Strategies for Navigating the New Normal

A month into the coronavirus crisis, we gathered our community of member agency leaders to connect, share, and discuss how strategies for guiding clients and teams are evolving—and how agencies can prepare for the post-coronavirus world.

Discussion with Marla Kaplowitz (President & CEO, 4As), Sharon Napier (Chair + Founder, Partners + Napier; 4As National Board Vice-Chair), Christine Fruechte (CEO, Colle McVoy; 4As National Board Secretary-Treasurer) and Mollie Rosen (EVP, Membership Engagement & Development).

 

Topics:

Shift from Triage to Stabilization

Agencies are now shifting from triage mode and the urgent need to pivot to a mode of stabilization leading to a new normal.

• Scenario planning: Given the uncertainty of the current situation including duration of working remotely, client spend and impact on finances based on receivables, etc., some of the actions agencies are taking include:
  • Creating plans for revenue decreases. For example, plan on -20% but have plans in place for -25%, -30%, -35% so you are prepared to be decisive and move quickly when needed.
    • Need to frequently recalibrate the business
  • Christine recommended an article by Adam Bryant (Merryck & Co.): How Would You Reimagine Your Company If You Were Starting It Right Now
  • Remind people it’s about physical distancing not emotional distancing – need to stay connected to teams.
  • Leaders must create certainty amidst uncertainty; be realistic and optimistic and communicate clearly and often – especially as people can focus too much on the doom swirl and doom surfing.
    • Sharon noted that there is a communication plan regarding the responsibility of the senior leadership team and frequency of messaging.
  • Continue to reinforce the vision, values (demonstrated through action) and culture.
  • Christine also shared perspective from McKinsey: How Business Leaders Can Plan for the Next Normal

• Discussed client considerations regarding payment terms including temporary reductions and deferments.
  • Both noted they have addressed each client individually based on circumstances. Sharon noted a client was late on a payment and they proactively addressed and identified a solution (don’t ignore).
  • Agencies can’t give clients more for less – needs to be short term/one-time-only and in writing.

• It’s important to identify triggers to know that we’re turning the curve economically as an industry as well as an agency leader.
  • Will vary by industry and geography as things come back on line and the metrics will look different by industry.
  • Industry signs: marketers increase spending, media costs start to go back up, and we start to see the experiential side of the industry come back.
  • Agency signs: new work is being briefed into the agency, people are billable – not just busy, more robust new business pipeline.
  • While the hope has been for a ‘V’ shape return where there’s a dip in Q2 but in Q3/Q4 business is back up, more likely it will look ‘L’ shaped and start to see recovery in Q4 and into 2021.

 

Future Workplace

We recognize that when we’re eventually able to return to our offices, the work environment and approach will be different coming out of this experience from people working remotely and the paramount concern of health safety. Leaders need to start preparing now for the future and identify new models and ways of working based on the current remote working experience.

• Lessons learned: from HR to IT to operations, there are learnings to apply and operate differently upon return.
  • Need to assess office space (including receptionist), business travel, etc.
  • Plan for the physical return and focus on safety of your employees as the top priority.
  • Impact of current situation as people will not want to return to audio only when the majority of connections are now video enabled.
  • Diversity: remote working proves that you can hire from anywhere as geography is not a barrier; provides opportunity to do more to address diversity & inclusion initiatives.
  • New York Times article on What Will Tomorrow’s Workplace Bring? More Elbow Room, for Starters with aspects to consider for the new workplace environment.
  • Adaption stories: every employee has one and they are stories of resiliency that are worth sharing.
  • Christine shared how this may affect employees – particularly those with child care needs – if schools remain closed until the end of the school year and camps and other forms of child care are canceled into the summer.
  • Christine started an agency committee, Future Force, to address the needs moving forward to be prepared to adjust to a new normal.
    • One idea is to find a way to reflect the collective journey upon return to the office; show appreciation.

• Agencies need to address PTO/vacation time with staff as many have canceled travel plans but need time off from working.
  • Discussed approach and concerns regarding accrual and impact on timing if people don’t leverage time now; it’s an opportunity to recharge and refresh (though many people worried about their jobs are fearful of taking time off now).
  • Reimagine vacation: have people share stories of how they have done it with their friends and family.
  • Vacation/PTO Time: reduction in work hours/work-week for some as summer may change things as people may need the part-time schedules due to kids’ schedules, etc.

 

New Business

We understand that many pitches are continuing while some have been paused. We’ve been helping members understand how to address virtual pitching with some guidance as well as a recent webinar Going, Going, Gone Virtual Pitching.

• • Both noted that it’s the right time – agencies are there to help clients address their most urgent business challenges – but it has to be focused on solutions and not selling via credentials.
  • Some are busier than others and it’s important to orchestrate and rehearse. The experience is demonstrating a more focused, streamlined approach.
  • Sharon reminded everyone to focus on current clients and organic growth: retention is critical – “Love the one you’re with.” (Robin Buehler, Mercer Island); some agencies likely failing their clients right now – partnering is critical.
• Discussed prospecting and if it’s the right time.
  • It’s important to think long-term and continue to prospect focusing on the right areas for your agency business. Need to have the right approach and strike the right tone.
  • Opportunity to reconnect with former clients and check-in on them.
  • Consultant advice: find businesses in your area that you know are challenged and share ideas; one option is to share now and hold off on getting paid until later.

 

Client Needs

Every brand is experiencing a mix of triage and transformation as they address the crisis based on their own business situation. Now more than ever, agencies can provide partnership and guidance to help clients through the pandemic.

• What are some of the areas where you see clients shifting their needs? How are you reacting and pivoting to those changes?
  • Focused on creating what “next” looks like for clients as they go through various stages; leverage a framework: Sharon (Pandemic Brand Planning – finding the small wins) – Anxiety, Adjustment, New Normal; Christine shared a framework – Stabilize, Empathize, Optimize.
  • While certain capabilities are being used less right now, others like PR have had an increase in demand and so the challenge has been how to shift resources to meet the need.
• While the work has shifted, we need to be prepared and plan for what’s ahead by identifying long-term thinking and opportunities: for example, agencies with in-house studios who can provide support for marketers especially those with a backlog of retail work.

 

Internship Programs

We’re hearing many agencies are canceling their internship programs for the summer given so much uncertainty and financial concerns. The 4As decided to shift our popular MAIP fellowship program to a Virtual Engagement Program (VEP). The 325 fellows along with 90 finalists that did not match to agencies are now part of a MAIP talent pool of over 400 diverse students (including a ‘Look Book’) where they are part of an online training program and will continue to engage with agencies throughout the summer via labs and education. This will conclude with a career fair.

• Sharon and Christine noted that they will not have internship programs this summer. Christine shared that her agency will continue to engage with MAIP given the importance of diversity and the flexibility provided by the program (three tiers to engage).

 

The CARES Act

The 4As recently hosted a webinar led by Alison Pepper from our Government Relations team and an attorney from Venable to provide support and guidance for agencies addressing needs for small business loans as well as payroll tax relief.

• Depending on the size of the agency, leaders have taken advantage of different options from PPP, small business loans and employee tax credits.
• Some agency leaders shared their experience receiving PPP loans and positive experiences with Chase, City National but not Citibank.

 

Impact on the Team and Business

This situation is challenging both personally and professionally. For many we’re experiencing the various stages of grief – but at different moments (five stages: denial, anger, bargaining, depression and acceptance).

• Sharon and Christine shared how they are managing the situation and dealing with their teams:
  • Stress is different from exhaustion as work from home feels like working non-stop.
  • Culture lives on: be human and ensure teams connect (e.g. Happy Happy Hour; weekly team meetings); bring the spirit and energy of your people in new ways (e.g. hat day; pajama day).
  • Christine shared that her agency is divided into 4 teams and they meet each morning to connect and discuss work.
  • Sharon noted a divide and conquer from the senior team with communication.
  • Agencies need to keep these interactions fresh as remote working extends another month or likely more.
  • Remind teams that self-care is critical right now.
  • Create interest groups with people to connect (e.g. daily ‘coffee shop’ where people connect in the morning while drinking their morning beverage).
  • Training people: now is the time where people can cross-train whether they have extra time to support teammates or express interest in new areas; allow people to upskill.
  • Mental Health: Christine shared that they have Mental Health Mondays where they ensure they focus on wellness for their employees (e.g. yoga) and remind them of the services offered (e.g. EAP).
  • Check-in with people: ask them on a scale of 1-10 how they are doing personally and professionally.
  • Continue with promotions – even if you’re unable to provide a monetary increase, as there may be other benefits (e.g. vacation time).
  • Recognize people are integrators and segmentors: while we typically try to integrate work & life, this is a moment we need to remind people that being confined to work from home requires the need to segment and take breaks.

We’re all experiencing The Phases of Disaster (see below). Following the initial adrenaline rush and focus on triage, we’ve moved into the ‘disillusionment’ phase but need to start focusing on ‘reconstruction’.