On Strategy Showcase: Live from Toronto – "Rise of the Independents"

Host: Fergus O’Carroll
Guests:

• Heather Siegel – Chief Strategy Officer, Zulu Alpha Kilo
• Sean McDonald – Partner & Global Chief Strategy Officer, Rethink
• Tom Kenney – Partner & Chief Strategy Officer, Courage
• Jay Carney – Chief Strategy Officer & Founder, Broken Heart Love Affair
  Release Date: March 9, 2025

1. Introduction to the Rise of Independent Agencies

Fergus O’Carroll opens the live session recorded at Rethink's Toronto office, introducing the panel of strategy leaders from prominent independent agencies. The episode delves into the burgeoning independent agency culture, exploring their values, motivations, and the unique opportunities that allow them to create impactful campaigns for global brands.

“These new crops of indies have seen what has happened to those who went before and are making course corrections for long-term success.” – Fergus O’Carroll [00:00]

2. Agency Overviews and Foundational Stories

Heather Siegel introduces Zulu Alpha Kilo, established in 2008 with a mission to "fight sameness" and bring distinctiveness to creativity. With offices in Toronto, Vancouver, and New York, Zulu has grown to over 180 employees, serving clients like Booking.com, Subaru, Sephora, and Campbell's.

“Being boring is a really expensive proposition. We are here to bring distinctiveness to creativity.” – Heather Siegel [05:18]

Sean McDonald presents Rethink, founded in 1999 and celebrating its 25th anniversary. Rethink emphasizes challenging the status quo and improving relationships with clients and within the agency. With four offices across Canada and New York, Rethink employs around 400 people committed to passionate, ambitious, and entrepreneurial work.

“Rethink operates more like a family business... We just want to do good work. Good jobs. We’re making money and doing good work.” – Sean McDonald [07:08]

Tom Kenney discusses Courage, the youngest agency on the panel, founded two and a half years ago. Part of the Grid Collective, Courage focuses on creative problem-solving without getting bogged down in prolonged strategic planning.

“Strategy has a best before date... I don’t like when things spend like six months in Strategy.” – Tom Kenney [08:58]

Jay Carney shares the genesis of Broken Heart Love Affair during the pandemic lockdown. Launching alongside Lifelong Crush, Jay emphasizes the agency's commitment to emotional storytelling and building platforms that resonate deeply with audiences.

“Our philosophy is embedding an emotional memory in people is critical to activating on it in the future.” – Jay Carney [11:44]

3. The Role of Strategy in Independent Agencies

The discussion shifts to the significance of strategic roles within independent agencies. Sean McDonald highlights that in Canada, strategy and planning are still emerging fields, often overshadowed by executional roles in larger markets.

“Strategy and planning in Canada is still exceedingly immature, still exceedingly new.” – Sean McDonald [12:47]

Tom Kenney explains how independent agencies like Courage integrate strategy seamlessly into their creative processes, focusing on cultural relevance rather than academic research.

“Our work is very much in conversation with culture, which is why strategy is such an integral part of our agencies.” – Tom Kenney [08:36], [26:32]

Heather Siegel underscores the importance of leading business conversations and unlocking opportunities by collaboratively defining briefs with clients.

“We have strong strategic talent at the table, combining business and creative strategy.” – Heather Siegel [05:52], [28:56]

4. Independence vs. Network Agencies

A significant portion of the conversation revolves around the benefits and challenges of operating independently versus being part of large network agencies. Fergus probes whether the panelists are "running away from something or running towards something" by choosing independence.

Sean McDonald articulates running away from the disposable nature of network agencies, where human capital is treated as expendable. He praises independent agencies for fostering environments where creative and strategic talents are respected and empowered.

“Indie agencies attempt something... Have a disposition to have a point of view.” – Sean McDonald [18:25]

Jay Carney emphasizes that independents maintain a distinct vision and do not dilute their purpose for growth, unlike network agencies that often lose their unique POV to chase broader revenue.

“There's an opportunity for holding companies to get back to growing vision.” – Jay Carney [20:22], [31:03]

Tom Kenney shares his dual motivations for leaving a network agency: seeking greater agency in decision-making and the allure of collaborating with top talent at Courage.

“I was both running away from having little agency and running towards talent.” – Tom Kenney [08:58]

5. Client Relationships and Long-Term Partnerships

The panel discusses the nature of client relationships in independent agencies, emphasizing trust, mutual respect, and long-term collaboration.

Sean McDonald talks about Rethink’s approach to building lasting client relationships based on respect and mutual growth, avoiding dependence that can compromise agency integrity.

“Our average client relationship is eight years... We're committed and patient.” – Sean McDonald [31:03], [32:09]

Jay Carney highlights the strength of exclusivity in client partnerships, where clients choose to stay with independents out of trust and satisfaction.

“Clients choose to work with us; it's not just about global alignment.” – Jay Carney [43:21]

Tom Kenney adds that independents provide continuity, making clients feel like true partners rather than just another account.

“Clients are stuck with me because they chose to be, which feels like true partnership.” – Tom Kenney [43:47]

6. Challenges and Sustainable Growth

Addressing the common concern of whether independent agencies can sustain growth without compromising their values, Sean McDonald asserts that Rethink prioritizes maintaining quality, culture, and integrity over mere expansion.

“We don’t have to grow... Focus on the right things.” – Sean McDonald [46:21]

Heather Siegel echoes this sentiment, emphasizing the importance of holding true to the agency’s ethos and saying no to work that doesn’t align with their strategic integrity.

“Hold true to the integrity of the agency, and we will keep succeeding.” – Heather Siegel [48:22]

Jay Carney reinforces that growth should come from sticking to core values and being selective with clients, ensuring that expansion doesn’t dilute the agency’s purpose.

“Growing in multitude... Hold true to what BHLE was there to do.” – Jay Carney [48:22]

7. Future Trends and Industry Improvement

The panel reflects on what the advertising industry should focus on moving forward. They advocate for:

• Creating Meaningful Jobs: Prioritizing purpose-driven roles that excite and retain talent.

  “Create jobs that have purpose, make people excited to do their work.” – Sean McDonald [57:15]

• Human-Centric Approach: Emphasizing emotional connection over mere data and technology.

  “Our business is human connection... Center ourselves on people and humanity.” – Heather Siegel [58:28]

• Cultural Influence: Leveraging the power to shape culture responsibly rather than just responding to it.

  “Recognize the power we have in creating culture and the responsibility that comes with it.” – Jay Carney [59:05]

• Recognition of Visible Work: Acknowledging and celebrating creative work that resonates widely, beyond industry circles.

  “Recognize work that lots of people have seen, not just what’s popular on LinkedIn.” – Tom Kenney [56:54]

8. Advice to Network Agencies and Industry Peers

In their concluding remarks, the panel offers guidance to network agencies and peers, advocating for:

• Constructive Challenges: Encouraging network agencies to find moments to challenge the status quo and adopt better practices.

  “Constructively challenge... Small wins can earn trust.” – Heather Siegel [65:53]

• Maintaining Integrity: Staying focused on agency values and not succumbing to the pressures of expansive growth.

  “Stay focused and challenge ourselves to face successes and failures honestly.” – Sean McDonald [24:11]

• Embracing Independence: For those considering moving from network to independent agencies, take the leap with confidence and commitment to maintaining creative and strategic integrity.

  “You can create your own shop... It takes some guts, work, and perspective, but you can do it.” – Jay Carney [64:58]

Conclusion

Fergus O’Carroll wraps up the session by expressing gratitude to the panelists and the Toronto audience, acknowledging the vibrant discussion on the strength and future of independent agencies. The episode underscores the pivotal role of strategy, culture, and integrity in driving the success of independents in a competitive advertising landscape.

“It is an honor to be amongst such great talent... Thank you all.” – Fergus O’Carroll [66:00]

This episode of On Strategy Showcase offers invaluable insights into the dynamics of independent agencies, highlighting their strategic approaches, cultural strengths, and the sustainable practices that set them apart in the marketing world. The panelists collectively emphasize the importance of maintaining purpose, fostering strong client relationships, and staying true to their creative visions to thrive amidst industry challenges.