MPG Looks to Fix N.A. CEO's Missteps

When Shaun Holliday first arrived at Havas' MPG as CEO of North America in January 2009, he likened the media agency business to "wizardry," according to sources.But during his 15-month tenure as head of the agency, which ended with his resignation last month, Holliday -- who had no prior experience at a creative or media agency -- displayed little magic in his dealings with clients or employees, or when it came to winning new business. On April 30, MPG confirmed that Maria Luisa Francoli, who retains her role as the agency's global CEO, has replaced him. A native South African brought to the firm by European headhunter Egon Zehnder International, Holliday did make a few things disappear. These included close to 100 jobs; summer hours (a traditional perk in the industry); and a portion of the vacation time that many staff members had accrued up to the point of his arrival. Staffers also found the mandatory 8:30 a.m. start time he imposed less than enchanting, given the long hours already put in by most employees."It was the wrong message, especially when you're starting out," said an agency source of the work-related policies Holliday put in place early in his reign. Holliday did not return a call for comment. Francoli, however, defended those moves, saying they had to be done in response to the recession and that Holliday brought to the shop "a strong focus on profitability, organization and collaboration across divisions. It's a very good legacy." She noted, however, that the shop is reinstituting summer hours on Fridays.A significant amount of client business also vanished under Holliday's watch, including Reckitt Benckiser North America ($500 million in billings), Boehringer Ingelheim ($200 million), Schering-Plough ($90 million) and CBS Films, which sources said could grow to $100 million this year. On the plus side, MPG did win the $125 million LVMH assignment for the U.S. last June and retained the $100 million-plus U.S. Danone account in October.But losses outweighed wins and Holliday didn't help matters with the way he interacted with the MPG team and clients, sources said. "There was an arrogance to his approach," said a colleague. "His view was, 'You agency people don't know how to run businesses, so I'm going to show you how to fix this thing and turn it around.'"Unfortunately, he wasn't terribly good at reaching out to clients. "He saw maybe a handful of clients once," said a senior executive who worked with Holliday. Ironically, agency consultants said the shop was on the right track under Holliday's predecessor, Charlie Rutman, who, as agreed in his contract, moved to a senior advisory role at MPG upon Holliday's arrival. The agency was in a slump before Rutman arrived in April 2005 and he succeed in reeling in a number of accounts including Sears Holdings ($700 million in billings), Danone, Spriva ($110 million), Carnival Cruise Lines ($75 million) and ExxonMobil ($70 million).That said, while Holliday's reign is seen as a setback by many, MPG overall is in good shape, consultants said. The shop's biggest challenge is to fill the leadership void in North America. "I think they're a very strong agency overall," said one consultant. "As a global network, they have a reputation for punching above their weight," a credit to Francoli's leadership, the source added. "The U.S. has always been their big challenge." Some industry watchers doubt that having Francoli, who relocated to New York from Spain in 2007, do double duty is the right long-term solution. "They need a dedicated, experienced U.S. leader," said one consultant. "Somebody who knows the market well and who can spell out a differentiating position for the agency, prove it works by winning a big piece of business and move forward."Francoli also said winning business will be a priority, as is circulating with clients to ensure they're happy and well-serviced, something she's credited with doing on the global level. Asked if assuming the dual role is the best solution, Francoli said, "I wish I knew. ... It will probably not be forever, but for awhile I'm happy doing this." And she noted that she's been very involved in North American activities since moving here. "I like this market and the team here. It's a market that's full of opportunity," she said.Francoli added that, at the global level, "I have a team that's been growing and taking more responsibility since I moved here and that will continue."Even critics said that Havas, by putting Francoli at the helm, has taken the right first step in North America. "To their credit, in their own circuitous way, they admitted their mistake," said a former MPGer of Holliday's departure. "And that's important."

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MPG Looks to Fix N.A. CEO's Missteps

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