You would have thought it would take a big ego to storm into an
underperforming agency with the task of turning its fortunes around, but
Carl Johnson is not egotistical - if anything he’s a little
self-conscious. So why have the top dogs at Omnicom chosen him to draw
the New York branch of TBWA out of the shadows?
His task as TBWA Chiat/Day New York’s first president and chief
executive is daunting. As every self-respecting network knows, you have
to be good in New York in order to be considered great around the world.
But for the past few years the performance of the Los Angeles office has
stolen the limelight in America under the creative stewardship of Lee
Clow - the best-known creative Stateside. The London branch has shone
too, gathering momentum from successive mergers and pulling in chunks of
business like the pounds 50 million NatWest account.
Estimated billings of dollars 1.4 billion put the Californian office in
the lead, with London bringing in dollars 400 million. New York,
however, has been turning in a comparatively unimpressive dollars 250
million - exposing itself as a weak link.
The problems the New York agency has faced are difficult to
quantify.
Since 1990 it has won and lost enviable accounts including Reebok
International and American Express, suffering the consequences of a
revolving door of management.
Bob Kuperman, TBWA president of the Americas, confirms: ’The real issue
in New York for Chiat/Day is to gain consistency in management.’ He will
be hoping that Johnson has staying power and that his family take to
their new surroundings.
There is also a problem with the agency’s culture. It is widely believed
that in attempting to imitate the success of its Los Angeles sister, the
New York office has missed the mark in terms of what is demanded of New
York agencies from their staff and their clients - namely a more staid,
suit-like approach. And despite the leather-jacketed image, Johnson is
all-suit. Kuperman says: ’In the past people have tried to duplicate the
success of LA. Until now it has been the New York office of Chiat/Day,
even after the merger with TBWA.’
Historically, Chiat/Day has been strong in Los Angeles and not so strong
in New York. TBWA has been strong in Europe and weaker in New York. When
the two were merged by Omnicom in 1995, therefore, two weak outfits were
brought together. ’Neither had the local cachet that was needed,’ Paul
Simons, UK group chairman of TBWA, says.
Johnson will have to succeed where other big names have failed. A highly
placed TBWA source blames the retiring worldwide chief, Bill Tragos, for
failing to address the New York office: ’While Bill Tragos was there,
New York was impenetrable. Bill has now moved away, and that has exposed
issues which need resolving. In the past it was run like a headquarters,
but now it will be run like an office.’
The appointments of Johnson and the new executive creative director,
David Page - poached from Ogilvy & Mather New York - are the first
senior New York hirings made by Kuperman. With the appointees’ talents
and the backing of Kuperman and Mike Greenlees, the president and chief
executive of TBWA Worldwide, there should be the potential to build the
New York office into something the network can be truly proud of.
There is a logical thought process behind the selection of Johnson to
run New York. He came to Kuperman’s attention when they worked together
on the (unsuccessful) pitch for the global Heinz ketchup account last
autumn.
Kuperman says: ’He seems as brilliant, outgoing and instinctive as I am.
I liked him as a person. I saw him in new-business and I was impressed
by his understanding of strategic and creative issues.’
Johnson’s experience of managing a start-up - Simons Palmer Denton
Clemmow & Johnson - also proved attractive. ’He has a history of
creating success,’ Kuperman says. Johnson confirms: ’They think my
experience of starting an agency is relevant.’
Juxtapose the London agency’s top-heavy structure and a lack of internal
candidates in the US, and Johnson’s appointment seems entirely logical.
’There are two of us in London. Either or both of us could run this
place,’ Johnson says, referring to himself and the TBWA GGT Simons
Palmer chairman, Paul Bainsfair.
Johnson’s departure should not damage the London agency. Bainsfair now
presides over a management structure in which four new managing partners
- Johnny Hornby, Peter Jones, Nick Kerr and Garry Lace - control
enlarged account groups. Greenlees says: ’I do think what was not
appreciated was the extraordinary line-up of talent beneath Carl and
Paul. Now they can make their own marks.’
So Johnson’s appointment seems pretty sensible. But there’s a ’but’.
How will the New York office, advertising business and clients respond
to an Englishman? Johnson is 40, but he could easily pass for 30 and,
unlike in London, it is virtually unheard of in New York to have such a
youngster running a big agency.
Johnson says: ’I don’t think my age is a problem, I think it’s
great.
It’s important to be true to yourself. As soon as you start faking it,
you’re in trouble. The test isn’t if I’m old enough, it’s whether I’m
good enough. Clients are happy with good work.’
Johnson and Greenlees have no fears of a potential culture clash.
Kuperman is bullish: ’It doesn’t worry me. I think it is a red herring.’
Greenlees says: ’The drive and passion to create great advertising is
the same throughout the network. He’ll find that environment very
familiar.’
Simons agrees that Johnson’s youthful aspect and approach will suit the
culture of TBWA Chiat/Day. Simons says: ’Rather than pander to
convention, his appointment reinforces TBWA’s positioning. It has to be
alternative to the positioning of other multinationals.’
Putting Johnson in the New York office is still a risky strategy.
Cultural problems, including trying too hard to be like the LA office
and the uneasy alliance of the TBWA and Chiat/Day cultures, have already
contributed to New York’s underperformance. Johnson has worked with TBWA
since Simons Palmer was bought by Omnicom in 1997 - so he’s a relative
newcomer to that culture.
Johnson says: ’This will be a really exciting challenge because I’m very
competitive and I like to feel stretched.’ Which is just as well because
he’ll be on the rack in New York.