Charlotte Beers at Ogilvy & Mather Worldwide

Charlotte Beers at Ogilvy & Mather Worldwide

Class: Leadership MGMT 69000

Case Study Analysis

THE OVERVIEW

Since inception in 1948, Ogilvy & Mather Worldwide grew to be a successful global advertising agency with over 270 offices comprised of four regions and reputation as “the class act of Madison Avenue.” Ogilvy developed successful businesses with top brands such as Rolls-Royce, Schweppes, Maxwell and American Express. In 1975, however, David Ogilvy retired and with him left the presence and swagger the company was built upon. In spite the company’s ensuing struggle to succeed David Ogilvy it boomed with the rest of the advertising.

In the mid-1980s, the industry changed the company struggled to keep up as a result of growing internal and external challenges. Externally, companies globalized, new channels developed and media spend decreased. Agencies merged into global mega-agencies achieving economies of scale. Internally, Ogilvy’s multi-local structure bred local autonomy, crippling its ability to serve multinational clients. The many years of continued success and growth resulted in an inflexible and arrogant culture. Ogilvy’s vision statement had become, “just keep doing the same thing, better.” Years of uninspiring leadership, hostile acquisition and stronger financial and managerial discipline led to the exodus of creative talent and account expertise.

The agency lost major multinational advertising accounts with Unilever, Shell, Seagram’s Coolers, and NutraSweet. Most damaging proved to be the loss of Campbell Soup, Roy Rogers and American Express – the company was falling apart.

TRANSFORMATION PROCESS

Thomas Phillips recognized Ogilvy & Mather was a struggling company in dire need for a transformation and resigned as CEO. Charlotte Beers was appointed CEO and chairman of Ogilvy & Mather Worldwide, the first outsider ever to lead the company. Beers brought a dynamic to the company not seen since the retirement of founder David Ogilvy. She was a confident female; a “non-cerebral” charismatic symbol of change which sparked excitement and apprehension throughout the company.

Charlotte Beers was customer and brand focused – she had a successful career and earned a reputation for her ability to win over clients. In the beginning, Beers met with fifty clients in six months to better understand the viewpoint of their clients. It was apparent from their customers agency lacked a clear direction, had become series of fiefdoms and lost touch with her clients. As a result, Charlotte began a process to transform the organization into her own vision of a brand-driven advertising agency

THE PROCESS

Beers acknowledged