Ad agency CEO says 'business creativity' key to success
Kevin Koh, CEO of DDB Korea, an advertising agency, poses in front of the words that embody his company's and his belief in what makes for success in the business. / Courtesy of DDB Korea
DDB Korea chief stresses 'win-win' mindset for clients, company
By Kim Ji-soo
On New Year’s first Monday, workers at ad agency DDB Korea were already busy attending to business.
The casually dressed mostly 30-somethings walked hurriedly about as if already under a deadline. It is here in this office that Kevin Koh, 50, sits as CEO, catering to such global companies as IKEA, LEGO, and Henkel, as well as Korean companies.
Asked what message he delivered to his employees at this year’s commencement meeting, Koh said he asked his employees to work efficiently.
“This year, it will be about working efficiently,” Koh said. “Or simply put, don’t hold meetings that do not add value, and don’t attend a meeting if you have no value to add.”
He also asked employees to prioritize the company over their respective divisions, and to respect colleagues in this industry, where services are the products themselves, and therefore it is natural for people to be emotional or sensitive.
DDB Korea has won Campaign Asia’s Agency of the Year Award for four straight years from 2012 to 2015. Last year, its chief, Koh, won Advertising CEO of the Year for Japan/Korea for the first time among agencies in Korea.
On the honor of winning Campaign Asia’s recognition as best advertising chief in the Japan/Korea region, he said with a sheepish smile, “It’s not bad to win.”
Koh won for creating a work environment that encourages inspiration and equality in the workforce. Foremost, employee satisfaction at DDB Korea was the highest in the Asia-Pacific region, and second among DDB subsidiaries worldwide. This task is a tall order for a leader of any organization, but it is especially meaningful in the Korean ad industry, which is considered “closed” because of the prevalence of in-house agencies and because English is not the predominant language spoken. DDB Korea itself is part of DDB Worldwide Communications Group, which has more than 200 offices in some 90 countries. The ad giant made a name for itself in the 1950s and 1960s with its Volkswagen “Think Small” series.
Asked how he achieved the equality and inspiration against the backdrop of the Korean culture of hierarchy, where rank and seniority prevail, Koh replied: “I think a sense of equality brings about inspiration.”
He said he emphasizes speaking out fairly and equally at meetings but at the same time paying “respect” to rank and seniority, in line with the “hoesik” practice of dining out with colleagues after work.
“Creating such an environment where there is respect among members in our company is important,” Koh said. The cultural environment is important because he wants satisfied employees first, which will lead to satisfied clients and business growth, he said.
The company’s systems, such as its performance appraisal system where an employee is cross-evaluated by colleagues and immediate supervisors, enable efficiency and equality to coexist in the company. The company also has a so-called “Avengers” team comprised of lower-level employees who tackle such issues as improving company morale.
Based on such values, the company was able to create a drama-like ad for IKEA, which centers on the fact that Korean children have a hard life, but they could have the greatest playground for families at home with IKEA furnishing.
DDB Korea also works with NH Nonghyup and the 24-hour news cable channel YTN in informing three times a day the national prices of agricultural produce, which works as a standard guideline on the produce previously sold at random prices in stores throughout the nation.
Most of all, Koh said he stresses “business creativity” to his employees, meaning the ads are not just about creativity, but also about business. Ads are a tool that allows a client to heighten brand awareness or product sales.
“I highly value business creativity, with an emphasis on business,” he said. He said, for example, while creative advertising may be inspiring, it also has to have a tangible effect on the product of their client, who hopes to reach more consumers with its product. He added that the reason DDB does business is to allow for its clients to grow.
Advertising, like any industry in this day and age, is not exempt from change.
Koh said he wasn’t particularly perturbed by the changes brought about by the so-called fourth industrial revolution.
“There is always change, and I tell my people, do not subject your idea to a new technology. Work to produce the big idea, and then the technology will be reconfigured,” he said. The fast advent of digital technology today means consumers have more channels through which to view ads.
Asked to cite his priority as an organizational leader, Koh said “consistency.”
“You want the facts to be reported to the CEO, even on a bad day,” he said.
“To that end, I don’t read business management books so much anymore. Now, these books contain stellar practices that I would be tempted to try out. But if I were to try out some business model or practice only for several months before doing away with it, it would not be fair to the employees or to our clients.” The consistency also ensures employees that the shared vision and policies will continue.
As for DDB Korea, he said he would like to retain its characteristics of being both local and global; about 5 percent of its accounts are from the worldwide group and the rest of its accounts are developed locally.
Koh is also “bicultural.” After graduating from Yonsei University in Seoul in 1988, he migrated to the United States and then to Canada. He returned to Korea in 2000.
As for his business goals this year, Koh said he hopes for DDB Korea to make it among the top 15 advertising companies in Korea and to increase its client retention from 7.5 years to up to 8.5 years.
Asked if he was a pessimistic or an optimistic leader, he replied:
“I do not think I am either. I like to take things as they are. When we fail to get an account, I like to think of it as a blessing in disguise. I don’t think I am a pessimist or an optimist. That question is hard to answer. I guess I am here to make decisions, to herald the company in times of uncertainty.”