Takeshi Sano, the incoming chief executive of Dentsu Group, has told investors and staff that he will be making the business “flatter” in structure to drive growth and prioritising the perception of the Dentsu brand.
Sano, who turns 56 at the beginning of March and has worked at Dentsu for 34 years, takes charge of the Japanese agency group on 27 March.
He is currently CEO of Dentsu Japan, which grew 6.2% last year, in contrast to the decline seen in all other regions, and he is also deputy global chief operating officer.
Speaking on Dentsu’s Q4 earnings call, Sano said that he wants to “rebuild” the foundation of the business to improve its profitability.
He will also review “underperforming businesses” and choose whether to “exit or shrink” them. “We need to execute with speed – that is the most important thing,” he said.
As part of the company’s new strategy, Dentsu has appointed its first global chief transformation officer, Noritaka Omi, former global chief business operations officer, to drive the changes.
Sano said Dentsu’s growth will depend on its ability to identify issues before clients do, so they can better support them with a resolution.
“This is how Japanese business grew, and we have to expand this [approach] globally,” he said. “We need to be flatter.”
Each regional head across Dentsu will now report directly to Sano, including the respective presidents of the media, customer experience management and creative divisions. Regional and divisional heads previously reported to Jean Lin, president of global practices, who will take a new role.
“We will remove that layer so that we can identify the issues of the client and enhance our competitiveness in a swifter manner,” Sano explained.
In addition, Sano's comments about the importance of moving at speed are significant, given Japanese companies have a reputation for considered decision-making.
“He makes decisions and moves quickly,” one industry source who knows Sano told Campaign.
Lin, who has become global chief brand officer in Dentsu’s new global management structure, has been handed the remit of “enhancing” Dentsu’s “brand power”.
Sano also admitted that what he called “speculative articles” about Dentsu – a reference to how the company had looked at a potential sale of its international business last year – had contributed to a “weakening of our brand”.
He maintained he remained committed to Dentsu’s international growth and stressed in an internal memo: “I have confidence in our strategy and in the long-term potential of our business.”
He told staff: “As the market and competitors consolidate, we will prioritise specialisation, high-value opportunities, and intelligent scale. We are committed to winning locally to grow globally; being an international organisation serving clients around the world with consistency, quality, and innovation; and delivering focused investment in our business in areas of high client growth.”
The corporate shake-up and appointment of a new chief executive follows Dentsu’s record $2 billion annual loss. The group suspended its dividend, and Hiroshi Igarashi, the chief executive since 2020, stepped down.
Dentsu confirmed at its Q4 results that it was no longer looking at selling the international business, although it is open to deals in local markets.
It is understood Sano speaks English, while Igarashi tended to rely on an interpreter, and observers said this could help Dentsu when dealing with global clients.
Sano is also said to be active in pitches and will often make opening remarks in a client presentation, according to industry sources.
Source: Campaign UK
