As the reportedly third largest communication and advertising company in the world, this move represents the largest effort at empowerment in the South African marketing sector in the last five years.
It describes the development of industry-specific black economic empowerment (BEE) charters in South Africa and a 'tick box mentality' among business leaders as defining much of the corporate empowerment activity in South Africa to date.
"The advertising sector is no different. Although all key agency functions are being positively affected by the efforts so far, it remains a challenge to correct the imbalance of black management and involvement within agencies. What we have seen to date in the marketing sector is a mindset of empowerment focused on a transaction-based model. Simply put, efforts by agencies and their international principles to comply with score cards has resulted in a great disconnect between the letter of the law and spirit of the law," said MMS chairman Groovin Nchabeleng.
Figures released by the Association of Advertising and Communication (ACA) place total black representation at 41.6% last year (1998: 23,3%). In addition to this, black top management representation in 2009 was 20% (1998: 6,9%) and black professional representation in 2009 was 33,5% (1998: 13,5%).
"Clearly our efforts have reached a watershed moment," continues Nchabeleng. "What is required is a wholesale change in approach. For the advertising sector to play the role in shaping business and societal mindsets, we have to begin looking within. Our measurement of success needs to move away from percentage achievement towards a situation where we are making a visible difference in areas such as skills transfer, professional development and creative excellence. Then our clients can both recognise change because of the results we bring to their businesses and adopt the practices that amplify the spirit of empowerment legislation."
The restructuring of a number of the group's locally owned brands under a single umbrella created a significant opportunity to address the relevance of its own empowerment efforts in South Africa, while at the same time create a family of agencies which could effectively service clients locally and garner international expertise in doing so where appropriate.
"Critically, this move had less to do with the equity structuring of the transaction and more to do with how we can be more effective as business partners with a common passion to deliver world class creative solutions for all our clients," he concludes.
