Management Tools

1. Management Tools SCPS Enterprise Thinking – Spring 06

2. Facts • Traditional advertising agency, with 30 years in the business. Presence in Colombia, managing brands in Venezuela, Ecuador, Chile, Peru, Dominican Republic and Puerto Rico. • Member of the WPP Group. • Around 100 employees • $ xxx.xxx USD total income. Ranked 7th in the country and 1rst, totally local.

3. Scenario • Our insignia 30 year old account merged and left. (-25% of total income). • Low morale. • “Newly poor” syndrome and instability. • Owners open for suggestions. PERFECT TIME FOR CHANGE, LOTS OF OPPORTUNITIES.

4. Management tools 1. Redefining SOC, Reframe (WWIT), Scan, Solutions, Test, I&L, Review 2. Time Management Prioritize, Select, Determine value, CPM 3. Systems & Structure Redesign structure 4. Alliance & Development Establish needs, 7 types of alliances.

5. Problem Our income suddenly dropped 25% Reframe Our income should increase 25% in one year. WWIT What will it take for our organization to recover 25% of our income in one year? Redefining SOC

6. Redefining Solutions • Participate in governmental licitations. • Dismiss personnel to adjust to our new size. • Evaluate merging with a multinational ad group. (WPP?) • PR on our new achievements, to attract new accounts. • Open a branch in a bigger advertising market. • Create a innovating ad/marketing product for our top accounts that gives us a competitive advantage.

7. Redefining Aha’s! • Open a new JUAS branch in Bogotá. • Create a Continuing Proactive Program CPP. • Reshape the structure of our business to make it cost efficient.

8. Redefining Tests • Small Scale: • Will being present in a bigger market increase our chances of getting new clients? R/: Yes • Survey existing clients and possible prospects the viability of the idea. • Survey existing clients about what needs might be unsatisfied by our actual services. • Large Scale: • Open a small office. 2 account managers that run existing accounts with presence in Bgta, and scout for new business there. • Try an outsource implant with 1 small account for finalizing artwork.

9. Redefining Implement • Open JUA Bogotá. • Develop the basis for the CPP with a rewarding system • Outsource all we can possible can. Review • Check revenue performance in 6 months. • Evaluate how many new accounts we gained, and their ROI • Survey client satisfaction and monitor their brand performance.

10. 2 key projects • Open a branch in Bogotá • Implement a single software that process a work flow in JUAS. Project Time Management Prioritize • Open a branch in Bogotá • Implement a single software that process a work flow YaJUAS. • Create CPP’s • Re-structure personnel • Hire talents • Develop a e-newsletter for our clients. • Make alliances with ad/marketing research institutes. • …

11. Project Time Management Value determination

12. 24 W-H 8 W-H 2 W-H 1 W-H 590 W-H 8 W-H 400 W-H 8 W-H 40 W-H 24 W-H 2 W-H 8 W-H Project Time Management CPM for Yajuas Research for possible software developers Request and study quotations 50% Down payment Final 50% Payment. List, order and understand the internal order of the work flow. First review meeting. First approach Final development Due project date review meeting Research possible benchmarks and experiences. Prepare a full briefing document Set a briefing meeting. Total time 1080 working hours 137 days

13. Systems & Structure Redesign structure Define the role of each job in the organization This way each individual clearly understand what he/she is supposed to do, what is expected from his work, and how can he stretch it to excel. Implement a comprehensive work flow software (Yajuas). This is a basic tool for business integration, to keep track of the workflow, have measuring resources for employee performance. Use the CPP’s to determine account manager performance. This will create a sense of empowerment over the projects and help develop a carrier ladder, because managers performance and retribution will be based on their own results.

14. Alliance & Development What do I need? • Reduce operative costs. • Provide a better response in terms of time and quality. • Strengthen my competitive advantages to attract new accounts.

15. Joint venture OBJECTIVES: JUA: Reduce operative costs, speed process. Outsource: Gain a big account, with low investment. ESTRATEGIC: Give better response at more competitive prices. BUDGETING: Internal funds, if needed. CONTROLS: No. of “Re-Processed” works FINANCIAL: 50-50 Both parties. HR: 1full time person for monitoring & control. RISK ASSESMENT: It’s very important and worth of our time & efforts. Alliance & Development Type of alliance: • Implant outsource

16. Affiliate OBJECTIVES: JUA: Gain know-how and international accounts. WPP: Gain a Big account and open in a new market. ESTRATEGIC: Offer clients all the strategic tools of a multinational. BUDGETING: Loan CONTROLS: Control meetings to evaluate the merge process FINANCIAL: 50-50 Both parties. HR: High level council, 2 Top execs from both sides RISK ASSESMENT: Medium importance. Depends on terms of negotiation. Alliance & Development Type of alliance: • WPP Partner

17. Ad hoc OBJECTIVES: JUA: Develop a name as a strategic agency Academy: Team up with a known name in the business ESTRATEGIC: Develop own strategic tools and a reputation for it BUDGETING: Internal funds CONTROLS: CPP’s FINANCIAL: All JUAS HR: None. It’s all done on off working hours RISK ASSESMENT: It’s important and has good ROI for JUAS and employee. Alliance & Development Type of alliance: • Academy

18. 10x a lot! NYU SCPS Enterprise ThinkingStudent: Santiago Johnson GSpring 06.