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Beta as the Hakuhodo Agency Way

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CANNES – Evolve or die. In an engaging and elegant presentation, Hakuhodo’s worldwide CCO Masaru Kitakaze dissected the creative DNA of the agency known for groundbreaking campaigns, pointing out that you don’t make the perfect breakfast without burning some toast along the way.

The agency’s strategy in remaining relevant in a changing world involves creating beta agencies that are responsive to change, and are instrumental in creating new business. Using Darwin’s observation that it isn’t really the strongest or smartest who survive–but for those who are responsive to change –the Hakuhodo CCO said: “It means mutating and exposing ourselves in a changing market.”

Using an analogy derived from ink painting, Kitakaze-san pointed out that from experience he learned that the least number of moves was effective in creating a good painting, and similarly when creatives seek the minimum amount of control to create maximum impact. Just as important: establishing a core competence in each beta agency from where they could explore their opportunities and make their mark, especially after surmounting their first failure.

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Hakuhodo believes in making new failures before everyone else in the world–because coming up with the first failure is a type of innovation. Like startups, they learn to not repeat their failures and methodically move on until they achieve a breakthrough.

Case studies of the various beta agencies–Hakuhodo Kettle, Quantum, Steve N’ Steven, Kosugi, and Six–were presented, warts and all, which made their struggles/triumphs more appreciated. In the end, innovation was all about “inventing the future with people” by seeing it from their point of view, not dictating it from a distant height.

“Embrace it, share it, learn from it. Creativity is to learn a new future,” concluded Kitakaze.

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