6 Months, 11 Australian CEO Exits. Nothing “Will Be Quite The Same Again”

Michael Rebelo has been with Publicis Groupe for 25 years, and CEO of the holdco across Australia and New Zealand for the past seven. Six months ago, he was a member of a concentrated but sturdy group of long-tenured peers who had been in their jobs, or at their agencies, for decades: the likes of Andrew Little, Paul Bradbury, Sally Kissane, and Les Timar.

Now, just eight months into the year, Michael has become the last remaining CEO of a major agency group to boast a 20+ year tenure. 

Dentsu ANZ CEO Patricio De Matteis became the most recent CEO to step down from their post this week, replaced by New Zealand CEO Rob Harvey.

Omnicom is experiencing the most significant change, as Nick Garrett looks to transform the business as CEO of the newly-formed Omnicom Oceania. All three creative agencies have been impacted by leadership shifts. DDB’s regional leader Andrew Little’s departure was announced in March, ending his 25-year tenure. Paul Bradbury resigned as TBWA\AUNZ CEO after a 20 year run. And Clemenger’s merger with CHEP and Traffik triggered a series of moves, starting with Lee Leggett’s appointment as CEO and Dani Bassil’s exit, and followed by group CEO Les Timar’s departure after 27 years with the company, and chair Robert Morgan stepping down after 46 years.

Last month, CEO Nathan Birch left Interbrand (an Omnicom branding consultancy housed within DDB in Australia) after eight years. OMG boss Peter Horgan also left earlier this year after two decades.

At WPP, 30-year Ogilvy stalwart Sally Kissane exited, as did AKQA APAC CEO Brian Vella. And at Havas, Virginia Hyland’s departure led to James Wright – who has been with Havas since 2013 – being promoted to CEO ANZ across the group.

Beyond the holdcos, Dani Bassil resurfaced at M+C Saatchi and Justin Graham left as APAC CEO after 12 years, following ex-AUNZ CEO Michael McEwan’s jump to Droga5 Melbourne.

Accenture Song's leadership switch-up came last year, when Mark Green moved to the US to become Droga5’s global CEO, and Bronwyn van der Merwe and Matt Michael stepped up.

Not including Peter Horgan, whose resignation was announced last year, or chair Robert Morgan, that’s 11 CEO exits since February. BMF boss Stephen McArdle, who has been with the business for almost 14 years, told LBB, “It's a big moment, I don't think anything will be quite the same again.

“That sounds scary, but attached to all of these things there's opportunity, there's a level of excitement in terms of what you can do with that. But at the moment, and I don't know how long it will be for, there’s a real disruption and it feels like a bit of a shakedown.”

AI Driving Top-End Change: “Maybe Some Organisations Weren't Really Ready”

Stephen has been CEO for five of his 14 years at BMF. He said whilst “there is always a bit of a cycle” with the way the industry operates, the current wave of people moves “definitely feels like it's a bigger thing this time around.”

Citing recent advances in technology, particularly the introduction of AI and the speed with which agencies have adopted it, he said the financial impacts of such significant advancements are “probably kicking in” around now.

“Particularly at the big network end of town, they've had significant amounts of money to invest in that technology over the course of the last 18 months to two years. They've come to the point where they've got proprietary … technology, but they go, ‘Well, I've spent a lot of money on that, how do I monetise that technology?’

“Then you come to the pointy end, and the only way to monetise that is to help manage the cost base. That does disrupt things, and there's unfortunate side effects and collateral damage in terms of people. That also hits the top end, because that's how you can make the savings you might need at the bottom end.”

Michael also brought up AI as a driving factor, although told LBB Publicis Groupe’s “biggest change in transformation is behind us, we're now really, really looking forward.

“We believed that there was change ahead for the industry, and we decided to really develop our own strategy to make sure that we were ready for the future.

“But I would certainly say just as an observer out there, that there's a lot of change happening. Maybe some organisations weren't really ready for this change, and hadn't really developed their own view on the world and their strategy to set them up for short and long term success.”

The long term impacts of the current turbulence are significant “in terms of losing some of that amazing experience,” Stephen said, but also for those still rising through the ranks. He asked, “Who's going to be the next generation for the industry?”

The movement isn’t restricted to the CEO chair. There’s been almost as much change in local creative leadership; TBWA’s Evan Roberts is setting up his own shop and Matt Keon replaced him; Gavin Macleod and Ben Coulson left CHEP and Dentsu, respectively; Robbie Brammall has gone to Bullfrog; and Stephen de Wolf is departing BMF, ending the biggest creative search of the year by choosing to return to Clemenger. Amidst it all, a small group of respected creative leaders have stepped up to the CCO plate: Tara Ford’s move to London created an opportunity for Barbara Humphries to join Damon Stapleton as co-CCO across AUNZ, and Emma Robbins is now M+C’s Melbourne CCO.  

Reinvention or Restructure? Agencies Need “The Right Type Of Leader”

Advertising has had to perpetually reinvent itself. Michael said while “tenure is really important to create stability, it's got to be the right type of tenure and the right type of leader.”

Globally, Publicis Groupe has had just three CEOs in almost 100 years – Marcel Bleustein-Blanchet, Maurice Lévy, and now Arthur Sadoun. With the company getting ready to mark its centenary next year, Michael added, “Three CEOs in 100 years is an incredible amount of tenure and an incredible amount of stability.”

“From my experience, when you are reinventing from a position of stability, it's really about your burning ambitions,” he said. 

“If you are doing it from a position of instability, it's really a restructure. It's not really reinvention.”

In an industry that puts a “high premium” on novelty and originality, Stephen said those qualities “coexist in the context of stability of people and leadership.”

“When you've got a solid team, that creates the right environment for creativity. Because ultimately, creativity is the key thing that allows us to thrive and break new ground, and do all of that reinvention.”

A leader’s relationship with their team isn’t the only factor to consider. It’s an oft-cited statistic that a CMO’s average tenure is three years, and there has been a raft of recent marketing boss changes (and resulting agency roster changes) at big brands like McDonald’s, Westpac and Vodafone.

As Stephen pointed out, “With change at the client end, often there is change at the agency end as well.

“That's also why stability and consistency is important. If you're always jumping around as a brand, or as anybody, it's very hard to build trust, build relationships, and build all those things that are really, really important.”

Culture’s “Not Just On The Back Of The Toilet Door”

What keeps senior leaders in a business for the long haul? It’s rarely just about the work, and there’s no single formula for retention – but culture and clarity of purpose are recurring themes.

“It ends up being the people,” said Stephen. “There’s the work, yes, but also, it really is the people. People come and go to a degree, but we're lucky in that we have retained lots and lots of wonderful people.”

Connection isn’t built in a vacuum, and an agency’s purpose and values have to be actively cultivated. “You’re living it and feeling it, it’s not just on the back of the toilet door,” Stephen laughed. 

“When I first arrived, there were six words on there, and I could still never remember more than three of them. They were probably ones that you would be able to guess – curious, passionate, and some other stuff – but that’s where they lived, on the toilet door. We've definitely put a ton of time and effort into that not being the case.”

Michael believes long-term leadership hinges on a belief in the mission, the people, and the impact of the work – although he admitted, “I don't think there's necessarily a silver bullet” to keeping leaders locked down.

“From my perspective, what keeps those leaders motivated, inspired, and moving towards our vision is having a purpose that they all believe in ... that they can see will provide value to their clients and their people.”

A shared vision is especially critical at the top of the leadership ladder, where talented execs are highly sought after. “When you're talking to CEOs and MDs, they really want to believe that is going to be an environment where they can do their best work, and that they can be really competitive, and they can do great things for clients,” said Michael.

“When you're talking about the top end of the leadership pyramid, that's really important. These types of talent can go and work anywhere, so you've got to really make sure you've got somewhere they believe is going to allow them to be at their best.”

In the market the industry is currently grappling with, a sense of belief becomes even more essential. “People are looking at companies that can help them navigate the change that's ahead of them,” Publicis’ local leader said. “You're kind of going, ‘Wow, is my career safer here? Or is change going to be a higher risk for me?’”

“Why Should Anyone Be Led By You?”

A series of high-profile exits could be accompanied by the next generation of CEOs stepping into the role for the first time. For those about to take up the mantle, Michael said the key is “still being a student and being really curious.” 

Leaders need to “really be experimental, and really wanting to learn these things, because it's not going to happen through osmosis – particularly with where the industry is going.”

Michael, who also serves as the chair of industry body Advertising Council Australia, added leaders should always be asking one simple question: ‘Why should anyone be led by you?’

“If you don't know the answer to that, I think you really need to find that out. That's something you should continually ask yourself as a leader. I think it helps you remain humble, authentic, and keeps your moral compass, because it's tough being a leader today.

“The asks of leadership, the resilience required, the areas of subject matter and expertise you need to be well versed on – not just at a skim-reading level, but having a real depth of knowledge on. Whether it's about sustainability, technology, AI, industry changes, regulation and compliance, it's really important to be abreast of all of that. There's a lot happening for leaders to get their head around, in addition to driving the business.”

Stephen noted those who are promoted to CEO have proven themselves to be great leaders and strategic thinkers, but said it’s important to remember “those classic skills you've got come down to deeply caring about the business you're running and the client partners you have.

“Never lose focus on those core things that got you there.”

What Changes, What Endures

“I've been in this industry for something like 27 years, and I’m still as excited about it today as I was when I first started,” said Michael. “But it's not for the faint hearted, that's for sure.”

Despite the recent upheaval, the power of a great idea continues to be the industry’s north star. “When people engage and are inspired and motivated or influenced by a great idea, that will never go out of fashion. That's why this is such a great business to be part of,” he added.

“We are a resilient industry. We have survived a lot of different shifts within the wider business environment, whether that's driven through technology, whether it's through economic factors, whether through pandemics, the industry has come out of it. Sometimes better for it, sometimes just learning a lot.”

Stephen laughed, “When I started in advertising in 1997, you could still smoke in the offices.” Despite what’s changed since then, he agreed, “We're all eternal optimists in this business.

“My favorite saying is ‘triumph and disaster, meet those two imposters just the same’ from Rudyard Kipling's poem [‘If—’]. That hasn't changed in our industry in the 20 odd years I've been in [it] – there's wonderful moments, and then there are tough times. Enjoy the good times, and [keep your] head down and deal with the tougher times. It all balances out in the end.”