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Client-Centric NEWYORKCITY Client-Centric An Interview with Michael I. Roth, Chairman and Chief Executive Offi cer, Interpublic Group EDITORS’ NOTE Under Michael the specifi c consumers we’re trying to Does attracting top talent lend itself to Roth’s leadership, IPG has deliv- target on behalf of our clients. a diverse workforce or are you focused on ered industry-leading shareholder Clients today are looking for this metrics in these efforts? returns and organic growth, kind of ultimate integrated solution It’s both. We have to make sure our peo- posted long-term operating mar- and this acquisition helps position us ple represent the marketplace so that we can gin improvement, significantly to provide it. develop effective, relevant ideas. The world upgraded the company’s portfo- How important was cultural population has to be represented in our struc- lio of agency offerings and pres- fi t when you were evaluating the tures and, as an industry, candidly, it’s not. ence in high-growth markets, and Acxiom opportunity? At IPG, we hold our CEOs, including me, established a record of industry We view this transaction as addi- fi nancially accountable for achieving diversity leading corporate governance. tive to our portfolio, so we intend to objectives. This is critical to success, and if it’s keep Acxiom as a stand-alone com- achieved, we will perform better financially, COMPANY BRIEF Headquartered Michael I. Roth pany and use our open-architecture have better employee retention, and better cli- in New York, IPG (interpublic.com) methodology to grow their existing ent relationships. is one of the world’s largest advertising and mar- business and enhance ours. With the clients with which IPG has keting companies. From global communications Synergy is always an issue when it comes long relationships, is the focus more about networks like McCann and FCB to domestic to a big transaction. We aren’t concerned about price or value? advertising agencies like Hill Holliday, The cost synergies; we’re concerned with revenue It can be about both. We have some clients Martin Agency and Deutsch, to global special- synergies, and these apply to the IPG and we have represented for 75 years, but we still ists like the events marketer Jack Morton, sports Acxiom portfolio of companies. We can help talk about price. marketer Octagon, and public relations experts them and they can help us. Eventually Acxiom We have to listen to each other’s issues Weber Shandwick, Interpublic agencies span the will be a tool that all of our companies can tap and respond in kind. Unless we have that cli- globe, employing 50,000 people in more than into. They’re the premier provider in a space ent-centric atmosphere, we can’t sustain those 100 countries, working with clients like L’Oréal, that is growing rapidly. relationships. Unilever, General Motors and Mastercard. Do IPG’s brands compete with each That said, we have to bring the best other? resources to each of our clients every day. What have been the keys to maintaining the This is an interesting part of our structure. Having a long-standing relationship means strength and leadership of IPG? The holding company is made up of many dif- we can always talk something through. The key for us is our people – having the ferent agencies, some of whom compete with Every day, we are still pitching our clients, right people in the right jobs and ensuring that one another. even those we’ve had for decades. We have they are focused on clients – we are client-cen- There is nothing that makes me happier to bring the best of our talents to bear for tric, and need to ensure we’re meeting client than when there is a competitive pitch and we each of these clients and treat current clients needs and putting their priorities fi rst. have more than one brand in the running – this like we are pitching them. We can’t get too We believe in open architecture, so that no gives us more shots at winning. comfortable. matter which discipline someone is from, we all Ultimately, however, the goal is to get Is scale important and can smaller, look at what our clients need and ascertain how these agencies to work together in a way that boutique players survive? to allocate resources from our portfolio to meet is most benefi cial to our clients, so we created There are niche players, particularly on the their needs. This is how we add value and move the open-architecture structure to do just that – creative side. However, if they want to grow the needle for clients’ businesses. bring the best of our resources to bear on behalf globally, they will have to ultimately become As a result, for the past fi ve years, our total of our clients – it’s a major differentiator for us part of one of the holding companies, because shareholder return has outperformed our com- and has been helping us win business. scale matters, as does access to ever-evolving petitors. We’re off to a good start this year in Is it important to build awareness for technology. terms of organic growth. the IPG brand or is the focus on the indi- What are your views on the state of the We eliminated businesses that weren’t stra- vidual agencies? global economy? tegic and we focused on core competencies and The IPG brand stands for certain halo The global economy is in a decent talent, and bringing those together in a seamless issues – diversity and inclusion, for instance. We place. There are a lot of risks that make it and integrated way. have to make sure there is consistency with this challenging for business. Even the govern- Our industry now is focused on media, and with our client-centric focus. We’ve worked ment officials say that a trade war may digital and data, which explains why we just to create a tone at the top to enforce such val- affect GDP. announced the Acxiom transaction, where we ues and to create programs and structure to Absent that, I think things are okay. Also, if will acquire the premier data analytics company make sure our efforts are innovative, effective a company is having trouble competitively, then in the marketplace. Combining these best-in- and sustainable. At the same time, we respect that’s where we can be of value. The enlight- class data analytics capabilities with our media the unique culture of each of our agencies, their ened companies see us as a partner during offering provides us a great line of sight into brands and their people. these times.• 54 LEADERS POSTED WITH PERMISSION. COPYRIGHT © 2018 LEADERS MAGAZINE, INC. VOLUME 41, NUMBER 4.
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