“In the era of networked media you’re going to become a functionally integrated brand or a commodity.” So posited R/GA’s Chief Growth Officer, Barry Wacksman, on stage at the Palais this afternoon.
In a seminar that was two parts organizational economics, one part magic, Wacksman and R/GA Chairman and CEO, Bob Greenberg, urged agencies to take on a more active role with their clients across functions.
In the 20th century, companies—and the agencies that work with them—grew mostly through horizontal integration (think Coca-Cola with its 500 products) and, in some industries, by vertical integration (Exxon being the obvious example). Today—the R/GA leaders told a packed house of marketers and agencies—you have to be functionally integrated.
“Apple’s users derive more value from it’s products because they are functionally integrated,” said Wacksman. In other words, the whole is greater than the sum of is parts when you’re in the world of networked media.
As an audience member remarked to me, “What’s great about this is that it’s R/GA saying it. And they’re actually doing it.”
Greenberg is a true believer in deliberate re-invention: R/GA’s existence is thought of in nine-year intervals, the next of which comes in 2013 and is already planned. Here are a few tips for those looking to functionally integrate:
Seek out diverse talent: When going global, understand that each office need not meet every client demand: Each office has its own unique sets of skills, but they should by numerous and complement the whole. And don’t hire anyone abroad who wouldn’t get hired at your company’s headquarters.
Be in client services, not “client services:” The most successful agencies will be the ones who help solve all a client’s business challenges—not just their branding or media ones.
Take advantage of technology: All R/GA’s international offices have video conferencing and the latest communications tools to help teams work together across regions.
Don’t rest on your laurels: If there was one lesson to take away from this session, it was an implicit one: You can do some of the best work in an industry, but you still need to embrace change. Greenberg and Wacksman are disciplined and dogged in their efforts to be the best agency not just for today, but for tomorrow.

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