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March 24th, 2010 by Steve

PR’s power sharing agreement (and naked mud wrestling)

I’ve said it before, and I’ll doubtless say it again. PR is a people business. I suppose you could say that about a lot of types of business (er, HR for one), but imagine this.

Imagine a PR business where everyone’s miserable, where no-one has any enthusiasm for the clients’ businesses. Where talking to the media and all those other influencers is a monotonous chore. Where there’s little incentive or personal drive to develop and excel, or that incentive is unclear. Where inspiration is not woven into the fabric of the business, but an agenda item at board meetings.

Alright this is a bleak picture. And I’m sure we’ve all had pessimistic days when it seems like this stuff surrounds us.

But amidst the looming expectation of economic recovery and fears of further economic decline, PR agencies should remember that if their people don’t feel valued, the clock is ticking until the day they fall flat on their arses.

So it was with conversations about how we make feeling valued part of Speed’s DNA, rather than something that we have to constantly remind ourselves we need to do, ringing in my ears that a piece in the FT’s Managing Employees supplement caught my eye.

It talked of power sharing. Not in a Stormont way. Not in a scaremongering-over-the-prospect-of-a-hung-parliament way. But sharing the power, so that collectively the organisation is more powerful, and so more successful.

I can think of a few PR agency bosses who would wave their hands snottily and dismissively at such a suggestion. And others who would crap their pants.

They might talk about employee engagement, they might even counsel their clients on it. But when the door to the boardroom is closed, there are a handful of people who want to make all the decisions and retain the power. Because they want to retain control over who really makes the money.

An extract from the FT article states that ‘as businesses struggle to emerge from the recession, employees’ commitment will be vital’. Yes, damn true. But I’ve been thinking about quite how true it is in PR, given it’s all about people.

When Stephen Waddington and I started Rainier PR in 1998 we set out to involve everyone – everyone – in the business by giving them a commercial role and some budget responsibility, no matter how small. Over the years the importance of that waxed and waned in truth.

Yet given some of the really insightful, revealing and in many cases extremely smart conversations I’ve had with some of the people at Speed this week, it did make me think that this is, in principle, everybody’s company, regardless of legal ownership. And so if you’ve really got faith in the quality, drive and ideas of your people, is there a way you can put the power for developing the business into everyone’s hands?

There will of course need to be someone or a few people who ultimately make the biggest of the decisions, who the buck needs to stop with. Waddington and I had a clause in an ownership agreement some years ago that as we had 50/50 voting rights, ultimate arbitration would be a naked mud wrestling bout in Golden Square. It was inserted in our company Articles after a lawyer insisted that a limited company with two equal shareholders needed a mechanism for resolving disputes. It never happened, but I would’ve cheated and won.

Speed has delegated a lot of decisions about how we deliver for clients and who does the work to people responsible for running our teams and running our internal initiatives. But for me we could go further, by getting people to inspire, devise, run and improve things that really make a difference to the business and to everyone who works for it. And giving them the power to do so.

Some examples of where this could be applied:
1. How to motivate people brow-beaten by the recession (and who’d never been through one before)
2. Identifying the brands we’d really like to add to our client list and that we could make the most difference to
3. Heaping more real responsibility onto account executives (rather than just more work) so that they have more opportunity to prove themselves, develop faster and become enviable client ambassadors
4. Helping everyone to understand and get to grips with the changes happening in media and what they mean for the future of PR
5. Working out how we can really learn the most valuable and rewarding things from others internally

Yes a lot of this would ‘normally’ my job. Yes the buck may stop with me and my oppo. But would I be doing my job better if I put real responsibility for these sorts of things into the hands of colleagues, challenged them, gave them the power to make it work, and then got out of the way? Would it make people feel more satisfied in their jobs, more enthusiastic about work and new challenges?

Would a real commitment to commitment, proper employee engagement with real power, help to make the business better to work for and more profitable?

Quite probably.

So when do you want my job?

March 12th, 2010 by Steve

Finale: Gen Y, a whine of the times

This is all a bit odd.

Here we are, the end of this five-part series that has gripped (a very small PR sub-set of the) nation all week. Ish.

I’ve tried to poke into each corner of the issues that PR agencies and their employees are facing as Generation Y becomes a more prominent factor in the workforce. I’ve even tried to be objective about it.

And you know what? When I started this on Monday, my sense was that on Friday I’d end up writing about why Gen Y should just suck it up, snap out of it and get back to the harsh realities of toil.

Yet that is not the conclusion of this strange little blogging experiment.

Bosses must lead, tension is their gig
Instead, it is this: the people running PR agencies have to stand up and be counted over the growing issue of differing generational attitudes and outlooks amongst their staff.

Secondly, Generation Y needs to avoid going down in history as Generation Whine. The stereotypical whingeing of today’s teenagers is tarnishing the self-honesty and modern pragmatism of Gen Y in the workplace. It is up to Gen Y to change this, with the support of bosses.

Thirdly, all other generations need to pull their heads out of their fast-maturing arses and realise that we are all part of the problem and can all help to improve understanding.

The growing, oft-silent tensions in PR agencies today between people with differing ambitions, approaches, goals, motivations and communication techniques are the by-product of rapid technological, economic and (to a much lesser extent) political change. It’s the job of bosses to tackle it. If your boss isn’t, or isn’t even prepared to acknowledge it, perhaps you should ask them why.

So let’s go through some ‘learnings’ from all of this. Some points that each generational group (although many people have commented that they’re not quite sure which bracket they fit into) should probably take on board if they’re going to enjoy their jobs and develop their careers:

Generation Y

1. Think about how you’ll be the boss. I don’t mean be career-hungry and obsessed with rapid progression. I do mean think about how what you do now will enable you to manage, motivate and lead people in the future. If you don’t think the way you’re managed, motivated and led now is necessarily the right way, it probably isn’t. Don’t whine, have a discussion and figure out how you’ll do it better when your time comes, by which time workforce motivations should be even more diverse than they are today

2. Understand the business. Whereas Gen X was brought up on 1980s greed, boom ‘n’ bust and exploiting the property ladder, Gen Y has it different. But if you turn a blind eye to how the business works, how it makes money and the commercial realities that govern how you can reward and develop people, you’ll struggle to develop personally and professionally. PR businesses are simple anyway: a five-year-old could grasp the basics.

3. See it from the perspectives of others. Yes it does not make sense to be seen to work long hours any more: doing that for no good reason beyond impressing the boss is just stupid. Work long hours if you’re getting something out of it by developing your career and the business. Go home on time whenever you can. But remember that Gen Xers had it differently when they were younger: you must make them understand the value of what you’re doing. Sell yourselves more and it will go a long way.

Generation X

1. Get real. Some people will inevitable just be lazy bastards and blagged their way through those interviews, but many Gen Yers have desires on your job. They may just struggle to show it. They will show ambition in different ways. Their enthusiasm may not be overt. Get under the skin of why, work with them rather than dismissing ‘kids today’ as disengaged drifters. Unless they are, in which case consider encouraging them to find another career.

2. Take a long hard look at yourself. You didn’t really want to be that Michael Douglas character in Wall Street did you? Secretly, you may be a bit envious that Gen Y has the nonchalance and career outlook that it does. You thought you’d turn out like that, until the machine got hold of you. Be honest with yourself rather than bemoaning the differences of others.

3. You’re in a position of responsibility, and it is – probably – your generation that has the biggest role to play in cracking this generational change issue. You’ve got to lead by example and transition agency approaches to flourish from the diversity of motivations and attitudes, not sink under their weight. It’s not like me to write things that look a bit like self-serving political correctness, so let’s be clear that I don’t intend it to be. But I do mean it.

Generation Jones
1. The in-betweeners. Obama is a much-lauded example. The future now rests in their hands, it’s said. Not in PR it doesn’t. But what Gen Jones must do is realise it is different. You are very different to Gen Y, and Gen X has more of an opportunity to understand the younger generation. I think your best role is to help Gen X to open its eyes to the differences in generations by telling them what you’re thinking, and how you struggle to get to grips with the pace of change.

2. Use the tools. If you don’t get to grips with how PR is modernising because of digitising media, you won’t only hit professional snags but will increasingly struggle to understand younger colleagues. Don’t try to get down with the kids, but don’t shy away from change, grab hold of it with gusto.

3. Think about how you can rebrand your generation, because the Jones thing sounds really sh^t.

Baby Boomers
Interestingly, I’ve had some really insightful comments from people in this category in the past week, with the benefit of experience coming to the fore. My thinking is age and experience make it easier for them to spot the signs, but the pace of change remains frightening. Beyond that, boomers should really look at the points for Joneses above.

The end
So there we have it. Hardly academic, not particularly pretty but hopefully an interesting read at least.

Gen X: the ball is in your court. As well as our industry modernisation challenges, we’ve got to make PR jobs engaging and emotionally fulfilling for all. We’ve got to think beyond salaries and benefits. We’ve got to think bigger. We’ve got to pull our fingers out.

Gen Y: cheer up, liven up, realise how good you are or can be.

If anyone has any ideas for other PR topics I should tackle, do let me know. Mistakes execs make, account managers with a power complex, sadomasochism in the boardroom, whatever; I’m game.

March 9th, 2010 by Steve

Part two: Generation Y – what are agencies doing?

F8ck all.

Actually that’s not strictly true. Some of the senior people running agencies or teams are griping about it, but I don’t know of any who’ve confronted the issue.

Why is that?
I truly don’t know. But what I suspect is that it either hasn’t been acknowledged as a commercial issue, or managers are pasting over the cracks by suffering in silence.

Is it a commercial issue? Do bears defecate in wooded areas?

PR, agency-side at least, is a people business. Without people you cannot run clients, you cannot develop business. So if social factors are either having or likely to have a destabilising effect on your business, you bet it’s a commercial issue. Certainly HR people from large corporations I have met view it or already treat it as a board issue. If PR is serious about being committed to people and their development, it had better get its head around it.

One notable exception is Lewis, which has at least had the balls to blog (via its San Francisco office) about the problems with recruiting apathetic Gen Yers. Conviction, passion and commitment – all in short supply, say the moguls of Millbank. Fair point. Equally, many agencies could look at some of their senior staff who’ve got it too comfortable and level the same allegations at them.

So not everyone is a rampant careerist and it’s unfeasible for agencies to never hire another person born after 1984. What’s the solution? It does not mean a crisis committee. What it does need, in the opinion of those I’ve canvassed, is recognition that it’s an issue and a managed approach to developing a team with widely varying aspirations and motivations. Sound like a hippy who’s got his head up his buttocks? Let’s put it in commercial terms then. If people now aren’t as hung up about career progression as they generally were in the past, then agencies structured around a ladder of relatively rapid promotion with associated salary increases, with additional bonuses in good times, some nifty perks and the lure (where applicable) of share options should take a long hard look at what they’re offering and how they’re set up in the first place.

Of course if Generation Y is an increasing factor amongst your staff, you can’t afford to keep paying more if people aren’t achieving results for clients. That’s a road to nowhere. Equally, agencies are organisms that thrive on people developing rather than stagnating. And the worst thing you could do would be to shy away from the issue and create two streams of reward and development: one for the career-hungry, one for those who aren’t.

“I turn up pretty much every day. What about a pay rise?”
So the question, probably, is what individual success in an PR agency should look like. There are some commercial fundamentals here that we can’t escape from: everything is about the sustainable growth of profitable revenues, so if you can foster that, you should be rewarded based on your ability to (and achievements in) doing so. That applies both to people who largely work for clients and people who’re wholly unbillable. But if you’re not bringing in the bacon, you shouldn’t have a leg to stand on. More bacon, more dough. Simple. Or at least it should be.

There are a few trends that fly in the face of this logic, such as:
- People getting (OK, a lot of agencies still have pay freezes but some don’t) token pay rises just because the impact of them leaving would be a risk to revenues
- Digital PR specialists being paid way more than their actual market value by agencies paranoid about missing the digital boat
- People who are developing quickly not being given headroom to progress. Sometimes overall agency finances won’t support it because that development isn’t mirrored across the agency at large. Other times it’s because others on loftier salaries have become sluggish and aren’t adding what they should be. Sometimes investments have been made that simply preclude it: regardless, if this isn’t managed, the best people of tomorrow will get itchy feet

I don’t have all the answers here. In fact I’m not sure I’ve given any in the verbage above. Changing the approach to people development to accommodate changing and varied aspirations across a team is not an overnight task. Nor is coming up with a more progressive and multi-dimensional pay and rewards structure.

Perhaps others have examples of how agencies are tackling this proactively. Speed has acknowledged some of the issues, but still quite some way to go. I guess my overall point is this: if Generation Y typically possesses many of the traits I’ve been looking at, then they’re not the people who’re going to tackle this. It’s agencies who have to pull their heads out of the sand and be bold.