““Things do not change, we changeThings do not change, we change””

The Market is ChangingThe Market is Changing

What We Need You To DoWhat We Need You To Do

• Be flexibleBe flexible

• Be open to new ideasBe open to new ideas

• Help us define the changeHelp us define the change

• Stop doing things that aren’t valuedStop doing things that aren’t valued

Since ThenSince Then

• Three rounds of reinvention/transformation grids.Three rounds of reinvention/transformation grids. • Interactive re-organization/project management.Interactive re-organization/project management.

• Unification of all creative on 9Unification of all creative on 9thth floor. floor.

• Re-imagining the role of media: T1Z Media Re-imagining the role of media: T1Z Media Innovations. Innovations.

March 2007March 2007

• “ “Both print and broadcast—burdened with Both print and broadcast—burdened with unwieldy, archaic and crushingly expensive unwieldy, archaic and crushingly expensive means of distribution—are experiencing the means of distribution—are experiencing the disintegration of the audience critical massdisintegration of the audience critical massthey require to operate profitably.”they require to operate profitably.”

• Model based on economic scarcity—YouTube, Model based on economic scarcity—YouTube, blogs, etc.blogs, etc.

The Post Advertising AgeThe Post Advertising Age

EvidenceEvidence

• In December 2005, Viacom spun off CBS, lest the In December 2005, Viacom spun off CBS, lest the broadcast business impede its growth and depress broadcast business impede its growth and depress shareholder value.shareholder value.

• Time inc. has had four rounds of lay-offs (750 jobs) Time inc. has had four rounds of lay-offs (750 jobs) since late 2005 and Time Warner’s market since late 2005 and Time Warner’s market capitalization is 42% of what it was at its peak in capitalization is 42% of what it was at its peak in 2001.2001.

• Last fall, five broadcast networks bypassed their local Last fall, five broadcast networks bypassed their local affiliates and gave away new programs online.affiliates and gave away new programs online.

•Matt Freeman, CEO Tribal DDB, in WSJ: “At the Matt Freeman, CEO Tribal DDB, in WSJ: “At the end of the day it’s all about who’s in charge. …end of the day it’s all about who’s in charge. …Traditional ad people are in favor of integration as Traditional ad people are in favor of integration as long as they are in control. It still comes down to long as they are in control. It still comes down to who reports to who and egos.”who reports to who and egos.”

• Welcome to Pluto!Welcome to Pluto!

Agency Yin to Media Ownership YangAgency Yin to Media Ownership Yang

““There is a clear need for new ways of solving There is a clear need for new ways of solving marketing problems and an overwhelming marketing problems and an overwhelming agreement that agencies aren’t meeting that agreement that agencies aren’t meeting that demand.”demand.”

Jonah Bloom-Ed. Ad Jonah Bloom-Ed. Ad Age/CreativityAge/Creativity

““Demolish the heavy structures of the past for lean Demolish the heavy structures of the past for lean structures, light organization, fast processes and structures, light organization, fast processes and team spirit, collaborative approaches.”team spirit, collaborative approaches.”

Maurice LevyMaurice Levy

Off-Site: Better Work FlowOff-Site: Better Work FlowSpeed-FlexibilitySpeed-Flexibility

SHADE Team:SHADE Team: Al ReidAl ReidBrian SheehanBrian SheehanChris GravesChris GravesCraig CrawfordCraig CrawfordDavid PalmerDavid PalmerGabrielle Gabrielle

WeinmanWeinmanGavin LesterGavin LesterJack EpsteenJack EpsteenJason HarringtonJason HarringtonJon PearceJon PearceJulie MichaelJulie MichaelMark MillerMark MillerMatt VanDykeMatt VanDykeMeija JacobsMeija JacobsMonica MellierMonica MellierPaul MareskiPaul MareskiPaul RatzkyPaul RatzkyPaul SilvermanPaul SilvermanPhil GlistPhil GlistRichard HytnerRichard HytnerSusanna LeightonSusanna Leighton

Need a Fundamental Organizational ChangeNeed a Fundamental Organizational Change

• We have almost 20 separate departments!We have almost 20 separate departments!

• We need to re-imagine our structure around We need to re-imagine our structure around what we are here to do…our purpose…not what we are here to do…our purpose…not how we built ourselves to get here.how we built ourselves to get here.

Lexus AccountGroup

General Accounts/Business Dev.

Art Buying

Art Studio

BroadcastCost Control

Creative

Exp. Mktg.&

Alliances

HR

MultimediaStudio

OfficeServices

PrintProduction

PR

StrategicPlanning

Traffic/Proofreading

T1Z MediaInnovations

Team OneTeam One

I/RM

What is Our Purpose?What is Our Purpose?

Ideas Bigger Than AdsIdeas Bigger Than Ads

Ideas Bigger Than AdsIdeas Bigger Than Ads

• Creating themCreating them

• Producing themProducing them

• Manage themManage them

• Communicating themCommunicating them

• Supporting themSupporting them

Idea Support

Idea Creation

Idea Communication

Idea Production

Team OneTeam One

IdeasIdeasBigger ThanBigger Than

AdsAds

Idea Management

Idea Management

Idea Communication

Idea Production

Idea Support

Team OneTeam One

IdeasIdeasBigger ThanBigger Than

AdsAds

Idea Creation

Integrated Creative Dept.

Integrated Account Service

Experiential Marketing & Alliances

Public Relations

T1Z Media

Interactive Studio

I/RM Project Management

TV Production Print Production

Art Buying Multimedia Studio

Proofreading Product Information

Business AffairsArt Studio

Traffic

Finance

HR

Office Services

ReSourcesIT

Strategic Planning

I/RM Ops & Technology

Team One 2010Team One 2010

• No division between “digital” people and non-digital.No division between “digital” people and non-digital.

• One production floor sharing all assetsOne production floor sharing all assets

• No division between production and content creation.No division between production and content creation.

• Seamless integration of LDA events and field offices.Seamless integration of LDA events and field offices.

• Get to ideas faster and get from idea to execution in a Get to ideas faster and get from idea to execution in a fraction of the time.fraction of the time.

Kevin RobertsKevin Roberts

““Team One is taking the lead. They are not talking, they Team One is taking the lead. They are not talking, they are doing. I want this structure tested at Team One and are doing. I want this structure tested at Team One and in other regions. It might be a key to our future.”in other regions. It might be a key to our future.”

Richard HytnerRichard Hytner

““We're merchandising the Team One org work We're merchandising the Team One org work everywhere we go. So far, a few smaller markets everywhere we go. So far, a few smaller markets have snapped it up. The big win will be when the have snapped it up. The big win will be when the majors follow the Team One lead.”majors follow the Team One lead.”

QuestionQuestion

Is this a fancy way of saying layoffs?Is this a fancy way of saying layoffs?

Is this just empire building?Is this just empire building?

I’ve heard it all before!I’ve heard it all before!

It’s not up to “them”, it’s up to you!It’s not up to “them”, it’s up to you!

Help us get this right. Right now.Help us get this right. Right now.

New org in place December 1!New org in place December 1!

100 Days Plans100 Days Plans

AssignmentAssignment

Meet with group leaders to start imagining a Meet with group leaders to start imagining a new vision for each new group.new vision for each new group.

How would we work differently if…How would we work differently if…

Physical MovesPhysical Moves

Plan and Timing—Mackinnon/HarkerPlan and Timing—Mackinnon/Harker

Questions?Questions?