2005 Agency Business Report: <strong>Porter Novelli</strong>

Owned by Omnicom (part of Diversified Agency Services group)

Owned by Omnicom (part of Diversified Agency Services group)

Helen Ostrowski, CEO

Number of offices: 15 in the US, including FischerHealth in LA. Globally, more than 100 offices.

Staff numbers and turnover: Not supplied

Senior hires: Include Greg Baird, partner, head of healthcare practice, New York, formerly headed global pharmaceutical communications for Novartis; Dan Beeson, SVP, media relations, Atlanta, formerly at GCI Atlanta ; Tom Donahue, SVP, corporate and public affairs, Atlanta, formerly at Delta Air Lines; Greg Waldron, global human resources director.

Office changes: PN merged its Campbell, CA and San Jose, CA locations into one Silicon Valley office.

Which regions were strong? Which were weak? France, Belgium and Australia were strong, Latin America has also seen a good recovery. Markets with slower recovery include Germany, the UK, Singapore, and The Netherlands

Practice areas: PN reorganized its practices into disciplines and industry sectors last year. The three main disciplines are marketing, corporate and public affairs, and the core industry sectors are healthcare, technology, consumer, financial services, diversified industries, resources, and government and advocacy institutions.

What areas were strong? Corporate and public affairs, especially issues management. Strong recovery in technology and consumer packaged goods. The healthcare sector was strengthened through the launch of FischerHealth/Porter Novelli's life sciences group.

Distribution of accounts across practice areas: Marketing, 60%; corporate, 20%; public affairs, 20%.

Key account wins: Include Quark, MedicAlert, Volunteers of America, The College Board, Georgia-Pacific, Hilton Group, DePuy.

Key account losses: Due to mergers Porter Novelli no longer works with Aventis and PeopleSoft.

Incremental new business: Much revenue growth came from existing clients, which grew nearly 15% during the year, including Wyeth (expansion in the US and Europe); GlaxoSmithKline (expanded into Washington DC); Dow (expansion into new divisions and into new markets, including China, Japan and Korea), British Airways (expansion into the UK).

Proportion of clients on a retainer? Very few. (Percentage not supplied.)

Financial performance: PN experienced both top- and bottom-line growth, which met expectations.

Outlook: The firm invested in a new "vision" initiative which is being rolled out to employees now. The program was prompted by the recognition that differentiation for the top firms is crucial. "Last year was about getting the organization together to contemplate the future and gaining consensus about that," says CEO Helen Ostrowski. "The process itself was incredibly liberating and powerful." The firm has reorganized its practice areas into disciplines and industry sectors, and is creating senior level incentives to foster greater inter-office collaboration.

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