Corporate Australia should be wary that endless cost-reduction strategies may not produce the best outcomes for their growth agenda.
According to the most recent PricewaterhouseCoopers CEO Survey, 71 per cent of Australian chief executives say they are looking inward to operational efficiencies to drive growth.
A large part of marketers' spending is locked in with agency, media and technology partners. These partnerships are vital and the remuneration models that underpin them are central to deliver on efficiencies without compromising growth.
It is somewhat dismaying that, according to the latest World Federation of Advertisers (WFA) Global Agency Remuneration Report, the pace of change to address the 'deep-rooted' issues that have been challenging the industry has been underwhelming.
There appears to be a black hole for any emerging 'best practice' on remuneration models from our global counterparts. In fact, 40 per cent were unhappy with agency remuneration approaches.