My Biggest Mistake: A moral about maintaining good morale

By Vistage Member Jim Signorelli Founder and CEO of ESW Partners

When we started out as a fledgling advertising agency in a highly competitive, yet declining, advertising market we were driven to succeed.

Blinded by the need to quickly put a stake in the ground, we judged any advertiser a potential win even when Lotto posed better odds. Even the slightest “yeah-call-me-next-week” interest by a prospect would launch the whole agency into full PowerPoint regalia.

Yes, many start-up mistakes were made, but after ten years there still stands the ultimate gaffe.

One day, an individual approached me with accounts she had been servicing for a number of years at her own agency.  Having decided that she no longer wanted to run her own agency,  her proposed deal was to join our agency in return for creative support and a new home for her clients.

After pinching myself, I checked out her clients and saw that she represented sizable billings. Furthermore, her clients had a high regard for her work and were very loyal to her. To boot, these clients paid their bills on time.  Yes, I thought, our ship had come in.
I announced the “great” news to the staff. If Gatorade baths were given in boardrooms, certainly I deserved one. Instead, I was met with reserved glances.

Upon her arrival, our new employee immediately staked out her turf and made certain that everyone knew where she stood. She quickly declared our copy machine too old, our IT capabilities inadequate, our secretarial support inefficient and our kitchen hand soap too little. No kidding.

My office soon became a vent room for the frustrated. I had created Vietnam.

Promising everyone a speedy withdrawal, I had no practical pullout plan in sight, given contractual obligations.

After enduring this for one full year, I had to contain my happiness when she informed me that she wanted out of her contract. I was faced with an even greater challenge, in restraining smirks, when she told me she wanted to do so immediately because she had lined up a new deal with another agency. Supposedly she saw a better fit–and maybe a greater supply of hand soap.

The lesson seems so simple now, but I had to pay private-school tuition. Despite the lure of financial gain, if the price is angst and bad morale, there is far more to lose. I did check her out, but I failed to accurately assess the potential damaging effect she could have on our staff.

I think our existing success is due in large part to this lesson learned, early on. It made us all more conscious of the asset value of our agency’s culture.

Certainly we are not looking to mold an organization around a stereotype. In fact, a creative environment like ours flourishes with diversity.

But there has to be one common, abiding belief to which everyone must subscribe. Through breakthroughs and breakdowns, our people must all share the common belief that mutual respect, acceptance and cooperation will forever help us bear the load.

Jim Signorelli is Founder and CEO of ESW Partners, a full-service advertising agency based in Chicago, Illinois.  Having started his agency with 3 people in 1999, ESW Partners has been sighted as one of the top 20 agencies in Chicago, by Crain’s Business.  Jim can be reached at 312-72-7405 or can be emailed at jims@eswpartners.com. To find out more about  ESW Partners, visit www.eswpartners.com.