Ogilvy Worldwide, and ultimate owner WPP, have both endorsed the deal and have reinforced their confidence in, and commitment to, Ogilvy South Africa by increasing Ogilvy Worldwide's investment from 46.5% to 49.9%.
Ogilvy's Robyn Putter, says the deal forms part of a long-term transition and regeneration strategy that has involved careful succession planning, creative regeneration and a management transition.
"About a year ago we announced some exciting changes when Nunu Ntshingila was appointed to the position of CEO of Ogilvy South Africa and Mashishi to chairman of Ogilvy Africa. I retained the transitional position of executive chairman of Ogilvy South Africa until the end of this year, when I planned to stand down. What you would not have known is that we were finalising a plan that began a number of years ago and culminated in January 2006 with our company becoming an organisation not only managed by black people but majority black owned too," says Putter.
"Over the past year Nunu Ntshingila and her executive team have successfully run the company. Almost all of our 12 operating units showed record organic growth on top of some spectacular new business gains, mainly from existing clients, which is always proof that the company is operating well. This performance has come on the back of a great creative year for the company, across all disciplines.
"We have a great team in place and to ensure the stability, happiness and commitment of our senior white executives to the company, we've refined our long term incentive scheme," Putter says.
Ntshingila says in constructing the transaction it was important to make significant progress in transformation at the ownership level while at the same time retaining top talent and providing for the attraction of black talent in the future. "This deal has given us the ability to do that, and I believe that we are now right for the time we are in.
"The restructured shareholding reflects our commitment and support of the draft charter announced late last year, and spearheaded by the ACA, which set bold targets of 30% black equity in two years and 45% by 2012. We have well exceeded the long term target, far ahead of schedule, which is a considerable achievement considering the agency's size and international shareholding," she says.
Last year Putter told clients that at the end of 2006 he would either be put out to pasture or turned into glue, whichever was more profitable!
"Well it looks as if the second option is likely to come true. Out of the blue, I have been invited by Sir Martin Sorrel, CEO of WPP to become worldwide Creative Director of WPP and become the creative glue between all the creative people of the rambling organisation, with immediate effect. I am told I will be able to do this job while living in Cape Town, which makes me very happy. I will continue to be a non-executive director of Ogilvy South Africa, with some responsibility for a couple of clients and continue to work with Ogilvy Worldwide on the Exco, Board and Creative Council," says Putter.
Ogilvy South Africa as we know it today took its first breaths in 1984, when the independent local agency Rightford Searle-Tripp & Makin joined forces with the internationally-connected VZ Ogilvy & Mather to form Ogilvy & Mather Rightford Searle-Tripp & Makin. Though the late 80s and the 1990's Ogilvy & Mather RS-TM grew to become a dominant force in South Africa Advertising, a position it still holds today.
In 2003, the group concluded a significant empowerment deal with Mamalu Investments, a consortium with principle shareholders including Graca Machel, Moss Mashishi and Wendy Luhabe.
Today, Ogilvy South Africa (as it is now known) is part of the WPP group of companies, an international conglomerate with an annual turnover of over $15 billion.
The agency has a number of long standing client relationships including SAB, Old Mutual, KFC, Sun International and VW.
The agency also supports and provides free work to the likes of READ, SANTA, the Red Cross, WWF, Childline and the NSRI.
