|Mohican not obligatory|
For the past four years, I've run a London PR internship programme for a US university. In the past, it has often taken around six months to secure suitable internships for 15 or so MA students. But 2014 saw a marked increase in demand and they were snapped up in around three months, in fact I unearthed more great opportunities than I had interns. Hurrah!
But it occurred to me, who exactly is going to manage these bright young things and what will happen if we don't?
Should I Stay or Should I Go?
The present generation of account directors (ADs) grew up in the equivalent of war-time rationing, working with reduced client budgets, non-existent internal budgets and being forced to adopt a recession-based management style: cautious, risk averse and desperate to keep the account at all costs. Sounds like fun don't it? Is it any wonder that agency ADs are moving in-house, looking for a saner, more stable environment, one that’s more conducive to seeing let alone raising a family? And with today’s trend for bulking up the corporate comms team set to continue in-house is only too glad to hire them.
So not the ADs then.
We all know ‘a good account manager is hard to find,’ as Fergal Sharkey once meant to say, but these days they are rare beasties indeed. In fact anyone with two to five years’ experience is hard to find in any industry. Thanks to the recession we have skipped a hiring generation. Not only that, but for many years, training, development and general people investment have all been corners that were first to be cut. So those few who were recruited and managed to survive and thrive, were tough self-starters. Not necessarily the types to want to micro-manage or molly-coddle junior talent, they are much more likely to have their eyes on the prize of filling in an AD role.
So not the AMs then.
MEANWHILE: The PR business contributes £9.62bn to the UK economy, with agency revenues doubling in the last ten years - but what about the profits? It’s generally recognised that a healthy agency wants to be looking at a 15 - 20% margin, but the last figure I saw said in 2013, agencies was averaging around 10.6%. The cause was due to our fear of putting up our rates, and over-servicing reaching an industry average of 20%. In an effort to hang on to the account at all costs, over-worked and over-wrought ADs and thinly spread AMs have been giving away one hour in every five, just to keep everyone (apart from the CFO) ‘happy’.
So do we want to pass this working model to the newbies, now the dark days are receding?
So could this be a recipe for Change?
· A thin upper and middle management layer with little time for micro management, structure and process.
· A business model that’s been coerced into giving it away.
All The Young Punks
With a coincidental lack of hands on management, and so ample opportunity to enjoy the natural freedom they need to experiment and take a few risks, will this new wave of PR Punks be the ones to make us proud, a bt loud and profitable once more?
A modified version of this article and without all The Clash references, first appeared in PR Moment on 9th September 2014.