How Three Texas Agencies Grew Out of The Richards Group

Last October, one offensive comment in Texas shook the advertising world, but also brought a trio of new agencies to the landscape. News of The Richards Group founder Stan Richards making racist comments about a Motel 6 campaign—calling it "too Black"—sparked a client exodus, including the departure of H-E-B, Home Depot and Motel 6 itself. Suddenly, an award-winning North Texas legacy agency was marred by scandal, and The Richards Group parted with 15% of its employees. While The Richards Group is now rehiring and claims its financial condition is "strong," its losses last year fueled growth opportunities for three new creative shops in North Texas: Baker & Bonner Creative Emporium, Plot Twist Creativity and Trace Element. Partners at each agency share a unique origin story, but they all left for the same reason: It was time. To Forge Its DEI Future, The Richards Group Partners With Leading Firm A twist of fate Co-founders and partners of Plot Twist Creativity, Dave Kroencke (L) and Christopher Smith (R) Dave Kroencke and Christopher Smith, partners at Plot Twist Creativity, credit encouragement from the shop's first client for inspiring the agency's launch. Grocery chain H-E-B, owner of Central Market and Favor Delivery, asked for a meeting with their creative team following news of Richards' comments. It was an encounter which would change their lives. "As things began to fall apart, my first thought was 'Where do we go from here?'," said Smith. "It was the client that convinced us.. They shared H-E-B would follow wherever [our] team went." H-E-B wanted to work with an independent agency for a fresh perspective on creativity, sparking the founders' decision to form Plot Twist Creativity. As they put it, the plot twist to their career story started that day. "There was such a commitment to the craft, great work, client success and treating others with respect," said Kroencke. "No convincing was required. They didn't just want to stay with Chris and me; they wanted to work with our entire team." Because of this stroke of fortune, Plot Twist Creativity opened with Central Market, Favor Delivery and H-E-B accounts. "We were an agency overnight," Smith said. "They were incredibly supportive... telling us, 'We hope nothing changes but the email address.'" Baking from scratch Co-founders and Partners of Baker & Bonner Creative Emporium, Jimmy Bonner (L) and Rob Baker (R) In the case of Baker & Bonner Creative Emporium, the genesis for the company—helmed by partners Rob Baker and Jimmy Bonner—was a little different. "It was Stan who asked us to consider becoming a new creative agency," Baked said, explaining that when Baker and Bonner's creative group created Ram Trucks' 2013 Super Bowl ad, "God Made a Farmer," Richards knew the two creative leaders were capable of branching out on their own. It wasn't until seven years later that the founders finally decided to start their own venture. "We have started from scratch, which has been our play since the beginning," Baker said. "We have been able to stick to our vision. We are pouring the wet cement. We are still afraid and nervous, even when we get an assignment, but that's what you can expect if you love this business—that feeds the machine." The founders are applying an entrepreneurial sprit to build a new creative powerhouse in the area, using lessons gleaned from their time at The Richards Group. "There is more energy focused on creativity in this state than any other, which is bringing out people to offer things differently," Rob said. "There is a pool of brilliant and fun people to fill exciting new jobs. And some business-minded people dare smaller agencies to take an idea and flush it all the way through to make a reality." Stan Richards’ Crisis Put a Spotlight on His Polarizing Way of Running an Agency With a Trace Co-founders and partners of Trace Element, Lindsay Phaup (L) and Jeff Barfoot (R) The third agency to grow out of The Richards Groups' crisis is Trace Element, helmed by Jeff Barfoot and Lindsey Phaup. As with Baker & Bonner, the founders had considered starting their own venture for years. Like Plot Twist Creativity, the shop emerged out of existing client relationships, in this case with AT&T and the Andrews Distribution Company. Barfoot and Phaup were responsible for the branding and creativity of AT&T's diversity and inclusion initiatives for the past five years—a relationship leading them to believe they could leave The Richards Group and start their own agency. "We wanted to be sure we could make this happen," Phaup said. "Then, we reached out to people who could help us do this thing. We realized these wonderful contacts were built from trust. This effort came down to who we were as people, not where we worked." In addition to serving the clients that came over to Trace Element and earning other brands organically, the partners have time reserved each month for pro-bono accounts. "I keep thinking it's easy in this industry to get to the end of your career and wonder what you did with it," said Barfoot. "I want it to be more. We love our clients and want them to succeed, but we can use our talents to help other organizations who can't afford to spend on identity and campaigns." All three agencies born out of last year's fallout from the Richards' debacle were made acutely aware of the importance of agency culture. "When one person runs a culture, it is hard to self-reflect," Barfoot said. "As a team, partners can reflect together on what needs to be changed and updated. You must take a stand. Agencies can't be Switzerland anymore. We want to have an impact in the world." When Brands Should Shut Up; The Richards Group’s DEI Future: Thursday’s First Things First