to order, and pay for, all the deserts on the menu – I doubt you would be eating there again! Comcast’s CEO recently publicly rebuked the HBO announcement; “Mr. Burke warned that, whatever HBO’s intentions, ‘it’s going to be a challenge for them to not cannibalize what is already a really, really good business’.” (Source: Wall Street Journal). It is worth noting that if Comcast’s proposed merger with Time Warner Cable gets approved by regulators, they would control 70% of the broadband market; and interestingly HBO will need to rely on broadband providers like them for the high speeds and massive bandwidths they will need for this gamble to succeed.

The reality is that when most established and entrenched companies make proclamations about changing their business model or radically disrupting the status quo, it is often a knee-jerk reaction to competitive pressures and therefore rarely ever thought through. Take for example CBS’s announcement, on the heels of HBO’s, about launching their own streaming service for $5.99 per month. CBS like other broadcast networks is free-to-air. This means that unlike cable channels all you need is to buy is an over-the-air-antenna and plug it into your TV and you can watch all the networks, as well as numerous local channels and public broadcasting stations like PBS; all in HD and all for free (Source: Lifehacker).

CBS also makes a lot of money by negotiating hefty “re-transmission” fees from cable providers, which form part of our monthly monster cable bills. So the first question is why would the cable companies continue to pay these hefty fees when CBS is making the same content available through other means? Additionally, from a customer standpoint, live sports like NFL games are not included in the streaming service. Let’s face it, CBS hardly has a reputation for stellar and premium content that people are willing to pay extra for; not sure many people are doing high fives about the fact that “Two Broke Girls” will be available to watch via streaming. Also, if I want to watch the first six seasons of the Good Wife, I can do this for free as an Amazon Prime member, or see them on HuluPlus under my current subscription (where I can watch many other shows), or simply download 2 seasons at a time from iTunes for roughly $65-$70; which is still cheaper than paying for one year of CBS’s ‘All Access’ streaming service  — you do the math.

HBO on the other hand is not like a CBS (other than the misfortune of having Time Warner as it’s parent company). It has always been an entrepreneurial company with innovation as part of its core DNA. It single-handedly changed the television industry; lifting the quality of content and thus saving us all from a TV-hell filled with nothing but the Kardashians. However, the quality of content that forged HBO’s brand reputation also forced the rest of the industry to raise its game, and many have followed-suit by creating their own original and award winning programming. AMC has had huge ratings and critical success with “Mad Men”, “Breaking Bad” and “Walking Dead,” while Showtime has given us “Dexter”, “Nurse Jackie” and “Weeds”. Even Netflix has gotten into the content game with “House of Card” and is now stepping fearlessly into the feature film business with a recent four movie deal with Adam Sandler (Read my take here: “Netflix, Data, Drunkard’s and Adam Sandler”).

So unlike CBS, I believe HBO is doing this for the right reasons and more likely to think it through and get it right, now that they have woken up to and accepted the new consumer realities. This I suspect also led to their decision to go ahead and piss on their powerful cable partners whom they did not care to inform ahead of making their announcement.

HBO knows that they can no longer distinguish themselves on quality of content alone. As a result they would be competing (with the likes of Netflix) with one hand tied behind their back as long they are relegated to being stuck as part of the traditional cable bundle.

Second, they have read and accepted the tea leaves on the changing pattern of television consumption. Online video has been growing for some years but the acceleration has been marked in the last year. An Adobe study shows that for the first time online video viewing habits are going mainstream and no longer relegated to tech savvy early adopters and cord cutters; “Researchers tracked 165 online video views and 1.53 billion logins over a year, and they found that total TV viewing over the internet grew by 388 percent in mid-2014 compared to the same time a year earlier — a near-quintupling.” (Source: Wired Magazine). This means that even people who have regular cable subscriptions are choosing to watch more of their TV and movies online via internet connected devices.

Most importantly, HBO is clearly paying attention to their customers changing viewing habits that have decimated the old Nielsen TV rating system. People no longer want to watch shows based on a Fixed Point Chart (industry jargon for the TV schedule published by a channel). Instead, they prefer to watch it a few days later or simply binge watch an entire show or season during a weekend or long haul flight.

While I do not have a crystal ball and cannot predict the success of HBO’s standalone service, I do know a couple of things. It is certain that they, like Netflix, will face tremendous opposition and hurdles from movie studios, cable operators and broadband providers; all interested in preserving their lucrative status quo. However, HBO will also have the wind in their sales based on the fact that customers are demanding a breakdown of the straight-jacketed cable model and getting more used to consuming content in an a la carte, anytime, anywhere, pay as you watch model.

My money is always on companies that try to deliver on their customers’ needs and focus on making life easier for them, rather than try to force customers down a path driven by the company’s myopic goals and bottom-line greed.

Netflix, Data, Drunkard’s and Adam Sandler

There has been much discussion about Netflix’ recent announcement signing Adam Sandler for an exclusive four movie deal to be premiered on Netflix. It has also generated talk of the beginning of the end of the traditional Hollywood studio model as well as praise for Netflix use of data to make a content investment decision; albeit, this particular decision has left many people scratching their heads.

Let’s start with the fact that it has been a while since Mr. Sandler made a commercially successful or comedically substantive film; while Grown Ups fared better, he did not carry that movie. If you ask people to name their favourite Adam Sandler movie, most say Wedding Singer and movie buffs will add Punch-Drunk Love. His last few films, ‘That’s My Boy’ and ‘Blended’ have been critically panned and box office duds. In fact, the last movie, Blended, might have had a longer advertising campaign preceding the release, than the actual run it had in theaters!

On the lack of critical and commercial success, Netflix’s content chief has a data counterpoint: “Very uniquely, he stands out for his global appeal to Netflix subscribers. Even movies that were soft in the U.S. [theatrically] outperformed dramatically on Netflix in the U.S. and around the world.” (Source: Hollywood Reporter).

Don’t get me wrong, I love data and am a big advocate for using it to make better and more informed business decisions. However, I am also against over-reliance on data and using it without the benefit of judgement to accompany the decision-making process. My thinking is best explained by David Ogilvy who once exclaimed about the ad industry’s over-reliance on research – “I notice increasing reluctance on the part of marketing executives to use judgment; they are coming to rely too much on research, and they use it as a drunkard uses a lamp post for support, rather than for illumination.”

If one were to take a closer look at Netflix catalogue you will find that of the twelve highest rated comedy films, currently available in USA (as of October 2014); 2 are foreign (The Intoucahbles and Zindagi Na Milegi Dobara), 8 were made between 1953 and 1987 (Breakfast at Tiffany’s, Roman Holiday, Sabrina, The Graduate, Charade, White Christmas, MASH and Good Morning Vietnam), only 2 are from this century – Pirates of the Caribbean (2003) and Silver Linings Playbook (2012).

Additionally, their top comedy recommendations for me include ‘Maz Jobrani: I come in Peace’, ‘Tortilla Soup’ and ‘Welcome to Dongmakgol’; each movie gets 4.5 / 5; stars as personalised recommendations for me. No doubt you are also scratching your head and asking “Max who?” and what the %$%^*$%* a Dongmakgol and can it be eaten?

Then there is also the fact that Netflix continues to have a large selection of Mr. Sandler’s movies in both the US and abroad; “We had almost all of Adam’s movies in the first pay window in the U.S. Today, we continue to have those movies in the first pay window in Canada. And then, through various windows that follow the pay window all the way to the deep catalog, we’ve licensed Adam’s movies in all of our territories.” (Source: Hollywood Reporter). Considering these two data points one could surmise that Netflix has a pretty poor selection of comedy films in their library but a wide selection of Mr. Sandler’s movies.

If you are like most people, who sign-up for a monthly subscription service, you only feel you are getting value for your money if you are able to watch movies frequently. You start by looking for recent comedy films, finding none you tend to default to one with a recognisable actor. On both these counts your Netflix search will deliver an abundance of Mr. Sandler’s titles because of the limitation of their current comedy catalogue. I have no doubt that their viewing data is accurate, and many subscribers are watching Mr. Sandler’s films, even repeatedly; but if I were to add a dose of judgement I would also guess that this is has less to do with his popularity or the quality of the films, and all to do with the fact that there is really nothing else worthwhile to watch…

Then there was also the bizarre press release issued by Mr. Sandler saying he signed this deal because “Netflix rhymed with wet chicks.” Hopefully, this is not an early indication of the substance of each of the $40 million a film that Netflix is reportedly paying him. (Source: Reuters).

While I laud Netflix use of data (House of Cards is a brilliant case in point) and for continually breaking ground in entertainment and forcing studios and TV networks to think in a more customer-centric manner; I am not sure I agree with their choice of Mr. Sandler. I wonder if this is an instance of using data for illumination, rather than support; but either way it will be interesting to see who has the last laugh.

Does Yahoo’s New Vision Miss an Opportunity?

Early in 2014 Marissa Mayer took to the stage at CES to articulate how Yahoo’s new corporate vision would take shape in the real world. Yahoo’s stated vision is: Yahoo makes the world’s daily habits inspiring and entertaining.” The words are powerful and inspiring but as my grandmother used to say; the proof of the pudding lies in the eating!

One could argue that when we get up in the morning, we brush our teeth, wash our face and we shower; all these are also considered daily habits – so is Yahoo going to make some or all of our mundane morning routines more inspiring? Perhaps, Unilever or Procter & Gamble are better placed to deliver this vision. Of course, I am being facetious but you get my point. The power of any corporate vision lies entirely in how well its products and services are delivered, in a customer-centric manner, and how unique and compelling they can make the offering. At CES, Ms. Mayer also stated that the crux of this new vision was around“…simplifying [Yahoo’s] business, moving from complexity to clarity.” Simplification is a good thing but what exactly does this mean for Yahoo?

Last year Ms. Mayer hired David Pogue, the well-known New York Times tech reporter, and followed this with another high profile media personality earlier this year. Katie Couric will serve as Yahoo’s global news anchor. Ms. Mayer went on to add “we decided to do what I love – harness the power of the web and deliver it in a concise experience, like that found in the beautiful, elegant magazine.” Yahoo’s first digital magazine was launched with much fanfare at CES, by Mr. Pogue. He explained, “At Yahoo Tech, we’re going to speak English, it’s called human – we’re taking care of the middle 85% of internet users, the normal people.” This will be followed by Yahoo Food, and Yahoo News Digest which will utilize Summly’s technology (one of the startups Yahoo bought) to pull content from various sources across the web, and neatly summarize them into digestible little bits for readers; and this “highly personalized content for users” will be delivered in a “mobile-first” experience.

Perhaps, I am a Luddite but my reading of all this translates into Yahoo turning itself into an even more media-focused company than it was at its inception; one that might rival an AOL and Huffington Post one day. I understand this strategy is being driven by the fact that Yahoo has always been a content-driven advertising platform, and content brings eyeballs which in turn brings advertisers and ad revenue. So it would seem that Ms. Mayer is going back to the company’s roots but smartly dressing it up with sexy design, intuitive technology; served up in a mobile offering that is bite sized, easy to digest and highly personalized. While I laud the fact that she is not trying to re-invent the wheel and trying to offer a simpler, more personal internet; at a time when the web has started to feel more and more like an unwieldy behemoth of crappy content – I have two concerns.

The first lies in Yahoo trying to create original content. For them to be successful, their content needs to be stuff that people will not only find valuable but also want to consume and share with others; on a daily basis. When Yahoo was born, back in 1994, the internet was a barren wasteland for content but today it is a very different story. The creation of quality content is no longer limited to companies or organisations with a vast array of talent and financial resources; in fact quite the opposite. These days the most engaging, imaginative and ‘real’ content is being created by individuals with a point-of-view and a smartphone. Yahoo will face the same challenge and struggles that every other content creator and aggregator is facing; from Time to Newsweek to AOL – the ability to differentiate their stuff, stay relevant and do it in a way that appeals to a wide audience and cut across age groups and geographies. A task much easier said than done in today’s content rich internet landscape. It is possible Yahoo will succeed where many others have failed but to me the bigger travesty is that by pursuing this path they might be missing a larger opportunity.

As the internet has grown, it has become much more restrictive and fragmented from a user standpoint. By this I mean that every major service today is trying to silo their users into using only their platform and/or offerings. As a result there is very little ability to share, cross-pollinate and navigate the internet in a free and uninhibited manner. All the major players are busy trying to create their own little fiefdoms; one that forces users to sign-in, browse, share, purchase, read, write, etc. through a single service. They are doing this because it allows them to accumulate valuable information on each of us; our habits and behaviours and likes and dislikes across the entire internet. Whether it is Google forcing people to create a GooglePlus profile to use any of their services (from Gmail to YouTube), Facebook making us use their login across the web, while systematically reducing their privacy barriers, or Apple and Amazon locking us in for all our entertainment needs – it is a race to know us better and read our minds so they can sell this information to advertisers, who in turn can sell us more.

However, unlike, Google, Facebook, Apple, Microsoft; Yahoo does not have their own social network, operating system, device, search engine or anything else that would tether them to a single platform or ecosystem. In this regard they are the only large internet player that can deliver truly agnostic products and services by combining the best third party partnerships with their proprietary technologies, like Summly. As the larger companies continue to force us deeper and deeper into their siloed ecosystems it will become even more valuable for consumers to find companies and products that allow us to unshackle the internet. Yahoo could be well positioned to do this if they don’t expend their energy and resources on making and selling pretty little digital magazines; which any Tom, Linda or Harry can do today.

This to my mind is where Yahoo should focus its business and efforts; positioning itself as the glue across the internet. They are the only company that can stand behind the promise of delivering a truly consumer-centered, device and platform agnostic vision. So while their goal to simplify the internet is a good one, their current strategy does not go far enough in tapping into what could become a huge differentiator and competitive advantage for Yahoo.

“It’s the people, stupid”

Advertising agencies don’t make widgets and they don’t have factories or manufacturing lines that create tangible goods; they are in the idea business. So it constantly amazes me how many of them don’t understand that their most valuable asset is – their people. Every agency’s success relies purely on the talent it has within its ranks and yet so few companies actually do meaningful things to retain and nurture talent.

David Ogilvy famously said, “If each of us hires people who are smaller than we are, we shall become a company of dwarfs. But if each of us hires people who are bigger than we are, we shall become a company of giants.”  Sadly, so many companies today, and it’s not limited to ad agencies, seem content hiring and retaining small people. I understand that when times are tough there will be cost-cutting, and things like training programs and other employee perks will disappear but this is just the tip of the iceberg, and frankly, not the only things that companies should think about when trying to retain talent. These things can help in the short-term but do scant little to address the true nature of retention in the long-run. Don’t get me wrong, money is important but most companies believe that it is the only tool they have to motivate and recognize employee performance.

To me it starts with understanding a very simple formula:

“Happy Employees = Happy Clients.”

When your employees are happy, they are motivated. When they are motivated, they go above and beyond and it shows in both the quality of their ideas and their output. When the work shines it tends to resonate with customers, creates brand recognition and preference, which in turn leads to greater sales. When sales increase we have very happy clients…It truly is that simple! This is really the only way to achieve great results, and client satisfaction. Quite simple when you spell it out but extremely hard when it comes to actually getting management in most companies to recognize it or have the courage to execute it.

The trouble begins with two important areas; both of which are misunderstood by many corporations. First, most companies today, believe that making clients happy involves giving their clients exactly what they ask for –  rather than helping clients understand what they really need. I am not talking about getting a clear brief from a client but about literally letting your clients dictate the idea, and much worse the execution. Following this path will ALWAYS lead to failure; without exception. It is simply a matter of time before you will lose the business. Think about it, if clients knew what they needed, leave alone how to articulate it to their customers, then agencies would not exist. It is like going to a brilliant lawyer and asking them to take your case, then insisting on writing the arguments, the opening and closing statements and doing everything short of standing up yourself in court. It defeats the purpose of hiring and paying someone for their particular experience and expertise.

The second problem is in the way companies approach talent retention. Granted these days it feels like most companies care little about their star performers, leave alone the average employee, but let’s for a moment imagine a company that does care and makes a genuine effort to create “happy employees.” The problems still lies in a flawed approach to providing this happiness. Most companies still believe that hard work should be rewarded by simply paying an employee more money. This is all well and good but retaining talent requires much more than dollars. It requires making sure employees are constantly challenged, that they are learning and growing everyday (and I don’t mean purely through workshops or training seminars). Additionally, it goes a log way to know that your company has your back, by standing behind their work and defending and fighting for it with clients. Also, it would really help if companies spent more time making sure that their people are not constantly doing busy work or re-works on every project – nothing kills morale faster.

If companies really want to retain and nurture great talent, then they need to think about creating a culture that promotes these behaviors in management; at every level of their organisation. They also need to hold management accountable and ensure that they are following through on these practices. It is these things that help contribute most to that most powerful and yet hardest to deliver tool a company has in its retention arsenal – employee motivation. Money cannot provide the same satisfaction that feeling appreciated for your efforts does or seeing the fruits of your labour perform in the marketplace.