will charnock brazil_nov29notes

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Here are the notes to my GP1Mais1presentationthey asked for details of my journey from Classically trained planner to chief strategy officer of R/GA...a little self indulgent but I hope some good conclusions for people to learn from

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Good  A'ernoon,      I  was  asked  to  give  a  presenta1on  about  me!        The  transi2on  from  classically  trained  planner  to  being  the  head  of  strategy  at  arguably  the  biggest  and  most  crea2ve  digital  agency  in  the  world.      As  for  Head  of  Strategy  at  R/GA  well  I’m  not  quite  sure  what  I’m  doing  there  but  all  I  know  is  it’s  one  of  the  most  interes1ng  and  exci1ng  gigs  i’ve  ever  had..    I  called  this  presenta2on  the  unplannable  journey…  

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It’s  a  journey  with  a  beginning  and  an  end.        While  I’ve  made  this  journey  feel  ra2onal  and  linear…it  never  felt  like  that      It  is  only  that  way  in  hind  sight.          I’m  not  one  of  those  5  year  planners.    I  never  had  a  plan.    I  s2ll  don’t  think  I  have  a  plan.        Maybe  it’s  because  I’m  not  a  philosopher  planner.      I’m  a  prac22oner.    I’ve  spent  my  career  working  on  real  projects,  in  the  trenches  doing  real  work  for  real  clients  and  this  is  what  interests  me.        Strategy  for  me  is  not  about  certainty  or  confidence.    It’s  not  even  about  ideas.    It’s  about  curiosity  -­‐  seeing  what  is  interes2ng  thinking  what  you  can  do  next.            

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So,    Here’s  what    I  want  to  share  with  you.        7  chapters,  7  different  stages.      All  of  them  important  to  understanding  how  I  got  to  where  I  am  today.      Not  necessarily  consistent  or  logical  …but  I’m  happy  with  that.    In  fact  I  think  consistency  is  much  over  rated.    It’s  bullshit  to  think  we  have  to  be  one  thing  all  the  2me.    That  we  can’t  be  mul2ple  things.      We  have  to  choose  between  ra2onal  and  emo2onal.      Between  logic  and  emo2on.    Between  analy2cal  and  crea2ve.      We’ll  i’ve  never  bought  into  that.          I  want  to  be  good  at  both  things.      I’m  both  a  dreamer  and  a  realist.          

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An  maybe  this  is  the  reason  for  that.      

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This  is  me  and  my  iden2cal  twin  brother  on  holiday  in  England.      As  a  twin  I  became  very  comfortable  with  the  idea  of  seemingly  similar  things  being  totally  contradictory.      In  fact,    I’ve  always  been  good  at  holding  two  contradictory  ideas  in  my  head  at  the  same  2me.    A  trait  I  s2ll  have  and  s2ll  infuriates  those  around  me.        Actually,    as  an  aside    I  showed  this  picture  to  a  friend  of  mine  just  before  I  le'  for  Brazil  and  he  said…    …if  you  are  showing  that  in  Brazil  you  need  to  explain  2  things.      First  of  all,  that  that  the  thing  you  are  siZng  on  is  in  fact  a  beach,  not  a  garbage  heap  -­‐    they  won’t  recognize  it  as  such  in  Brazil    And  second,  in  1960’s  England,  that  is  what  people  wore  on  the  beach.            

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I  wanted  to  be  a  rock  star.    But  I  couldn’t  play  an  instrument  or  a  sing.          I  wouldn’t  be  deterred  so  I  taught  myself  the  technical,  geeky  side….programming  synthesizers,  drum  machines  and  ul2mately  the  mixing  desk.      (guess  that’s  where  the  love  of  technology  first  started)    This  is  where  I  worked  in  my  first  job..    I  got  my  first  break  working  in  the  CBS  studios  in  Whi`ield  street,  which  was  for  me  a  dream  come  true.  

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You  see,  It  was  the  early  80’s  and  I’d  grown  up  listening  to  the  clash.    This  was  the  exact  studio  where  much  of  London  Calling  was  recorded.        My  plan  was  to  be  in  the  studio  recording  The  Clash,    Adam  Ant,  new  wave  bands  of  the  early  80’s.          

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But  like  many  dreams  the  reality  was  very  different  .        This  is  the  band  I  ended  up  in  the  studio  with.      And  this  is  one  of  the  tracks  that  I  helped  them  record….  

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I  gave  up  on  that  dream  predy  quickly  having  learned  a  very  important  lesson.              

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Going  to  fast  forward  through  university  and  my  early  career.          Again  not  much  of  a  plan  but  discovering  new  opportuni2es  and  leaping  into  new  areas  as  I  discovered  them    Telemarketer,    through  copytes2ng      Qualita2ve  researcher  to  direct  marke2ng  Planner.      

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Which  is  really  where  this  story  starts  

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Although  I  don’t  really  think  of  myself  as  a  ‘classical’  planner…but  I  have  come  to  acknowledge  that  this  is  how  a  lot  of  people  see  me.      

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Perhaps  because  of  my  training  at  Ogilvy.      Now,  although  I  ended  up  at  Ogilvy  in  New  York  I  originally  started  at  Ogilvy  and  mather  direct  marke2ng.        A  crazy  bunch  of  people  who  believed  that  Direct  marke2ng  could  be  as  crea2ve  and  strategic  as  their  adver2sing  counterparts.    They  were  probably  one  of  the  most  crea2ve  and  crea2vely  awarded  agencies  in  the  UK  at  that  2me…and  believed  that  planning  was  part  of  the  process  for  achieving  this  -­‐    I  was  spoiled.        They  pioneered  a  number  of  the  classic  marke2ng  methodologies  of  the  champion  and  challenger    -­‐    constantly  trying  to  beat  the  last  best  performing  idea.    As  part  of  the  Ogilvy  Loyalty  center  I  define  the  customer  ownership  cycle  and  the  rela2onship  cycle  which  later  became  Ogilvy’s  360  degree  branding.        This  was  the  classic  training  I  received.          But  more  than  the  theory,  it  was  the  people.      When  I  first  arrived  in  the  office  the  planner  before  me  had  just  moved  up  into  the  crea2ve  department.            He  is  s2ll  one  of  my  favorite  crea2ve  partners      

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Not  only  was  Rory  a  great  crea2ve.    He  was  an  unconven2onal  thinker.      He  taught  me  to  find  the  real  solu2ons  to  the  real  problems…not  the  apparent  solu2on  to  an  apparent  problem.    

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The  first  problem  I  was  handed  to  own  was  IBM.    Worked  with  them  for  6  years  both  in  London  and  later  in  NY.        Now,  you’ve  got  to  remember  at  this  2me  the  IBM  brand  was  in  the  toilet.    They  were  thought  of  as  the  mainframe  computer  company.        IBM  came  to  Ogilvy  they  were  seen  as  a  dinosaur  a  brand  of  the  past  and  the  brief  I  was  asked  to  work  on  was  the  brief  to  make  them  a  brand  of  the  future.              

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A  lot  has  been  said  about  the  campaign  we  created.    A  lot  has  been  said  in  hindsight  about  the  vision  by  people  who  were  not  there.        A  lot  of  people  have  touched  this  campaign  since  it’s  incep2on  but  let  me  just  correct  a  few  of  the  mispercep2ons  of  the  IBM  e-­‐business  campaign.        First,  this  lidle  guy,  the  red  e  was  scribbled  on  the  back  of  a  napkin  by  Peter  Wood,  an  art  director  at  Ogilvy  at  the  2me.      We  loved  it.    We  knew  it  could  be  a  symbol  of  this  shi'  that  was  happening  in  the  technology  business  and  while  we  hoped  it  might  one  day  catch  on,  we  had  no  idea  it  would  go  as  far  as  it  did.        The  e-­‐business  campaign  was  originally  conceived  as  a  small  business  campaign.  

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The  idea  of  e-­‐business  wasn’t  something  that  people  immediately  believed.      We  had  told  people  what  e-­‐business  was  but  no-­‐one  believed  it  was  real  so  we  created  the  e-­‐culture  campaign  to  show  that  companies  were  really  adop2ng  e-­‐business.        We  took  this  campaign  into  the  different  industries  IBM  was  doing  most  of  it’s  work  in.    We  took  it  to  the  spor2ng  events  and  sponsorships,  including  the  olympics,  that  they  were  associated  with.    Then  got  a  brief  in  from  the  Global  Services  Division.  We  hadn’t  worked  out  how  this  idea  worked  for  people,  only  products.        We  realized  it  took  a  par2cular  type  of  person  to  be  willing  to  move  from  the  old  way  of  doing  business  to  the  new  way  of  doing  business  and  we  created  e-­‐people.        We  needed  news  around  the  new  products  that  IBM  was  launching.      E-­‐Tools  was  the  way  we  created  a  number  of  different  products  and  service  adver2sing  for  them  with  different  looks  and  feels  2ed  to  the  idea  of  e-­‐business.              It  wasn’t  un2l  I  pointed  out  to  one  of  our  crea2ve  directors  that  the  internet  was  not  made  up  of  wires  and  networks  but  actually  connected  of  servers,  mainframes  and  storage  that  we  we  understood  that  all  of  these  products  could  be  the  engines  of  e-­‐business.          

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The  e-­‐business  story  has  been  told  a  million  2mes.      Ogilvy  had  a  big  idea  and  then  we  made  it.    But  honestly…that’s  not  how  it  was.      

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We  had  no  idea  how  big  it  could  be  or  whether  it  would  ever  get  there.      We  turned  up  every  day  to  a  new  problem  from  a  different  division  asking  to  be  part  of  e-­‐business.      We  believed  in  the  idea  and  worked  hard  to  understand  the  problem  and  played  with  the  idea  to  see  how  it    could  be  used  to  solve  a  number  of  different  problems.      We  had  to  evolve  the  idea.    We  had  to  keep  building  on  the  idea  and  we  had  to  turn  this  idea  from  a  scribble  on  the  back  of  a  napkin  to  a  business  changing  idea.        

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A'er  3  years  of  doing  that…Where  do  you  go.      I  couldn’t  see  my  self  as  an  Ogilvy  Lifer.    (there  were  people  there  who’d  been  there  20  something  years).        That’s  right  for  some  people  but  it  wasn’t  for  me.      I’d  found  my  feet  in  New  York  by  now  and  I  wanted  to  expand  my  New  York  experience.                

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America  was  so  different  from  the  UK  both  in  terms  of  the  adver2sing  spend  and  the  focus  on  Television..    Big  produc2on  television.  This  was  something  new  to  me  and  I  wanted  to  understand  it.    I  wanted  to  get  into  the  soul  of  this  country  I  was  just  discovering.        There  was  only  one  place  to  go  

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BBDO  at  the  2me  was  s2ll  ruled  by  the  old  school  New  York  crea2ve  heads.        They  didn’t  have  planning  as  such  and  I  was  recruited  to  be  their  first  planning  director.        

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I  was  assigned  to  Frito  Lay  to  start  which  included  Doritos,  cheetos,  tos2tos,  any  chip  ending  in  the  leder  OS.        It  was  a  very  different  culture.        

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Both  Steve  Hayden  and  Chris  Wall  my  crea2ve  partners  on  IBM  had  come  from  BBDO  and  when  I  told  them  I  was  leaving  they  said  being  a  planner  at  BBDO  would  be  like  being  a  “Chris1an  missionary  in  Iraq”.    They  were  right…    It  was  the  culture  of  celebrity,  sports  teams  I’d  never  heard  of,    really  simple,  high  produc2on  spots  with  a  joke  or  visual  punch  line.          Every  briefing  I  had  would  have  10  to  20  teams  of  crea2ves.    Up  to  40  people.    A'er  which  the  execu2ve  crea2ve  director  would  say  “Now  ignore  everything  he  said  and  just  do  some  great  work”.        I  couldn’t  possibly  work  with  every  team  that  was  there…and  honestly  most  of  them  didn’t  want  me  there.        But  that  was  OK  with  me.    I  realized  that  not  everyone  in  the  room  would  be  producing  something  for  the  assignment  and  so  my  goal  became  only  work  with  the  people  who  wanted  to  work  with  me  and  do  everything  I  could  to  help  make  sure  that  their  ideas  were  the  ones  that  got  made.      This  was  a  totally  different  type  of  hard  work.      Hard  work  that  earns  the  right  to  sit  at  the  crea2ve  table.    Take  as  much  ownership  and  responsibility  for  of  the  crea2ve    

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I  fell  into  a  partnership  with  Donna  Weinheim  who  had  been  known  for  her  Where’s  the  beef  ,    Lidle  Ceasars  “Pizza  Pizza”  and  Pepsi’s  boy  in  the  bodle  ad.      She  was  full  of  wonderfully  simple  visual  ideas  but  had  no  strategic  filter.        I  used  to  brief  her  one  day  and  the  next  day  she  would  have  87  TV  ideas…  82  of  them  were  terrible  but  there  were  one  or  two  Gems.          By  filtering  out  the  crap  I  helped  her  get  more  and  more  of  her  work  produced.    

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To  the  point  where  I  had  5  ads  in  the  superbowl  of  2002…including  this  one  for  Fedex.      

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In  this  crea2vely  compe22ve  environment…planning  became  the  compe22ve  advantage    Teams  that  didn’t  want  planning  started  asking  for  the  help  the  other  teams  were  geZng.        Slowly  we  increased  the  number  of  planners  we  had  in  the  department.      

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Perhaps  my  favorite  learning  experience  was  for  Doritos.      They’d  done  some  par2cularly  famous  work  around  the  bold  flavor  but  now  all  the  compe22on  were  copying  them    We  needed  to  take  the  category  to  a  new  place  

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I’d  done  a  fair  amount  of  work  with  teen  boys  by  that  point  and  I  had  the  insight  that  ‘Dares’  from  their  contemporaries  were  what  really  mo2vated  them.        My  brief  was  that  boldness  alone  wasn’t  enough.    The  real  status  symbol  of  teen  boys  was  risk  and  daring  and  I  defined  the  task  as  bringing  daring  to  the  already  established  boldness  of  the  brand        Jerry  hated  the  brief.    He  said  it  had  two  ideas.  …boldness  and  daring.      I  argued  a  lot  that  neither  on  their  own  was  enough,  so  it  had  to  have  both.    A'er  playing  with  the  idea  he  came  round  to  the  idea  and  used  the  line  in  the  brief  as  the  endline…more  than  that  he  came  to  believe  the  brief  was  right.          We  created  this  work  called  “bold  and  daring”  as  a  story  board  and  the  client  hated  it.    They’d  never  seen  this  approach  and  it  was  unlike  anything  else  in  the  category.  …also  it  was  really  hard  to  get  the  sense  of  it  from  the  storyboard.    It  was  unusual,  surprising  and  a  lidle  weird…perfect  for  teenage  boys  but  not  something  an  execu2ve  at  Frito  lay  would  like.    Jerry  and  I  were  figh2ng  for  the  work  but  no-­‐one  could  see  what  we  could  see.    In  stead  of  giving  up  we  decided  to  just  shoot  the  spots  really  cheaply.      We  found  a  director  who  agreed  to  do  it  for  about  $18,000  and  we  shot  three  ads.        This  is  one  of  them.  

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Both  these  examples  from  BBDO  sort  of  led  to  the  same  conclusion  for  me.        We  assume  that  when  something  is  good,  beder  than  what  you  have,  that  other  people  will  see  it  and  embrace  it.        But  that’s  not  true.      

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Whether  it’s  planning  helping  make  beder  ads  or  a  campaign  that  breaks  the  exis2ng  mold  of  adver2sing,  most  people  can’t  see  it.        It  takes  a  special  team  of  people  to  band  together  and  do  whatever  it  takes  to  bring  that  idea  to  the  world.      

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Which  sort  of  took  me  to  the  next  chapter.        I  realized  that  what  helped  people  appreciate  new  things  or  new  ideas  was  great  storytelling.      I  became  very  interested  in  stories  and  how  they  shaped  our  view  of  the  world,  the  things  around  us  and  the  communi2es  that  we  iden2fied  with.        In  order  to  pursue  this  way  of  thinking  I  had  to  leave  BBDO  and  joined  the  storytelling  agency  who’d  been  talking  about  storytelling  since  1916.        

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I  moved  to  JWT  and  ul2mately  became  the  co-­‐head  of  planning  in  their  flagship  New  York  office  

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I  worked  very  intensely  on  defining  storytelling  and  what  makes  a  good  story  and  ul2mately  boiled  it  down  to  4  truths  about  story  telling.          The  4  truths  were  audience,  teller  moment  and  mission.    Good  story  tellers  really  understand  the  audience  they  are  speaking  to.    To  be  believed  they  have  to  be  true  and  authen2c  to  who  they  are  so  we  need  to  spend  a  lot  of  2me  defining  who  the  brand  is  and  what  are  the  important  truths  that  make  the  message  credible.    Good  stories  are  not  always  successful.    The  reason  is  that  if  a  story  is  not  useful  or  valuable  for  the  moment  in  2me  that  they  are  told,  they  will  be  forgoden.      Great  stories  have  to  be  right  for  the  2mes,  the  culture,  the  context.    This  is  what  makes  a  good  story  resonate  within  a  community.      Finally,  the  Mission  was  the  interes2ng  one    (and  the  last  truth  I  added!)  because  it  forced  us  to  talk  to  clients  about  the  brands  reason  for  existence  beyond  selling  and  making  products  .    It  was  about  iden2fying  a  shared  mission  that  the  target  audience  would  also  believe  in.          

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Although  I  did  a  lot  of  great  work  at  JWT  that  was  great  story  telling  there  is  one  campaign  that  broke  the  mold  and  really  got  me  thinking.        What  was  different  about  this  work  was  that  it  didn’t  try  to  tell  a  story…it  tried  to  get  people  to  do  something.          We  had  already  established  the  concept  that  HSBC  valued  differences  in  a  previous  campaign  but  the  problem  was  that  people  didn’t  think  of  themselves  as  different.        The  answer  we  came  up  with  was  to  create  something  in  adver2sing  that  would  s2mulate  them  to  think  of  how  they  were  different.    Get  them  to  par2cipate  in  the  idea  of  differences.      To  look  at  the  ad  and  decide  what  their  point  of  view  was  on  a  par2cular  topic.      By  forcing  them  to  take  sides  we  hoped  they  would  then  understand  that  they  are  ‘different  people’  that  HSBC  wanted  to  serve.          

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This  is  one  of  my  favorites  from  the  campaign  but  there  was  print,  online,  outdoor  and  everything  as  part  of  this  body  of  work…and  it  too  ran  all  over  the  world.  

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In  fact  this  started  a  whole  body  of  work  at  JWT  that  were  brand  ac2ons.      People  today  have  more  informa2on  and  are  more  able  to  find  out  what  is  really  happening  at  a  company  or  organiza2on.    They  no  longer  have  to  rely  on  the  messages  that  a  company  puts  out  into  the  world.    As  a  result  I  believe  that  people  judge  brands  less  on  what  they  say  and  more  on  what  they  do.        Adver2sing  and  marke2ng  is  not  just  a  way  of  messaging  for  a  brand  it  is  an  ac2on  of  the  brand.    It  is  a  behavior  of  an  organiza2on  and  will  be  judged  as  such.      If  we  want  to  change  percep2ons  of  a  brand  then  we  have  to  change  more  than  what  they  say.    We  need  to  try  to  change  how  they  act  as  an  organiza2on…  this  is  what  will  change  how  people  think  about  a  brand.    

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For  many  years  Debeers  ran  an  print  ad  with  a  picture  of  a  dead  rose  and  a  diamond  ring.    It  was  exactly  the  same  idea,  just  expressed  differently,  in  a  different  medium.    The  choice  of  how  we  execute  the  idea  is  equally  strategic  to  the  idea  itself.      As  a  strategist  I  realized  I  couldn’t  leave  that  to  someone  else.    Strategy  is  both  the  idea  and  the  execu1on.      

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The  focus  on  ac2on  and  crea2ng  events  and  ac2vi2es  that  force  interac2on  revealed  to  me  a  problem  with  only  focusing  on  stories.        Stories  live  in  people’s  heads.      What  we’d  started  doing  was  crea2ng  experiences,  interac2ons  that  lived  in  the  real  world.      We  could  create  things  that  changed  the  experience    of  the  brand  and  by  defini2on  the  reality  of  doing  business  with  the  brand.      If  we  could  do  this  we  could  change  the  the  interac2ons,  the  transac2ons,  the  products  and  services  that  a  brand  creates  to  build  it’s  rela2onships.      Stories  weren’t  enough…there  was  more.  

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Which  led  me  to  where  I  am  today  

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I’m  excited  about  making  stuff.    Real  stuff.        (I  realized  that  adver2sing  agencies  don’t  really  make  stuff..      They  spend  the  majority  of  their  2me  thinking  about  what  to  make  and  thinking  about  how  it  should  be  made  but  they  don’t  actually  make  much.    The  making  is  outsourced  to  other  companies,  other  directors  and  photographers  and  web  shops  who  actually  make  things).        I  wanted  to  go  somewhere  to  be  in  a  making  culture  and  that  was  what  adracted  me  to  R/GA  

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R/GA  started  as  a  produc2on  shop  

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Balance  of  two  different  cultures  that  have  grown  up  together  –  Crea2ve  and  produc2on:  Shouldn’t  really  exist  in  the  same  building  there  is  a  very  strong  tension  –  producers  just  want  projects  to  run  smoothly  and  keep  the  project  the  same  from  beginning  to  end.      Crea2ve  minds  on  the  other  hand  get  bored  and  never  rest  un2l  it  is  perfect.    If  they  had  their  way  they  would  keep  changing  it  un2l  it  was  too  late.        When  I  arrived  we  were  adding  a  new  culture  to  this  mix.    Building  the  strategic  side  of  the  business.            Bob  Greenberg  felt  he  needed  strategy  because  although  R/GA  had  fantas2c  crea2ve  produc2on  as  digital  exploded  and  R/GA’s  rela2onship  spread  up  to  the  CMO  and  CEO  they  were  increasingly  realizing  that  there  was  more  to  digital  than  just  marke2ng…digital  was  effec2ng  everything  that  businesses  were  doing  from  sales  channels  to  product  development,  service  development,  distribu2on  of  content  and  informa2on…    Clients  started  asking  R/GA  for  what  they  should  be  doing  and  neither  the  crea2ve  nor  the  technology  people  were  in  a  good  posi2on  to  answer.      Strategy  has  been  a  very  important  part  of  R/GA’s  growth  not  just  in  number  of  projects  for  clients  but  also  the  breadth  and  depth  of  engagements  within  the  clients  business  

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We  are  expanding  globally  

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We  have  a  very  simple  model  that  allows  for  thinking  and  making  at  every  stage  of  the  process.      Even  in  our  discovery  process  we  are  building  things,  tes2ng  things  out  to  see  how  people  respond  to  them.      In  the  crea2ve  prices  we  imagine  but  we  also  prototype.      Finally  the  launch  of  our  ideas  is  just  the  start.    Once  live  we  constantly  changing  and  improving  our  ideas  based  on  real  data  and  real  informa2on  on  what  people  use  and  find  valuable.        This  has  really  fostered  a  new  type  of  strategic  thinking  for  me  which  is  much  less  ‘big  upfront  thinking’  and  is  much  more  incremental  and  itera2ve  ideas.    More  like  the  champion  and  challenger  of  Ogilvy  direct  marke2ng  .    Ideas  like  IBM  that  you  work  on.    Ideas  like  JWT  that  you  experiment  with  to  make  them  as  interes2ng  as  you  can.      

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Fundamental  to  this  ACTIVE  LEARNING    -­‐    we  have  to  work  hard  to  ensure  we  are  learning  faster  than  the  pace  of  change.      This  is  the  equa2on  we  use  at  RGA…learning  has  to  be  greater  or  equal  to  the  pace  of  change.      If  our  learning  and  our  experimenta2on  isn’t  ahead  of  the  technology  curve  then  we  know  we  and  our  clients  risk  obsolescence.        As  planners  our  goal  is  to  stay  ahead  of  the  curve.        We  do  this  with  all  our  projects…constantly  evolving  and  constantly  itera2ng.      

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Nike  +  the  project  we  are  most  known  for  is  very  different  in  technology  terms  to  the  technology  that  it  started  with.    The  idea  has  grown  and  built  but  fundamentally  our  original  idea  is  s2ll  as  vibrant  and  exci2ng  as  it’s  ever  been  

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So  far  I  think  the  aspect  of  planning  at  R/GA  that  excites  me  the  most  is  that  most  of  what  we  do  has  never  been  done  before  and  that  demands  of  planners  and  strategists  a  slightly  different  skill.          What  planners  tend  to  do  is  find  things  and  share  them  with  other  people  and  inspire  them  to  do  something  interes2ng.        Whether  that’s  a  trend  or  a  data  point  or  a  fact  about  the  brand…Invariably  we  are  finding  things  that  already  exist.  That  someone  else  created.  

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What  I  require  of  planners  these  days  is  more  than  this.      Not  to  focus  on  what  is,  but  to  focus  on  what  could  be.          To  believe  in  something  that  you  can  only  imagine  and  then  work  with  other  people,  technologists  and  crea2ves  to  make  it  real.      -­‐  Whether  that’s  an  tool,  an  app,  an  event,  an  experience,  a    new  way  of  doing  business  or    a  new  consumer  behavior.          We  can  change  the  world  and  we  can  work  hard  and  surround  ourselves  with  others  who  are  also  willing  to  believe,  and  make  that  thing  that  thing  happen.    And  even  if  you  fail..    It’s  a  much  more  valuable  learning  experience  than  doing  things  that  have  fundamentally  been  done  a  million  2mes  before.  

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Now  to  do  that  you  need  a  totally  different  group  of  people  and  that’s  some  of  what  I’m  doing  at  R/GA  

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This  approach  demands  an  understanding  of  a  wide  variety  of  inputs  –  business  data,  category  understanding,  opportunity  analysis,  product  and  service  development,  sales  channels  as  well  as  research,  ethnography,  not  just  research  and  insights  

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It  demands  an  understanding  of  a  huge  variety  of  different  types  of  output  from  marke2ng  and  messaging,  products,  services,  experiences,  events,  internal  communica2ons,  design,  retail,  mobile,  social,  apps,  content  produc2on.        

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To  do  this  we  need  a  very  different  group  of  planners  and  I  believe  we  are  building  one  of  the  most  diverse  strategy  groups  in  the  world.    

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And  with  these  people  it’s  not  about  puZng  them  together  the  same  way  and  the  same  structure  for  every  problem  It’s  about  puZng  unusual  and  unexpected  combina2ons  of  people  together  and  seeing  what  happens  

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This  was  true  when  Jay  chiat  said  it  and  the  agencies  were  made  up  primarily  of  art  directors  and  copy  writers  and  account  people  and  the  output  and  talent  were  very  very  similar.        Agencies  get  bad  when  they  are  trying  to  scale  doing  the  same  thing  over  and  over  again.    

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But  when  you  are  diverse  in  talent  and  output  your  size  is  not  your  enemy,  it’s  your  friend.        As  bob  said.      

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Finally  I  want  to  share  some  last  minute  things  that  I  am  thinking  about  and  that  I  currently  find  interes2ng…    Who  knows  where  these  will  end  up.    

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The first is how brands build themselves. I don’t need to tell you that most brands build themselves around creating products or services and selling them to consumers

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And, in order to grow, Most businesses extend their portfolio to create additional products and services

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Best example is Coke which started as a single product but as they grew

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But it grew to become the company we see today by adding Sprite, Diet Coke, Minute Maid, Dasani, and many more brands to the portfolio. Today, Coca-Cola sells over 500 brands of beverages across 3,500 individual products, in over 200 countries, selling 1.7 billion drinks per day. And the story of Coke is not terribly different from the story of P&G, or Toyota, or Citibank. Every one of these companies started out with a single product or service, eventually expanding in this horizontal fashion to meet the needs of more and more consumers, growing ever larger along the way.

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But, when every brand in every category is growing in the same way, the result is proliferation of choice, commoditization, price wars and ultimately a hyper competitive market where growth for everyone is impossible

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What we are seeing, especially with new technology brands but also with some other non-tech brand is a new business strategy.

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It’s about creating connections between things that provide incremental value to consumers. So rather than finding new consumers to sell a variation of your product or service you identify additional products and services that can be sold to the same customer. And with each new product or service you enhance or deepen the brand relationship

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Each new piece creates an additional node in the value ecosystem, further driving up value for consumers. What constitutes an ecosystem of value? Each node is also a potential new entry point for new consumers, as you will see in a minute.

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We are calling this functional integration. In this meeting GP 1Mais1 today we saw a fantastic example of this from Pablo Capile of Circuito For a do Eixo

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The text book case study of Functional Integration is Apple. Yes I know you’re fed up with examples of Apple. But I’m not talking about Apple as a marketer.. I’m talking about the business model that Apple is using to grow as a brand. I am talking about one of the fastest growing brands and businesses in the world and they are doing it like no other brand has ever grown before. It’s boring to talk about apple all the time but when mass manufacturing was invented by Ford at the beginning of the industrial age, everyone looked to Ford and learned from Ford because they were the first business to create products for mass audiences and invented new ways to make products and distribute products. They invented the idea of factories, mass consumption, mass distribution and mass marketing. Apple is doing the same for the 21st century. It will be the text book case of the future and not just for advertising and marketing

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In 2000, Apple released OS X. Soon after its release, each new Macintosh came with a free copy of a new software program called iTunes, enabling you to manage a digital music library. The ad campaign at the time had the headline “Rip. Mix. Burn.” Wired Magazine took this to mean what technologies like iTunes would eventually do to the music industry.

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About 11 months after the introduction of iTunes, Apple introduced the next node in its functionally-integrated ecosystem: iPod. The interconnection between products and services was beginning to become more apparent.

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From the ipod it made perfect sense to move into the phone business, then the apps business with the app store. Then the data storage business with cloud computing to the point where apple has so many different businesses that it is truly impossible to know what business they are in. What they have is an ecosystem of different products that add incrementally to the relationship that people have with the brand. Coke does not have this. P&G does not have this, Unilever does not have this. Very few companies have this. Most product manufactures do not have this. The more apple products you use the more value you get. Because all their products are connected there is a very good reason to use all apple products. They work together so well. You would be foolish to use a different phone, a different cloud storage service if you have just one of the other pieces of the ecosystem. With Coke, P&G, Unilever there is no advantage to drinking both coke and diet coke. These is no advantage using Tide washing powder and Crest toothpaste or Old Spice and Head and Shoulders. These are different products for different people. There is no connection and no incremental value.

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Apple  is  not  the  only  brand  prac2cing  func2onal  integra2on.  Google  is  doing  it  too.  

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Google  has  built  a  similarly  integrated  ecosystem  of  value  that  spans  email,  blogging,  digital  video,  documents,  mobile  opera2ng  systems.    And,  a  month  ago,  we  helped  Google  create  a  new  node  in  its  ecosystem  of  value  with  the  launch  of  Google  Wallet..

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Take  BMW,  for  example.    Certainly  not  a  technology  company  in  the  classic  sense.  

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But  look  at  its  press  releases  over  the  past  12  months.    BMW  has  announced  one  func2onally-­‐integrated  idea  a'er  another.    

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But the strategy of the world’s most valuable brands like Apple and Google, the new name of the game is Functional Integration. If we are going to continue to be the growth partners of our clients, we’re going to need to evolve.

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So  what  I’m  interested  in  making  these  days  is  not  just  experiences  and  marke2ng  but  working  with  clients  to  help  them  define  how  they  will  grow  in  a  connected  and  digital  age.    Help  them  build  new  products  and  services,  now  sales  channels  and  new  tools  for  building  beder  more  func2onally  integrated  revenue  models  

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I’m  really  interested  in  making  service  layers  that  connect  the  physical  products  of  brands.    Digital  service,  digital  pla`orms,  digital  systems  that  service  layers  on  top  of  products  that  create  this  func2onal  integra2on.    We  need  to  think  of  brands  not  as  stand  alone  objects  but  part  of  a  system.    Thinking  of  a  brand  as  a  system  is  important  in  the  digital  age.    Each  touch  point  has  to  have  it’s  own  reason  for  being,  it’s  own  usefulness  and  value  but  if  it  is  connected  to  a  bigger  system  that  whole  system  has  to  work  towards  some  other  bigger  goal.      It’s  like  the  mission  I  talked  about  in  the  storytelling  chapter  but  it  is  more  profound  than  that.    Brands  need  a  purpose  above  and  beyond  the  products  they  sell  that  people  share.    This  purpose  is  what  we  believe  defines  the  brands  strategic  vision  and  their  product  and  service  innova2on.      As  such  strategy  and  innova2on  are  indis2nguishable  from  each  other.      

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As  this  connected  system  grows  then  so  does  the  data.    The  interes2ng  aspect  of  data  for  me  today  is  not  what  data  exists  or  how  we  collect  it  and  analyze  it.        Everything  we  create  in  the  digital  age  generates  data.    We  can  create  any  data  we  need.    We  can  build  things  that  generate  the  most  valuable  and  useful  data.    A  lot  of  the  best,  most  interes2ng  conversa2ons  we’re  having  with  clients  is  not  what  data  they  have  but  what  data  do  they  need  to  have  compe22ve  advantage  and  then  how  do  we  create  the  system  that  can  generate  that  data.        

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Finally,  crea2ng  impact.    Making  a  difference,  not  just  in  the  percep2ons  and  minds  of  people  but  also  making  an  impact  in  the  real  world.    Crea2ng  new  behaviors  for  businesses,  crea2ng  new  behaviors  in  our  consumers.    Crea2ng  new  habits,  new  experiences,  new  products.            When  strategists  get  out  of  the  world  of  marke2ng,  the  skills  they  have.    The  skills  we  are  all  developing  are  very  valued  in  a  lot  of  different  businesses  and  organiza2ons.    It  is  my  work  on  behavior  change  that  has  opened  doors  to  the  UN  Malaria  net  distribu2on  program  in  Nigeria.    It  is  the  work  in  story  telling  and  ac2ons  not  messages  that  opened  the  door  to  me  working  with  the  US  Marines  War  College  to  advise  senior  leaders  of  all  5  armed  forces  on  strategy.      It  is  this  experience  that  has  me  working  with  Start  ups,  Venture  Capitalists,    Harvard  University  and  many  not  for  profit  and  social  enterprise  organiza2ons  like  Acumen  Fund.  It’s  not  just  marketers  that  want  our  exper2se.          This  experience  has  made  me  realize  that  what  we  do  in  our  business  has  great  value  outside  the  industry  but  only  if  we  keep  inven2ng,  keep  pioneering  and  keep  our  industry  at  the  forefront  of  this  digital  shi'  we  are  all  experiencing.    

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