JWT
JWT
1. Introduction.................................................................................................. 3
2. Structure...................................................................................................... 4
2.1 Functional Structure................................................................................ 4
2.2 Other Aspects of JWT Structure...............................................................6
3. Organization Strategy.................................................................................. 7
3.1 Strategy of JWT....................................................................................... 8
4. Culture......................................................................................................... 9
4.1 Interpreting Culture...............................................................................10
4.2 Design and Culture...............................................................................11
5. Dynamic Processes in JWT..........................................................................12
5.1 Decision Making Process.......................................................................12
5.2 Conflicts................................................................................................ 15
6. Environment at JWT....................................................................................16
6.1 Task Environment.................................................................................. 16
6.2 General Environment............................................................................ 18
7. Control Mechanisms...................................................................................19
8. Evolution and road ahead..........................................................................20
9. References................................................................................................. 20
Managing Organizations
1. Introduction
JWT, or J. Walter Thompson as it was formerly known, is one of the largest advertising
agencies in the world. It has offices in 90 countries and over 10,000 employees. They
boast of clients that are leading global brands, many of whom have had a relationship
with JWT for a long time. HSBC, Ford, Kellogg, Nestle, Shell, Unilever and de Beers are
just among a few of these illustrious names.
So what exactly does JWT do for these clients, and how does it serve them so as to keep
them coming back time and again. Simply put, if any client has a message it wants to
communicate to its consumers, JWT will find the most creative way to package that
message and make sure it reaches out via the most suitable media, whether print, radio,
TV or the internet to make just the impact the client wished for. It does this through an
extensive global creative talent pool and years of experience.
The advertising industry is lucrative, exciting but not without its challenges. Being
creative is one thing, getting the right message across to increase the clients share is
another. Creativity is by its very nature subjective. How does one judge how good an idea
is? The space itself is crowded by other competitors vying for similar clients. To top it all,
consumers needs and demand change in the blink of an eyelid. The recent explosion in
the Internet/mobile space has meant that JWT and other firms must be quick to integrate
this change or perish.
This report aims to take an objective view of JWT as an organisation and critically
examine the way it is structured and governed. The report also places these findings both
within the context of the advertising industry as a whole and within certain academic
frameworks used for analysis.
The report starts with the organisations structure, move on to how it differentiates itself
to remain competitive, and how it fosters a culture of creativity. The report then goes on
to describe how JWT deals with the conflicts inherent in an organization and how it
controls its employees and processes. Towards the end, an analysis of the threats JWT
perceives from the environment he near future and how it plans its road ahead is
presented.
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2. Structure
JWT is in the business of coming up with creative ideas. They also sell their ability to be
reliable and deliver consistent performance. And they promise these high standards of
deliverables to over 1,200 clients, operating out of 200 offices across the world. What
kind of organisational structure does it take to manage such large enterprise that needs to
be creative and efficient, adaptable to the ever changing market and yet reliable in project
implementation, provide a structured growth for customer-facing executives and a
stimulating environment for its creative talent?
The two striking features about the structure is a Functional approach and
Geographical differentiation. In this section we examine each of these two features.
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Media is marked in red because it no longer exists. It has become a very complex
business in itself and hence is no longer a part of JWT. This is a trend seen in all
advertising agencies.
Creative: The creative function is responsible for coming with innovative ideas
to deliver clients messages to consumers. They are broadly divided into two sub
functions: Copy and Art. Copy looks after the text part of a communication
while Art looks after the visual appeal in all communication mediums. Only
people who show a clear inclination and passion towards working in not-soformal environment are recruited for this function.
Account Manager: This function is the face of JWT as the clients see it. They are
responsible for pitching for deals, and interfacing with the clients throughout the
deal period to ensure that their message and requirements are communicated to
the creative department. They act as a link between clients and other functions.
Because of this centrality in the role, this function has clout in the organisation,
and most General Managers have been ex-Account Managers.
Sample Hierarchy
The figure below gives the hierarchy of the account management function. While
nomenclature may differ slightly for account planners or creative staff, the general
hierarchy is similar.
Study of JWT India
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Non Managerial
Roles
Structural Dimensions
o Formalization: There are rules and procedures in place for conducting
business. Most written documentation, however, is for knowledge transfer. It
is moderately formalized.
o Specialization: To a great degree, roles are subdivided into specialities. This
facilitates the experts in each speciality to hone their skills further.
o Centralization: On a global scale, it is definitely decentralized with each
region being fairly autonomous. However, within an office most decisions
require approval at senior levels.
o Professionalism: Most of the staff is qualified. Broadly speaking, all
employees are professionals and JWT prides itself on providing professional,
on time, and consistently reliable output to its clients.
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3. Organization Strategy
Every organization needs to have a purpose and direction that shapes how it is designed
and managed. Managers set strategic plans for the organization that determine how it
interacts with its environment and achieves its desired goals. Some of the key elements
that JWT has to focus on as part of its strategy are as follows.
Align their strategy to meet the dynamic and wide variety of needs of their clients.
Service Range
The services provided by JWT for its clients range from print media to advergaming to
internet advertising & promotion to television commercials. JWT is ready to use any kind
of medium which will enable them to fully express their creative thinking and ideas. The
management in JWT feels that service is related to anything to do with
communication.
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The second approach, which is followed by JWT, is to focus on building brand and
developing strategy for the clients rather than trying to be only creative. This is how JWT
has always attempted to distinguish its services from the rest or from its competitors in
the industry. For example, when NIKE entered Indian market, JWT tried to find a space
for NIKE among Indian consumers. After a lot of research, JWT came to the conclusion
that for NIKE, cricket could be the best space to reach the Indian market. Thus, JWT
came up with the ad campaign for NIKE featuring Cricket, when the brand was launched.
JWT has clients from across all segments. In India, JWTs clients include big brands like
Van Heusen, Lifestyle, Vodafone, Levis, Kingfisher, Times Group, Nike etc.
Moreover, JWT has developed expertise in the field of Fashion and Luxury products over
the years and it is a known fact that in these segments, JWT has an edge over its
competitors. Thus, JWT can be located as shown below in the Porters Strategy Model.
Competitive Scope
Competitive Scope
Competitive Advantage
JWT
Competitive
Advantage
Fig
3: Strategy Adopted
by JWT
Knowledge Management at JWT
At JWT, there is a system by which the information regarding every campaign is shared
between the different centres on a regular basis. This is achieved through news mailers
that are sent periodically on a global basis. So, even though the individual work done at
each centre continues to be owned by that particular centre, it is seen to it that at details
of major campaigns are shared globally. Later on if any centre wants details about a
particular campaign, they contact the owners of that campaign to get the information.
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4. Culture
JWT has a very open culture, characterized by flexibility and a nominal hierarchy. The
employees never feel that they are in a workplace, and work is not a burden for them, but
an integral part of life.
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d. Rites of Integration
Regular team outings are a part of JWT culture. These outings are held once every
6 months (the last outing happened at Wayanad, Kerala), and serve as a good
platform to achieve greater team bonding. During these outings, teams also
discuss about campaigns, and such relaxed environment enhances their capability
to come up with more creative ideas.
Symbols
JWT Bangalore likes to emphasize their successful campaigns, Thus, one can see the
walls filled up with success stories of Kingfisher campaigns. They have also had their
company mission, what it stands for printed on the carpet in the receiving area for guests.
It says Better the work, the stronger our reputation, the more the opportunities to
grow.
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ideas. This gives them a heightened sense of empowerment and responsibility resulting in
greater performance. Moreover, the cubicles are open, giving the employees avenues to
communicate freely each other, resulting in greater trust and bonding between the
employees. This also emphasizes a culture of cooperation and collaboration, where in a
team can help other teams by leveraging its expertise in a particular sector.
The organization provides flexibility to its employees such as giving the creative people a
certain amount of freedom and relaxation from rigid rules. JWT employees are supposed
to be in office by 10 am. However this is not adhered to rigidly and some leeway is given.
The company also believes in recognizing individual talent. Cannes award, biggest award
for advertising, is held every year, and this year JWT got the best award for their
campaign of NakkaMukku for TOI Chennai. JWT rewarded the individual behind the
campaign, even though the award was given to the agency.
JWT also values its customers very highly and has an external focus as well. Being in the
advertising industry, it has to be more responsive of the changes in the market, and
devises strategies to tackle the complex changes prevalent in the environment. JWT
constantly explores new ideas to adapt to changing needs of customers as well as
changing technologies. It has successfully adapted to the introduction of online media as
an avenue for advertising.
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Identificatio
n Phase
Requiremen
ts
Collection
Clients
Developmen
t Phase
Generatin
g
Alternativ
es
Creati
ve
Team
Acct
Mgmt
Selection
Phase
Evaluating
Solutions
Implementi
ng
Selection
Creati
ve
Team
Acct
Mgmt
Acct
Planning
The decision making process at JWT gives an indication that an Incremental Decision
Process Model has evolved in the organization.
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5.2 Conflicts
The major source of conflicts is the high degree of task interdependence among the
different teams. As explained earlier, the account management team is constantly under
pressure from the clients in various businesses. However, the creativity team functions
best when it is given complete freedom to unleash its creativity and there are no pressures
or constraints. Conflicts also occur between the account planning team and creativity
while evaluating the generated alternatives.
The major issue with resolution of conflicts in this environment is the highly subjective
nature of work. There is no perfect solution to any problem and there is no well-defined
methodology to evaluate alternatives. Hence there is no way that rational process can be
followed to resolve conflicts. The method adopted by JWT is more of a political model
which involves participation of everyone. There is a great deal of discussions involved
during this process. In spite of all this if conflicts are still not resolved, then the onus is on
the heads of the respective teams to get involved and take a decision. At times, for major
campaigns, the General Manager of JWT takes the final decision.
However, one factor which plays an important role during such conflicts at JWT is the
highly informal atmosphere that is present between the employees. This results in free
flow of ideas and there are no restrictions or inhibitions among employees to come up
with their opinions. Also, the close interaction between the teams means that every team
has a good idea of the goals to be met and hence they all take an active part in resolution
of conflicts.
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6. Environment at JWT
JWT India, like other organizations, is impacted tremendously by the various sectors of
the external environment. However, being a creative organization, it is affected most by
human resources sector, market sector and the socio cultural sector. The following
analyses the impact of various sectors of the external environment on JWT.
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3. Industry sector
JWT Bangalore may not face competition from other JWT centres, but it has to
tackle the intense competition posed by other advertising agencies, and it does so
by focusing its energy on the sales pitch. For example, Nike had given their
international advertising campaign to Weiden+Kennedy, and when they were
planning to reinvent themselves in India, JWT aggressively put up a creative sales
pitch to weed out competition faced by Ogilvy & Mather and Weiden+Kennedy,
even though Weiden+Kennedy had a higher chance of getting it, being the global
advertising partner for Nike. This resulted in them getting the prestigious Nike
contract.
4. Government sector
The advertising agency has to keep in mind the constraints imposed by various
government regulations as well as the censor board. For example, Kingfisher is an
important client for JWT, but they cannot develop advertisements for Kingfisher
beer directly, because Government of India does not allow direct advertisements
for alcoholic products. Hence, the creative team has to develop surrogate
advertisements so as to establish a brand for Kingfisher. Such constraints limit the
creative potential, but the teams have to deliver their best output working under
such constraints.
5. Financial resources sector
Every organization needs financial resources to sustain itself and continue its
operations. The advertising companies, in particular, are being motivated to come
up with better campaigns, by tying their revenues with the sales of the product.
The ad agencies currently get fixed revenue for the campaigns that they develop,
but the clients feel that this does not give them enough incentive to prepare a
successful campaign, and they should be made stakeholders in the success of the
campaign.
Thus, the clients have devised a revenue structure which includes a variable pay
component, according to which companies pay the advertising firm a certain
percentage of revenue, depending on the success of the campaign. JWT has not
yet adopted this structure, because it feels that it may be unjust in certain
situations, wherein they may have come up with a brilliant campaign, but it still
Study of JWT India
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fails because the product itself does not click with the consumers. Hence, the
company may not get its fair share of revenue in spite of putting in so much hard
work for the campaign.
Environment Uncertainty
JWT interacts with a very heterogeneous environment, because its client base ranges
from airlines to apparels, to real estate. Thus, JWT has to devise campaigns keeping in
mind the customer base of each sector, as well as the marketing strategy of the client.
This leads to a very complex environment that JWT has to cope with.
Similarly, JWT faces a very unstable environment, in terms of the changing requirements
of the customers as well as changing strategies of its competitors.
Thus, JWT, like other advertising firms, faces a very complex and unstable environment.
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7. Control Mechanisms
Clan control
JWT primarily employs clan control to emphasize their beliefs and values to the
employees, and use them as a guiding force for their behaviour.
The following levers of control are employed by JWT to regulate the behaviour of
employees:
Diagnostic control: The employees of JWT are expected to come up with newer
ideas very frequently, and their appraisals are judged by the number and quality of
ideas generated by them. The company encourages competition by giving due
recognition to the employees whose campaigns wins awards for the company.
Moreover, a competition Creative Challenge is held every quarter to encourage
people to come up with more ideas, and this also becomes an important
consideration in their appraisal process.
Boundary systems: JWT has devised a code of conduct and employees are
expected to strictly adhere to it. One such example would be that employees have
to make sure that none of their work reflects discrimination of any kind.
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A prospector
Though JWT has been successful with its strategy of differentiation, of late competing
agencies have also started to focus on this strategy too. So, in future, JWT might not get
any significant advantage due to its unique strategy and will be more dependent on its
qualities of being a prospector and try to keep looking for innovations and new avenues
to expand their markets.
Creative managing
There is also an upcoming trend of the creative team staff to be directly in contact with
the clients. The clients themselves insist on someone from the creative department being
present. They feel that the presence of someone from the creative end would help in
better translation of client needs into innovative advertisement campaigns. This trend can
also been seen in countries such as UK and USA where advertising agencies have a
minimal account management department ( usually consisting of 1 or 2 employees) and
the clients directly interact with the creative team, JWT is also heading in that direction.
9. References
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www.jwt.com
http://en.wikipedia.org/wiki/JWT
http://www.youtube.com/watch?v=Mpvuz8gg79Q
http://www.youtube.com/watch?v=fEU_qyiQmYQ
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