2014 IN-HOUSE CREATIVE SERVICES INDUSTRY REPORT

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2014 IN-HOUSE CREATIVE SERVICES INDUSTRY REPORT
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                                                  2014 In-House Creative Services Industry Report
2014 IN-HOUSE CREATIVE SERVICES INDUSTRY REPORT

                      PRESENTED
                       PRESENTEDBY
                                 BY

                                      ®
                                  ®
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                                                                                                                                                                                                                                           2014 In-House Creative Services Industry Report
Table of Contents
INTRODUCTION. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . ������������������������������������ 4

DEPARTMENT ORGANIZATION. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . ������������������������������������ 9

DEPARTMENT FUNDING . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . �����������������������������������12

DEPARTMENT RESOURCING. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . ����������������������������������20

SERVICE OFFERINGS. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . ���������������������������������� 27

PERSPECTIVE FROM THE FIELD: Evaluating Service Lines Using Portfolio Analysis������������������������������������29

PARTNERSHIPS . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . ����������������������������������34

GLOBAL OPERATIONS. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . ����������������������������������36

PERSPECTIVE FROM THE FIELD: A Global Creative Team—Brady Bunch Style. .  .  .  .  . ���������������������������������� 37

PROCESSES. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . ����������������������������������40

TECHNOLOGY. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . ����������������������������������44

PERSPECTIVE FROM THE FIELD: Built–In Automation Isn’t Always Better. .  .  .  .  .  .  .  . ���������������������������������� 47

PERSPECTIVE FROM THE FIELD: Getting What You Want From a PM System. .  .  .  .  .  . ����������������������������������50

VALUES & CHALLENGES OF IN-HOUSE TEAMS . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . �����������������������������������51

PERSPECTIVE FROM THE FIELD: We Are Great…But We Can Be Better. .  .  .  .  .  .  .  .  .  .  . ����������������������������������52

CREATIVE LEADER JOB MARKET. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . ����������������������������������55

PERSPECTIVE FROM THE FIELD: Perhaps Moving Up Means Moving Out: Create Your Own Path����������������56

APPENDIX. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . ����������������������������������59

Our goal is to benchmark the operations of in-house creative services groups to gain insights into industry standard best practices that will
support you in driving your business decisions and validate the direction of your department to upper management. We encourage you to
share the findings among your colleagues and industry peers.

We ask that you properly cite the source as:
The BOSS Group, Cella Consulting, LLC and InSource, 2014 In-House Creative Services Industry Report, April 2014.
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2014 In-House Creative Services Industry Report

                                                                             About the Report
                                                                             The BOSS Group, an interactive, creative and marketing staffing agency; InSource, the resource
                                                                             for creative in-house leadership; and Cella, a management consulting company exclusively
                                                                             serving the needs of in-house creative leaders, have partnered for a fourth year in a row
                                                                             to benchmark the in-house creative community. This edition of the In-House Creative Services
                                                                             Industry Report provides new insights in global operations and the challenges in-house
                                                                             teams and leaders face. In addition, this year’s report includes enhanced Technology and
                                                                             Agency Partnership benchmarking.
                                                                             The results of this annual survey continue to provide valuable insights and a source of
                                                                             validation and direction for in-house creative leaders.

                                                                             Benchmarking
                                                                             Creative Services teams are known for getting things done under all circumstances;
                                                                             regardless of the situation, we figure out a way and get the job done. That said, there are
                                                                             often opportunities within our processes for improvement that would contribute to a
                                                                             more effective and efficient operating model.
                                                                             While this report includes key insights and identifies predominant strategies, leaders need to
                                                                             develop the best solution for their company based on the unique needs of their organization.
                                                                             Benchmarking can be used to generate potential paths and solutions, but personal,
                                                                             innovative thinking and institutional knowledge should not be eliminated from the process.

                                                                             Survey Respondents
                                                                             More than 450 leaders from in-house creative departments responded to our survey
                                                                             conducted in January 2014. These leaders represent Fortune 1000 companies, as well as
                                                                             middle market and not-for-profit organizations, and span multiple industries including, but not
                                                                             limited to, retail, healthcare, technology and software, financial services, pharmaceuticals,
                                                                             higher education, and consumer packaged goods and services.
                                                                             More information about the demographics of our survey respondents is available in the Appendix.

                                                                             Perspectives From the Field
                                                                             We asked in-house creative leaders to share their stories* as they relate to shared challenges
                                                                             and goals across the industry. Topics cover new service offerings, global operations,
                                                                             technology, in-house values and career pathing. More stories like these can be found at
                                                                             http://www.cellaconsulting.com/Content-and-Community/Perspectives-From-the-Field/.

                                                  © 2014 The BOSS Group, Cella Consulting, LLC and InSource. All Rights Reserved.

                                                  *The opinions expressed in these articles are those of the writers and do not necessarily reflect the views of The BOSS Group, Cella or InSource.
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                                                                                                    2014 In-House Creative Services Industry Report
The Times, They Are A-Changin’
We are proud to present you with the results of the 2014 In-House Creative Services Industry
Report, the fourth edition of our annual report on issues and trends affecting our industry based
on the responses of more than 450 creative leaders of in-house creative teams just like you.

As anyone who has been leading an in-house team for the past year or two can tell you, things
are picking up. We know we feel it, and we’re guessing you’re feeling it, too. Maybe your general
workload has increased or your company has bestowed more responsibility for managing
the brand on your shoulders. The fact is that corporations are relying more on their in-house
teams today than they have in the recent past, and the agencies and consultants are noticing.

While we’ve successfully proven to senior management that we can do the same creative
work in-house that was once sent outside, or take on the responsibility for managing the
brand and agency relationships we rely on to support our corporate strategic goals, we still
haven’t found the support needed to grow staff size permanently. That said, we are seeing a
growth in the size of creative teams: There are less small teams (less than 10 people) and
more mid-sized and large teams than ever before (pages 21-22). We’re seeing that in-house
managers and leaders are finding new ways to grow team size and capabilities without adding
permanent full-time employees (FTEs) to the corporate payroll. New models for in-sourcing
staff such as managed contingent teams are joining the traditional on-site freelancers and
outsourcing of work to design studios and agencies.

As your in-house team and workload grow, so, too, does the need to adapt your workflow to be
more efficient and flexible to support client needs. From the adoption of account management
practices to implementing creative-specific project management systems, managers are looking
to provide an enhanced experience in a more efficient and effective manner. In addition to
facilitating the department’s workflow, project management systems are key to providing
creative leaders with tangible metrics they can leverage in their decision-making process
and senior management communications.

For the first time we surveyed creative leaders on their job satisfaction and confidence in their
job market. The good news is that two-thirds of you are mostly or extremely satisfied in your
current role. The not-so-good news is that almost half of the creative leaders who indicated
their job satisfaction as neutral or lower are not confident in the job market opportunities,
and many indicated they would be looking at options outside of in-house creative departments
for their next role.

As always, we hope you find the information in this report useful as a tool to guide and inform
how you manage your business. If there is something you’re looking for that we haven’t
reported, let us know.

ENJOY!
Andy, Jackie, and Conor

ANDY BRENITS              JACKIE SCHAFFER               CONOR SMITH
President, InSource       VP & General Manager, Cella   President, The BOSS Group
Survey
Results
DSIZE
         MI
     %

                        E      G
33

                            AR
                             L
                              10 %
                        L
                     AL
             58 % SM
Department
Organization
10
                                                  DEPARTMENT ORGANIZATION
2014 In-House Creative Services Industry Report

                                                  More than two-thirds of responding creative leaders indicated their                                                             RELATED RESOURCES

                                                  department reported through a strategic, value-adding department such                                                           Where Should the Creative
                                                  as Marketing, Communications, Advertising, Brand or some combination                                                            Department Reside?
                                                  of those divisions. When the creative team is positioned within one of                                                          http://bit.ly/ZwAaFR
                                                  these divisions, the organization is more likely to be considered strategic                                                     What Drives Similarities in
                                                  and value-adding. In contrast, when a creative team reports through                                                             Creative Groups?
                                                  a shared services division, the department is often viewed as a commodity,                                                      http://bit.ly/14eDQib
                                                  which makes it more difficult to succeed in becoming a strategic                                                                The In-House Employment
                                                  partner. It is possible to overcome the disadvantage of not being                                                               Advantage
                                                  aligned with the Marketing (or the like) department; it just requires                                                           http://bit.ly/Y7pcqA
                                                  the creative team to create a brand for itself outside of its “home.”

                                                  Leaders of in-house groups regularly face ongoing competing
                                                  priorities, leaving them without adequate time to develop their
                                                  leadership teams. It is important that leaders prioritize professional
                                                  development for themselves and their direct reports to ensure the
                                                  ongoing growth and success of the team members and group.

                                                  QUESTION What division does your creative services department report into?

                                                  ¬24% nonstrategic,
                                                     shared-services
                                                                                                                                                             5%
                                                     divisions                                                                                               other3
                                                                                                                                                     4%
                                                                                                               1%                                    sales
                                                                                                             print/
                                                                                                       production services
                                                                                                                                         10%
                                                                                                                                    operations
                                                                                                             2%
                                                                                                              IT

                                                                                                             2%
                                                                                                          human                                                                       42%
                                                                                                        resources                                                                    marketing
                                                  ¬ 77% strategic,                                                              6%
                                                     value-adding                                                               other2

                                                     departments
                                                                                                                                          15%
                                                                                                                                          hybrid 1

                                                  1 Hybrid Marketing Divisions represent divisions
                                                    that include multiple functions, one of which                                                                     14%
                                                    is marketing                                                                                                 communications

                                                  2 Other includes public affairs, advertising,
                                                    publications, brand, institutional
                                                    advancement, e-business, print production                        n=442

                                                    and production development

                                                  3 O
                                                     ther includes, but is not limited to, legal, product
                                                    development, finance, misc. executives

                                                                                                             *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
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DEPARTMENT ORGANIZATION

                                                                                                                                                 2014 In-House Creative Services Industry Report
QUESTION Are internal clients required to use your group?

¬40% of creative leaders                     yes                                                                                      32%
   responded that other creative
   services groups exist within                no, but most come through us anyway                                                  32%
   their company. When multiple
   groups exist, other variables                                             13%         for some projects/certain types of work

   need to be considered and
                                                                        12%        no, and it causes us challenges
   sorted out such as clarity on
   the groups’ services, who to                        6%      no

   initiate a project with and
   how the groups collectively                3%      no, but they must go through us to use an agency

   function, to name a few.                n=401

QUESTION H
          ow many direct reports does the                       QUESTION  O
                                                                              n average how many direct
         seniormost creative leader have?                                    reports do first/front-line
                                                                             managers have?

                                              ¬While there is not
                                                 an overwhelming
                12%
                 1                               majority response                                       13%
                                                                                                          2              20%
                           31%                   to the number of                                                           1

         14%                >6
                                                 direct reports per
            2
                                                                                            19%
                                                 role, there is a                             3
                                                 strong correlation                                                             20%
          14%
            3
                                                 between seniority                                                                 >6

                           16%                                                                     15%
                            5                    and number of
                     14%                                                                             4            14%
                      4                          direct reports.                                                     5

        n=410                                                                    n=398

QUESTION Is your role scoped such that you have adequate time to develop your team properly
          to help them reach their potential?

                                                                       65%                                        24%                    11%

                                                               not enough time                             adequate time        no time at all
n=416

                                   *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
Department
Funding
13
DEPARTMENT FUNDING

                                                                                                                                            2014 In-House Creative Services Industry Report
Instituting a chargeback funding model is a natural evolution for an                                          RELATED RESOURCES

internal creative services organization and an important step in                                              Building a Chargeback Model
eliminating a number of challenges common to “free” creative                                                  http://bit.ly/12KmQxp
services. Typically, this shift is due to several factors including
                                                                                                              Determining Your
department size, project volume/workload, resourcing and                                                      Chargeback Rate
competition with outside agencies. This evolution requires many                                               http://bit.ly/10DrrDy
organizational changes that include standardization of processes
                                                                                                              Chargebacks: A
and procedures, internal marketing activities, realignment of                                                 Double-Edged Sword
resources and improved project management. Moving to a chargeback                                             http://bit.ly/17Zf4C2
model signals the team will operate more like a creative agency in
                                                                                                              The Appeal of a Hybrid
both business operations and creative direction.                                                              Funding Model
                                                                                                              http://bit.ly/15JDtfy

QUESTION I s your department a chargeback organization?

            yes, for specific clients
               and/or services

                                                                                                       ¬The larger a creative
                                                                                                          services team, the more
                                           12%
                                                                                                          likely they are to
                                                                                                          chargeback. Case in point:
                                   20%                                                                    80% of departments with
                             yes, we charge back             68%                                          more than 50 team
                                                         no, we are not a
                                                     chargeback organization
                                                                                                          members charge back.

                     n=442

QUESTION W
          hich most accurately
         describes your
                                                             subsidized chargeback                                                    76%
         chargeback model?
                                                           2%      profit requirement

                                                                                                  22%     full-cost recovery

                                                          n=138

                                              *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
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                                                  DEPARTMENT FUNDING
2014 In-House Creative Services Industry Report

                                                  QUESTION W
                                                             hat costs are you required to recover through
                                                            your chargebacks?

                                                                                                                                                                    ¬Almost half of creative
                                                   there is no specific recovery goal                                                       39%
                                                                                                                                                                       leaders are working without
                                                                             10%
                                                                                        a flat number provided by finance/other                                        a goal or substantiated
                                                                                        that is not substantiated to us
                                                                                                                                                                       goal; if you fall in this
                                                                             10%
                                                                                        a flat number or % of operating costs                                          category, make it a
                                                                                        provided by finance/other
                                                                                                                                                                       priority to change this in
                                                   1%     personnel salaries only
                                                                                                                                                                       the beginning of your
                                                                                                                                                                       next fiscal year.
                                                   4%      total personnel costs (salary, benefits, taxes, etc.)

                                                                                     total personnel costs + a portion of
                                                                           7%        direct operating expenses

                                                          total personnel costs + total direct
                                                  3%      operating expenses

                                                            total personnel costs + total direct operating expenses
                                                   4%       + a portion of overhead (rent, utilities)

                                                                                                                   ALL COSTS:
                                                                                                      17%          total personnel costs + total direct operating
                                                                                                                   expenses + total overhead

                                                     5%      all costs plus profit

                                                  n=138

                                                  QUESTION W
                                                             hat is the most common method
                                                            used to charge clients?

                                                                                                                                                                            12%
                                                                                                                                         flat project rates                  other

                                                                                                                                                                    9%
                                                                                                                                                                                             42%
                                                                                                                                                                                        blended hourly rate

                                                                                                                                                                         37%
                                                                                                                                                                     service-specific
                                                                                                                                                                       hourly rate

                                                                                                                                                      n=134

                                                                                                         *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
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DEPARTMENT FUNDING

                                                                                                                                                  2014 In-House Creative Services Industry Report
QUESTION W
           hat is your blended hourly rate for creative services?

                                                                    4%
                                                               $141–$160/hour

                                                                     11%                   18%
                                                                                         18%
                                                                $121–$140/hour        <
16
                                                  DEPARTMENT FUNDING
2014 In-House Creative Services Industry Report

                                                  QUESTION  W
                                                              hat are the key BENEFITS your department experiences as a result of charging
                                                             your clients for services?

                                                                         provides metrics needed to make sound
                                                                         operations and staffing related decisions                                    61%
                                                                         encourages efficient use of time and
                                                                         resources by the creative department                                   58%

                                                                         promotes accountability and transparency into
                                                                         the financial management of the department                      54%

                                                                         allows departments to provide fair and
                                                                         balanced support to a variety of clients                 51%

                                                                         encourages efficient use of time
                                                                         and resources by the clients                              51%

                                                                         clear value recognition as compared to
                                                                         using similar services on the outside                48%

                                                                         allows for resource flexibility               41%

                                                                         clients recognize the value
                                                                         of creative services                    38%

                                                                                                                     allows for adjustment to corporate
                                                                                                           27%       and economic changes

                                                                                                       allows for the funding of
                                                                                            17%        innovation-based activities

                                                                        5%        I see no benefits in our charge system

                                                                       n=130

                                                  QUESTION  W
                                                              hat are the key DRAWBACKS that your department is experiencing as a result of
                                                             charging your clients for services?

                                                                          positions team as a vendor instead of
                                                                          a partner and colleague                                          53%
                                                                         clients find cheap or free alternatives for creative
                                                                         communication to avoid the charge for services            45%

                                                                         too much time and money spent on administrative
                                                                         requirements of the charge system                        44%

                                                                         clients feel rates are too expensive        34%

                                                                          funding for the department
                                                                          is not secure                    27%

                                                                                                                     increased and unnecessary scrutiny into the
                                                                                                           27%       operation by management and/or finance

                                                                                                   21%        stifles the quality of creative

                                                                                                       the associated polices and procedures are difficult
                                                                                            17%        to mandate in the creative department

                                                                                         15%       I see no drawbacks in our charge system

                                                                       n=128

                                                                                      *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
17
DEPARTMENT FUNDING

                                                                                                                                              2014 In-House Creative Services Industry Report
Non-Chargeback Department
Being a cost center (non-chargeback department) can be a great thing—the creative leader can focus on the value
of the creative his or her team is creating and is not burdened by financial pressures. However, the most significant
challenges for non-chargeback departments still remain: adding new headcount and affecting client behaviors.

QUESTION  W
            hat are the key BENEFITS your department experiences as a result of NOT
           charging your clients for services?

                        no financial pressures                                                                     55%

                        plentiful business due to lack of direct costs                                            53%

                        minimal reporting requirements                                                  49%

                        technology is upgraded within
                        reasonable periods of time                             30%

                                                                          relatively easy to add freelance/temps
                                                               25%        to team when demand dictates

                                                 15%      I see no benefits in not charging clients

                                7%       budget is increased annually to support growth for non-personnel costs

                              6%      relatively easy to add new headcount to team (throughout and/or in new budget year)

                      n=283

QUESTION  W
            hat are the key                            client behaviors are difficult to manage because there is no
                                                                                                                                        74%
           CHALLENGES that                              implication to misuse/abuse

           your department                              projects with questionable impact/value                                   60%
           experiences as a result
           of NOT charging your                         difficulty justifying value in a quantitative manner                   59%
           clients for services?
                                                        clients don’t highly value our services because
                                                        “free” is “inferior”/lower perceived value                48%

                                                        adding new headcount                                      48%

                                                        too high of demand                                        48%

                                                        projects that don’t reach completion
                                                        regardless of effort exerted           35%

                                                                                                bringing on temporary/freelance
                                                                                   27%          staff to support peak periods

                                                                                                limited or no increases to funding
                                                                                   27%          for non-personnel costs

                                                          2%     I see no challenges in not charging clients

                                                     n=288

                                            *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
18
                                                  DEPARTMENT FUNDING
2014 In-House Creative Services Industry Report

                                                  Non-Personnel Budget
                                                  Outside of labor, creative leaders’ budget items typically fall into several main categories: technology,
                                                  professional development and supplies. Almost half of all creative leaders find budgets for these items to be
                                                  inadequate. Most tellingly, 31% of creative leaders have very limited funding for training—the most critical
                                                  component of a creative department’s non-personnel budget, as our team members must continue to develop
                                                  their skills in order to meet expectations in the changing communications environment.

                                                  QUESTION How do you use your Non-Personnel/Direct Operating budget?

                                                                                                                                                                    ¬46% of creative leaders
                                                    on-line training (e.g., lynda.com)                                                     64%
                                                                                                                                                                       find their non-personnel
                                                    software & related upgrades                                                            64%                         budgets to be inadequate.
                                                    stock art                                                                              64%
                                                    industry events and conferences                                                      63%

                                                    hardware & related updates                                                55%

                                                    team outings for morale and bonding purposes               45%

                                                    travel/transportation                              41%

                                                    soft skills training/coaching        31%

                                                                              21%        software training led by live instructor

                                                                         20%         team outings for creative enrichment purposes

                                                                14%         consulting services

                                                  5%       other

                                                  n=411
                                                                                                                                                                                                2%
                                                                                                                                                    yes, but I am
                                                                                                                                                    not privy to                               other
                                                  QUESTION  D
                                                              oes your team have an established                                                     the amount

                                                             training budget each year?

                                                  RELATED RESOURCES
                                                                                                                                                                              12%
                                                  Avoid Extinction: Keep Your Skills
                                                  and Your Team’s Skills Sharp                                                                                                                          34%
                                                                                                                                                                    21%
                                                  http://bit.ly/Y7pMoj                                                                                                                                  yes
                                                                                                                                                               no, but most
                                                                                                                                                                 requests
                                                                                                                                                               are approved
                                                  The Cella Slant: On
                                                  Professional Development
                                                  http://bit.ly/10DrKy0                                                                                                               31%
                                                                                                                                                                                  no, funding for
                                                                                                                                                                              training is limited and
                                                  Get Serious About                                                                                                           approved individually
                                                  Professional Development
                                                  http://bit.ly/1kdgXRO                                                                                n=418

                                                                                                          *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.

                                                                                                         32%
19
DEPARTMENT FUNDING

                                                                                                                                          2014 In-House Creative Services Industry Report
QUESTION  What is your training budget per individual?

                    ¬Teams with between 10 and 30
                       team members have the
                       highest per team member                                                     20%
                       training budget. The largest                                                > $1,000         30%
                       teams have the smallest per                                                                   < $200

                       person budget.
                                                                                              16%
                                                                                           $750–$1,000

                                                                                                                  22%
                                                                                                                 $200–$500
                                                                                                       13%
                                                                                                  $500–$750

                                                                                   n=372

Printing
Print spend continues to trend downward with 90% of creative teams indicating that print spend has
either remained relatively flat or has decreased in the past year.

QUESTION  H
            ow has your total spend on printing changed                                               ¬44% of respondents
           in the past year?                                                                              indicated that their
                                                                                                          in-house print options
                                                                                                          were restricted to standard
                                                                                                          printers and copiers alone.
                                                                                                          44% have access to color
   6%       decreased by more than 50%
                                                                                                          digital printers, and 29%
                                                                                                          have access to large format
                                            31%   decreased by 10%–50%
                                                                                                          printers. 30 organizations
                                                                                                          reported having an offset
  pretty much the same, plus or minus 10%                                            54%
                                                                                                          press in house.
             9%      increased by 10%–50%
                                                                                                       ¬In line with the reduction
                                                                                                          of printing, 33% of creative
  1%    increased by more than 50%
                                                                                                          leaders indicated their
n=342                                                                                                     staffing mix has shifted
                                                                                                          such that the team increased
                                                                                                          its interactive/digital staff
                                                                                                          across the past year.

                                              *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
Department
Resourcing
21
DEPARTMENT RESOURCING

                                                                                                                                      2014 In-House Creative Services Industry Report
Team Size                                                                                                   RELATED RESOURCES

The size of in-house teams is growing! The number of small teams                                            Don’t Let Growth Become
(< 10 people) has decreased by 10 percentage points (from 69% to 58%).                                      Your Kryptonite
Consequently, there has been growth in teams of 11 to 20 and 21 to                                          http://bit.ly/QdmCw6
30 team members. Headcount growth has come in the form of contract                                          The Practical Tactical
labor, as the percentage of teams composed of 100% full-time employees                                      Side of Growth
has decreased by six percentage points (from 55% to 49%).                                                   http://bit.ly/1hGtjwG

Creative leaders must be careful in demonstrating a desire to grow
their team. Too often a desire to grow a team can be viewed as “empire
building”; leaders must be prepared to substantiate headcount
requests based on business need. In addition, leaders need to be
prepared to promote the adoption of new processes and tools to
support the growth in order to grow in a mature, scalable manner.

QUESTION How large is your creative services team? (combined FTEs and contingent workers)

                                 2013                                                                         2014

    Solo Designer            8%                         SMALL TEAMS
                                                                                         Solo Designer            4%
                                                            2013: 68%
             2–5                          31%               2014: 58%                              2–5                        26%

            6–10                        29%                                                        6–10                        28%

            11–20                 15%                MID-SIZED TEAMS                              11–20                 17%
                                                            2013: 25%
           21–30            5%                              2014: 33%                             21–30            8%

           31–50            5%                                                                    31–50            8%

           51–75        3%                              LARGE TEAMS                               51–75           4%
                                                             2013: 6%
          76–100      1%                                     2014: 10%                           76–100      2%

             101+      2%                                                                          101+           4%

                    n=411                                                                                 n=418

                                        *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
22
                                                  DEPARTMENT RESOURCING
2014 In-House Creative Services Industry Report

                                                  QUESTION W
                                                             hat percentage of your full-time team members are FTEs of your company?
                                                            (versus sourced staff)
                                                                                                                           ¬ Creative teams
                                                                                                                              are decreasing
                                                                                                                              their reliance on
                                                                                                                              full-time employees.

                                                  1% 0%       3%   4%        2%   3%                5%     8%              14%     12%           20% 23%               55%       49%

                                                    0%          1–24%         25–49%                 50–74%                  75–89%                    90–99%                100%

                                                                                                 2013                      2014
                                                                                                       n=410, 418

                                                  QUESTION H
                                                             ow did your full-time team size change between
                                                            2012 and 2013?

                                                                                                                                              18%
                                                                                                                                            decreased
                                                              ¬ While overall team sizes have increased,
                                                                                                                                                                  39%
                                                                 it has not been due to the growth in                                                              44%
                                                                                                                                                                $81–$100/hour

                                                                 full-time employees. Team size growth                                                           remained flat

                                                                 has been accomplished by hiring                                            38%
                                                                                                                                           increased
                                                                 contract/temporary staff members.

                                                                                                                               n=417

                                                                                  *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
23
DEPARTMENT RESOURCING

                                                                                                                            2014 In-House Creative Services Industry Report
QUESTION What was your 2013 attrition rate?

                                                                          2%
                                                                      25%–30%
                                                                                            3%
                                           2%                                               > 30%
¬ Non-regretted attrition is            20%–25%

   healthy and should be
   encouraged—if a job is not
   a fit for the individual,                                         5%
   both parties should be                                         15%–20%

   invested in making a change.                            5%
   In addition, attrition allows                         11%–15%

   creative leaders the
   opportunity to bring in
   fresh thinking and increase                          13%
                                                        6%–10%
   the team’s capabilities by
   hiring staff with strengths                                                                      69%
   that complement the                                                                            less than 5%
                                                                                                attrition last year
   in-place team.

                                       n=403

QUESTION W
           hat are your full-time hiring
          plans for 2014?

                                                  increase current
                                                  FTE headcount                      37%

                                                  maintain current FTE
                                                  headcount                                                           61%

                                                                 decrease current
                                                        3%       FTE headcount

                                                n=417

                                   *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
24
                                                  DEPARTMENT RESOURCING
2014 In-House Creative Services Industry Report

                                                  QUESTION What is your perspective of the available talent in the marketplace right now?

                                                                    ¬ Interactive and mobile designers, project
                                                                       managers and traffic coordinators are the most
                                                                       difficult roles for creative leaders to source.

                                                                                    There’s an abundance         There’s enough qualified   There’s limited    Having trouble identifying   Response
                                                   ANSWER OPTIONS                   of highly qualified talent   talent to choose from      qualified talent   qualified talent             Count

                                                   Graphic Design                           26%                          50%                     20%                     4%                    362
                                                   Web Design                                19%                          51%                     25%                    4%                    348
                                                   Interactive/Mobile Design                 10%                         40%                     40%                     11%                   346
                                                   Account Management                        18%                          51%                     23%                    8%                    335
                                                   Copywriting                               11%                         45%                      36%                    8%                    346
                                                   Editing/Proofreading                      13%                         53%                     30%                     5%                    349
                                                   Project Management                        13%                         53%                      28%                    6%                    344
                                                   Traffic Coordination                      12%                         52%                      28%                    8%                    341

                                                  WHEN RESPONSES WITHIN MULTIPLE CATEGORIES WERE CLOSE, MULTIPLE RESPONSES WERE IDENTIFIED AS A MAJORITY RESPONSE.
                                                  n=363

                                                  Surge Support                                                                                                     RELATED RESOURCES

                                                                                                                                                                    Effectively Managing
                                                  Ensuring you’re appropriately staffed is a constant balancing act creative                                        Just-In-Time
                                                  leaders face on a day-to-day basis. Flexible staffing models and principal                                        Creative Resources
                                                  partnership agencies continue to provide creative services teams support                                          http://bit.ly/10Aiivy
                                                  during peak periods without increasing staff size.                                                                Creating Positive
                                                                                                                                                                    Permalancer Experiences
                                                  Including a budget that allows for flexibility is critical—in fact, your budget
                                                                                                                                                                    http://bit.ly/17ZT6yF
                                                  may be better spent in not hiring an FTE and instead using the same
                                                  funds to pay several temporary workers during peak periods.                                                       The “New Normal” in Staffing
                                                                                                                                                                    Strategies: Contingent Workers
                                                                                                                                                                    http://bit.ly/ZPct69

                                                                                                                                                                    Don’t Let MSP or VMS
                                                                                                                                                                    Programs Obstruct Your
                                                                                                                                                                    Access to Great Talent
                                                                                                                                                                    http://bit.ly/ZNrwOu

                                                                                                                                                                    Increasing Your Quality Hires
                                                                                                                                                                    http://bit.ly/17iPFBR

                                                                                                                                                                    Attracting Top-Tier Talent
                                                                                                                                                                    http://bit.ly/17iRkYg

                                                                                                 *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
25
DEPARTMENT RESOURCING

                                                                                                                                      2014 In-House Creative Services Industry Report
QUESTION H
            ow many hours per week does your staff
           work on average?

                                                                                      2%
                                                                                     56–60
                                                                                                     1%
                                                                                                     > 60
¬ While 72% of creative                                              51–55

   leaders estimated their team
   members work less than
   45 hours per week, only                                                        4%

   55% of creative leaders
   indicated their team was
   appropriately staffed                                                                                         24%
                                                                                                        less than equal to 40 hours
   when considering full-time                                       21%
                                                                 46–50 hours
   and contingent staff.

                                                                                                48%
                                                                                              41–45 hours

                                                  n=418

QUESTION  W
            hat is the majority of overtime attributed to?

                       deadlines                                                                        42%

                        temporary spikes in volume                                     31%

                        insufficient staffing                          19%

                                       limited quantity of
                            5%         specific skill sets

                      3%       other

                    n=318

                                           *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
26
                                                  DEPARTMENT RESOURCING
2014 In-House Creative Services Industry Report

                                                  QUESTION  A
                                                              re any full-time employees paid                          QUESTION  A
                                                                                                                                    re any full-time team members
                                                             an overtime rate for any hours                                        paid an overtime rate for more
                                                             above 40?                                                             than 8 hours in a single day?

                                                                        67%
                                                                           no
                                                                                                                                                   18%
                                                                                                                                                     yes

                                                                                    yes, and
                                                                                    they are
                                                                                    company
                                                                                   employees

                                                                                                   yes,
                                                                                       30%       though                                                             82%
                                                                                                they are
                                                                                                  third                                                                  no
                                                                                                  party
                                                                                                sourced
                                                                                                  staff

                                                                                                 6%
                                                                                                                                  n=317

                                                                       n=318

                                                  QUESTION  A
                                                              re you able to use flexible                              QUESTION  W
                                                                                                                                    hat are the freelancer/temp
                                                             staffing options such as freelancers                                  hiring plans for 2014?
                                                             and temporary/contract workers
                                                             during periods of peak demand?

                                                                                                                                                            33%
                                                                                                                                                            increase
                                                                                                                                                           total spend

                                                               ¬9 out of 10 creative leaders
                                                                  are able to use freelancers.

                                                                                  10%
                                                                                  no
                                                                                                                                                             55%
                                                                                                                                                     maintain total spend

                                                                       33%                       57%
                                                                      sometimes
                                                                                                   yes

                                                                                                                                                             13%
                                                                                                                                                            decrease
                                                                                                                                                           total spend

                                                              n=415

                                                                                                                                             n=352

                                                                                          *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
Service Offerings
28
                                                  SERVICE OFFERINGS
2014 In-House Creative Services Industry Report

                                                  The number of projects creative services teams produce annually is                                  RELATED RESOURCES

                                                  loosely linked to their size. While it’s interesting to discuss volume in
                                                                                                                                                      What Does Social Media
                                                  terms of number of projects, it’s not an apples-to-apples comparison                                Mean for Marketing
                                                  across organizations. Service offerings continue to evolve and expand,                              Infrastructure?
                                                  providing growth for in-house creative teams. However, the new                                      http://bit.ly/1mdfWgc
                                                  complexities require specific expertise and skill sets. Volume in its truest
                                                                                                                                                      Launch That New Service…
                                                  form should be discussed in terms of the number of “billable” or “utilized”                         Under the Radar
                                                  hours per year. In addition, the various complexities in the work itself                            http://bit.ly/ZnJif0
                                                  are not captured under project count and are better evaluated with
                                                                                                                                                      Evolving Your Department’s
                                                  hours in assessing the level of effort put into the project.                                        Service Offerings—The
                                                                                                                                                      Talent Question
                                                  Taking on digital work without investing in team members with digital                               http://bit.ly/11FZgRb
                                                  experience limits your team’s potential. It’s possible for print designers
                                                  to support some digital requests, and even for some print designers                                 Don’t Undervalue
                                                                                                                                                      Digital Expertise
                                                  to fully transition to digital designers, but the most success occurs
                                                                                                                                                      http://bit.ly/1kBboiO
                                                  when you invest in external talent to mentor those team members
                                                  and to guide the department’s foray into digital services.                                          Don’t Undervalue Digital
                                                                                                                                                      Expertise—Part II
                                                                                                                                                      http://bit.ly/1gS9cvb

                                                  QUESTION How many projects did your team work on in 2013?

                                                                          SMALL TEAMS            MID–SIZED TEAMS                        LARGE TEAMS                    MEGA TEAMS
                                                                              _< 10                    11–30                               31–50                          > 50

                                                          < 500
                                                                               28%          12%                                        6%                   0%

                                                       500–999
                                                                                 31%              23%                             10%                              6%

                                                      1000–1999
                                                                          20%                             31%                         13%                         14%

                                                     2000–2999
                                                                     12%                          18%                                   23%                       11%

                                                     3000–3999
                                                                          5%                8%                                              26%                    6%

                                                     4000–4999
                                                                     2%                          5%                               3%                              9%

                                                     5000–5999
                                                                    0%                    0%                                      3%                              14%

                                                     6000–6999
                                                                    0%                     1%                                     10%                         3%

                                                     7000–7999
                                                                     1%                   0%                                    0%                           8%

                                                         8000+
                                                                   0%                       2%                                         6%                               29%

                                                                  n=411                  n=100                                 n=31                        n=35

                                                                                        *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
29
SERVICE OFFERINGS

                                                                                                                                                  2014 In-House Creative Services Industry Report
PERSPECTIVE FROM THE FIELD:

Evaluating Service Lines Using Portfolio Analysis
In managing a creative services            divest. With enterprise value as                     about eBooks. As a service
team, identifying appropriate              the primary focus, decision                          line eBooks are within our skill
new trends and services to                 criteria must consider what                          set and have a good “wow”
pursue is an evergreen process.            moves the company’s core                             factor for clientele. But are they
While creating service lines may           business ahead.                                      worth pursuing?
open new opportunities, these
                                                                                                Each driver is assigned a relative
offerings must not distract from           Key drivers vary depending
                                                                                                weight and a score from 1 to 10.
the core business of the creative          upon your company’s core
                                                                                                The score permits quantitative
team. In-house teams need to               business. Some are obvious:
                                                                                                comparisons of the overall
bear in mind service lines should          supply/demand, cost to supply,
                                                                                                value/risk of a proposed service
provide benefit to the enterprise          value to enterprise, competition
                                                                                                against previously measured
as a whole rather than favor a             and capability. Others are less
                                                                                                portfolio analyses of existing
particular group.                          tangible: safety and risk
                                                                                                service lines.
                                           management, marketing
Establishing decision criteria is
                                           concerns, public relations issues                    At Chevron, our in-house team
the first step in conducting an
                                           and external drivers.                                analyzes both current and new
ongoing portfolio analysis that
                                                                                                service lines annually using the
determines services to                     Recently, clients using tablets
                                                                                                portfolio analysis technique. Is
emphasize, to maintain or to               and smartphones are inquiring
                                                                                                the value of a service line

  KEY DRIVERS                           QUALITATIVE ANALYSIS                                       BENEFIT RATING (1–10)
                                                                                                   (10 BEING MOST BENEFICIAL TO THE ENTERPRISE)

                                        Yes, we’ve received requests. How many? Some.
  Is there a business need?
                                        We expect more once the product launches.                                      5
                                        Relatively minor, using mostly our current
  What is the cost to supply?
                                        Web tools. Some template cost development.                                     8
                                        Yes, but only at our typical hourly rates. This
  Can we recover our costs?
                                        would not be a premium service.                                                5
                                        Fairly small. Mobility is still in its infancy at the
  How big is the target market?         corporate level, and adoption might be slow,                                   3
                                        this year at least.
  How much value does it have to        Some. This could promote our team’s mobile
  the in-house team?                    capabilities, but overall sales may be low.                                    7
  How much competition is there?        Some, mostly external.                                                         4
                                        More or less. It could be classified as an
  Is it within our scope?               application, which could split the domain with                                 4
                                        our information technology group.
                                        Risk level for safety and information protection
  What is the risk level?
                                        is low.                                                                       10
  Do we have the capability to do it?   Yes, with some additional training.                                            6
30
                                                  SERVICE OFFERINGS
2014 In-House Creative Services Industry Report

                                                  declining? Should it be divested or     TRACY PEARSON
                                                  minimized? Should a minor service       Tracy is the Manager of Chevron Information Design and Communications.
                                                                                          Her team of 100+ creative personnel develop a wide range of communications
                                                  line be emphasized if there is an       deliverables for Chevron’s global enterprise. During her tenure, she launched
                                                  increased opportunity for growth?       the team’s Training division, improved operating metrics and cost recovery,
                                                                                          built an offshore resource pool in India and instituted the team’s first project
                                                  Portfolio analysis is an ongoing,       management information system. She holds an M.B.A. from Tulane University
                                                  evergreen process that shapes and       in International Finance.
                                                  drives our business forward, enabling
                                                  the carefully planned adoption of
                                                                                          PAUL NAQUIN
                                                  new technologies and innovations.
                                                                                          As Team Lead for Chevron Utility IT Assets Communications, Paul developed
                                                                                          and managed a broad array of processes for both the communications
                                                                                          team and various information technology projects. Paul is also member of
                                                                                          Mensa International.
31
SERVICE OFFERINGS

                                                                                                                                2014 In-House Creative Services Industry Report
QUESTION  W
            hich of the following TRADITIONAL services does your department provide?
           (select all that apply)
                                                    graphic design                                                        98%
¬ Top 5 services provided by                       production design                                               87%
   other departments (not                           brand management                                          80%
   within creative services)                        print procurement                                        78%
   include Social Media Support,
                                                    infographics                                          76%
   Web Design, Copywriting,
   Video Production and                             PowerPoint                                         72%
   Proposal Development.                            photography                                       71%
                                                    marketing/communication strategy          65%
                                                   account management
                                                   /project management                       64%
                                                    copywriting                             63%
                                                    video production                    61%
                                                    proofreading                        61%
                                                    copyediting                      60%
                                                    fulfillment service       42%
                                                    audio production         38%

                                                                     30%        proposal production

                                                              25%          proposal development

                                                         7%        other

                                                 n=402

QUESTION  W
            hich of the following                 web design                                                      70%
           DIGITAL specific
           services does your
                                                   social media support                                      63%
           department provide?                     copywriting                                              62%
           (select all that apply)
                                                   interactive/multimedia design                      58%
                                                   web content management                   51%
                                                   on-line video                            51%
                                                   mobile design                       48%
                                                   user experience             39%
                                                   seo                       25%

                                                   app development         19%

                                                                   15%       e-learning design/services

                                                  5%      other

                                                n=382

                                   *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
32
                                                  SERVICE OFFERINGS
2014 In-House Creative Services Industry Report

                                                  QUESTION W
                                                              hich of the following service offerings do you see greatly INCREASING in the future
                                                             for your group?

                                                                                             interactive/multimedia design                     43%

                                                                                             mobile design                                    41%

                                                                                             video production                                 41%

                                                                                             web design                                  40%

                                                                                             social media support                      37%

                                                                                             marketing/communication strategy          37%

                                                                                             infographics                        33%

                                                                                             brand management                    33%

                                                                                             graphic design                   30%

                                                                                             user experience                 29%

                                                                                           n=396

                                                  QUESTION  W
                                                              hat is your group’s PRIMARY                                   QUESTION  F
                                                                                                                                         or which audience does your team
                                                             scope of work?                                                             create the MAJORITY of their work?

                                                      Tier 3: Pure Production
                                                      (edits/revisions/templeted work)

                                                                                  5%
                                                                                                                                                                           16%
                                                                                                                                                                          internal
                                                                                                                                                   29%                    audience

                                                                                                                                             equal to internal and
                                                                                                                                              external audiences
                                                                                              47%
                                                                                           Tier 1: Creative
                                                                       48%                  Development
                                                                        Tier 2:          (conceptual work)
                                                                  Design Production
                                                                     (execution of
                                                                 previous work across                                                                                56%
                                                                     deliverables)
                                                                                                                                                                     external
                                                                                                                                                                     audience

                                                             n=400                                                                   n=400

                                                                                              *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
33
      SERVICE OFFERINGS

                                                                                                                                                                2014 In-House Creative Services Industry Report
      QUESTION D
                oes your team provide DEDICATED account
               management services to your clients?
                                                                                                                                  Yes, we have both
                                                                                                                                     project and
                                                                                                                                  account managers

                                                                                              Yes, we have
                                                                                            account managers
                                                                                                                              8%
                            ¬Only 18% of creative teams
                               have dedicated digital/                                                             9%
                               interactive project manager
                               roles such as “Web Producer.”                                                    16%                              49%
                                                                                                            Yes, we have                               No
                                                                                                          project managers

                                                                                                                         18%
                                                                                                                     Yes, though our
                                                                                                                   Account Managers
                                                                                                                   are hybrid Account
                                                                                                                   Managers-Project
                                                                                                                        Managers

                                                                                                        n=401

      QUESTION  W
                  hat type of advertising does                                         QUESTION H
                                                                                                   ow often does your company
                 your group support?                                                              commission custom photography?

                                                                                                                                            3%
                                                                                                                     never               do not know

43%
        national advertising                                             61%
                                                                                                                             6%
                                                                                               rarely
        regional advertising                      56%

        local advertising                      53%                                                              21%
                                                                                                                                                   49%
                   20%         we don’t support advertising                                                                                        3 or more
                                                                                                                                                 times a year

      n=400
                                                                                                                5%
                                                                                          every few years            7%
                                                                                                                                 9%

                                                                                                     1x annually

                                                                                                                             2x a year

                                                                                                    n=399

                                                          *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
Partnerships
35
PARTNERSHIPS

                                                                                                                             2014 In-House Creative Services Industry Report
Partnering with agencies is often in the best interest of the business                         RELATED RESOURCES

or organization and your internal team. So as a leader you must work
                                                                                               Partner With Agencies to
to take away the fear of bringing in outside expertise and embrace                             Provide Increased Value
the possibilities. It is difficult to do everything on your own. Beyond                        http://bit.ly/XXrTJ4
simply sharing the workload, there are other key reasons to further
                                                                                               Cracking the Offshoring Nut
agency relationships: keeping up with a dynamic business
                                                                                               http://bit.ly/1hGtsjG
environment, “integrated” creative excellence, career development
for your team and efficient delivery.

(Authored by Jenni Heerink, former Creative Director, Newell Rubbermaid—DYMO
brand. Read the full article at in-source.org/3037)

QUESTION D
          oes your in-house creative team
         partner with external agencies?

                                                                                      26%
                ¬The five most common                                                 no

                   services agencies provide
                   include: Campaign Strategy
                   & Design, Creative Strategy,
                                                                                                    75%
                   Design Execution, Video and                                                        yes
                   Interactive/App Development.

                                                                         n=400

QUESTION D
          oes your group partner with
         offshore/offsite creative and
         production services providers?

                ¬These creative teams are
                                                                                      34%
                   leveraging offshore/offsite                                          yes

                   creative and production
                   services providers for
                   both digital and traditional
                                                                                                    67%
                   services across the                                                                no
                   spectrum of production
                   through conceptual work.

                                                                         n=295

                                      *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
Global Operations
37
GLOBAL OPERATIONS

                                                                                                                               2014 In-House Creative Services Industry Report
PERSPECTIVE FROM THE FIELD:

A Global Creative Team—Brady Bunch Style
It isn’t quite the story of a lovely lady       together on a regular basis          One of the early successes of our
who met a man named Brady.                                                           global team transpired in the
                                            •    estructured to align roles
                                                R
                                                                                     aftermath of Hurricane Sandy.
Yet, not unlike that 1970s blended              and responsibilities
                                                                                     The Princeton team’s ability to
TV family The Brady Brunch
                                            •    eveloped a creative review
                                                D                                    work was hindered due to the
brought together in holy matrimony,
                                                structure that encouraged            storm; however, their critical
our Global Creative Services team
                                                regional creative directors to       deadlines were still met due to
came together as the result of the
                                                work toward consensus                the support of the London and
corporate equivalent of marriage—–
                                                                                     San Francisco teams. Leveraging
mergers and acquisitions—that
                                            •    laced the global head in an
                                                P                                    global connectivity and business
resulted in transformational changes
                                                executive creative director role     continuity, the other teams in
to our firm in just a few short years.
                                                                                     London and San Francisco took
                                            •    ncouraged senior leaders to
                                                E
As the result of those deals, we had                                                 on additional tasks and
                                                travel to other locations
creative teams located in Princeton,                                                 responsibilities, working extra
NJ; San Francisco and London—–              •    reated an internal social
                                                C                                    hours until the Princeton team
each one operating autonomously                 media site for idea sharing          was up and running again. Not
serving clients in three of our                                                      because they had to due to a
largest offices.                            •    ooked for training opportunities
                                                L
                                                                                     corporate mandate—–but
                                                to bring individuals from each
It wasn’t long before our management                                                 because they genuinely felt
                                                team together
team knew “that this group must                                                      compelled to do whatever they
somehow form a family,” and the             •    ssigned team members from
                                                A                                    could to help their friends.
three teams became one in late                  each location to task forces
                                                                                     CAROL CARTER
2011.                                           taking on special projects
                                                                                     The Head of the Global Creative
At the onset our overall objectives         Very quickly, one hour each day          Services team at BlackRock, the world’s
were clear: produce consistently            —–­9 a.m. in San Francisco, noon in      largest asset manager. She leads a
                                                                                     48-person in-house creative team,
exceptional creative output (especially     Princeton and 5 p.m. in London—–         within the firm’s Global Marketing and
important since we were launching           became booked with standing              Communications group, responsible for
                                                                                     the development of an array of
a new visual identity for the firm)         meetings to accommodate the              marketing materials and corporate
and increase collaboration.                 three different time zones.              communications including brochures,
                                                                                     direct mail, sales support tools, event
To that end we quickly formalized                                                    materials, promotional items and
                                            To be honest, at first there was a       booth-ware. Carol has more than
meetings and processes that would           tendency to identify more with           30 years of experience in marketing
require that the three teams work                                                    and communications, of which the
                                            each individual team’s past than         last 17 years have been in the
together to get things done. And            our collective future. But soon, the     financial services industry.
what exactly did we do?                     teams started to see themselves as
•    stablished weekly meetings to
    E                                       one global group and the mutual
    share and discuss work                  respect and genuine affection
                                            increased. And much like a real
•    et up monthly video conferences
    S                                       family, when times got tough, they
    for the entire team to come             pulled through for each other.
38
                                                  GLOBAL OPERATIONS
2014 In-House Creative Services Industry Report

                                                  There are two approaches firms are taking with global operations.                                          RELATED RESOURCES

                                                  Some teams are choosing to utilize a global approach in low-cost
                                                                                                                                                             Outsourcing Approaches
                                                  markets to take advantage of cost savings and offer a more “24/5”                                          http://bit.ly/1n11PKc
                                                  approach, while others are serving global creative needs by positioning
                                                  their teams in global offices close to their customer base.

                                                  For in-house groups with multiple locations, tactically evaluating the
                                                  benefits and drawbacks of each location’s operations is critical. Most
                                                  commonly you will find trends demonstrating a need for increased
                                                  cost savings, which leads to shifting more capabilities and roles to a
                                                  lower-cost labor market either domestically or internationally.

                                                  Challenges to be made aware of and prepare for with global
                                                  operations are:

                                                  •   Technology: Remote teams often experience slowness in the shared
                                                                     network, which is something that may not be able to
                                                                     be improved.

                                                  •   P rocess:    
                                                                     There is a critical need for effective and efficient
                                                                     project hand-offs across locations. Communication of
                                                                     project details and creative direction is a consistent
                                                                     challenge.

                                                  •   The clock:  Depending on the global locations, short or
                                                                      nonexistent time zone overlaps create hurdles in
                                                                      connecting and clarifying, which, in turn, can
                                                                      negatively impact turnaround time.

                                                  QUESTION  A
                                                              t how many locations do your team members reside?

                                                  ¬89% of creative services
                                                     teams represented in this               one central domestic location                                                  70%
                                                     report have a team based in
                                                     the United States; the                                          10%           2 domestic locations

                                                     United Kingdom, China and
                                                     India were the next most                                                11%      3 or more domestic locations

                                                     prevalent with at least 20%
                                                     of teams with multiple global                               9%
                                                                                                                              multiple locations both domestic
                                                                                                                              and international
                                                     locations indicating teams in
                                                     these countries. No other one        n=425

                                                     location had more than six
                                                     creative teams represented.

                                                                                       *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
39
GLOBAL OPERATIONS

                                                                                                                                2014 In-House Creative Services Industry Report
          hat are the primary reasons for international
QUESTION W
         creative services groups? (select all that apply)

                to support local business partners                                        64%

                to take advantage of
                low-cost labor market                      44%

               to provide more hours of business
               support “follow the sun approach”           44%

              6%        other

             n=36

          ow do you manage language support? (select all that apply)
QUESTION H

             ¬Outside of English, the most commonly supported languages include Spanish
                (60%), French (49%), Canadian French (34%), Italian (31%), Portuguese
                (31%) and Mandarin (29%).

                native speakers                                                                      69%

                aid of translation agency                                                            69%

                           9%         layout/text characters only

                6%         other

             n=35

          ow do you share files between locations? (select all that apply)
QUESTION H

                email                                                                                75%

                external servers
                such as Dropbox                                             64%

               mirrored servers                            47%

                                    28%            other                                       ¬“ Other” responses include
                                                                                                     company intranet (e.g.,
               6%       file replications
                                                                                                     SharePoint), project
                                                                                                     management and DAM
             n=36                                                                                    tools, and FTP sites.

                                            *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
Processes
41
PROCESSES

                                                                                                                                       2014 In-House Creative Services Industry Report
Standard operating procedures, workflows and systems are usually                                      RELATED RESOURCES

an afterthought and come into play when a creative services group’s                                   Process Documentation—
volume of work is significantly increasing, and so is its size. But if                                More Than Just Pretty Pictures
implemented early, these tools provide transparency, clarity of roles                                 http://bit.ly/1i8zwpJ
and responsibilities, automated support and efficiencies resulting in
                                                                                                      Getting Started With
increased productivity—and a stronger foundation to support growth.                                   Process Documentation
                                                                                                      http://bit.ly/1gi2VNA

                                                                                                      Big Deal About Tiering?
                                                                                                      http://bit.ly/1kQDJNO

QUESTION  D
            oes your team use Creative Briefs?

¬All “Tier 1” projects (highly
                                                                                                       16%
   creative, conceptual projects)                                                                    yes, for all
                                                                                                      projects
   should include a creative brief.                                       24%
   Requiring a creative brief for                                           no

   non-Tier 1 projects may require
   too much effort on the part
   of your team and/or your clients.
   An abbreviated brief for your
   Tier 2 projects and simply an
   intake form for your Tier 3                                                              60%
   projects are best practices.                                                       yes, for Tier 1 projects
                                                                                  (non-standard, non-iterative,
                                                                                   highly conceptual projects)

                                              n=391

          ho meets with the
QUESTION W                                            creative director                                                   61%
         client to scope a
         new project?                                 lead designer                                                 56%
         (select all that apply)
                                                      project manager                               44%

                                                      account manager                  30%

                                                      other           16%

                                                      editor      14%

                                                n=392

                                   *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
42
                                                  PROCESSES
2014 In-House Creative Services Industry Report

                                                            ho meets with the client to review iterations? (select all that apply)
                                                  QUESTION W

                                                                     lead designer                                                                          64%

                                                                     project manager                               38%

                                                                     creative director                      34%

                                                                     account manager           26%

                                                                     editor   12%

                                                                     other    12%

                                                                  n=390

                                                            ow many concepts do you
                                                  QUESTION H
                                                           generally propose?
                                                                                                                                   1%
                                                                                                                  3%                >5                3%
                                                                                                                5 concepts                        not applicable

                                                                                                      2%
                                                                                                   4 concepts

                                                                                                                                                           10%
                                                                                                                                                          1 concept

                                                  ¬Most often one (44%) or two                                                                                       26%
                                                     (27%) designers create comps                                                                                     2 concepts

                                                     for new projects.

                                                                                                                                55%
                                                                                                                               3 concepts

                                                                                                    n=393

                                                                                         *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
43
PROCESSES

                                                                                                                                                      2014 In-House Creative Services Industry Report
Approach to Workflow

QUESTION  A
            re your workflow processes                                   QUESTION  W
                                                                                      hat are the most important
           documented?                                                               criteria considered to prioritize
                                                                                     your group’s assignments?
                                                                                                       (average score on a 0–5 scale, in which 0 is
                                                                                                       not important, and 5 is extremely important)

                     18%
                few, if any, are
                 documented                                                               Deadline
                                                                                                                      4.17
                                         43%
                                   some of our major ones
                                                                             Strategic Importance
                                                                                                                    4.07

                                                                                  Project Visibility
                                                                                                              3.32
                     39%
               yes, everything
               is documented                                               Client Status/Hierarchy
                                                                                                          3.24

                                                                                   Project Budget
                                                                                                             1.77

     n=399                                                                n=388

QUESTION  D
            o you have a fast-track process                              QUESTION  How
                                                                                        often do you survey
           in place to accommodate                                                   your clients?
           quick-turn projects?

       yes, with
       dedicated
    team/resources
                                                                             never                                                        52%
                           10%
                                                                             annually                               20%

                                                                             semi-annually             11%
                                            52%
                 38%                          yes                             5%        quarterly
                     no

                                                                                  8%         after most projects

                                                                           4%        after every project

       n=399                                                              n=399

                                            *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
Technology
45
TECHNOLOGY

                                                                                                                                                2014 In-House Creative Services Industry Report
Creatives, more than most of their corporate colleagues, crave to work                                        RELATED RESOURCES

on the newest technology and software packages. In fact, organizations
                                                                                                              The Cella Slant: A Love–Hate
that lag behind in these areas have found themselves with recruiting
                                                                                                              Relationship With Time Tracking
challenges at times.                                                                                          http://bit.ly/Y7pyxp

While creative leaders do not have the same business need for the                                             Tips for Evaluating
                                                                                                              Workflow Tools
latest and greatest technology items, they do have a need for
                                                                                                              http://bit.ly/11ldG7B
creative–specific project management systems. In addition to facilitating
the department’s workflow, these systems are key to providing                                                 Digital Asset Management
creative leaders with tangible metrics they can leverage in their                                             in 2013
                                                                                                              http://bit.ly/11HNILO
decision-making process and senior management communications.

Hardware

QUESTION A
            re most team members on
           laptops or desktops?
                                                                                              19%
                                                                                            all laptops

¬Assignment of a laptop or desktop is
                                                                                                                        48%
   typically dependent on role, preference,
                                                                                                                       mix of both
   telecommuting status, corporate policy
                                                                                                   32%
   and role travel requirements.                                                               all desktops

                                                                                 n=395

QUESTION D
            oes your staff work on Macs                                QUESTION H
                                                                                    ow often are your team’s
           or PCs?                                                                 computers upgraded?
                                     2%
                                varies: depends
                                on their location

                                                                                                                     13%
                                                                                                                  every 2 yrs.
                   17%
              varies: depends
                                                                                             30%
               on thier role                                                                no specific
                                                                                             schedule

                                        52%
              15%
                                         Macs
          they have both
                                                                                                                            36%
                                                                                                                         every 3 yrs.
                                                                                            6%
                     14%
                      PCs                                                                             14%
                                                                             every 5 yrs.          every 4 yrs.

      n=394                                                                         n=394

                                          *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
46
                                                  TECHNOLOGY
2014 In-House Creative Services Industry Report

                                                  QUESTION  Is technology available such that your team can work remotely?

                                                  ¬Instituting remote                         yes, we have VPN using company assets                                           64%
                                                     working environments is
                                                     not just for disaster                                             26%         yes, we have VPN using their own computers

                                                     recovery precautions
                                                     anymore. Employees who                                      23%
                                                                                                                              yes, taking files home and
                                                                                                                              using their own computers
                                                     are able to work remotely
                                                                                                                       yes, through loaner laptops
                                                     are said to have higher                               13%         (requiring work to be uploaded ahead of time)

                                                     levels of productivity and
                                                     job satisfaction.                                  9%      no

                                                                                                     6%     other

                                                                                             n=391

                                                  QUESTION  W
                                                              ho provides technical                                              2%
                                                                                                                            combination IT &
                                                             support for your Macs?                                           third party
                                                                                                             3%                                            1%
                                                                                                            other                                  combination IT &
                                                                                                                                                      ourselves

                                                                                                                     13%
                                                                                                               no one/we do
                                                                                                                it ourselves

                                                                                                          13%
                                                                                                      Mac specialist
                                                                                                                                                                   51%
                                                                                                                                                                IT Department

                                                                                                                       20%
                                                                                                                third party vendor

                                                                                             n=336

                                                                                  *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
47
TECHNOLOGY

                                                                                                                             2014 In-House Creative Services Industry Report
PERSPECTIVE FROM THE FIELD:

Built–In Automation Isn’t Always Better
The evolution of automation in the world of modern          jobs, time and billing. This development is being
communications is well documented. Many of us               met with much less acceptance—at least in my
who have been in the creative communications industry       group. Automation always begins with the promise
for more than 20 years can still remember early             of enhanced efficiency. Our system is laden with
software applications that promised to make us              automated alternatives for job assignments and
faster, better and more creative. Often, those              communicating. In both of these examples, our
promises left us feeling more frustrated than fulfilled.    team has questioned how the automation actually
And the speed at which improvements were made               makes us better. We assign jobs based on specific
on these early applications was less than urgent.           experience and skill set. The application offers this
                                                            task based on availability, which is a logical way to
Recently, two major technological events were
                                                            accomplish this if everyone had the same skill set.
thrust onto our in-house creative group’s consciousness.
                                                            We have had to modify how we use the app to make
The first, a move to cloud-based updates to our
                                                            it work for us. Likewise, the application has a few
creative suite of communication applications,
                                                            tools that provide ways to communicate to each other.
promises to keep us ever up-to-date on the entire
                                                            So we all dutifully use these tools to do what we
spectrum of design tools. The second promises to
                                                            used to do face to face. The resulting need for continual
make us more efficient via process automation in
                                                            follow-up and input makes us much less efficient.
the form of a traffic management application. These
                                                            The fix is easy. Get up and have a conversation—being
two events represent different stages of automation
                                                            that we are all in one location, this is easy for us.
evolution. How your team successfully adapts to
them depends on how well your team’s leaders                In the end, we in the industry need to provide the
balance technology and process.                             developers of these traffic and project management
                                                            systems with feedback to let them know what works
Adobe Creative Cloud is the latest in a long continuum
                                                            and what doesn’t, just as we’ve done for decades
of advancements in the tools used to create nearly
                                                            with design applications. Only then will they work
every aspect of modern communication. We really
                                                            with the same efficiency.
have no choice other than to accept how this suite
of tools is accessed, that is, if you want to have the
                                                            TONY FERNANDEZ, JR.
latest tools. For most of us who are managing designers
and content creators, this poses an issue if our IT         Tony has enjoyed a distinguished 20+ year career in creative
                                                            development and marketing with a focus on brand strategy
infrastructure is not ready for cloud-based applications.   and customer experience. Throughout his award-winning
You can expect a lot of hand-wringing by IT teams           career, he has worked on some of the world’s most
                                                            recognized brands including Disney and Universal. He has
worried about security. Nevertheless, there is a            extensive experience in branding and the unique ability to
sense that this latest advancement will receive less        produce creative that “tells a compelling story” and “moves
                                                            the consumer to action.” Tony is currently the Senior Director
scrutiny by those of us who use the tools. Why?             of Creative for Marriott Vacations Worldwide.
Because there is a history of feedback that has produced
a successful blending of technology and process. After
decades of improvements, these tools are highly
evolved for the end user.

The recent adoption of traffic management
applications is forcing many early adopters to
consider replacing traditional methods for tracking
48
                                                  TECHNOLOGY
2014 In-House Creative Services Industry Report

                                                  Software & Systems

                                                  QUESTION  How often is your software upgraded?

                                                               ¬ InDesign is the primary                       no specific schedule                            46%
                                                                   desktop publishing software
                                                                   for 94% of creative teams.                    every time new
                                                                                                                 releases are available        25%

                                                                                                                             12%      every 24 months

                                                                                                                              14%       every 12 months

                                                                                                                3%       every 6 months

                                                                                                               n=337

                                                  QUESTION  D
                                                              oes your team use soft proofing
                                                                                                                 no                                             44%
                                                             software to collaborate with clients
                                                             and collect/track feedback?                         sort of, we use Adobe Acrobat’s
                                                                                                                 built-in functionality                   41%
                                                                                                                                       yes, it is part of our
                                                                                                                             12%       project management software

                                                                                                                          yes, we have standalone
                                                                                                                4%        software/system

                                                                                                               n=389

                                                  QUESTION  D
                                                              oes your team use a digital
                                                             asset management system?
                                                                                                                              23%
                                                                                                                       yes, we use a system
                                                                                                                       for our team/division
                                                               ¬The most commonly used
                                                                  DAM systems include Canto                                                               49%
                                                                                                                                                           no
                                                                  Cumulus, Extensis Portfolio,
                                                                                                                             28%
                                                                  MediaBeacon and MediaBin.                               yes, we use an
                                                                                                                      enterprise-wide system

                                                                                                               n=389

                                                                                 *NOTE: PERCENTAGES MAY NOT EQUAL 100% DUE TO ROUNDING.
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