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Advertising's running out of fuel while we're checking the undercarriage

"United Airlines 173, descend and maintain 8000 feet" was the instruction from Portland air control to the passenger jet for approach to Runway 28.

The first officer (chap in the right-hand seat) called for flaps and then gear. The two green lights for the main wheels failed to illuminate. The captain (chap in the left-hand seat) then focused all his attention on getting those lights to flash green, which would indicate that the undercarriage was down and locked. He tried for one hour and three minutes to rectify the situation, which was most unfortunate, as he only had one hour and two minutes of fuel. The flight engineer, a flight attendant and eight passengers were killed and 23 seriously injured. The captain and crew of United Airlines 173 had developed a mindset in which all their attention was concentrated on the one thing they knew they must get right - the lights for the landing gear - irrespective of all the other considerations, including a far more important issue - fuel.

This tragic scenario has been rigorously studied, and has exposed the lethal nature of a condition called 'set', the very same thing that can make ad agencies fall out the sky.

Sometimes advertising agencies also face two green lights that might be shimmering, or not shining at all: revenue and profit. Looking within, the agency sees that they are not being paid enough for their intellectual capital. They are not being paid for their IDEAS. Attention is then focused on getting paid for ideas, neglecting the bigger picture of why they are paid at all - for providing value.

People do not get paid for having ideas (I known there's concept fee, but that's no great shakes) - people are paid for providing value in the form of solutions. That's what clients want - they want help to make sure their two green lights are always on. Agencies have the extensive skills, knowledge, experience and imagination (which the consultants don't have) to provide a wider array of solutions for clients, beyond just the words and pictures of ads.

Agencies need to extend themselves and stop focusing on the value of their ideas, but on the value of their solutions. These are exciting times for agencies where they have the opportunity to broaden their role as partners. This is no longer theory, I have been involved in numerous initiatives for clients, including distribution chain management in the financial industry, in-store staff optimisation in the retail furniture trade and numerous implementation projects that require that special ingredient: responsibility.

It would be a sad indictment if the advertising fraternity missed this opportunity, just as it was when the problem with Flight 173 was discovered - a burned-out light bulb.

Ten tips for expanding your revenue base with high-margin activities

1. You will be doing something you've never done before, so you'll be scared - get over it.
2. Show the client a face they have not seen before. Preferably mine. They won't think that they now have to pay for something they did not have to pay for before.
3. Don't quote per hour unless they ask you to break it down. Try and get them to see the ROI as opposed to the expense.
4. Make them understand that you are not about advice, and that if anything goes awry, you will be there to solve the problem. You are about getting things done.
5. Phone the client often and communicate via email with irritating frequency.
6. Never share a problem without a solution (which you will implement and control).
7. Don't charge for the small stuff.
8. You are not going to get rich by being paid for ideas. I know we get paid for concept, but that's what's probably causing half the problems.
9. If you don't know the client's business then don't expect to be paid for anything other than advertising. All businesses are quite simple if you take the trouble to get to know them, so don't think anything is beyond your ability.
10. Just do it - you will not get consensus internally, especially those who's 'set' is so strongly focused on getting rewarded for their extensive intellectual capital. You know who I mean.

About Sid Peimer

Sid Peimer Dip Pharm MBA (UCT) is an incorrigible Strategic Planner of dubious origin, trusted by brands such as Nestle, Mr Delivery, House & Home, SABMIller, Liberty and Iscor. Contact him now - 082 659 9167. .
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