Notes on a scandal

Of all the ways Sir Martin Sorrell might leave WPP – effecting a spectacular sale, smoothly handing over to a well-groomed successor, carried out in a coffin (always considered the most likely option, according to those that know him best) – being kicked

…Whatever your view of Sorrell – and he’s become such a public figure that plenty of people who’ve never worked for or against him have a view – he’s a phenomenal businessman. He’s built WPP from nothing into a £15bn world-leading British company and won himself a reputation with the City and the wider business community that has elevated our whole industry. Whether you admire him for his business nous, loathe him for ripping the heart out of our industry, or do both, Sorrell has earned respect. For now. Now he’s under investigation by his board over alleged “personal misconduct”. And to anyone rubbing their hands at the prospect of the downfall of our industry’s biggest titan, I say “be careful what you wish for”. Even in the normal course of events, Sorrell should have identified his successor by now. But it’s not easy to imagine anyone else running the labyrinthine WPP as brilliantly as Sorrell, who has built it deal by deal. Of the rumoured candidates, none has his understanding of the business coupled with his undoubted charisma and impressive skills on the global business stage. Would the company be as ruthlessly competitive without his hyper-personal commitment? And if not, would it be better sold or broken up, absorbed by one of the management consultancies or run by private equity players? Or streamlined and reduced to leaner bones? None of these scenarios suggests a brighter future for some of our industry’s biggest agency brands such as Ogilvy or Mediacom. But whether Sorrell stays or goes, WPP must change. In the vacuum of detail about the alleged misconduct, much of the narrative around the Sorrell story has centred on the WPP model. Is the complex marcoms behemoth – of which WPP has been the shining example – still fit for purpose? It’s a model where growth is driven largely by acquisition (with the value of acquired companies often dwindling as they are absorbed into the machine and the founders move on) and it looks leaden and unwieldy in the current climate. It’s also arguably a model that has contributed to the commoditisation of the advertising industry and the devaluation of creativity, smothering individual entrepreneurialism and making this a volume business rather than an ideas business. But a smaller or disbanded WPP will not turn back the clock. Nor would a weaker WPP do much for the status of British advertising in what is now a global agency marketplace. And it won’t do anything for the standing of our industry among clients already considering the value we add if one of our biggest leaders leaves in ignominy. Unless clients and analysts turn against the holding-company model altogether, a strong WPP led by a strong chief is surely desirable. I’ve no inside track on what Sorrell is accused of. He’s a brilliantly smart and, yes, sometimes viciously vindictive operator who might or might not have done something careless or stupid or thoroughly offensive. Perhaps some powerful insiders have just had enough of his arrogance, his massive pay package and his proprietorial grip, and have found an excuse to get him out. For the record, WPP has said the allegations “do not involve amounts which are material to WPP” and Sorrell himself has said “I reject the allegation unreservedly but recognise that the company has to investigate it”. That investigation could be concluded by the time you read this. Or it could take weeks to resolve. Sorrell might be exonerated. Or he might go in an ugly scandal. He might even be exonerated and still go. But whatever the outcome, things will never be the same. • @clairebeale