Turmoil at Burnett

As the year began, Leo Burnett's newly installed management team figured 2001 would be a year of transition as the agency prepared to go public.They had no idea.A string of high-profile pitches that failed to convert, executive departures and uncertainty over the much-ballyhooed IPO's fate have left the $3 billion agency looking rudderless.The latest indication of instability came with the departure last week of U.S. CEO Brad Brinegar after just 10 months on the job. At the same time, in an effort to boost creative at headquarters, the shop imported Mark Tutssel from its London office to be the No. 2 U.S. creative.Sources said Brinegar's tenure was marked by a quiet power struggle with worldwide president Bob Bren nan, who is responsible for North America. "Bob's a strong-willed guy. [Brad's] a strong-willed guy," said one executive. "It was not made clear who was in charge of the U.S."Said one insider, "No one can tell who's on top from one day to the next."Brennan had begun implementing his vision for the agency's direction. That bumped up against Brinegar's duties, said Linda Wolf, Burnett worldwide CEO, attributing the problems to a case of "too many cooks." "There was too much overlap there—it didn't make sense," she said. "It is as simple as that."Brinegar added only that in addition to "overlaps that created con fusion," there were "philosophical differences" among top management.Brennan, Brinegar and chief creative officer Cheryl Berman all took their positions at the start of the year. Wolf, who had just moved into her role, put Brinegar in the CEO's post, sources said. Brennan was brought over from Starcom MediaVest Group by Bcom3 CEO Roger Haupt.From the start, there was confusion over who had ultimate control over the agency, sources said. "The biggest problem was a whole bunch of people in new roles and nobody coaching them," one insider said. "The team was not set up for success."The agency's most notable failure has been its inability to make the finals in several high-profile reviews this year: AT&T Wireless ($400 million); BellSouth ($120 million); Boeing ($70 million); and Michelin ($60 million).New business is just one area the agency has had trouble capitalizing on. Berman said the shop has not made the most of its creative op tions. "We want to make sure every opportunity isn't a missed opportun ity," she said of Tutssel's hire. "I think that's what Mark is going to help us do."As deputy chief creative officer, Tutssel sits between Berman and the agency's 11 ecds, though not all will report to him. Berman said she went outside the U.S. because none of the ecds were "exactly the right fit" for the post. Some sources said Tutssel was brought in at the suggestion of worldwide creative officer Michael Conrad, who was not available for comment.Tutssel is expected to smooth the relationship between Berman and some of the creative staff. But while some say she has a reputation for being controlling and opinionated, Berman has strong ties to some ecds and cli ents. Brennan is also said to be pleased with her handling of client meetings. Tutssel will also be expected to re invigorate Burnett's reel, which has not been well regarded, sources said, by the Global Product Committee that reviews the creative product from all Burnett offices.With Brinegar gone, Brennan would now seem poised to solidify control of the agency, sources said. "One strong leadership voice will make a big difference," said an in sider. "When we've worked together, we've won new business hand over fist. When we haven't, we've struggled."

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Turmoil at Burnett

Aaron Baar

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Aaron Baar