As much as Michael Birkin wants to replicate in Asia-Pacific the scale that makes Omnicom the world's largest marketing communications organisation, don't expect a buying spree anytime soon.
Admittedly, finding gems worth acquiring is tough. Earlier buying binges by holding companies have nearly depleted what wasn't a very large pool to begin with, belying the region's massive geography and population mass.
Admittedly, finding gems worth acquiring is tough. Earlier buying binges by holding companies have nearly depleted what wasn't a very large pool to begin with, belying the region's massive geography and population mass.
If Birkin is cautious, it's partly because the finance man that lurks just below the surface of Omnicom's newly-appointed regional head won't let him throw silly money just to outbid similarly acquisitive competitors. "I don't believe we have to go crazy in trying to accomplish that goal," Birkin says of his remit to grow Omnicom's operations in a region that has come to play a greater role in global reviews.
"There are ways in which I can gain market share that won't be acceptable to me. I am not going to buy my way around. Having said that, I do believe we will be making acquisitions," he says of negotiations he inherited since arriving in Asia as president and CEO, Asia-Pacific, four months ago.
The would-be barrister and accountant knows the role of hunter well. He built up Diversified Agencies Services (DAS) into Omnicom's largest operating group, first as its Europe head, before taking on Asia responsibilities and eventually the global presidency in the late '90s. Fast-growing DAS pulls together the group's direct marketing, promotional and field marketing, public relations, medical communi- cations and branding agencies.
In between criss-crossing the region and splitting his time between the group's Tokyo and Shanghai offices, Birkin has presented a list of 10 acquisition targets to the board.
Approvals have been granted, but doing deals is inevitably fraught with uncertainty at the best of times. Of the 10 deals on the table, Birkin expects to announce one, if not two, by next month. "CRM is a key part, and China is our primary focus," is all he will say of his shopping plans.
Even as he reaches for the cheque book, Birkin can barely conceal his reluctance to pay the premium prices being asked, especially in Asia's emerging powerhouse economies, China and India. "We are not going to buy our way in on ridiculous prices in India," he insists. "I am not fearful. Just because there's a big WPP presence there and relatively limited independent presence left, that one has to feel cornered into actually having to do something is wrong."
Instead, Birkin has made it clear that the purchase strategy will be driven more by client demand, and he has been actively seeking their feedback. "I am not going to neglect any market in Asia -- many of our clients are everywhere and we need to be in a position to service them."
And it's not just agency assets that Birkin is after. Talent acquisition is equally high on his to-do list. Industry observers point to meetings with executives from outside the Omnicom fold, describing these as talent-scouting expeditions for roles that are bound to crop up as the group expands its regional footprint, as well as to give its businesses greater traction with stronger leadership. Talent management, as Birkin explains, will underpin Omnicom's regional growth game-plan alongside a considered acquisitions strategy. "We have to make sure we are good employees and good partners to our best people... we've got to recruit and we've got to be uncompromising in our quest for being the best."
Alongside scale, Birkin is keen to see Omnicom's regional businesses acquire the same reputation for creative excellence its companies enjoy in its bigger markets.
However, a look at this year's Cannes rankings underlines the leap Omnicom's regional businesses will have to make to not simply close the gap, but to achieve the consistency of DDB Chicago or TBWA\Paris' award-winning accomplishments year-in and year-out.
"Everything is about the work. I want to make sure our clients feel they're with the best," he says. "If we're not number one in three years, but we're doing good work for clients and we're growing, fine... I believe everything else will take care of itself maybe in five, maybe in 10 years time."