Business case: People First

1. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com People First 4am Saatchi & Saatchi | Business Strategy Development | 2016-2017 The advertising industry is in flux. In Guatemala, competition and substitutes are rising rapidly, commoditizing the creative and production landscape. Big companies work with global networks while mid-to-small businesses don’t have large budgets to invest in strategic development, creative and media. 4am Saatchi & Saatchi is a privately held company in Guatemala, operates under Saatchi & Saatchi proven agency model. However, the 41-year-old company has suffered a lot of transformations during the years. These changes responded to the fluctiating market needs and strategies fluxed from media buying (2000) to creative performance (2011) to digital business disruption (2013). Although these strategies are successful, none of them prove long-term sustainability. Now the agency faces brutal disruption because of emerging internet technologies, performance-based fees and ever growing skeptical firms that see advertising as an expense and treat agencies a “another” switchable service provider not prepared for the 21st century challenges of digital marketing, e-commerce, Big Data and Artificial Intelligence.

2. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com COMPETITIVE LANDSCAPE The creative industry has faced many transformations along history. Media transformations and technological developments disrupt the industry every once in a while. However since the dot.com boom, the advertising industry has taken turns in faster ways than ever before. Creative humans are not enough. Machine intelligence and interconnectedness are redefining and reshaping the face of what the creative industry looks like. Although we don’t find any scholar document that exhibits the creative industry evolution in Guatemala, it is visibile that local agencies are aligning to big agencies and network processes and workstyles. For example, Publicis has changed from a muti-agency offer, to a connecting needs company as stated in their “Power of One” focus, where they don’t see themselves as a service company but as a solutions company, integrating their multiple agencies and subdivisions into clients and consumer needs. Shackleton added current technological trends to their value proposition, integrating big data through Shackleton Datalytics, using data to generate value for their clients. DDB, another key player in Guatemala, has also made big adjustments to their worksylte, blurring the lines between business units by integrating digital along their creative offer. EXHIBIT 1. COMPETITIVE LANDSCAPE Focal Firm Performance Metrics Capabilities Objectives/Values Strategy DDB Agency of the Year Effies Awards 2017. Research, Strategic, Creative, and digital development. Create products, services and experiences across all touchpoints. Integrate data, business intelligence, insights, research, innovation and creativity BBDO Agency of the Year Effies Awards 2015. Strategic, Creative develpment. UNKNOWN The work, the work, the work. Ogilvy Most effective agency Effies Awards 2016. Research, Strategic, Creative, and digital development. UNKNOWN UNKNOWN

3. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com STRATEGIC ROADMAP In a world of accelerated change, strategy cannot be formulated by top management alone. So, in order to accelerate and involve key players, I conducted the strategic development along 4 main areas: A. Internal Stakeholders Assesment. B. Strategic Formulation. C. Strategic Analysis. D. Strategic Implementation. A. Internal Stakeholders Assesment. Change is not welcomed easily and most people don’t understand why we need to change. So, before developing any strategy, I needed to establish the level of resistance and cynicism the company would face towards strategy implementation. Is the ground fertile for change? How many roadblocks will we find and what is their nature? Who are the primary stakeholders that will help us or block our way? To answer these questions, I developed an online anonymous survey where agency employees could select their level of identification with the statements presented. I conducted in-depth interviews with Business Unit Directors and High-Performance Personeel to identify major pains and gains. The hypothesis tested positive: Levels of cynisms among employees is high. Old employees have grown skeptical to transformation strategies. Since the agency had been through lots of unexplained changes in structure, unexplained lay-offs, fear and uncertainty has taken place over employees spirit. Most employees don’t feel they can grow leading younger employees to “use” the agency as a training room and leave for bigger agencies within a year.

4. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com EXHIBIT 2. GLOBAL RESULTS: INTERNAL STAKEHOLDER’S ASSESMENT  EXHIBIT 3. SYNTHESIS OF FINDINGS 

5. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com B. Strategic Formulation Stakeholders Assesment. Working in a creative industry, I had to understand that the main capital is human and understanding the central-american culture and background, forcing a strategy on them would not be the right approach. After the Human Experience Assessment, I conducted weekly Design Thinking sessions ﬁrst with the CEO and then integrating A-team players and outside advisors. The main goals for this Design Thinking sessions were: 1. Avoid tunnel vision. 2. Open space for candid conversation 3. Empower people to own the solutions. Among the solutions people found was the need for integration. Teams recognized they were working in silos, processes were unclear and there was duplication of labour. Teams found that there were misunderstandings about common industry terms and confussion about the kind of services and the quality level it was expected from clients. Using storytelling and visual representations in the War Room helped everybody understand what the main goal was and the direction the company is heading. EXHIBIT 4. DESIGN THINKING SESSIONS WITH CEO AND KEY STAKEHOLDERS STRUCTURE REVISION VALUE PROPOSITION BRAINSTORMING DATA ANALYSIS INTEGRATION OPEN DATA PROJECT WORKFLOW

6. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com DIGITAL TRANSFORMATION REFRAMING DIGITAL MEDIA MAPPING DIGITAL = CX = UX SILOS REAKDOWN PROCESS DESIGN INTEGRATED COMMUNICATIONS SCENARIOS INSIGHTS BUSINESS UNIT DEFINITION COMMUNITY MANAGER CAREER RE-DESIGN

7. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com EXHIBIT 5. BUSINESS STRATEGY DEFINITION  The Business Strategy was then translated to a Capabilities Framework establishing 4 main capabilities to develop: 1. Disruptive Insights: build an Insights Unit whose the main focus is to gather data and analytics for strategy development. 2. Thought Leadership: leverage the creative team into strategic thinking. 3. Thriving Implementation: integrate digital knowledge into the production workﬂow to consolidate teams and facilitate economies of scale. 4. Sustainable Initiatives: leverage clients data to oﬀer innovative products and services beyond advertising and media buying. Become a consultant agency.

8. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com EXHIBIT 6. CAPABILITIES-DRIVEN STRATEGY NEED the client needs: DISRUPTIVE INSIGHTS THOUGHT LEADERSHIP SUSTAINABLE INITIATIVES THRIVING IMPLEMENTATION PURPOSE we exist to understand reality in ways no one has done it before. inspire and lead teams into innovative, actionable ideas. create sustainable entrepreneurial solutions. implement ideas outstandingly. DESCRIPTION what do we do? • prepare for and conduct field/desk research. • collect stories and inspiration from people. • analyze existing data the client, the agency or the media department has. • move from concrete to abstract thinking to identify themes and opportunities. • translate what you’ve learned from people into frameworks, opportunities, solutions, and prototypes. • produce ventures/business solutions through rapid revenue and cost modeling, capability assessment, and implementation planning. • produce agency solutions though experience journeys, sensorial impact, and contextual media planning. GOALS what do we achieve? • define who to talk to. • gain empathy. • capture stories. • make sense of data. • identify patterns. • define opportunities. • create solutions. • identify required capabilities. • create models for sustainability. • develop innovation pipelines. • pilot plans. • measure impact. • move ideas toward implementation. OUTCOME what do we deliver? • peoples’ stories. • observations of reality. • understanding of needs, barriers and constraints. • opportunities. • solutions. • strategies • prototypes. • feasibility assesment. • viability assesment. • innovation pipeline. • implementation plan. • learning plan. PROCESSES how do we work? discover • identify a human, brand, business, industry challenge. • research plan, schedule. • recognize existing knowledge. • identify people to speak with. • choose research methods: - individual interview. - group interview. - context immersion. - self-documentation. - comunity-driven discovery. - expert interviews. - new-places inspiration. • interview approach. • mindset developing: - observation. - interpretation. - trend mapping. ideate • approach development: - co-creation workshop. - empathic workshop. - tribe thinking workshop. - parallel thinking workshop. - lovemarks. • share stories. • identify patterns: - key insights extraction. - themes finding. - p.o.i.n.t. technique (problems, obstacles, insights, needs, themes) • create areas of opportunity. • brainstorm new solutions. • concept development. • prototyping. • gather feeback. prototype • develop sustainable revenue models. • identify capabilities required for delivering solutions. • plan a pipeline of solutions. • create an implementation timeline. • plan mini-pilots & iteration. • learning plan: - indicators tracking. - outcomes evaluation. develop • strategic debrief sessions. • creative process and techniques (TO BE DEFINED BY CREATIVE, ACCOUNTS & MEDIA TEAM) PEOPLE what are the skills needed to do the job? • intuition. • curiosity. • intelligence. • cleverness. • insight. • storytelling. • cross-pollination. • inventiveness. • entrepreneurship. • creativity. • mastery. • creativity. • talent.

9. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com SYSTEMS/ TECH what systems/ tech are needed to do the job? • research methods: - traditional. - online: listening, social. - experimental. - desk. • recruitment • software licensing • cloud storage. • reports licensing: - saatchiconnect: euromonitor. • equipment: - video recorder. - audio recorder. • legal - release forms. • methodologies: - xploring. - ethnography. • frameworks: - human-centered design. - consumer pathways. - empathy map. • methodologies: - environmental analysis. - competitors landscape. - firm capabilities. - actos map/stakeholders. - brand analysis. • trends: - trends radar. - trends canvas. - blending trends. - industry re-application. - global brain. • strategic frameworks: - eat big fish. - blue ocean strategy. - business springboard. - diagnostic check-up. - value activation plan. - brand springboard. - influence dashboard. - 6 thinking hats. - archetypes. - oiic. • tools & methodologies: - human-centered design. - business model canvas. - capablities assesment. - finance modeling - lovemarks. - venn diagrams. - process maps. - relational maps. - mini-pilot worksheet. • concept dev. tools: - oiic. - creative brief. - creative prototyping. - influence brief. - brand architecture. • tools & methods. - btl - digital - media - planning - creative ALINGMENT & SUSTAINABILI TY how do we make it work efficiently for the long run? • develop research unit: - field research. - experimental. - online listening. - social insights. • centralize knowledge base: - desk research reports. - media analytics reports. • licensed software: - media usage and habits. - EGM. - online listening. • subscribe to leader research agencies reports and whitepapers: - research agencies (nielsen, comscore, gallup, mckinsey) - technology (mit tech review, wired, steelcase, accenture) • centralize cuali/cuanti research providers list. • ally with traditional research companies. • bundle research design, strategic offers. • map and profile current agency clients’ consumers to identify business opportunities. • translate global studies into local studies. - women - students - gen z • learn to apply methodologies. • access to canvas templates. • measure strategic impact. • gather feedback among teams. • align internal teams around client/communications needs/strategy. • create synergy among business units: - agency: creative, production. - media: trad/digital. - experience: btl/digital. - technology. - route to market. • develop leadership: senior cross-unit coaching sessions. • develop talent: - accounts: from orders to planning. - media: from atl to digital. - creative: from campaigns to ideas. - design: from print to ux. • develop creative culture. • define success mark-ups. - involvement. team work - creativitiy. innovation. - agility. responsiveness. - satisfaction. NEED the client needs: DISRUPTIVE INSIGHTS THOUGHT LEADERSHIP SUSTAINABLE INITIATIVES THRIVING IMPLEMENTATION PURPOSE we exist to understand reality in ways no one has done it before. inspire and lead teams into innovative, actionable ideas. create sustainable entrepreneurial solutions. implement ideas outstandingly.

10. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com EXHIBIT 7. BUSINESS UNITS 

11. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com C. Strategy Analysis The strategic framework was presented to the C-level, Non-Chair Board Members and Board Members to assess the feasibility of the strategy, from the operations and ﬁnancial point of view. On a Director’s level, a Business Case Presentation was made to all Regional Directors and Business Unit Directors to present the strategic focus and in a joint eﬀor, analyse the strategy feasibility and gather consensus about points of action, executional roadmap, timeframes and distribution of labour. EXHIBIT 8. BUSINESS UNITS GOALS DEFINITION  EXHIBIT 9. SWOT ANALYSIS 

12. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com D. Strategy Implementation Four strategic pillars for implementation were developed, considering: • Responsibility: People assessments and Business Units re-definition. • Learning: Academy program to enable knowledge. • Recognition: Human Resources and Rewards System Design. • Joy: Team management and work process leadership. EXHIBIT 10. FOUR IMPLEMENTATION PILLARS   Responsibility & Joy Tactics • Director’s Problem Solving. Monthly meetings to strategy revision, problem identification and tactical formulation. • Team assessments to discover A-team players and Champions. • Cloud Workflow: re-evaluation of physical space, technology and internal systems, from accounting to cloud servers in order to lean up all processes. Learning Tactics • P2P Academy: leverage knowledge by empowering people to share knowledge in a peer-to-peer academy. • Internal HR campaign: ignite all agency through internal campaings to leverage morale and teamwork alonn all internal stakeholders. Recognition Tactics • HR inclusion to develop an integrated system, including career paths and reward systems. • Job descriptions to align skills aligned to the long-term mission of the company.

13. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com EXHIBIT 11. TALENT POOLS IDENTIFICATION   EXHIBIT 12. ORGANIZATIONAL CHART 

14. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com EXHIBIT 13. AGENCY WORKFLOW  EXHIBIT 14. WORK PIPELINE: INTEGRATED COMMUNICATIONS   

15. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com EXHIBIT 15. OPEN DATA PROJECT TACTICAL DEVELOPMENT   

16. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com EXHIBIT 16. CAREER DESCRIPTIONS REVISION

17. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com EXHIBIT 17. 4AM ACADEMY

18. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com EXHIBIT 18. INSIGHTS NEWSLETTERS   

19. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com Branding Process After all the business strategy development, we needed to brand our value proposition and make it accesible for our clients. After all, we are transforming the way we work, from the inside to the outside. I crafted the branding brief to all 4am Saatchi & Saatchi creative agencies in Central America to develop the visual identity for our new workstyle and methods. EXHIBIT 18. COMMUNICATIONS BRIEFING 

20. This case was prepared by Delmy Alvarenga, Creative Strategist at 4am Saatchi & Saatchi. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the 4am Saatchi & Saatchi Guatemala. For inquiries, email dalvarenga@4amsaatchi.com EXHIBIT 19. CREATIVE DEVELOPMENT 