The Partnership Is Just First Step

IPG's creation of a new global network called The Partnership is part of an overarching plan by CEO John Dooner to consolidate the holding company's operations into four main business lines, sources said last week. In addition to The Partnership, there will be WorldGroup, Allied Communications Group and expected IPG newcomer FCB. Allied will be renamed Advanced Marketing Services Group to better describe its wide array of offerings, sources said. Currently, IPG has seven core units, including McCann WorldGroup, The Lowe Group, Initiative Media, Draft Worldwide and Allied. As part of the reorganization, including the creation of The Partnership, some stand-alone agency networks will relocate to new divisions. For example, Draft Worldwide, a unit of IPG, will migrate to The Partnership to anchor a division or "corridor" dedicated to direct and relationship marketing [Adweek, May 21]. Since the restructuring was revealed last week, several more details have come to light. For instance, the group led by Lowe Lintas & Partners and newly installed CEO Jerry Judge will also oversee Lowe Healthcare and promotions shop Zipatoni, while the Draft group will likely house Lowe Live, a relationship marketing unit. To hash out such details, agency executives huddled with top IPG brass last Thursday in what was described as a lengthy strategy session. Another meeting is scheduled for later this week. It is believed that issues regarding reporting lines, in particular whether Partnership CEO David Bell reports to chairman Frank Lowe or Dooner, have been the stickiest. As it stands now, Bell will report directly to Dooner. As designed, The Partnership mirrors the WorldGroup in terms of composition and structure, with global ad agencies anchoring each. As one source put it, "McCann will be to WorldGroup what Lowe is to the Partnership." The idea behind The Partnership is to preserve the independence of the non-network, entrepreneurial shops while aligning them with greater resources. "They're interdependent but independent," said one executive. Perhaps summing up that sentiment, as well as the constantly changing nature of the plans, was Mike Hughes, president and creative director of The Martin Agency, which reports via Lowe. "There have been some possibilities thrown out. We have an invitation to sit and talk, but we're not being pushed," Hughes said. "Frank [Lowe] said if we still want to report directly to him, that's fine." Others said the Martin Agency will be encouraged to join the advertising-services group led by Donny Deutsch. Hughes noted that the realignment does not necessarily mean a combination of agency operations. "We worry about the misperceptions that go around," he said. "The idea that the Martin Agency may become a division of some agency is nonsense. What we've always wanted and what IPG has always delivered is incredible independence." The renamed Allied will retain most of its properties and continue to be run by CEO Larry Weber, according to sources. Current properties include Weber Shandwick, Jack Morton (events), Golin/Harris (PR) and Kaleidoscope (sports/entertainment). Golin/Harris will likely shift to The Partnership. Sources indicated that specialty units of True North-which IPG is in the process of acquiring-may find a new home under Advanced Marketing. The $2.3 billion TN deal will close in late June. While downplaying talk of a restructuring at WorldGroup, sources acknowledged that the list of agencies under McCann's purview will grow. For one, Campbell-Ewald, which reports through Lowe, will move under McCann, which also handles General Motors. Hill, Holliday, Connors, Cosmopulos, whose CEO, Jack Connors, balked at joining a group within the Partnership, is said to have been mollified by an offer to report through McCann. TN's Temerlin McClain will also join the McCann fray. Acknowledging the value of grouping agency brands, shop executives nonetheless are proceeding cautiously, if only to smooth over the appearance of client conflicts. "Details are being hammered out," one source said, adding, "Conflict resolutions have to be worked out before these agencies are put under any corridor." Another question yet to be resolved is the number of media brands IPG will ultimately have and how to use them. The company is looking at ways for all of its agencies to take advantage of its media buying clout, either through its two major brands-The Partnership's Initiative Media and WorldGroup's Universal McCann-or some other scenario. Where does that leave TN Media? Some said it will be aligned with FCB to support IPG's "third agency network," or its buying function could be incorporated into The Partnership. However, it's likely to remain separate for now, said one source, who, when asked about whether TN Media will be folded into another brand, said, "That's phase two."

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The Partnership Is Just First Step

Andrew McMains

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