Insights Gained from Working in and with Advertising Agencies
In an insightful discussion, a former CEO, who now leads a 96-year-old business with deep family roots, shared their unique perspective on the advantages and disadvantages of working in both holding companies and independent businesses. Having served as the CEO of Havas Media Group U.K., the speaker began their career in media planning for P&G and evolved across nearly every domain.
The CEO's tenure in the holding company world honed their commercial edge and resilience. They learned the importance of value, scale, and prioritization discipline in the fast-paced environment. However, they also criticized the centralized control, complexity, and short-term pressures that often come with holding companies.
Organizational efficiency is a significant advantage of working in a holding company. Holding companies manage multiple subsidiaries under one legal entity, simplifying ownership and potentially easing the sale of parts of the business later on. Shared assets can be retained advantageously under the holding company.
On the other hand, independent companies offer greater strategic freedom and agility. The former CEO appreciated the autonomy and flexibility that an independent setting provided, leading to a leaner, more agile organization focused on outsized outcomes. They also noted a stronger long-term focus in independent companies, with a greater emphasis on sustaining client service, nurturing talent, and adapting culturally.
Despite the advantages, independent companies may face greater challenges in scaling and have fewer resources compared to holding companies. They may lack the organizational efficiencies and resource scale of holding companies.
The CEO found an independent business that matched their new mindset at Goodway Group. In this new role, they immersed themselves in industry commentary and built strong relationships, which helped develop a public voice. They see their time at Havas Media Group U.K. as the best training ground they could have asked for.
The speaker's practice wouldn't have lasted two years in a holding company. They gained a deep appreciation for alignment, but also learned how alignment could put the brakes on agility in the holding company world. Goodway Group has streamlined growth by pursuing what they're equipped to win, rather than pitching indiscriminately.
In summary, the former CEO highlighted the structured discipline, scale, and integration benefits of a holding company but criticized its centralized control, complexity, and short-term pressures. In contrast, independent companies provide greater strategic freedom, agility, and long-term focus but may lack the organizational efficiencies and resource scale of holding companies. A company doesn't last nearly a century by accident; it's achieved by serving both clients and talent exceptionally well and by constantly adapting while maintaining the cultural magic that has brought the company this far.
- The CEO's experience in the finance industry, specifically at Havas Media Group U.K., honed their commercial edge and resilience, teaching them the importance of value, scale, and prioritization discipline in the fast-paced environment.
- Transitioning to an independent business like Goodway Group, the former CEO found a setting that aligned with their new mindset, allowing them to develop a public voice and build strong relationships within the fintech and business industries.
- In assessing the advantages and disadvantages of both holding companies and independent businesses, the CEO discovered that while holding companies offer organizational efficiencies and resource scale, independent companies provide greater strategic freedom, agility, and a stronger long-term focus, which can lead to sustained success and growth in their respective industries.
