This post is by Steve Cody from Rep Man
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I’m impressed by the actions of Fallon, Olson Engage and Initiative to step up, stand out and fire their client Papa John’s in the aftermath of the N-word controversy. Skeptics could argue that, by firing Papa John’s, each agency will now attract new, and more reputable, clients as a result. One could also surmise such a move will motivate existing employees to stay put while attracting recruits with a desire to work for an agency with ethics. Perhaps. But I can tell you as an owner of a 22-year-old firm, it’s very tough to walk away from guaranteed billings. Very tough indeed. Setting aside higher purpose for a moment, the owners of Fallon, Olson Engage and Initiative also have a payroll to meet. And, that’s when an entrepreneur has to stop and think about the implications of firing a quasi blue-chip client like Papa John’s. Sure, your Millennials will love
their peers you did the right thing, and they work for an agency that places ethics above profits. And, in your mind, you HAVE done the right thing. But then your CFO strolls into your office and says, “I truly respect your decision to deep-six Papa John’s, but it’s put us in a real bind. We either reconsider or reduce our workforce by 10 percent or put an indefinite freeze on raises and bonuses.” And that, my friend, is why it’s so lonely at the top. I’ve fired quite a few clients during my tenure as Peppercomm’s CEO. But, none were a result of what I’d call a societal crisis a la Papa John’s N word debacle. I’ve deep-sixed clients because: – They were beyond abusive to our account teams (I’d rather keep good people than uncouth clients). – They poached a key employee without first extending the courtesy of asking my permission (a clear breach of ANY client-agency letter of agreement). – They were actively interviewing other agencies while we were under contract and none the wiser to their Machiavellian machinations. – They demanded too much for too little. Having the spine to fire a client sends a strong message to one’s employees and reinforces the organization’s higher purpose. But, it’s a decision that carries serious financial implications as well (which I doubt the average account manager appreciates). Firing Papa John’s would have been a no-brainer for me (regardless of the billings). It’s the gray areas that keep turning what little hair I have left even grayer.