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Here we are in the midst of the biggest economic downturn in decades. Sounds scary. But what does the economic climate mean for employment and hiring in the interactive and technology worlds? By now we all probably know at least one person who has been laid off, and many of you also must know the CEOs and company presidents who have to make some very tough calls. Are you one of these executives feeling the pressure now?
While the media reports detailing massive corporate layoffs probably concern or frighten you, maybe they shouldn’t. If you are talented, there’s plenty of room for you even in this job market — many companies are looking to upgrade their human capital and give smart people a bigger seat at the table.
Rather than offer another piece about how to survive this employment climate, I thought it would be helpful to reach out to a few industry leaders for their thoughts on the current market and employment. Here are perspectives from four different business leaders, in their own words, that should give you some guidance.
Thomas Charlton, CEO, Shunra
As we move into the second quarter of 2009, I see malaise as the major barrier in this economy. It’s creating an air of sluggish pessimism in the technology market; it is a slow stream of negativity that is holding us back. I believe in self-fulfilling prophesies to a certain extent, but by always seeing the glass half or completely empty, we are all overlooking new opportunities for hires and employment.
The decision to lay off good people is short-term and short-sighted — it is not a long-term strategy. However, it remains to be seen if layoffs will hurt the technology sector, especially where there is a surplus. The old adage — if you remove your hand from a bucket of water, it leaves no hole — is doubly true now.
But that’s not the end of the story, of course.
There are three elements that drive business in any industry — the marketplace, execution, and good products and/or services — and people are the drivers of these last two elements. While there are a number of factors that go into growing a successful company, success really is defined by the people who understand how to grow and scale your company.
During the course of my career as a CEO at three companies, I have learned that once my company is established, the single most important contribution I make is the team of people I bring to the organization. The common denominator in every one of my success stories has been the hiring and development of the best talent. Good leadership means making good hiring decisions. Assembling and enabling the right talent represents good decision making for any true business leader.
If you find yourself in the position of looking for another job, stay positive. People like me continually count on finding the best talent in the market. Keep in mind that your best bet is probably at a smaller company. Lots of good people who leave big companies find that a smaller company is just as secure, or even more secure, because they have more control over their work and a greater impact on the business. If that sounds like you, relax; this market represents an opportunity and an open door, not a pink slip.
Thomas Charlton is president and CEO of Shunra Software, a market leader in testing the performance and behavior of services across today’s complex global wireless networks.
Joseph Dumont, partner, Questus
My agency’s most valuable asset is its people. How many times have you heard that from a partner at a creative agency? Hundreds? But seriously, agencies are like nightclubs; they are only as cool as the people who go there — and we don’t pay celebutantes like Paris Hilton to show up. As pointed out by Wenda Harris Millard in her keynote at the IAB annual meeting in Orlando in February, in the last few years our industry has been hijacked by eggheads who are obsessed with metrics. While metrics can make up as much as 50 percent of an equation, you cannot forget about your creative — and creative means your people.
What does it mean to have a creative agency truly focused on its people? It means a healthy respect for your team’s diverse culture and interests. My agency has 40 people. We’ve been together for more than four years, and we’re all passionate about creative pursuits inside and outside of work. For example, I’m a big motorcycle enthusiast. Our head of creative is an artist and a DJ outside of work. Our account director is all about social media. We all make time to pursue our passions, and it informs our work. Our team is rooted in authenticity, and it’s something we look for in all our new hires.
It probably won’t surprise you then that we just became the interactive agency of record for Suzuki. But we landed the account predicated on cool campaigns that combined all of our passions.
One campaign was based in social media relevant to motorcycle enthusiasts, such as myself. Launched on MySpace, it combined new music and graffiti art. That’s how we won the business — by tapping into our teams’ creativity, diversity, and authenticity.
Despite the bad economy, I am really excited about the future of interactive advertising. We are seeing a return to old-school advertising where what matters most is the creative pitch, not a hyperbolized impression count. The best news for people worried about their job is that a return to traditional advertising principles means a return to valuing people and ideas, not spreadsheets. There is not a single member of our team we’d trade for a neat data set.
With tight advertising budgets and higher client turnover rates, bringing new people on board to staff a new project has risk. The key is to build a flexible, risk-tolerant agency, so that losing one client doesn’t cause a real negative ripple effect. It is better to over-extend for a short term project than endure the team downer caused by downsizing. On the other hand, it is a very good time for smaller agencies like mine to cherry pick some talent from the big dogs.
Surviving the economic downturn means agencies must keep it fun and authentic while building their team and business. Remember, it’s the positive energy that closes deals, and that energy is supplied by your agency people, not metrics.
Joseph Dumont is a partner at Questus. With his deep understanding of management, technology, and business methodology, Joseph plays a critical role in helping to realize the overall vision of the agency.
Larry Allen, president, Yieldex
Not surprisingly, this market is fallow ground for the entrepreneurs who are in the business of saving interactive advertising dollars. Moving any business to the next level, like anything else, is mostly about good timing and organizational readiness.
“As a new company, we know it will be an uphill road, and we’re all keenly aware that we’re just starting the process,” said Larry Allen. “However, we know we can make this economy work to our advantage. Just one part of our success is bringing on the right people.”
To create real value, a leader has to trust his team of talented business associates to penetrate the market, especially if this is a team that the executive had a hand in assembling. Having worked for someone who was extremely adept at this at two stops — Dave Morgan, at both Real Media and Tacoda — Allen knows well that surrounding yourself with good people is a far better idea than trying to do everything yourself. His passion and team dedication are admirable, and they’ve already demonstrated their value, as Yieldex has closed deals which have made headlines since its launch in early February.
Louis Ramery, SVP of relationship marketing, Sears
It is not just the smaller shops that are making the best of hiring in bad times. There are some big companies who treasure their top talent and who are reacting to the economy with clear, associate-focused, marketing strategies. Louis Ramery, SVP of relationship arketing at Sears Holdings, said, “At the end of the day, it is all about your talent. The associates and professionals that create customer-winning touch points. It is these interactions that keep anyone’s customers coming back, engaging, relationship building. It is hard to put a price on that.”
Conclusion
As the global marketplace suffers, we see many executives crawling under their desks, turning off the lights, and bracing for the worst while just hoping for the best. Yet in sharp contrast, decisive leaders, like Charlton, Dumont, Allen, and Ramery, are betting on their companies and the future. True leaders prize authenticity, value creative thinking, and nurture innovation while making the tough decisions.
Listening to and learning from winning talent, both at the top and within our own organizations, gives us the opportunity to understand the fragility of business while accepting how powerful and rewarding it is when you don’t think like the masses. The common character trait among these technology leaders is fascinating; it’s their “work to win” attitude that is the hallmark of their success. So take a page out of their book: Be a positive force within our rapidly changing environment and don’t get bogged down in the bad news.
If you are interested in finding top talent or you wish to provide feedback and/or comments, please contact Erika Weinstein, President at (212) 221-6333 or erikaw@stephenbradford.com.