Soulcom: Factored Into A Self Inflicted Ethical Crisis? - 2008-08-25

Clients, especially market leaders, frown at the idea of being under the same roof with the competition. Yemi Odusote, Soulcomm Publicis' Principal Consultant, explains away the presence of the foremost brewing brands (Guinness and NB Plc) on SO&U group's roll-call of clients. How sincere is he, viewed against the backdrop of half-truths and bogus claims made in recent times? Bright Nwogwugwu  asks.

What Is Soulcom Afraid Of?

Recently, Soulcom took the unprecented step of calling a press conference to announce that the company, well known as an SO&U subsidiary, has no filial relationship with SO&U.

According to Mr. Yemi Odusote, “SO&U has no interest in Soulcom Publicis; rather it is Mr. Udeme Ufot, Group MD/CEO, SO&U that has 'personal' interest in Soulcom”. The first question keen industry observers will ask is: Why is Mr Ufot a group CEO? Which and how many companies is he presiding over if Soulcom is not one of them? He however conceded that Mr Ufot was the vice chairman of the company until the chairman, not named, got a plum political appointment. Automatically, Mr Ufot became the chairman of the company.

Why did Odusote try so vigorously to create a non existent divide between SO&U and Soulcom Publicis? Ages before Yemi Odusote, there was a company in the group  known to the media and the industry in general as SOUL (Short for SO&U Limited). This first emerged as a unit operating within SO&U originally headed by Charles Igbinidu. Mr Igbinidu later left to set up his own shop. Things did not work out too well and he now sits at the top rungs in TPT International as Chief Operating Officer. Efforts to get the company going after that got another fillip with the engagement of Dele Dele-Olukoju. Dele had a rich background spanning journalism(Fame et all), Events and marketing communications(Centrespread et all). Even all that did not help as he was to soon leave in frustration. Insiders claim that Mr Ufot blamed him for not being able to pull in new businesses fast enough while he cried to high heavens that he did not get enough support from his boss(Mr Ufot). This re-echoed the old claims of Charles Igbinidu. Uptil now, it was clear and obvious that whatever the title of the man running Soulcom, the real boss was Mr Ufot.

Many industry watchers were however taken aback when Yemi Odusote was hired to run the business. His greatest claim to fame(as they say) before this was contesting for the modest political office of Member of the Lagos State House of Assembly. He was taught a very harsh lesson by more experienced politicians who knew the name of the game. He lost his modest savings along with the election. Previously, he had been a junior executive on the PR beat at STB McCanns before proceeding to Phillips consulting as a media relations officer. The opinion of many industry watchers was that not only did he not have enough experience for the portfolio, he lacked the maturity, intellectual virtuosity and staying power to sustain the growth of an ambitious enterprise under the watch of the eclectic. Udeme Ufot had proved his mettle again and again in a star spangled professional career that saw him crossing from a famous career as art director to a top ten ad agency managing director.

Triumph Of The Doubting Thomases?

So far, he(Mr Odusote) has not disappointed the doubters as Mr Ufot has been saddled with the responsibility of introducing the SOUL team to various clients and been compelled to fly out with them to Abuja regularly to secure new business. Despite several claims of 'new account wins', the track record of the agency in the area of new business development has not been impressive. Rather than win in competitive pitches, most of their new businesses have been through back door, filial arrangements secured, ironically through their relationship with the company they try so hard to deny: SO&U. Infact, the records show a trail of losses in most of the major pitches they have been involved with over the last few years. A case in point was their woeful performance in the PR pitch of the year in a major telco when they crashed out despite high expectations. They are believed to have also recently lost out to a rival agency in a pitch for a major initiative by one of the oldest multinational blue chip manufacturing companies in Nigeria over one of the nation's most prestigious detergent brands. It is said within industry circles that Mr Odusote is yet to recover from the blow of the disappointing losses.

Why Soul Is Denying S&OU L(imited)

The first reason is that the consultancy has suddenly found itself in a web of conflicting accounts within the group in which it undoubtedly operates.

It's no secret that SO&U Saatchi & Saatchi Advertising works for Guinness Plc, a multinational brand and Nigerian Breweries' arch competitor. On the other hand, its spin-off, Soulcom Publicis, recently went to town to celebrate the fact that it has been listed as a roster agency for Nigerian Breweries on events and other sundry marketing services. The big issue that Mr Odusote will need to resolve is how they are going to be able to discuss their most important client's business issues on the board roundtable without the Chairman or deputy chairman of the board(who runs the agency that services Guinness) not listening in or making an impute. A commentator recently joked that perhaps the chairman will be asked to step out when those discussions begin in order to protect client confidentiality!

Could The Chairman Please Step Out?

There are two parallels to this in Nigerian marketing history: MC&A was forced, in the late 90s to withdraw from managing Guinness malta because the chairman of the company, Mr Biodun Shobanjo, headed Insight Communications, servicing NB Plc brands. Mr Victor Johnson who headed the agency at the time shouted himself hoarse that he had all the autonomy in the world! It made no difference. Would the chairman be asked to step out at the board meeting? Would he be denied access to vital client related documents in the coffers of the agency he not only chairs but in which he has dominant interest as in the case at hand?

The second example is the case of Meryt Advertising, serving the king of all Stouts while its Chairman, Mr I. S. Moemeke not only ran Lintas (which serviced Nigeria Breweries Plc, but actually sat on the board of the blue chip lager king. No, the guys in Guinness would not stand for it.

Many have said that it is only fair to check the veracity of Mr Odusote's claims. Perhaps he is truly in charge of the agency? Perhaps he doesn't report to Mr Ufot? How do we determine that? In Nigeria, the easiest way to check that out is to find out who signs the cheques? An MD that signs the cheques is the true MD in a country where in business and politics, absolute power flows from the barrel of the cheque! Non financial decisions are not very relevant. So if a man claims that he is independent, the question is to check if he controls the financial destiny of his business. In the case of SOUL, we know that Mr Odusote does not. Every significant expense must be presented to Mr Ufot, either as Vice Chairman or Chairman and he is the one that not only approves, but endorses the cheques! So who is truly in charge?

The current situation in which two SO&U companies have their hands in the pies of two keenly competing market leaders thus becomes an interesting scenario. Will the brand owners be confident enough to entrust any of the related agencies with information that could move their respective brands to the next level (and which is not to be leaked to competition irrespective of the greatest inducement)?

Even then, many industry watchers feel the controversy surrounding the issue is a mere storm in a tea cup. What has performance got to do with all that, queries a senior practitioner who craves anonymity? “It was in the good old days that sentiments such as ethical behaviour, respect for conventions and honour mattered to both agencies and clients. These days the major considerations determining the movement of accounts has nothing to do with merit or the overall good of the brand, if not so how can one company serve Guinness and its sister company serve its arch enemy and nobody would raise an eyebrow and in fact, the agency in question is so bold or ignorant enough to call a press conference to declare a Palestinian or is it Chechyian independence when he cannot on his own sign a N10,000 cheque without referring to the company chairman that he is declaring independence from! As the Yorubas will say, “oro p'esi je”: The statement defies an answer.