Burnett and Arc Now Globally Under Leo Burnett Worldwide Umbrella
Thursday, 14 December 2006
Leo Burnett Worldwide Chairman and CEO Tom Bernardin on Monday announced a number of management and structural changes designed to help the company meet its clients’ evolving needs and capitalize on growth prospects for the industry worldwide.
In addition to officially aligning Arc and Burnett together under the Leo Burnett Worldwide umbrella globally, the organization will also bring key geographical operations closer to the heart of the business through a new, globalized structure.
According to Bernardin, “It's evolution pure and simple. What served us well as a structure even five years ago is already outdated. This move recognizes our clients’ evolving needs; the new realities of the consumer and media landscape, and our desire to fully harness the dynamism of emerging markets worldwide.”
Remodeling Global Structure, Addressing Key Market Needs
One of the primary objectives of the reorganization will be to create a new global “map” for the network, dividing it into groupings of markets experiencing similar industry growth patterns vs. a traditional geographical sub-structure.
The challenges and concerns of mature markets, such as the US, UK, and France, are often distinct from those in fast-growing environments like India or indeed emerging markets in the Middle East or Eastern Europe.
“It’s no coincidence that the markets most important to us worldwide are the same that are our clients’ key focus for profitable growth. Reorganizing around these new groupings will allow us to provide more hands-on direction, support and investment where it’s needed, and in so doing help grow both our clients’ and our own businesses,” added Bernardin.
At the heart of the evolved structure will be the new Global Management Council (GMC), reporting directly to Bernardin and formed to ensure significant markets and businesses worldwide receive the focus, investment and expert oversight they need to maximize growth potential.
The GMC will count representatives from 10 key markets: Greater China, the Middle East, the US, the UK, Iberia, Italy, France, Russia/CIS, Germany and Brazil.
Bernardin also said:
· Michelle Kristula-Green will continue in her role as president of Leo Burnett Asia Pacific.
· Juan Carlos Ortiz, formerly Burnett’s president for Latin America, and Rich Stoddart, formerly president for Leo Burnett USA (Chicago), will now serve as co-presidents of Leo Burnett in North America, with oversight for the US, Mexico, and Canada.
· Andrew Edwards, currently president of Arc EMEA, will now take on a leadership position for the combined Arc and Leo brands across a number of countries in the region.
· Miguel Angel Furones will assume responsibility for some of Ortiz’s previous remit, along with existing Iberian operations as president of Leo Burnett Iberia and Latin America.
Bernardin also named global multinational business heads and the worldwide multinational accounts director.
Additionally, “Rishad Tobaccowala, in his role as CEO of Denuo, will consult with Tom and the GMC on strategic initiatives with regard to the future.”
Ensuring True Integration for the Operation
Working alongside the GMC will be a global lead team, with responsibility for the strategic direction of the network.
This team will consist of Bernardin; newly-appointed worldwide COO Tom Dudreck (formerly LB Worldwide president of Multinational Accounts); Mark Tutssel, worldwide creative chief officer; and Catherine Guthrie, newly-named worldwide president of multinational accounts. Together the council will ensure full integration of the company’s structures and help architect a truly integrated go-to-market strategy.
Bringing Arc, Leo Burnett Closer Together
Additionally, sister companies Arc and Leo Burnett will now officially come together under the Leo Burnett Worldwide umbrella at the network level. (The two have already begun to operate successfully under a semi-“group” umbrella with a single P&L in Asia and EMEA, recently working together to win the US$ 20M Barclays iShares business across the region.)
One key to the official alignment under the Leo Burnett brand will be the confirmation of dual responsibility roles for local managers who previously oversaw either the Arc or Leo brand alone.
This senior-management structure – already trialed in parts of EMEA and Asia – will now also become a reality for the US operations, as will a single P&L. Meanwhile an initiative already underway in the US to map best-practice collaboration across specific departments at Burnett and Arc will continue, and present its findings in the new year.
Commented Bernardin, “The one balance sheet piece is clear: instigate that and you’re half way to a true fusion. But only half way. Right now the joint Arc/Burnett task force is looking at what the exact ‘right’ operating model will look like for us – but in the meantime consider Burnett and Arc as one entity, albeit with two facets. Neither brand name will disappear, and either will continue to go to market individually if a competitive advantage is to be gained by doing so.”
Marc Landsberg, president of Arc Worldwide and North America, will leave the company in early 2007. Moving forward – and in line with the “one office, one leadership team” ethos – the newly combined Burnett/Arc operation in the US, Canada, and Mexico will be managed by co-presidents Stoddart and Ortiz. Together the two will also oversee US specialty units Lapiz, and Vigilante.
For country or region specific implications of this announcement, please contact Trudi Harris (EMEA), Kristin Fletcher (Americas)or Jeani Rogers (Asia Pacific).