2014 IN-HOUSE CREATIVE SERVICES INDUSTRY REPORT
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1 SECTION NAME HERE 2014 In-House Creative Services Industry Report 2014 IN-HOUSE CREATIVE SERVICES INDUSTRY REPORT PRESENTED PRESENTEDBY BY ® ®
3 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.
4 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.
5 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.
11 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.
14 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.
15 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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