New Ogilvy CFO: Industry's Obsession with Price and Cost Efficiency a "Spiral to Nowhere"

It’s been an extremely disruptive year for holding companies and network agencies - between volatile share prices, uncertainties in the global markets and hefty investments in AI. Juggling the need for both efficiency and growth in an environment riddled with uncertainties is no mean feat - particularly at a global level. And so Ann Garreaud joins Ogilvy - as global chief financial officer, no less - at an interesting time for both the network and the industry at large.

From Ann’s perspective, the key to steering a path through all of this is to make sure that you’ve got a solid grasp of the basics. “It is a delicate balance to be sure. It is important not to lose focus on delivering on the basics brilliantly for our clients,” she says. “From a finance perspective, we need to ensure our model, structure, and internal costs align with that objective. We are focused on enhancing our ways of working to ensure we are delivering in the most efficient way without compromising excellence. Growth, ultimately, comes from this solid foundation.”

Ann is a CFO who understands the power of creativity to make a real financial impact. She points to a stat from WPP brand analytic platform BAV that differentiated brands grow 2.5 x faster and deliver stronger shareholder return.

“When it comes to the commercial side of my role, we know that our clients continue to face a range of pressures around the world, and we need to continuously remind the market of the value creativity brings to their businesses. It is what helps clients drive differentiation, fostering customer loyalty and giving them the ability to price at a more premium level – all things that are critical to a brand's long-term success,” she says. “Brands that allow erosion of differentiation are leaving money on the table, and no client wants that outcome.”

When it comes to differentiated brands, Ogilvy is walking the walk. Indeed that’s one of the reasons Ann was so attracted to the role.

“I have been in the industry for my entire career, and I have watched storied agency networks be merged, broken apart, or simply disappear. Ogilvy still stands strong. It is a creative powerhouse that delivers both excellence and effectiveness for its clients, with a strong leadership team and with a truly connected global network. Ogilvy is also unique in that we can service clients with a range of capabilities but can also offer different ways of engaging with a client given we have a several boutique agencies in the network such as DAVID, INGO, NCA, thjnk, and others. It gives us flexibility. That has great appeal to me as I believe we are uniquely positioned to bring a range of connected solutions to our clients to drive their brands and businesses forward.”

The fact that she’s joining a female-led global leadership team, under the stewardship of CEO Devika Bulchandani was also a big plus. “Great leadership is very important, the fact that Ogilvy has amazing women in so many critical roles is a plus. There is an underlying kindred spirit among women leaders. Although the journey to reach senior leadership may be different, we are united by the commonality of the challenges.”

One thing she is really clear in her role as CFO is the importance of driving value for clients, rather than solely focusing on cost. Ann recently came from a role in Publicis Groupe’s global client practice, where she was EVP of global client finance and business solutions, and that experience has given her valuable insight.

“The industry has become obsessed with price and efficiency in cost,” says Ann. “This is a spiral to nowhere, neither for the agencies nor, more importantly, the client’s business objectives. Having spent the last seven years in a client focused role, the focus was on how to chip away at that thinking and change the conversation. Clients need connected solutions that will drive their business objectives. Compensation models need to build from those objectives with a greater focus on outcomes.”

For her first six weeks in the role, Ann has been ‘mostly listening with a fresh set of eyes and ears’ as she connects with her colleagues across the Ogilvy network. Her message is one of evolution and simplification, to ensure that the Ogilvy model keeps up with the changes happening out in the market. “My message is simple; we need to evolve and simplify our model to keep pace with the changes around us, focus on the costs and metrics we can control and to find ways to engage with clients in different ways with respect to the value our teams bring to their business.”