“Pivot Points: Five Decisions Every Successful Leader Must Make” by Julia Tang Peters (John Wiley & Sons, $25).
Tang Peters uses in-depth interviews of five successful leaders to show that the trajectory of a career depends on five pivotal decisions: 1. Launching point — the commitment to master specialized skills and do more than your job. 2. Turning point — seizing an opportunity that takes you out of your comfort zone and often creates a new direction. 3. Tipping point — a leap of faith in oneself that involves taking a significant risk. 4. Recommitment point — reviewing and renewing one’s sense of purpose in the context of what’s next. 5. Letting go point — the emotionally-challenging decision of moving on “at a time of strength so that others can carry on the work.”
Here’s how the pivot points worked with Bud Frankel, founder and former chairman of Frankel & Co., which grew from a sales-promotion agency into a marketing-services powerhouse. Launching point: At 32, five sales bosses and five jobs convinced him that he no longer wanted to be an employee. Instead of just sales-promotion tchotchkes, he saw an opportunity to build marketing partnerships with clients based upon a thorough understanding of a client’s customers and operations.
Turning point: With 10 years of agency growth behind him, he abandoned the industry billing practice of marking up production and media costs to cover the cost of talent. He believed that showcasing creative talent created the foundation for real marketing partnerships, and shifted to a fee-for-service billing model. The move catapulted the firm into marketing its expertise as “professional services” — like those of accountants and lawyers.
It was not an easy choice because clients were used to not having to pay agencies for “pitch ideas.” Frankel turned down work to stay true to the idea of aligning an agency’s revenue and financial management model with that of client-marketing partnerships.
Tipping point: From 1962 until 1981, the agency operated as a partnership, Abelson-Frankel. In the early years, the partners, Marv Abelson and Frankel operated as “us.” Things began to change as creative ideas diverged. Employees chose sides; the partnership ineffectively operated as two agencies competing for resources. Tired of competitive disagreements that hampered service delivery, Frankel bought out Abelson who was able to take his clients with him, as well as “his” people.
The move was about establishing one team, with one vision and one leader. It was up to Frankel to provide leadership. He took a more active role in working with clients and practiced management by walking around to stay in touch with employees.
Recommitment point: Frankel saw a way to change his business model to one that was even more client-centric. The firm could coordinate the work of numerous agencies working with a client. This would allow clients to have a clear, consistent brand message throughout the marketplace.
Easier said than done. The firm didn’t have the money to do it; its newly-formed digital marketing area was burning cash. Frankel looked at possible acquisitions and found culture clashes. He turned his attention to an IPO. This triggered clashes between Frankel and the executive committee; shareholders worried about dilution of their equity. Someone, something had to give.
Letting go point — The investment adviser Frankel employed came to the conclusion that an IPO wouldn’t raise enough money to do what Frankel intended, and that the issue of dealing with the executive committee would be difficult even if the money was there. Selling the firm became the alternative. In 2000, Frankel & Co. was purchased by Publicis Groupe.
Jim Pawlak is a nationally syndicated book reviewer.
