奧美廣告Financetraining

1、O&M Guangzhou Finance TrainingFinance Training Objectives of the training:- K KnowledgenHow do we make money / lose moneynWhat is the cost / profit standardnIndustrynO&M nWhat can you do to help improve our profitability S SkillHow do you know your clients profitability - capacity plan, anal

2、ysis of contribution margin A AttitudenWe are businessman / businesswomannEveryone has a role in helping the company profitablenFinance discipline is part of our professionFinance TrainingThe BusinessMake Money for Today Our business by its nature is Short-term我們生意的特質(zhì)是相當短期的Im not talking about brand

3、 building .rather how business decisions need to be made這里指的不是品牌的建立，而是指在我們的營運中各種管理決策如何形成。 Clients come and go, reduce/cut budgets with little to no notice客戶來來去去，刪減預算的動作突如其來。 Billing cuts in the 4th qtr mean we are effectively working for free 在第四季刪減預算意味著我們的工作是免費的 We do not manufacture a product, our

4、 capital is our people 我們并不制造產(chǎn)品，我們的資產(chǎn)就是人 Employees come and go ( high turn-over )員工也是來來去去的Make Money for TodayMake Money for Today Constantly changing business landscape does not allow us to accept under-performing operations面對著如此大的變化，不獲利的營運是無法被接受 Service businesses are expected to show consistent e

5、arnings growth.服務(wù)性的公司必須要有持續(xù)獲利的成長創(chuàng)業(yè)的精神The Entrepreneurial ApproachEntrepreneurial ApproachIf it was your business, you would not:如果這是你的公司，你一定不會be satisfied just getting by . you want to make money!因損益平衡而滿意，Pay people to sit and wait for new revenues 讓你的員工坐著等新生意上門negotiate contracts that were unprofit

6、able接受無法獲利的合約invest in training employees who leave for better opportunities投資於訓練員工，他們卻離開去尋找更好的機會。make long-term binding financial commitments that are not supported by income 做一些長期財務(wù)的承諾，而卻是沒有收入的支持。provide services to the client which the client would not pay for免費提供服務(wù)給客戶。Entrepreneurial ApproachIf

7、it was your business, you would :如果這是你的公司，你一定會only buy technology that makes you better and returns your investment只有能讓你更好，及能有所回收時，才投資於科技make yourself so important to the client, that they believe they cant succeed without you讓客戶相信他們不能沒有你research clients credit, & collect your money調(diào)查客戶的信用，及時收回應(yīng)

8、收帳款。 you would not be their bank! 你不會成為他們的銀行Entrepreneurial ApproachRunning The BusinessThe Basics for Running this Business Keep Overhead Low! 降低營運成本Negotiate flexibility爭取彈性Leverage price advantage where possible運用“量”的優(yōu)勢Dont build administrative empires不要形成管理官僚系統(tǒng)The Basics for Running this Busines

9、s Utilize your staff 善用員工clients will only pay for the staff they receive value from (will not pay for your Back-office)有價值的員工，客戶才愿支付費用you should keep track of the utilization rate of all of your employees 充分了解員工的利用率- set standards設(shè)立標準值- review performance vs standards評估現(xiàn)況與標準值之差異- make managers and

10、individuals responsible每一個員工都對此有責任The Basics for Running this Business Utilize your staff 善用員工minimize through efficiency the number of non-revenue generating staff透過效率的提升可減少非產(chǎn)出收入的員工數(shù)where possible leverage existing staff for new business .new bus. teams are expensive & O/H用既有的員工作新生意的開發(fā)The Basic

11、s for Running this Business Staffing should match revenue stream員工與營收的關(guān)系Many efficient offices under-staff with permanent employees能否降低員工的聘用- use freelance / temporary staff / out-source利用外部資源- only hire when revenue stream is confirmed有收入才加人 Investigate all alternatives 其他的途徑- avoid creating fixed

12、costs 降低固定成本- be creative 嘗試不同的作法The Basics for Running this Business Negotiate Profitable Compensation爭取可獲利的條件 constantly review existing contracts 定期檢討合約中的條件- has the business changed I- s contract relevant Challenge our Contracts挑戰(zhàn)不利於我們的合約條件 Clients should accept that we need to make profit客戶應(yīng)接受我

13、們是營利事業(yè) Communicate why current compensation does not allow profit ( our inefficiency is not acceptable)與客戶溝通有哪些不利於我們的條件The Basics for Running this Business A well negotiated fee is easier to manage than commission固定收費制度比傭金制度易於管理 we get paid for the work we do, assures client commitment我們的付出會得到一定的報酬，

14、客戶服務(wù)較有保障The Basics for Running this Business Commissions . unpredictability must be managed傭金制度充滿了不確定性，更要有效地管理 Understand the Risk / Reward了解風險與報酬 Consider retainers / minimums考慮最基本的服務(wù)所需 Must constantly understand what spend will be不斷地確認預算的狀況 Equate level of service to expected revenue依預期的收入來對應(yīng)服務(wù)的提供

15、 Discuss client service expectations vs revenue when revenues are low or falling當預算下降時，客戶服務(wù)的期望會有何變化 Be creative, have client pay for things outside the commission嘗試不同的作法，還有哪些費用是可向客戶收取的 Dont get caught with a client cut in the 4th qtr which in effect means we have worked for free客戶在第四季刪減預算是最糟的情況The B

16、asics for Running this Business Dont give services away for free不要提供服務(wù)而不收費 if its not in the contract, make them pay for it Make the client honor the contract讓客戶尊重合約 invoice all eligible out-of-pocket costs向客戶收取外付直接費用 figure out how to bill for technology electronic file transfers, etc.各項科技設(shè)備使用可否向客戶

17、收費 Dont spend money on items Client will not pay for不應(yīng)該花錢在客戶不會支付費用的項目 Be prudent with the clients money and they will be more willing to agree to costs花客戶錢時，務(wù)必謹慎The Basics for Running this Business Collect your money 收回應(yīng)收帳款 Dont finance your clients by paying for media, etc. before you receive their

18、 cash盡量不要幫客戶墊款 Watch your receivables!注意應(yīng)收帳款 Check balances daily . be a pest watch your clients financial situation Work in Progress 注意未結(jié)卡帳款 This is unbillable production hiding on your balance sheet有哪些是無法收回的 Invoice it, Collect. Aged balances are trouble.帳齡太長容易造成麻煩Accountability會計責任Accountability

19、MANAGEMENT ACCOUNTING is more important to management than Statutory accounting?對管理者而言，管理會計更重要 Improvement in the financial ratios requires a true understanding of how we are performing financially on each client.要在財務(wù)上有所改善，必須深入了解每一個客戶的獲利情況 You cant expect an account person to be responsible with the

20、 offices profit margin but You can make him responsible for his acct.業(yè)務(wù)人員對其經(jīng)營的客戶是否獲利有重要的責任Accountability Statutory accting is important but it does not help management understand the business 我們的會計制必須對管理階層提供經(jīng)營決策的參考 Value of Finance Team = Quality Client Data財務(wù)人員的價值在於其提供資訊的品質(zhì) Business should be run b

21、ased on Knowledge of account profitability管理經(jīng)營的基礎(chǔ)是客戶的獲利率Accounting for Time有關(guān)時間成本 The heart of Client Profitability客戶獲利分析的核心 Must get all employees to recognize its importance所有的員工必須認知其重要性 Time reporting must be accurate and complete日報表要完整及準時Accounting for Time有關(guān)時間成本 MethodsTime Sheets日報表的填寫Time All

22、ocations工作時間的分配 Summarized Data is the key資料匯總是關(guān)鍵 Make people accountable for time大家必須對工作時間負責Account Managers業(yè)務(wù)經(jīng)理人Dept Managers (Creative, Production,etc)部門主管Accounting for Costs成成本本 Costs fall into Three Categories:成本可分為三大類Chargeable to Client可向客戶收費Not Chargeable to Client不可向客戶收費Overhead營運成本 Every

23、$ we spend should be categorized in one of these buckets花每一筆錢時，評估一下屬於哪一種成本Chargeable to Client可向客戶收費的成本 Basically these are: Direct Staff Costs直接工作人員成本 Out of Pocket Expenses外付費用 Direct Staff is the key to being profitable直接工作人員成本是影響客戶獲利的關(guān)鍵 Should be based on a resource plan which delivers profitabi

24、lity應(yīng)發(fā)展 - 人員資源分配計劃，并考慮對獲利的影響 Resource Plan needs to be modified for changes in revenue當營收改變時，資源分配計劃應(yīng)隨之調(diào)整 Out of Pocket: Let the contract be your guide外付費用 依合約行事Get client to agree in advance事前取得客戶的同意Spend clients money like it was your own花客戶的錢，像花自己的錢Chargeable to Client可向客戶收費的成本 Keep these to the a

25、bsolute minimum盡量控制 Need to ask yourself:確實了解其必要性If the client wont pay for it, is it necessary!Not Chargeable to Client不可向客戶收取之的成本Overhead營運成本 Everything we do which is not directly related to a clients business is Overhead.與經(jīng)營客戶不直接相關(guān)的Establishment (leased premises)例如 房租Genl Management, Finance, IT

26、, Secretaries, etc例如 管理、財務(wù)、電腦人員.等Office costs, IT Costs, legal, insurance, etc.辦公設(shè)備.等 If the clients wont pay for this, the goal is to be as efficient as possible.如何在營運成本各項上增加效率Standard Costs vs Allocated Costs標準成本與分配成本 Standard Costs assigns a $ value to each hour of time an individual works每個人工作的單

27、位小時成本標準成本 If an employee works beyond the standard work week, his standard cost could exceed what he actually gets paid Allocated Costs takes the exact amount that an employee gets paid and allocates that over the hours actually worked分配成本員工的總成本除以實際工作小時數(shù) The compilation of allocated cost should alwa

28、ys tie back to the accounting profit Used for Client Profitability reported to OMW Example:-Monthly salaries : 1,600Standard monthly working hours : 160Hourly rate : 10Actual working hours : 200 Standard cost : 200hrs * 10/hr = 2,000 Allocated cost : still at 1,600 If we use allocated cost as a basi

29、s to charge client, then we under-bill the client by 400 Standard Costs vs Allocated Costs標準成本與分配成本 So why is this important! Standard Costing tells us the true story of what the client should be paying for標準成本會反映出客戶應(yīng)支付的費用 Allocated costs is usually what the client, under a multiplier based fee will

30、 pay for分配成本反映出客戶愿支付的費用 We need to figure out to how not to give away our over-time必須注意，超時工作的部分不應(yīng)免費 Understand the inherent cost of overtime太多超時工作的狀況應(yīng)注意 Productivity生產(chǎn)力 Employee reward expectation員工對報酬期望的改變Standard Costs vs Allocated Costs標準成本與分配成本W(wǎng)hy Bother with Standard Costs標準成本 It is a valuable

31、tool in understanding resource management是了解資源管理的重要工具 provides valuable information which can help support client contract negotiations提供與客戶溝通合約條件時的重要資訊 Enables you to set standards, for each employee, manager and account有助於設(shè)立標準 Enables performance comparisons:有助於評估績效 Employee utilization員工產(chǎn)能利用率 Per

32、formance vs staffing plan 績效與人員聘用計劃 Billable/Non-Billable performance: ind, dept, office 可收費的成本與不可收費的成本W(wǎng)ho Should be Accountable這些是誰的責任 Accountability needs to reach everyone每一個人的責任 Everyone should be evaluated against established standards for utilization針對已設(shè)立的標準作個別評估 Department managers need to be

33、 responsible for their reports部門主管要監(jiān)督評估的確實性 Account managers need to be responsible for業(yè)務(wù)經(jīng)理人員 Client profitability (more to come)客戶獲利率 Performance vs resource plan績效與資源分配計劃 Accuracy of revenue forecast 實際與預估的收入 All out of pocket costs 所有的外付成本Accounting Firm Model會計師事務(wù)所模式 The Professional service fir

34、ms (Lawyers and Accountants), live by standard cost專業(yè)的服務(wù)業(yè)，依標準成本收費 Each Staff member is accountable for his own每個員工要對以下負責 Chargeable hours可收費的工作小時數(shù) Utilization rate產(chǎn)能利用率 Each Staff member reports to a department manager who is accountable for his groups performance in the above two areas Each departm

35、ent manager is responsible for his own and group performance 部門責任制Accounting Firm Model Each account manager is responsible for業(yè)務(wù)經(jīng)理人負責任 Hours charged to his account收費小時數(shù) Out of Pocket cost on his account 外付成本 amounts billed to the client向客戶收取之費用 amount of billable hours vs non-charged hours可收費之工作時數(shù)與

36、不可收費工作時數(shù)之差異 All employees are evaluated and incentivized based on these performance criteria員工的評估及獎勵是根據(jù)這些標準 Advertising, being staff driven, is very similar to this model. Commission compensation makes the revenue stream more volatile廣告公司的經(jīng)營模式非常類似，傭金制反而變化太大如何善用科技Use Technology for ProfitTechnology W

37、e have all failed as Businessmen in this area在這個領(lǐng)域，我們大部分表現(xiàn)不佳 Everything we do in business should be based on cost / reward or ROI (Return on Investment)所有的決策應(yīng)依據(jù)投資/報酬分析 When was the last time you submitted a ROI calculation for IT?是否針對IT的投資作ROI分析？ The reason that we dont do it, is because it is diffi

38、cult to quantify 我們沒有做的原因是因為量化的困難度高？TechnologySo if we dont do ROI, what should we do before we invest?如果我們無法作ROI，投資前該如何評估？Prepare an informal ROI Will the equipment make us more efficient這些技術(shù)、設(shè)備是否會增加我們的效率？- Can we save headcount能否幫助我們降低員工人數(shù)？- Can we get more done with the same people讓我們在既有的員工基礎(chǔ)上作更多

39、事？- Can we give the client something better, that they will pay for能否提供給客戶更好的服務(wù)，而且他們樂於付費的？- What will it cost us if we dont get the equipment如果我們不投資，我們要付出的代價是什麼？Technology Quantify the value of the items just discussed and compare that to the costs嘗試把投資帶來的好處量化并與成本比較 Payback should be fast 1 or 2 yea

40、rs at most Figure out how to pay for equipment with 思考如何支付這項投資 additional revenue from clients是否有更多的收入 cost savings成本的節(jié)省 or create competitive advantage which adds value to the agency (justify : be critical)因為價值的提升造成競爭優(yōu)勢，而有額外的資源Technology We shouldnt just buy equipment to keep up, We need to have th

41、e equipment make us better more profitable. 設(shè)備的投資不是只為趕上潮流，而是要讓我們獲利情況改善。Financial ModelFinancial Model The Traditional P&L: 傳統(tǒng)的盈虧分析Billings營業(yè)額Revenue收入（減退營業(yè)稅，文化稅和 Mindshare 所占的收入）Staff Costs員工成本Establishment Costs辦公室成本（租金,裝修折舊）Personal Costs個人成本（出差,培訓）Commercial Costs 商業(yè)成本（業(yè)務(wù)推廣）Office / IT costs辦

42、公費用成本（通訊,文具等）Finance & General一般管理人員成本Overhead Allocation區(qū)域成本（攤分總部費用）Operating Profit營運獲利Financial Model Key Indicators: 主要指標Revenue Growth % 收入成長率Staff cost / Revenue % 人員成本占收入比例Operating Profit Margin % 營運利潤率Revenue Conversion % 收入轉(zhuǎn)為利潤比例 Productivity Indicators: 生產(chǎn)力指標Revenue per Head 平均每人收入額Pr

43、ofit Per Head 平均每人利潤額 Example to Revenue Conversion Year 2000 1999 Difference Revenue 1,300 1,000 300 Op profit 200 100 100 Revenue conversion 100/300 * 100% = 33.3%Financial ModelFinancial Model In the Agency, we have learned that efficient and productive office should earn margins of 25%-30% befor

44、e bonus and O/H.在獲利要求上，25%-30%是一個標準 The way we get to these margins are different in each market due to:各市場在下列之成本結(jié)構(gòu)不同，所以獲利要求也可能有些調(diào)整。Costs of Staff (ExPats, Social taxes, salaries)Costs of Real estateMarket cost of doing business ( keeping up with standards in the market)P&L Model - UnitExpected

45、Office margin before bonus and O/H should be 25% - 30%:Revenue1,000Staff Costs (pre-bonus)470 47% (Tgt 45%)Establishment Costs 707%All Other Costs 190 19%Pft bef. Bonus & O/H270 27%O/H 707%Profit before Bonus 200 20%Client ProfitabilityClient Profitability - Accountability客戶獲利率 Account Managers

46、can not influence entire P&L.業(yè)務(wù)經(jīng)理人無法影響全公司的盈虧 Account managers are responsible for:但他(她)可對下列元素有所責任Revenues 收入Staffing on the account服務(wù)於客戶的人員成本Out-of-Pocket costs 外付成本(與服務(wù)客戶相關(guān)的)Contribution Profit = Revenues - Direct staff - Direct Other Costs (out-of-pocket)What should we know ? Direct Staff Cost

47、s (直接人員成本): represent the cost of people directly related to the revenue being generated. This should include Creative, Account Management, Production, and any other individuals who work directly on the account. Target should be 75%-80% of S/R%與產(chǎn)出收入有直接關(guān)系的人員 Direct Other Costs (其他直接成本): are basically

48、 all out-of-pocket costs not reimbursed by the client. Mainly T&E, presentation costs, research, etc.與服務(wù)客戶有關(guān)的外付成本，且無法向客戶收取的What should we know?Contribution Profit : represents Revenues less Direct Staff & Direct Other CostContribution Margin % : Contribution Pft / Revenue Target should be 60

49、%Local Overhead (本地營運成本): represents all of the costs of running an office which can not be directly attributed to a client.與服務(wù)客戶非直接相關(guān)的辦公室營運成本(allocated on Direct staff)These include :Indirect Staff: General Management, Finance, Back office, Administrative staff, etcEstablishment; Insurance, Legal,

50、Training and all other costs of doing business not directly attributable to clients What should we know?Regional , OMW, Client Overhead (區(qū)域性/全球客戶營運成本) : this is the o/h associated with running the regions, OMW and central client teams (allocated based on revenues)Operating Profit (營運利潤): Contributio

51、n Profit less Local O/H and Reg/OMW/WCS O/H The 20% Model - (Regional) What is an appropriate Contribution Margin?To earn a 20% Operating Profit Margin contribution should be at least 57.5% as follows:Revenue1,000Direct Staff Costs 37537.5%Direct Other 50 5%Contribution Profit 57557.5%Local O/H 3403

52、4%Reg/OMW/WCS O/H 35 3.5%Operating Profit 200 20%Contribution Margin % Under 20% Model we should be looking for a Contribution margin near 60% When we are doing our resource plans, any client projected at lower margins need to challenged作資源分配計劃時，客戶contribution margin未達要求標準，我們應(yīng)檢討Do we need to re-nego

53、tiate compensation?合約條件是否合理？Are we over-servicing the revenues?服務(wù)成本與收入是否成比例？Are our out-of-pocket costs necessary?外付成本的必要性？How can we restructure account team?是否要改變服務(wù)小組結(jié)構(gòu)？WPP GroupWPP Group Publicly traded on the UK and US stock exchanges在美國、英國公開上市 Our owners / shareholders expect us to deliver cont

54、inued growth in profits based on revenue growth with competitive margins股東的期望- 不斷增加的利潤 持續(xù)的成長- 獲利率符合市場競爭 OMW represents about 33% of the revenues and about 35% of operating profits奧美集團在WPP的貢獻 收入 33% 利潤 35% 1998 Competitive PerformanceRevenue Growth Total7.9%4.2%11.9%31.0%14.7%3.1%10.1%8.9%0%0%5%5%10%

55、10%15%15%20%20%25%25%30%30%35%35%OMWOMWJWTJWTWPPWPPOmnicomOmnicomIPGIPGTNTNY&RY&RGreyGreyOrganic Revenue Growth - Total7.5%4.2%6.6%15.9%14.8%3.1%7.7%8.9%0%0%2%2%4%4%6%6%8%8%10%10%12%12%14%14%16%16%18%18%OMWOMWJWTJWTWPPWPPOmnicomOmnicomIPGIPGTNTNY&RY&RGreyGreyRevenue Growth - U.S.11.4

56、%8.2%11.0%29.8%15.2%0.1%17.3%9.9%0%0%5%5%10%10%15%15%20%20%25%25%30%30%OMWOMWJWTJWTWPPWPPOmnicomOmnicomIPGIPGTNTNY&RY&RGreyGreyOrganic Revenue Growth - U.S.11.4%8.2%6.4%17.3%11.5%0.1%17.3%9.9%0%0%2%2%4%4%6%6%8%8%10%10%12%12%14%14%16%16%18%18%OMWOMWJWTJWTWPPWPPOmnicomOmnicomIPGIPGTNTNY&RY

57、&RGreyGreyRevenue Growth - International6.1%2.0%12.4%32.2%14.1%11.6%3.5%8.1%0%0%5%5%10%10%15%15%20%20%25%25%30%30%35%35%OMWOMWJWTJWTWPPWPPOmnicomOmnicomIPGIPGTNTNY&RY&RGreyGreyOrganic Revenue Growth - International5.4%2.0%6.8%14.3%18.0%11.6%-1.0%8.1%-5%-5%0%0%5%5%10%10%15%15%20%20%OMWOMW

58、JWTJWTWPPWPPOmnicomOmnicomIPGIPGTNTNY&RY&RGreyGreyStaff Cost / Revenue %55.6%55.8%49.7%59.0%56.4%62.2%59.4%64.1%40%40%45%45%50%50%55%55%60%60%65%65%OMWOMWJWTJWTWPPWPPOmnicomOmnicomIPGIPGTNTNY&RY&RGreyGreyOperating Margin % (including Equity)15.1%15.0%12.8%15.7%14.6%11.6%11.3%6.6%0%0%

59、2%2%4%4%6%6%8%8%10%10%12%12%14%14%16%16%OMWOMWJWTJWTWPPWPPOmnicomOmnicomIPGIPGTNTNY&RY&RGreyGreyOperating Profit Growth15.4%2.6%21.5%36.0%36.0%109.4% 97.2%-15.6%-20%-20%-10%-10%0%0%10%10%20%20%30%30%40%40%OMWOMWJWTJWTWPPWPPOmnicomOmnicomIPGIPGTNTNY&RY&RGreyGreyRank OMW Rank WPP Rank

60、OMC Rank IPG Y&R Australia1 18 85134Brazil8 82314France5 55146Germany7 73126Italy8 82316Netherlands5 52134Spain1 12136UK2 21235USA1 10 03124Source: Advertising Age 1997 rankingWorldwide rank by major marketRank OM W Rank WPP Rank OM C Rank IPG Y& R Greater China1 11238India3 31325Japan2 26 63N/A612Mexico6 62314Eastern Europe:Russia4 43128Poland1 12 232110Hungary4 44213Czech8 88313Source: Advertising Age 199