CAREERS MEDIA: JWT in new attempt to structure - this time on a market-by-market basis
<p>J. Walter Thompson has thrown out the old concept of setting up </p><p>full service shops in every major market of Asia-Pacific. </p><p><BR><BR> </p><p>Under the leadership of new chief operating officer, Kevin Ramsey, the </p><p>agency is currently in the midst of setting up a structure which </p><p>examines the needs of each market and works to satisfy just those </p><p>needs. </p><p><BR><BR> </p><p>It learned the hard way that the old concept was unrealistic when the </p><p>regional economy slumped in the late 1990s, resulting in about 17 per </p><p>cent of staff being laid-off. </p><p><BR><BR> </p><p>Mr Ramsey, who was previously JWT's Australia area director, said the </p><p>recent poor economic conditions had forced the agency to make cuts, </p><p>including on staffing levels, in order to maintain its </p><p>profitability. </p><p><BR><BR> </p><p>"We handled the cut-backs strategically; we took out the poor </p><p>performers, streamlined the administrative processes and made people </p><p>more accountable," he told MEDIA. </p><p><BR><BR> </p><p>But JWT International group president Miles Colebrook added, "You could </p><p>see how fat we had gotten during the boom period, because of the 17 per </p><p>cent of people who were let go, we estimated that about eight per cent </p><p>went without anybody noticing." </p><p><BR><BR> </p><p>The fact that about half of the departures went unnoticed got the agency </p><p>thinking about the wastage that occurs from setting up full service </p><p>shops in every city of Asia-Pacific. </p><p><BR><BR> </p><p>"You need the core competencies in each market you're in but you don't </p><p>need to have a mirror reflection of yourself everywhere you are. </p><p><BR><BR> </p><p>"For instance, it makes sense to have interactive specialists in places </p><p>where there is strong consumer interest in hi-tech items like in Hong </p><p>Kong, Singapore, and Korea, but not in a place like Indonesia, where the </p><p>Internet take-up rate is still very low," Mr Colebrook said. </p><p><BR><BR> </p><p>He said the "one-size-fits-all" model of the past did not work any more </p><p>and the key in today's world is to identify potential and actual client </p><p>needs in each market. </p><p><BR><BR> </p><p>The structure that the agency is rolling out in Asia-Pacific follows </p><p>closely the model that Mr Ramsey has introduced in Australia. </p><p><BR><BR> </p><p>In that market, a dozen key, specialist companies have already been </p><p>established by the agency, including sports marketing, event management, </p><p>healthcare, sales promotions and interactive firms through acquisitions, </p><p>joint ventures or affiliations. </p><p><BR><BR> </p><p>"Only those disciplines that are needed will be set-up," Mr Ramsey </p><p>said </p><p><BR><BR> </p><p>"In the past 12 months, it has given us growth of 25 per cent (in </p><p>Australia)," he added </p><p><BR><BR> </p><p>The end result, he noted, is that the agency has realised that it needs </p><p>significantly different types of operations in the different markets it </p><p>has a presence in. </p><p><BR><BR> </p><p>In Hong Kong, for example, the focus is on telecommunications, new </p><p>media, finance and property. In Indonesia, on the other hand, the </p><p>emphasis is more on packaged goods. </p><p><BR><BR> </p><p>After Mr Alan Fairnington quit the top Asia-Pacific job in 1998, the </p><p>region has been - until now - reporting directly to Mr Colebrook in </p><p>London. </p><p><BR><BR> </p><p>Ostensibly, this arrangement was favoured to finding a replacement, </p><p>because of Mr Colebrook's experience in guiding JWT through Europe's </p><p>economic downturn in the 1980s. </p><p><BR><BR> </p><p>With prospects for Asia-Pacific back on an upswing and with a </p><p>restructuring taking place, a regional head became a necessity, </p><p>resulting in the appointment of Mr Ramsey. </p><p><BR><BR> </p><p>With a new agency structure and clients once again spending more on </p><p>advertising and branding, Mr Ramsey said JWT Asia-Pacific was back on </p><p>investment mode. </p><p><BR><BR> </p><p>This, he said, included hiring more people "but only where needed and </p><p>only the best". </p><p><BR><BR> </p>
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