What tech taught me about business growth.
We all know that a change in marketing and advertising is needed. But how?
PART 1:
After a few years on the client-side (in the tech world), my approach to leading businesses (inc advertising and marketing, and creative and innovation teams) is now entirely different.
To be clear: while my creativity and strategy have evolved - and it's the core to who I am - it's my business approach that I've changed dramatically.
Let's talk about what industries have fared better than most during this heartbreaking tough period. Tech. (Nike and a few other powerful and robust brands have also done well). But how does FAANG (Amazon, Apple, Facebook, and Google - stolen from Scott Galloway), continue to rise? What are the lessons I learned?
Focus on inputs. Report on results
I have participated in leadership meetings for over a decade. The usual agenda: i. Finances. ii. New business iii. News and updates. iv. E-Sat, C-Sat, etc. iv. Staff loses/hires vs. other random topics (creative, media, strategy).
Since when has the product you sell (Creative/Innovation/Content/Media) a random topic?
From my experience, financials (revenue, sales numbers) are a result and are reported upon, but are not a business driver. In the apparel world, product design, manufacturing, distribution/sales appointments, seasonal trends, and showings (inc. online/offline store traffic) drive the business.
In advertising, especially creative teams and shops (whatever the medium), creativity and innovation is the leading business driver - you can't bill for the work until the work is delivered. So we need to measure inputs (drivers) to the work. (Don't get wrong, you need to know the COGS, etc., and financial reporting is a way of ensuring margins and profits, measuring the rhythm of the business, and knowing where/when to invest.)
Think about it from an athlete's point of view. If you wanted to sprint 100m under 10 seconds. You don't measure your finish time. You ‘report’ on your finishing times. To improve, you break the 100m into sections.
Pre-race heart rate and warm-up.
Response time out of the starting blocks.
Time to full velocity
Optimal stride length.
Time to vertical running.
(And, side note, advice to new creative leaders, make friendy with the CFO.)
Short term versus long term
Marketing and advertising has backed itself it a corner where the long-term doesn't matter. Amazon sacrifices the short-term over the long-term and has built-in mechanisms for long-term success.
Have you ever wondered how Amazon invents and creates at a phenomenal pace? At the heart of the company is a process called "working backward." It is sublimely simple. The innovation owner writes their idea into a narrative form (quick brief) that highlights the problem/solution, the value proposition, and customer scenarios via faux testimonials. The document takes the shape of a future-based (12-18 months), one-page Press Release, with a series of FAQs following (a total 6-page PRFAQ). It builds a mechanism of how the product/idea will be launched and forces the team to deliver a clear narrative of the objective, describe it without ambiguity, and align everyone. This WSJ blog says it best. https://blog.usejournal.com/why-amazon-continues-to-redefine-landscapes-at-an-unmatched-pace-the-prfaq-2cf0d03bef1c
Roadmaps, Business Plans and Goals
As mentioned, technology companies are great at building mechanisms. And for all my years in the ad business, I've never seen a roadmap as I saw in tech. Every team builds a yearly roadmap (business plan) in narrative form, as well as outline input goals, and a P&L (based on inputs). The rigor is staggering, and an exacting level of importance and structure is placed on these plans and the monthly reporting on goals (green, yellow, red). It's a living document.
The End
The next article will discuss building an organizational structure for innovation, creativity and growth. Until then, happy hunting.