Transformation is key for creative agency success

First to land was Y&R's Hamish McClennan. Arriving in Asia off the back of the agency's success at Cannes, which included the first gold Lion for Indonesia, McClennan's mood was decidedly upbeat. He was also understandably keen to talk up Y&R's recent new business wins, two of which - Tiger Beer and Singapore Navy - have come at a heavy expense for Saatchi & Saatchi Singapore. This year's performance so far has been a significant turnaround for Y&R, which for some time has been unable to replicate in Asia its standing in markets such as the US.

But the work has only just begun, especially if it wants to emulate the Asia-Pacific success of WPP stablemate Ogilvy. Under the stewardship of new regional head Matthew Godfrey, Y&R has already taken steps to communicate better the culture and business model of the agency.More will be needed, including a stronger Greater China footprint and a clearer integration of its digital offering.

Also passing through Asia was McCann Worldgroup's new CEO Nick Brien, making his first tour of the region in his new role. Like Y&R, McCann Erickson is an agency that has in recent times been punching well below its weight in Asia. Due in part to its extensive presence in Japan, the agency has been struggling more than most with post-recession recovery. With Brien taking over the global reigns at McCann, we can expect some major changes. He is a CEO with a reputation for turning businesses around, and it will be interesting to see how his emphasis while at UM and Mediabrands on talent, technology and collaboration will translate to the creative model.

In terms of rethinking what they stand for and how they do business in Asia, Y&R and McCann are, of course,  hardly unique. Speak to the heads of any regional creative agencies and you find they want to talk about one thing: how they intend to transform their agency's business model. This is not surprising. The consumer has changed. The media has changed. There is no going back. Clients are demanding a more flexible creative relationship with agencies and are looking for partners - some would even say consultants - able to provide specialists over a range of disciplines.

Creative agencies know they need to deliver.Unlike media agencies, which have set the pace within the industry in terms of pushing change, creative agencies have been slow to react. But the onus is now on the likes of Y&R and McCann to catch up, and fast.

This article was originally published in the 15 July 2010 issue of Media.