De-coupling

What a buzzword this is. 

I first encountered this in 2006 when the attention that Unit attracted encouraged a few brands to come and talk to us.

However this evening I encountered the most vehement defence of the status quo I have ever come across - and from someone who used to work in post. 

Lets look at it this way. An advertising agency is paid by  a brand to come up with the most amazing, stupendous, creative idea to sell their product that money can buy.

For that, they deserve an enormous amount of money and rightly so. But...

How can you value creativity?  To be honest -  by hard facts - ROI - Return On Investment.

 The guys at Fallon who came up with the drumming Gorilla or eyebrow scary children, already know this!

However, what is to say that a brand can't pay for specialists in each area and cherry pick the very best for themselves...

Not what the agency dictates to them? 

So, focusing on ROI, why can't the brand directly pay for:

1.) The best creativity money can buy: - The Agency

2.) The best production values money can buy - The Production Company

3.) The best VFX, and Audio and Finishing money can buy - The Post Production Company.

All it needs is one savvy project manager at the brand and suddenly we are at least approaching a way to make branding films/adverts for a reasonable fee..

Or to look at another way, why would you pay extra to the salesman who says the car you want is perfect for  you in every way - but invoices you a percentage on top of the servicing charges for the next five years..?

You'd go and find somewhere else to service your car, right?

Everyone is under pressure to cut costs - and for that, especially in 2009, there is no shame.

But, there is no excuse for not paying for the very best - at what they do.

Not to just take it off your hands for a quiet(ish) life. 

There are amazing companies that are now able to deliver the creative vision an agency comes up with for a fraction of the traditional cost.

And I'm sorry if that means that the days of "cost plus" die. Good riddance I say.

It's a brave new world - will you change with it?

David

Soho

Every year, someone somewhere predicts the death of Soho as a centre for the creative industries. 

They cite that some advertising agencies have moved out, that some of the big production companies have. That the costs are much higher than basing yourself elsewhere, and that as communication technologies improve, the need to be close to other companies diminishes.

Now, I've never really bought into these arguments.

Before setting up a company there, I absolutely hated Soho. I mean really, really detested it. To me it was noisy, dirty, full of annoying tourists - dangerous (friends had been mugged there), and full of rubbish restaurants that fleeced the annoying tourists - and usually me as well.

However, once I started to spend time there and discovered the side that is generally only known to those that work there, all that changed.  It has some of the best restaurants, friendliest pubs and where else are you guaranteed to bump into someone you know round every corner.

Which all makes it sound a bit like an episode of Cheers - but in a way that's not a bad analogy.

It kind of follows on from the post yesterday - about work being fun. Working in production or post in Soho adds a great extra dimension. However, this isn't really a reason to locate a company there - is it?

Time after time you can notice a pattern in some of the clients that come to use creative companies in Soho. And it goes a bit like this:

Arrive. Order coffee. Check on Edit. Open laptop - send enough emails to ensure you look busy. Then send emails to find out where/which restaurants your friends/clients are in. Go to lunch with them. Come back. Check on edit. Find out which pub/restaurant your friends/clients are in. Go meet them.

Rinse and repeat.

Now - first disclaimer - not all clients do this! However, actually, its some of the most successful that do. It's a big attraction that you as a client, know that you can be working for many days/weeks on a project, and yet ensure that you can still carry on the lifeblood of your career - meeting your clients and networking. Being in Soho ensures that all of these people are extremely likely to be around.

Witness someone I know (who is a King among networkers) who'll call at about 4:30 and go - "I'm passing by your place in half an hour - you around?" And because at that point, going for a chat can be infinitely preferable to paperwork, you'll always meet him.

However, this still leaves the cost argument. However, even before rents started to drop out of the sky this year, as a percentage of total operating costs for a facility or decent sized company, rent/mortgage is actually very small. Less than 10%. So, even if you knock a third off the rent, you'll only save 3% on your costs. And is that a risk worth taking when a lot of your clients see the convenience as very important?

And before you have to completely move an existing business and refurb a whole new building.

This might seem as a bit of a love letter to Soho, but yes, I do miss it. 

However, it's triggered by the news yesterday that a Pinewood based facility is opening up an office in Soho - because many of its clients won't go out to Pinewood. And I know they are not the only ones.

This makes me excited. Soho has always thrived on new companies coming in and keeping the market on its toes. And now that rents are coming back down (unless you are the post house that recently signed a lease at £45 per square foot - ouch!) I hope its the beginning of many more.

David

That's NOT the way to do it!

Well, I never thought that I would write a blog article and then see something that only serves to reinforce my beliefs that very evening.

So, last night I sat down to watch the final episode of Million Dollar Traders (iplayer link) as I've found it a fascinating experiment. I always, somewhere in the darker parts of my soul quite fancied working in the city. Even going so far as reading Geraint Anderson's book City Boy which was worrying enough.

However, watching last night's episode I'm pretty certain I could never step through the doors of a trading room. 

If it proved anything, its the age old adage that just because someone is great at what they do, they don't automatically make a good manager of others doing it.

In about a 10 minute segment we saw a catalogue of some of the worst management and decision making I have ever seen. 

Letting someone go from a company is one of the worst things you ever have to do as a manager or business owner. But there are ways of doing it that lets everyone keep their dignity intact.

That doesn't include:

Playing with your blackberry whilst discussing someone's future with them

Not looking them in the eye

Telling them you don't care what they think

Firing them and letting them back into the office where everyone can see them upset

And many many more. (Hats off to Century Films for capturing all of that)

I was left open mouthed that this kind of thing went on. Particularly with Cleo, they seemed like a couple of schoolboys who didn't know where to look.

Don't get me wrong, no business can carry an underperforming member of staff. It's not fair on other people who work with them, it's not fair on the company - or on yourself, as you are tasked with making a profit.

However, you also have a duty to give them the help and encouragement they need to give it their best shot. Only then can you turn round and let them go. This doesn't mean going out of your way to give them extra support over and above your other members of staff - that just breeds resentment. 

It means sitting down with them and trying to get to the bottom of what is causing a block to their performing well, and whilst it's rarely possible in a small company, thinking about moving them towards a role that focuses more on their skills.

What you certainly don't do is take away/diminish their job role!

In an effort to buck up Cleo, Lex, the Hedge Fund owner, cut her capital she had to invest, in half. In one fell swoop he had someone who resents him, the company, and who therefore is set up to fail, but whilst doing it, will also make everyone else uncomfortable.

Firm but fair is the only way to go, not just from the selfish viewpoint of avoiding legal proceedings being brought against your company!

Management style, particularly in the creative industries is something akin to walking a tightrope. We work in an industry with thousands clamoring to get in, where competition for jobs is fierce, but at the same time the pay is not that high (certainly compared to the city).

 At the same time, the hours are long, and the stress levels are large. People put up with this because there are few industries where you can sit down and see a direct result of your work, and know that millions are hopefully enjoying it too.

So clearly people aren't in it for the money - they want to be valued. 

Being valued doesn't mean pandering to every demand, or not being a strict leader, but it does mean that the way your company treats its staff speaks volumes about how it feels about them. 

Sometimes, thats just remembering to say thank you and take an interest in what everyone does. Not putting up with senior members of staff shouting at junior ones. Explaining the logic behind each decision.

Above all - trying to make it fun. We spend more of our lives at work than anywhere else - so why can't it be fun? 

Sitting typing in 5000 lines of data will never be that, but the environment around you can at least make up for it.

Right, I'm off to go and short Barclays.

David

Back to the shop floor

This evening I was at the Panasonic Broadcast Burns night, which was a great chance to see all of the people I haven't managed to since leaving Unit. And being Panasonic, it was a room full of people who truly believe in a tapeless, data driven future. 

Aaah, the bliss!

However, what was more fascinating was a discussion that came around about going "back to the shop floor" - and not in the sense of the very bad television series of the same name.

I am a fundamental believer in the fact that, if you don't understand how your staff interact with your customers every day, on the most basic level, how can you understand the best way to move your business forward?

Your runners (in a facility) are therefore your most valuable asset. Likewise your drivers in a delivery business, or your techs in a support business.

Yet how many Managing Directors have taken the time to go and deliver something un-announced or answered a callout to a client?

With the blessing(or curse) of looking a bit fresh faced (understatement) for my position - I had the privilege of being mistaken on occasion for a runner rather than the CEO. And I learnt so much from those encounters about how our clients interacted with the company. 

Whether I carried those things I learnt out, is my failing, but at least I and those around me knew about them.

But I encountered this evening every excuse - however valid - as to why the MD's I met couldn't do it. And to my mind that is an awful thing.

Surely the rules are simple:

1) Know your customer

2) Know your customer

3) You get the picture

If those customers interact with your product/service at many removes from you, then it is your duty as CEO/MD owner/investor to know how that interaction bears on how they view your company.

Here endeth the lesson. 

Now if only I could practice what I preach..

David

Responsiblilty

Okay, so I have to come clean. It should come as no surprise that I actually have not got a part in Eastenders.

This came about because it actually was a rumour that I heard had been going round - I got called by someone asking if it was true.. So, since it made a nice change to - "are you starting a facility?" I thought it would be a more pleasant thing to talk about. So I decided to fan the flames a little.

And it was fun. To those who congratulated me - thank you so much. I really started to believe I was Ricky's long lost brother who'd made good and had a story line as Dot's lover.. *shudder*

However, reality isn't that exciting (or hideous for that matter).

So, whilst this has been going on, I've been musing on the theme of responsibility. Was fanning the rumour a responsible thing to do? Well, when its just you - at least only you can come a cropper from anything backfiring.

But then you can look at it another way. I always believed that the height of responsibility was running a company. After all, you have the livelihoods of all of your staff in your hands, and what greater responsibility could there be - the decisions you make could cost them their jobs, and the environment in which they work is where they spend more time than anywhere else.

You also have the responsibility to your shareholders and clients, which are also a burden on anyone.

But what I've come to realise in the past couple of weeks is that all of this means nothing unless you are responsible for yourself.

Now that probably seems like some trite saying, but I've come to believe that unless you are able to stand up and make decisions for your benefit, and stick by them, how can you do them for other people?

A company is like a safety blanket - its why leaving to go it alone is always so tough - whether you are the receptionist or the person who started it! There's always someone to run ideas by, someone who's going to know that you haven't dealt with something, or someone to say well done. 

When you are back on your own, you suddenly are acutely aware of what a vital role that plays in your life. I guess that is why so many businesses start as partnerships. 

The last two weeks have been a flurry of activity, but looking ahead I can see how easily you can start to lose momentum and inspiration if you don't keep being responsible.

Ridiculously, that responsibility comes down to basic choices. Sit in front of the computer and write a document you know won't be much fun - or play with  the cat? 

It's only ten minutes, it won't really matter will it? 

Well, I can tell you - it does. 

I've been offered an opportunity to present a internet TV channel on entrepreneurship and business, which I'm seriously looking forward to. I can run through in my mind exactly what I want to say to other people thinking or trying to start their own company. 

But my god it can be hard to make yourself do it!

So, this week I shall mostly be... not playing with the cat, and lining up more meetings.

Oh and writing those documents.

Hope everyone is well - and thanks to Paul Robson at Medialease www.medialease.com for organizing the table at the broadcast awards - it was fun.

And to the person from a facility who came up, patted me on the back and then shoved their business card in the front of my dinner jacket - not really the best approach..

Rumours

I've been having great fun with the various guesses as to what I am up to at the moment. 

But I am very sad to say that the truth has finally come out, and I am truly gutted that it has only taken a short week and a half for everyone to get to the bottom of it. I need to make sure I keep my mouth shut obviously..

Yes, I have landed a part in Eastenders.

You know how I've continued to say that it will be a couple of months before I can let everyone know what I'm up to? 

Well this is because Eastenders is a couple of months ahead on the television compared to what is actually being filmed, so my story line won't appear for a few months.

Gutted that its out though.

Around this I am of course still doing the odd bit of tech consultancy!

David

Learning

During my time at Unit I thought I had learned something - at the very least how to create a post production facility based on the very best of breed technology.

However, what I've really come to realise over this week is that I have had a baptism of fire in business and everything that entails.

I had a meeting with a brilliantly successful young company today and in the process realised that I had actually had ready answers for their current problems. 

They couldn't decide who would be CEO - they couldn't decide what to do with a non performing member of staff. Between them both they are an awesome team, and with the right guidance their company will be a huge success.

Beyond that - its in their hands.

But the incredible thing is that three of years of hard graft qualifies me to give them advice that they actively want to follow.

I suddenly feel remarkably privileged to be able to dispense that.

Not that I'm going to drop my consultancy fee or anything...

Its in the press....

Well, its all out in the open and the phone has been buzzing. Its virtually a carbon copy of the release that was sent out. 

(The title of this post is a link to the article.)

I never quite thought that my leaving somewhere would merit a headline story, but apparently it does. I guess the moral is - if you want press coverage - quit!

Might be a bit limited in number of times though...

I'm writing this from a little restaurant called De Santis in Old Street, right opposite the small office where Unit was dreamed up - a random coincidence due to a meeting happening across the street, and it's great to see Enzo the owner again. We once worked out that we lost him six grand in custom when we moved from here to Soho. No wonder he seemed pleased to see me.

Only dampener is that my Iphone has decided that picking up email is no longer what it wants to do, so just when I want to make sure I'm contactable, I'm not.

Great.

End of the first day

Well, its the end of the first day of new starts, and thanks to the kind help of my friends I'm not working from the hell that is Starbucks and suffering from an overdose of machiatto, skinny latte hell.

However, suddenly being back at square one with just a laptop, broadband dongle and your own thoughts has been a very sobering experience.

Not to say that it isn't massively exciting but, I'm not sure that everything has fully sunk in. Three and a half years is now behind me, and the support network that is Unit isn't around. How the hell am I going to remember what meeting I'm supposed to be at next?!

Let alone who it's with.

Thanks for all the messages of support - they mean a lot.

Twitter

I've had a twitter account for a while, and should anyone want to follow me and keep tabs on what I'm up to its probably a good place to start, as well as following this site. 

Here's looking forward to my 144 character rantings making sense:

http://twitter.com/davidpeto

David

Press Release - New Beginnings

Dear All,

As of Monday the 12th of January 2009, I have resigned from Unit Post Production:

Unit Post Production

I'm pursuing some some new ideas I've had for a while that aren't necessarily suitable to carry out in Unit.

Here's the press release: 

David Peto has resigned as CEO of Unit and has sold his shares in Unit to the continuing shareholders. He intends to use this capital, together with other funding, to set up a new company in the media space which will be announced in due course. David said: “Being CEO of a start up is exciting, rewarding and daunting. I have enjoyed it and I am extremely proud of what I, and my partners in Unit have achieved. I am looking forward to using my expertise and I now think that the current difficult climate is going to throw up some fascinating new challenges and opportunities, one of which I have been considering for some months. I now have an opportunity to have a larger share holding in, as well as being CEO of, a new and exciting venture.”

This page will be updated immediately with further details, but in the meantime, thank you to all who have supported Unit and myself over the last three years.

As soon as I am able I will be releasing details of future plans.

In the meantime, please contact me on: david@davidpeto.com

All the best,

David

David Peto

12th January 2009