This blog began with a question. Would Madison Avenue--the bloated, bureaucratic, old media miasma, follow the bloated, bureaucratic, old manufacturing miasma down the rat-hole to obsolescence.
Today I ran across this from Thomas Friedman in "The New York Times" and I had an idea.
"Robert Litan, who directs research at the Kauffman Foundation, which specializes in promoting innovation in America: “Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less,” said Litan. “That is about 40 million jobs. That means the established firms created no new net jobs during that period.”
Here's my idea. And the if the holding companies would be wise if they'd follow along.
"Dear Providers of Net New Jobs:
For in perpetuity I will create advertising and marketing materials for you in exchange for 1% of your stock."
In the long run this will probably earn agencies more money than working for the GMs of the world.
Advertising is an industry that routinely sheds middle- and lower-level jobs in order to preserve the large salaries of senior officers. How is such a business model supposed to mesh with these companies creating all the new job growth in this country? Somehow I don't think the business model of these newer companies includes treating the majority of their employees as a business expense that can be readily eliminated in order to maintain the salary and compensation structure favoring top management.
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