Agency Agony Uncle
I’m an agency MD, get me out of here!
Dear Uncle Carl,
I’m a creative in my first job. When I joined the agency really seemed to be going places but now things have taken a turn for the worse. I’m hearing whispers of redundancies and I’m worried that it’s going to be a case of ‘last in, first out’. I know I’m inexperienced, but is there any way I can make myself indispensable to the agency?
It’s your fault - by your own admission they were really going places when you joined them and now they’re screwed, what in Gok’s name did you do?
Things have indeed taken a turn for the worst - across the board, but I am sure your high and mighty leaders are doing their best to secure the future of the business. I can offer you little consolation as the ‘last in first out’ rule does rear its head as there are fewer potentially legal pitfalls in exiting staff members with less than a year under their belt. Also it’s cheap as there are no redundancy packages to pay.
However, a good agency knows it still has to deliver projects even in a slow down and therefore it needs talented people and there is an argument that you are cheaper than some old hack who has been cruising for the last few years and a ‘recession’ can be a great opportunity to off-load the lazy fekkers. It isn’t a bright future but it’s not all gloom either. Also, bear in mind, a redundancy on your CV is not your ‘fault’ so it doesn’t count against you or your abilities.
Dear Uncle Carl,
My colleague - let’s call him Jim - isn’t normally a big drinker. But when he goes to industry functions he likes to enjoy himself. However, at the last awards do we went to he got totally legless and made a complete fool of himself (in front of some very unimpressed clients). And this isn’t a one-off, it happens every time he has a drink. As a friend of his at work I feel I should tell him he’s being a prat. But I don’t want to come across as a kill-joy. What should I do (before the boss does something more drastic)?
Tell him. Say ‘Jim you are a serial piss-head and it’s going to get your ass fired, so stop it’. If he says you are a tosser, he isn’t the chum you thought he was. If he listens, it’s because he knows it’s true, if he doesn’t listen then your patient boss will start some sort of disciplinary process and he will know you were right and he can make his own choices. You are not his dad, he is a grown man... well grown idiot.
I have seen it so many times. ‘Staff’ seem to think all awards/dos are social events - they are not - not if clients are there - they are work! It’s called corporate hospitality - the clue is the word ‘corporate’. You would not go into a client meeting pissed. You wouldn’t sit at a lunch with them and get legless so don’t do it just because it’s in the evening and you have a dicky bow around your lager soaked throat. If there is a client there, it’s work and work rules apply - including work disciplinary rules. Some agencies are looking for reasons to off load staff - don’t make it easy for them.
Dear Uncle Carl,
As an agency owner I am looking to get out of this industry. In fact, I have been thinking about doing so for quite some time. However, with the financial climate in its current state now is perhaps not the best moment to exit and gain a return on all the hard work. What should I do? Should I stay at the helm of a business I no longer feel passionate about? Should I get what cash I can by selling the business to a rival? I might not have a passion for the industry any more, however I do feel loyal to my staff and wouldn’t want them to suffer as a result of a rash move. What do you recommend?
All options you have laid out are viable as are all the pitfalls that you recognise with exiting a business. I think you have to be realistic about what you are trying to achieve and the fact that you would ideally like to exit immediately at great price in a conscientious manner. But in the real world, you could probably only achieve two of those if you want to leave immediately at great price then you would do a trade sale (if a buyer exists) and not worry over the effects on your staff as someone comes in and slashes the ‘overheads’.
If you want a great price in a conscientious manner then you will have to enter into an earn-out and commit to 2-3 more years. And if you want immediate and conscientious then you ain’t going to make a bazillion quid I fear. I think you know 2009 is not the year to step out but it could be a year for you to merge and keep you busy while building the value of your investment. It could be the year to lock in your staff by initiating an MBO plan which demonstrates your loyalty to them. Or simply ‘give’ part of your equity to your top team to drive the business forward while you take a back seat and pursue other interests while still being available to guide and protect your investments - I think there are more options available to you than you might think.
Dear Uncle Carl,
I’d been with my last agency for years but felt things were getting a bit stale so left in the summer to try something new. I really want to launch my own start-up, but with all the doom and gloom around at the moment I’ve now got cold feet. Can you re-assure me that a start-up can get off the ground now and prosper? Or, as I’ve had a couple of offers to go back to my old role with other agencies, should I just accept defeat and go for the safe if not satisfying option?
I was told when the Romans invaded Britain that the general took them to the cliff tops and showed the centurions their burning ships on the beach and told them - we have to win now. Sounds to me you have your ship in the water with the sails up ready to make a quick escape. The point I am making is, are you really committed to your start-up? I cannot re-assure you that YOUR start-up will get off the ground as you might be rubbish, but I know that there will be start-ups that prosper while there is a recession - they will pick up disillusioned or redundant staff, they will pick up clients who are looking for more bang for their buck but they will only prosper if they are clever, capable and committed - are you?
You sound like a defeatist; ‘should I just accept defeat?’ you ask, so in fact you have already decided you will fail before you even started. So yes, by all means ‘go for the safe if not satisfying option’ and watch your life slip by while you simply ‘get by’ until one day you find yourself in your garage in your car with the engine running and the windows down. Happy days.
Are you troubled? Don’t be. Send all your questions for the drum’s agony uncle to dear.carl@carnyx.com Or, If you wish to meet with carl to talk about your business, then simply email him on ch@kloog.ch