Organizational culture is part and parcel of an agency’s brand essence. Mark Kruger VP The medical advertising industry in the United States is comprised of agencies of all sizes, including mid-sized independent agencies and large publicly owned agency networks. Predicting an ownership structure’s effects on organizational culture is an ambiguous endeavor. No studies have yet examined the relationship of agency ownership structure to its culture. But, an organizational culture that promotes high performance is one of the best indicators for sustained business success. Organizational experts correlate culture with the type of leadership, communication, and group dynamics in a company. In turn, these elements are shaped and influenced by management philosophy, values, vision, and goals — the key drivers of organizational culture. When combined, the final outcome of all of these elements is the operating agency framework that directs the allocation of the firm’s resources and drives behavior, individual satisfaction, as well as personal growth and development. Culture is a powerful medium of business management. Its purpose is to build better relationships and pathways to achieve the firm’s human and organizational objectives. Large network medical agencies and mid-sized independent agencies have their own types of culture, and both business models effectively align organizational behavior with their unique goals. There are differences between the overriding goal-related behaviors of each agency model and how their respective orientation affects employees’ perception of the job experience and quality of work life. Culture Each model has a unique set of beliefs, customs, knowledge, and practices that influence behavior. In large publicly owned agencies, leadership orientation often is influenced by the monetary commitment to the parent organization. This obligation to external management establishes a secondary set of “rules,” and the impact this may have on local culture can be viewed at times as a blessing or a curse. In mid-sized independent agencies, the entrepreneurial focus tends to produce a more organic culture and flat hierarchy. The owner’s entrepreneurial attitude is communicated to the employees daily. This attitude permeates the organization, and the individuals within it assume an entrepreneurial approach to job performance. Leadership In all agencies, leadership values and behaviors define the organizational culture. The goal of leadership in large publicly owned agencies is to align the enterprise to satisfy the financial obligations of the parent. Success often is measured by performance results that deliver profitable, year-on-year growth. As opposed to an outward orientation, the leadership focus in mid-sized independent agencies is on creating internal stability and innovation. As entrepreneurs, the employees take personal responsibility and are highly invested in the financial health and well-being of the company. Group Dynamics Cultural dynamics are ultimately a reflection of management’s influence on group dynamics in any agency. The cultural dynamics in large publicly owned agencies are more top-down and stratified. This layered management can sometimes foster an “us-vs-them” culture. In mid-sized independent agencies, the cultural dynamics tend to be driven more from the bottom up, with employees having a shared vision and a need for more teamwork. With fewer resources, management and employees survive by demanding more of themselves and each other. There’s less of an “us-vs-them” mentality because of the prevailing sense that all members of the organization are interdependent; either we all succeed cooperatively or we all fail. Organizational Implications The emergence of culture as a major aspect of management has profound organizational implications. Agencies of all sizes, stripes, and colors can put their organizational beliefs into practice to achieve a satisfying, fun, and inspired work environment. In a large publicly owned agency, there may be more opportunity for employees to specialize and to really hone their skills, which can be very satisfying. In addition, large agencies provide greater lateral opportunities across a broader mix of accounts. The mid-sized agency model may empower individuals to diversify and exercise their full range of talents rather than remain insulated and compartmentalized. Executives from large agencies are voicing their concern about the potential flight of senior talent to smaller, entrepreneurial agencies, in search of a culture that will enhance their job experience and enable them to more closely connect with clients who allow them to do their best creative work. In the final analysis, organizational culture is part and parcel of an agency’s brand essence. Donahoe Purohit Miller, Chicago, is a full-service, independent healthcare advertising agency. For more information, visit dpmadvert.com. March 2005 VIEW on Advertising

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