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Ogilvy & Mather Has Trouble in Paradise

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HONOLULU, HAWAII - Martin Schiller, former gm of Ogilvy & Mather here, left the agency to set up his own shop, taking some $9 million in billings and about 14 Ogilvy staffers with him.
Schiller, who is now operating as The Schiller Group, said he made the move after an attempt to buy back the shop from Ogilvy failed. He said he did not have a contract with Ogilvy to prevent him from contacting clients once he had left the shop. 'I did not talk to clients while I was there,' he said.
New Schiller Group clients include various Castle & Cooke real estate projects; the Island of Lanai; Hyatt Resorts Hawaii and F.W. Woolworth.
Meanwhile Ogilvy moved quickly to shore up the shop. Graham Phillips, vice chairman and former ceo, flew here, and last week appointed three co-managing directors. Archie Thornton, who is returning to O&M after a stint launching his own tropical clothing business, assumes responsibility for the creative group, administration and promotional activities. Frank Haas, who is also a former O&M executive, will handle marketing planning and strategy, research and media. Phil Kinnicutt was assigned account services as well as O&M's pr unit.
The appointment of Haas helped win the the TheoDavies Food Service Group, which operates Pizza Hut and Taco Bell in Hawaii and Guam. Haas was formerly vp/director of marketing for that company. Ogilvy also retains Hawaiian Airlines, Polynesian Cultural Center, the Waikiki Oahu Visitor's Association and Sea-Land Service, with estimated billings of $12 million.
Thornton declined comment on billings and said he was unable to comment on events prior to his appointment. He explained the new management team as a better way to structure the agency.
'We believe the agency of the future can't be built on the old, vertical structures,' Thornton said. 'We think accounts should be handled on a team basis with much better use of technology.'
Copyright Adweek L.P. (1993)