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Full Disclosure: My agency, Wirestone, while much smaller than DraftFCB does compete time to time with DraftFCB - I assure you that has nothing to do with this post. Ok, maybe a little ;). And, sorry for the long post - I have a lot to say on this topic.
Unless you have been living under the proverbial rock, you've heard about one of the biggest news in the advertising agency business in a long time - DraftFCB winning and then losing Wal-Mart conceivably before the first retainer check showed up.
There are a few things about this story that just doesn't sit right with me. I have been doing new business in some capacity for 15 years, wooing some of the biggest brands in the world and my instincts are telling me what we are reading about in the paper is the tip of the iceberg.
1. Dinners happen. The claim that Wal-Mart was "just" upset about a dinner at Nobu is very shady. Ok, most big companies have a policy about gifts and accepting things such as dinners over x amount of dollars - but is it really even enforced? My spider senses are telling me that something else happened there - a gift that broke the barrier of acceptable perhaps? A gratuitious trip to somewhere special?
2. Why publicize the Aston-Martin ride? When Ad Age and the Chicago Tribune broke the story about how Howard Draft enticed Julie Roehm with rides in his James Bond Aston-Martin - why brag about it? Why in the world would Howard Draft let that story get out? Sure, that kind of stuff happens - "Lets go fishing on my boat" Or, "You're welcome to use my house in Vail anytime" This kind of stuff has been part of business, well since the start of business. It just is, but don't bang your chest about it. This is what we would call EGO. Funny, I used to work for someone just like that, except his ride of choice was a Ferrari.
3. You're Hired, You're Fired. When the news broke in late October that DraftFCB had won the business, the Trib reported that this would bring almost 200 new jobs in Chicago and that the agency would be on a hiring spree. This was good news overall for the agency community in Chicago and the general economy. Imagine being one of the people that left your job over the past month to join DraftFCB to work on Wal-Mart and now, oops - that job is gone. As a leader, that would keep me up at night. The fees, sure, but the lives of these people have been upended.
4. Good For Wal-Mart! I have never done business with Wal-Mart, but have been close enough to the action in Bensenville to understand it. I finally feel that they did something right lately. Dismantling this review process and starting over takes a lot of effort and I applaud them for that. I am a big believer in winning new business on the backs of hard work, smart ideas and of course above ground relationships. This is a people business and that is important - It is OK to have a relationship with the decision maker, but that cannot be the only impetus for handing over a piece of business.
5. Lions & Smiley Faces Don't Mix. The capper, the icing the final straw had to have been the Cannes Ad in Creativity magazine. I first wrote about it here It's Good To Be On Top. This ad is another indication of blind ego. I still cannot imagine how this could be done. I wonder if they are going to do a It Sucks To Be On The Bottom ad?
6. Could The Blog-o-sphere Have Influenced The Decision? I wasn't the only one writing about this debacle - It had been written about over and over again by industry bloggers. I would have to imagine that Wal-Mart was reading some of these posts. I wonder if the wisdom of the crowds were able to influence this?
Now, it is quite possible that Draft's other accounts will start to defect. Especially if some of those decision makers fell into the trap of accepting some of the same trappings from Mr. Draft. You can bet that the CEO's of those brands will be at least asking about it. Ethics is becoming a hot topic and I am happy that it is starting permeate into our industry. It needs to. The little guy needs to be able to compete on the merits of our ideas, of our capabilities - not just how deep our pockets go or the fact that we have a corporate jet.
I wonder what my friend Steve Cody would say about this crisis management issue over at his RepMan Blog His tagline is Desperate Times Call For Desperate Measures - Would be curious to see what he says. Steve?
Update: Repman Steve Cody caught my hot potato, here is his perspective: Two Reputations Damaged Post