Publicis Groupe Switzerland: Times of change

m&k: Alexander Haldemann, do you still remember the Conversation we had three and a half years ago when you took up your post as CEO of Publicis Groupe Switzerland?

Dr. Alexander Haldemann: Yes - we were sitting on Lake Zurich, not far from our offices here at Bellevue, freezing. I guess the outside temperature was about thirty degrees lower than it is today (laughs).

 

That's right. You told me back then that you didn't want to be an "announcement world champion" - you wanted to be measured by results. So let's talk about results now: Where will Publicis Groupe Switzerland be in the late summer of 2024?

It's great that we're starting with such a simple - and short - question (laughs). No, seriously, you guessed it: I have to expand on that. Before our meeting today, I was thinking about the past three and a half years; about the goals we have set ourselves and the milestones our team has achieved. There are overarching issues that we have tackled and there are very specific projects, Hirings or acquisitions that we have been able to make - should we look at these separately so that we don't get confused?

 

I always welcome proactive thinking during interviews, so: Yes, gladly!

The overarching topics certainly include the changes in our culture, the resulting creation of greater synergies and then also the opening up of our company in practical terms - i.e. in terms of the working environment - and also beyond language and international thought barriers.

"Two things are particularly important for our culture: trust and entrepreneurship."

 

Let's break it down: It starts with culture, right?

Yes, absolutely. Two things are particularly important for our culture: trust and entrepreneurship. Trust is important because we focus on what we have in common and deliberately do not pursue a "top-down policy", but work together as equals. Entrepreneurship means that we allow ourselves to be measured by the results mentioned above. To do this, our agencies must have the freedom to act entrepreneurially and set their own goals. At the same time, we know that we are stronger together. If we trust each other, then we want to work together. Then our claim "Power of One" is more than just a nice headline. The working environment here at Stadelhoferstrasse 25 illustrates this: people meet, people get together spontaneously. Customers, partners and guests drop by to chat - and then stay longer. Everything is in flux. And that's how it should be.

 

You also mentioned overcoming language and international thinking barriers. What do you mean by that?

This is a very important topic. On the one hand, we have two locations in Switzerland: Zurich and Lausanne. We have a great team in Lausanne with almost 80 colleagues from 24 countries. I like that. At the same time, I keep noticing how differently the advertising market works in French-speaking Switzerland. Since this year, we have established a management team for the whole of Switzerland - the joint organization is starting to bear fruit. It's great to see how we are overcoming cultural divides, how the teams are working together and how we are learning from each other. It's fun and creates real benefits for our customers. And then there are the international thought barriers ... Switzerland is sometimes very "Swiss", don't you think?

"It's nice to see how we overcome divides (...) and learn from each other."

 

That depends on how you define the term.

I think our industry - and I explicitly include us in this - has made itself quite comfortable within its "own four walls". I don't want to criticize anyone for this, it's just something that strikes me. Especially when you travel to Asia or the USA and meet people who have an international perspective, you realize that "cutting edge" ideas are currently not primarily being developed in Zurich, but in San Francisco, Seoul or Beijing. I find this status quo unsatisfactory. I am concerned with how we can bring exceptional, excellent brand work, I mean the real "top of the top", to Switzerland.

 

And what is your answer?

As Publicis Groupe, we have an advantage because we are present in all hot spots and therefore have direct access to trends, best practices and, ultimately, talent. We therefore need to consciously leave our comfortable four walls much more often and tap into the global creative potential of our Group. To do this, we need people who think outside the box and enjoy engaging in discourse across cultural boundaries. Again, this requires the aforementioned trust. And this is also the common thread behind the various personnel changes we have recently made. To give a concrete example, we were able to recruit Jason Romeyko as global ECD for our client UBS - with over 500 awards, he is one of the most frequently honored creatives in recent history. Romeyko is Australian, has worked almost everywhere in the world and speaks seven languages. He is an enrichment for Publicis Groupe, but probably also for the entire Swiss creative scene.

"'Cutting edge' ideas are currently not primarily being developed in Zurich, but in San Francisco, Seoul or Beijing."

 

Hand on heart: are all these changes, adjustments and conversions already having a positive impact on the figures? Or are you currently adding to them in terms of investments?

In parallel to all the things I have described to you, we have worked hard on our economic success - on growth and profitability. This is where the economist in me comes through, because I am convinced that change and economic success must go hand in hand. One strengthens the other and vice versa. In short, we have grown year on year over the last three years - organically, not including acquisitions.

 

You joined Publicis Groupe from MetaDesign after you had completed the integration of the agency. You are still the global chairman of MetaDesign and worked there for more than a decade before your time at Publicis. How do your jobs at the two companies differ?

At MetaDesign - just like today at Publicis Groupe - I have always seen myself as an entrepreneur in a creative company. Nothing has changed in that respect. The difference is that we had a manageable size at MetaDesign - six locations and around 300 employees. At the same time, the context was very focused. MetaDesign develops brands - we are world class at this, but we deliberately don't go any further. At Publicis Groupe, I am integrated into structures that are much larger - this creates new, global opportunities. What I like about my current role is that we have the entire range of communication tools at our disposal: from brand management to communication, media, production, data and technology. Bringing the disciplines together to form a larger whole is appealing. Communication has become complex for our customers. We have the opportunity to solve this. That's a nice challenge. But again - at its core, the work is the same: I want the team and the customers to have fun and for us to make things happen together - then I'm happy.

"I am convinced that change and economic success go hand in hand."

 

Publicis Groupe Switzerland is the largest communications group in Switzerland. Does this give you a "claim to leadership" - and if so, how will you assert it?

"Claim to leadership" sounds like a kind of ... yes, I would say brashness, which is not our style. At the same time, I understand what you mean. A leading position in the market is also associated with the expectation of setting trends in the industry and beyond. Over the past few years, we have been working intensively on what our aspirations are - and how we want to develop further with our customers in mind. The future belongs to those who keep positioning themselves correctly for the future. I am convinced of that. In order to achieve this goal, we have taken a great deal into our own hands over the past year - not to say turned it on its head. Culture, organization, brand portfolio, talent, managers - in fact, we have initiated a real upheaval. Now comes the phase of new beginnings. And this will ... it must be characterized by speed, courage and momentum.

 

Will this "claim to leadership" - mea culpa, I'll just stick with the term - help you to attract new talent?

Successful agencies recruit non-stop. New talent is a prerequisite for further development. We currently have 15 vacancies in Switzerland. I believe that the size of our Group is not in itself an argument for working with us. However, I can also see that we are on the right track when it comes to recruiting and promoting young talent. I suspect this has a lot to do with the changed culture in the company: I see that trainees and younger colleagues spend a lot of time here, even though they could be working from home. I see how they learn from their experienced colleagues and how they pass on their knowledge. Take Bagels of Berkeley, for example, our social agency, which has developed really well over the past two years. These are all young colleagues who have fun - and aren't afraid to take on responsibility. It is precisely this spirit that should make us attractive to talented people. But this has to grow step by step - there are no quick shortcuts.

 

But a certain modesty is sometimes good for the Group, isn't it? You got a lot of respect for the way you said goodbye to your major client Swiss - after you lost a pitch and their mandate. You even congratulated the pitch winners from thjnk! To my recollection, this kind of behavior is unprecedented in the industry.

Let's be clear about this: The loss of Swiss has hurt a lot. As an agency, we worked really well with our colleagues at Swiss for almost 15 years and achieved a lot together. It was also painful for me personally. I travel a lot - both professionally and privately. Swiss was and still is "my" airline. I now have to deal with the fact that communication is in the hands of another agency. I'm learning to live with it (laughs). Nevertheless, everyone always talks about the successful "onboarding" of customers, but here I am particularly proud of our "offboarding".

"Let's be clear about this: The loss of Swiss has hurt a lot."

 

Why are "stylish offboardings" such a rarity?

Rivalry between agencies is a big issue - and if you let it get too big, the frustration of losing a pitch is sometimes so strong that you don't want to talk to either the - then former - clients or the market competitors who have prevailed. Of course, if you work in our industry and are not competitive at all, then you also have a problem. But I would like to see a sporty, competitive attitude where you can pull yourself together every now and then and say: "Yes, this is crap, but we did our best. Let's try again." You can't always win - and you can't put up imaginary walls out of fear of your competitors. What's more, false ambition eats away at you at some point and turns inwards. This damages the quality of your work and, above all, yourself.

 

Since you yourself have initiated a discussion "beyond Switzerland", let's talk about the current success of Publicis Groupe: shortly before our interview, your global CEO, Arthur Sadoun, presented excellent quarterly figures - Publicis' own forecast even had to be revised upwards. Where does this momentum come from?

I'm not objective - although I haven't been involved in the global management of our Group for that long, I already feel very close to Publicis. So everything I say is far less unbiased than what external analysts would tell you. After this disclaimer, however, I am happy to give you my assessment: I think the strategy we are pursuing is absolutely right. First and foremost are the customers. I have rarely come across a global company that so consistently reflects the claim of being close to its customers in the organization and exemplifies this attitude at all levels. At the same time, we work with a good balance: Paris doesn't impose anything on us in the markets that doesn't suit us - but sets the direction in which we all go. Furthermore, we made huge investments in technology, AI and data-driven communication very early on, which our market competitors either don't want to make ... or can't make. This bet on the future gives us an advantage today.

"Now we can talk about what we've done - and talk about what's to come."

 

"Being close to the client" sounds quite ... promotional, if we're honest. How does it become more than, forgive me, an empty phrase?

Through empathy. By listening carefully to our customers, understanding their market and the competition and really understanding how we can move the brand forward. I don't want us to pitch for brands that our teams aren't passionate about - we probably won't win the pitches anyway, and if we do, it will be a pain for everyone involved. With genuine enthusiasm for the brand, for its challenges, also comes the "feeling of involvement": We rejoice with the customers, we suffer with the customers.

 

Do you look after large customers personally?

"Supporting" is a strong word - I would be doing my colleagues an injustice if I were to say that across the board. However, I am very happy to get involved when I can make a contribution. On the one hand, these are clients with whom I have been working for a long time or where I can contribute my specific experience - topics such as brand positioning, portfolio management or mergers & acquisitions. I like to work "hands-on" and solve specific tasks. This also gives me the opportunity to keep an eye on the reality of our customers. Of course, you would now have to ask the clients whether I live up to this claim (laughs).

 

Let's summarize once again - introduced by your own quote from earlier: The phase of upheaval is over, now comes the phase of new beginnings. What will it look like?

You're forcing me to become "announcement world champion" after all! But fine - for once: In my mind, we are showing greatness in the phase of new beginnings, and in more ways than one. We are demonstrating what the "Power of One" can achieve for our customers through the frictionless interaction of our agencies. To do this, we use the global clout of our organization, the power of the entire Publicis Group. We have the people we want in the key positions, with a view that transcends cultural and linguistic boundaries. We will realize strong work - work that breaks new ground in marketing transformation and where I am also pleased when one or the other in the industry says: "I wouldn't have thought you could do that!" Finally, as we began our conversation, we are succeeding in further strengthening our culture. We are creating an environment that is based on trust, promotes entrepreneurship and encourages the spirit of our young talent. I know that I have turned down some interviews with you because ...

 

... for personal reasons (laughs)?

... no, because we still had too many things directly ahead of us - and you always persistently ask about our future. The upheaval was not yet complete and we had to concentrate on the tasks ahead. But now we can tell you about the things we have done - and talk about the things that are still to come. The foundations have been laid. Now we are building on it.

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Dr. Alexander Haldemann is CEO of Publicis Groupe Switzerland. Prior to that, he was CEO and owner of the branding agency MetaDesign in Switzerland and the USA. Dr. Haldemann is a lecturer at the University of St. Gallen (HSG).

 

This article first appeared in the m&k print edition 8-9/2024.