A higher number of advertising agencies than usual are asking themselves at the end of 2005 exactly what it takes to "run Asia", after seven regional or sub-regional heads headed for the exit, some pushed while others have opted for a change of pace. Leaving their roles this year were: • Grey Global Group's China head Viveca Chan, after 23 years with the network • Euro RSCG Asia-Pacific CEO Vincent Digonnet • DDB Asia chairman and president Aaron Lau, after 16 years with agency; • Wunderman's regional chief Mike Langton, following a short stint • BBDO Asia chairman Raymond So • Lowe Worldwide chairman and CEO, Asia, Nigel Gilbert • FCB CEO Asia-Pacific/Africa Ben Barnes The latter two saw their roles eliminated after the head offices removed the regional management layer. If a job ad were placed describing exactly what it takes, among the daunting list of requirements would be the ability to identify new revenue streams, grow margins and deliver international level of service. But the job also requires other qualities. Among them are the ability to provide inspiring leadership, a great communicator or 'people person', and someone who knows how to select the right people to lead different parts of the network. And on top of all that is the need to be an expert on all areas of the current advertising market. As each of the experienced executives who are leaving their regional roles this year clear their respective desks and replacements gear up to the task ahead in the new year, it is worth looking at exactly what lies in store for the new regional managers. JWT Northeast Asia director and CEO Tom Doctoroff says the demands of a sub-regional or regional role are diverse and require qualities that he would not exactly describe as skills, but which place a priority on a solid grounding in the business.
"It's hard to call them 'skills'," says Doctoroff. "A regional leader must, first and foremost, be a great advertising man or woman. He or she needs to be able to open his or her mouth and make sense to clients and prospects. He or she needs to have not only conceptual ability -- lateral, as opposed to logical, thinking -- but deep respect for and experience in advertising and communications." Ogilvy & Mather Asia-Pacific chairman Miles Young, on the other hand, sets his sights on generalist skills: "The ability to comprehend and synthesise a huge amount of diverse input (is paramount)." He also describes regional agency leaders as needing to be strategists, and says one of the key skills is the ability to "define a strategy and then drive it through a very diverse organisation over time -- when all the pressures are centripetal and towards tactical expedience".
By comparison, TBWA regional president Keith Smith believes the rigours of managing an entire region like Asia are a test of personal stamina. He says: "To run the region, you need someone with a strong constitution. The job involves lots of travel and the ability to drink all night," and goes on to list "very strong political skills" and a "good understanding of creative" as vital ingredients. Young also says there is a particular set of personality traits that would benefit anyone stepping into a role that encompasses such a broad swathe of cultures. "There is one overwhelming quality or group of qualities (required for success)," he says, with his response especially addressed to expatriates: "Curiosity; a love of Asia; interest in Asian people -- all of which amount to commitment to the region in the long term and the willingness to put down roots. 'Birds of passage' are neither welcome nor effective; and guangxi only comes with time and investment in personal relationships." Jeffery Yu, regional president of Bates Asia and 141, says the business savvy to crack China and India -- part of the BRIC powerhouse that is expected to drive global economic growth in the coming years -- will ensure longevity in the role. Yu knows better than most the perils of the job. He candidly refers to himself as a survivor. He not only retained his regional role after WPP acquired the network, but ensured the survival of the Bates network in Asia, the only global market where the brand still exists, by transforming Bates into an Asia-only operation and below-the-line company 141 into an activation network in a joint-venture with Ogilvy. "The region can be run by one man but it all depends on getting the right candidate for the job and there has to be a very strong management team in place to support him," he says.
The prospect of such a job might be mouthwatering to the ambitious, but as those with experience of the role know, there are many stumbling blocks to success. Y&R and Wunderman Asia chief executive Chris Jaques has some words of wisdom for both expatriate and Asian managers as they consider taking on the role. "The biggest stumbling blocks are arrogance, naiveté, control and career-obsession. By arrogance, I mean mostly Western managers who believe they know the answers before they know the questions. By naiveté, I mean all managers who tackle the wrong questions, because they haven't had enough experience to assess how the whole breadth of the region works.
"By control, I mean largely Asian managers who believe that they need to be at the centre of all relationships and decision-making, and are incapable of delegating power, responsibility and autonomy to their management team. By career-obsession, I mean Western managers who see Asia as merely a step on an international career path and who take short-term decisions for the sake of personal advancement." Doctoroff offers a different set of advice to prospective network managers, focusing his comments on cultural awareness. "If people catch even a whiff of racism or cultural arrogance, you will be immobilised." He also describes regional management as being lonely: "Opportunities for bonding are few and far between. Therefore, it's important to immediately go to the markets and get to know your local teams," he says.
When it comes to the huge travelling commitments, Doctoroff advises keeping this to a maximum of 50 to 60 per cent of the working week.And, while few may even consider this, Doctoroff says the wrong assistant can be a huge handicap to success. "Make sure you have one who feels comfortable enough to challenge you, is meticulous to a flaw, thinks ahead of the curve and truly wants to help you do a better job," he advises.
But all of this advice is based upon the assumption that a regional or sub-regional management role is necessary. There is also a case for not having a regional boss at all. In a move that saw its entire regional system abolished in favour of a global 'centres of excellence' model, FCB recently made an announcement that its CEO of Asia-Pacific/Africa Ben Barnes was set to leave his role as part of a renewed focus on autonomy for operating offices across its global network. FCB Worldwide CEO Steve Blamer says the reasons behind the restructure are financial and reflect the needs of a global marketplace. "With technology being what it is, we now have easy access to information on a global basis. The regional structure does not foster efficient communications across an entire network as opposed to our global Centres of Excellence structure. "Rather than spending the money for salaries on the regional level, it makes sense to push that money down into the Centres of Excellence so that they can hire or enhance the salaries of people who work directly with clients." There are, however, many virtues within the sub-regional model, argues Jaques: "It stops regional management hiding in administration, bureaucracy and mediocrity." Doctoroff, too, argues for regional structures. "I am definitely not in favour of no regional management whatsoever, be it regional or sub-regional. Countries must co-operate with one another. Budget conflicts require sane resolution. Local office talent must be spread and leveraged as broadly as possible. Clients have regional and sub-regional structures and we must mirror their structure to a certain extent."
Whichever view proves correct, all eyes will be watching FCB and Lowe, with its 'lighthouse' model, around the world, and Asian networks will be eager to see if the regional manager role is an unavoidable necessity, or an anachronism in the global market.