Chief Executive Officer (CEO) of Clear Channel Spain since 2012, Bill Derrenger has been recently promoted to Vice Chairman of Clear Channel Outdoor Global for South Europe.
Derrenger talked with us about the crisis, on human teams and on the best way to lead them. But he also told us about the future of outdoor advertising and marketing in the digital era. And he did it from the experience of who has assumed leading responsibilities and currently has a leadership position both inside and outside Spain and not only in the advertising industry or the media sector.
Prior to join Clear Channel Spain, Derrenger was Director General of Prisa Brand Solutions. Before coming to Prisa Brand solutions, he worked in Kellogg’s, where he assumed several leading positions, among them Director of Global Strategy and then Director General of two of the most important business units of this food products company during 12 years. Our interviewee also founded a company that specializes in branded content called Me2U (Me to you). He left this company to become CEO of Clear Channel Spain.
Eastwind (EW): Is the economic crisis going to last much more?
Bill Derrenger (BD): “The facts are that the crisis has technically finished. In the advertising world already in the last quarter of 2013 we are seeing an upturn in our business and in 2014 we are seeing, even with conservative projections, a growth at around the 2 %. And others, on the reputation business, are seing a growth rate between the 3% and the 14 % range. This is relating to the facts.
“But being an American as I am, I believe that we have to transmit a certain attitude. As Henry Ford said, a quote I love: ‘Whether you think you can, or you think you can’t, you’re right.’ I think that here there is also an element of that. If we change the chip and we turn ourselves into a positive attitude, we all can contribute to change this crisis situation that we have experienced during these years.”
EW: Having a look inside the company, is there any difference between leading while there’s an economic crisis and leading when the economy is growing?
BD: “If someting doesn’t kill you it makes you stronger. I strongly believe in this philosophy for life.
“The crisis has been very hard, we were all beaten in some extent. We have family, fellows at work, friends who have all been affected in a very dramatic way. But I think that we have just overcomed this crisis being rather stronger and with very important changes. I believe that each one knows quite clear which is one’s best. Thanks to this situation now we stay all much more focused, and, why not, much we all are more grateful for what we have in our companies.”
EW: Under an economic crisis situation like the one we are still living, in which extent it is key the sistematization and in which extent it is key knowing how to improvise to weather any trouble?
BD: “One of the key elements to overcome this crisis in the case of Clear Channel has been living our values: freedom, and another of our values is the flexibility.
“Therefore, for us it is very important the improvisation. As a leader and not only in the business field but also in the academic field, I talk a lot about the systematization of processes as a way to make our business become sustainable over time.
“Being a leader of a company as I am, my job is not only achieving the figures for the quarter, or for the month. My job consists of building a business that is going to last a long time and the processes and systems are an essential part of the work in this regard.”
EW: How can one keep hope alive, when clients do not come?
BD: “Well, you see, I am a hopeful person by nature. There are very few days that when I get up I don’t feel excited about what is to come. I think that we need finding hope in serving. Actually that’s what we are here for before the clients. And at the end this is the role of a leading company. is the role of a leader. What a leading comapny does is serving its clients. And we wake up every day willing to provide solutions. This is truly our positioning in the market, which is more and more recognized .”
EW: I quote what Bill Derrenger said once: “Today more than ever, loving people produces extraordinary good outcomes in our companies”. Is this specially true under an economic crisis situation?
BD: “It is clear to me that, in both good times and difficult times, people pay back what you give them. What I mean , when I say loving people, is wishing them the best. And Being leader of a company as I am, what I’ve learnt both in good times and in very difficult times is that people often paay you back in this regard. I devote myself to the people and none of the teams I have worked with have failed in paying me back, by far, much more than what I had given them.”
EW: Some reports show that in Spain more than the 60% of people in middle and high ranged managing positions could be considered as toxic leaders. What would you say to the people in charge of deciding wether these managers should keep their position or not?. In which extent can negatively affect the economy of a country having such a high percentage of toxic leaders?.
BD: “I’m not aware that it is such a high percentage. I have many very good friends in leadership positions in several companies in Spain and I know that they are not toxic leaders.
“I think that there is a vision on how it must be a leader, on how the image of a leader of a large company in Spain must be, and the pattern can resemble what you call toxic leader. But I think it is more a matter of posturing than a reality.
“What I think it must be done is working to foster other image, or other ideal of what it must be a leader today. But I know many leaders in Spanish companies that feel concerned with their teams, with their people, give themselves to them. Sometimes I think that the image projected within the organization is not always this one.
“Also during these difficult times, what has happened ….
One of the Marketing Directors that worked with me while I was at Kellogg’s, passed on to me a press article, just a bit joking. It was stated on it that making difficult decisions in these times needed for a insensitive and tough person.
What I would suggest as an alternative to this is integrity at the time to take decisions. I mean, taking decisions with an in-depth work on the reasons why and the merits in each decision we take. And then being upright, I mean, keeping one’s word, being consistent in both good times and difficult times.
“But my experience is what I’m aware of and may be I’m privileged person for having met the people I interact with. But also, I think that in the other cases … it is a matter of training. Other leadership patterns can deliver very good outcomes. It is not necessary to follow a controlling pattern instead of a leading pattern at the time of doing our job in multinational companies.”
EW: I quote what Bill Derrenger said once: “with an average strategy very well implemented you go far”. Which role plays innovation in an organizationa like a company is that needs being sustainable?
BD: “The first thing that caught my attention, when I changed from the consumer goods world to the media world is speed.
Glad that you quoted the comment I made. Basically what I meant is that a perfect strategy with poor execution is useless. But that we can really deliver outstanding results for years with a average or mediocre strategy and an excellent execution.
“For me, the key in the sector where I currently perform my duties, the media business, is the speed. That is, acting. This is a sector that moves very quickly. In fact one of the unofficial values that features Clear Channel-is speed, I mean fast.
“The innovation in this sector consists of testing, testing and testing. Trying to the customer’s service, of course. But keep on experimenting. Every time someone comes and brings me something new I say, let’s carry out a pilot. Always being willing to fail and learn. That is so.
“As one CEO at 3M said once: ‘Fail quickly and cheap.’ I think the key is that. Execute, carrying out small tests, and being willing to fail and learn, to fail quickly and cheap.”
EW: Do you foresee more mergers within the Outdoor advertising sector in Spain?
BD: “I think it’s all about the point of view. In our position, we are leaders in digital in Spain, we are leaders in malls, and as such, we are interested in growing this segment, investing, investing in measurement. Being leaders as we are, we are interested in working in this part of the business to foster creativity, to encourage using this media, and to make it growing more and more. That being the leader in the digital segment, as we are.
And for those entering the sector..As it happens with everything, I think few things well done. Midsize or small companies can find their niche in the market. This market that has experienced a steady growth during these years under the economic crisis and I believe there is enough room for everybody.”
EW: How much you think can the market share of the digital Outdoor advertising segment grow in the total ad spend?
BD: “It is a matter of time, but actually the future is in Digital”.
EW: Is Clear Channel Spain thinking about diversifying its business to communicate other contents beyond advertising on the digital screens?
BD: “We consider it as an opportunity to distribute relevant content to each of the markets served by our media.
“Obviously in a shopping mall and at leisure time may be the content those who are watching the screens are interested in is different from that in the morning or at night … In our digital posters, we currently offer news about the weather or information which is relevant given the moment our potential customers are watching them.”
EW: Is Clear Channel Spain thinking about entering the digital games screening in large formats?
BD: “Well, of course, we are an ideal media for gaming companies to present, their products. There are some campaigns in the field of gaming entertainment rolling out right now.
“We are also an ideal media for mobile games servicing a product or advertiser. For example we have experienced over 30,000 downloads on one Saturday in the morning during the launch of one movie.”
EW: To which extent are new forms of advertising, such as branded content, the future in the era of the multiscreened consumer?
BD: “I believe there are many experiences that are associated with branded content. It is better speaking about marketing that provides a service for the consumer. I think in that sense, branded content is the future.
“What is a very positive outcome from the digital evolution is that they have been strengthened positive elements everywhere in marketing.
“One of them is that today marketing must be honest marketing, it must communicate brand values, product benefits, which can be delivered by the product and the brand.
“The other one is that brands need to be at the service to their consumers. People have many ways around to skip advertising. If the brand is not offering something interesting, attractive and useful in the way it communicates with consumers, people’s attention will not be catched. I think in this sense branded content is the future.”
Bill Derrenger answered the questions in Spanish. Eastwind has translated the interview.
Image above the headline.- Bill Derrenger (Vice Chairman of Clear Channel Outdoor Global for South Europe). © Eastwind.
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