The Richards Group: High Energy - American Executive - RedCoat Publishing - American Executive

The Richards Group: High Energy

Media-Entertainment
Written by Grayson Walker
Monday, 01 October 2007
This hugely successful and independent ad agency plans to stay that way. You may not have heard of The Richards Group, but unless you’ve been living in a cave for the past two decades, you know its work. The Dallas-based independent advertising agency provided the creative genius behind the wildly successful Chick-fil-A “Eat Mor Chikin” campaign, which has expanded beyond commercials to branded merchandise and an annual calendar while continuing to increase sales at the quick service restaurant. The Richards Group also is responsible for the Motel 6 campaign, where author and pitchman Tom Bodett promises, “We’ll leave the light on for you.” But ask Stan Richards about the success of the $1.25 billion, 715-employee company he founded in a corner of his garage apartment, and he’ll deflect much of the credit onto his long-serving employees whom he mainly hires right out of college, instills an entrepreneurial bent, and allows to do extraordinary work. “We’ve won fistfuls of honors, but the biggest singular honor for me was the election to the Art Directors Hall of Fame with Walt Disney, Andy Warhol, Norman Rockwell, and a bunch of other dead guys,” said Richards, who is 74 and shows no signs of slowing down. He’s an avid runner, looks no older than 50, and sounds even younger than that. However, Richards knows that the end will come one day and has planned accordingly, ensuring that The Richards Group never will be bought by another agency. A clear succession plan is in place, but only Richards, his wife, and the company CFO know who the successor will be. “Three guys have been with me more than 20 years, and they’re all very senior, extremely creative people,” Richards said, indicating that his choice is among those three. Stan Richards, CEO As you may have guessed, Richards is fiercely protective of the company he founded and his employees. When he dies, ownership of the company transfers to a nonprofit group that will hold the stock in perpetuity, making it impossible to sell. “Despite all the offers I’ve received over the years, I’ve chosen not to sell, and I don’t want to burden my successor with that decision,” Richards said. “If I sold out, sure, I’d stick a whole lot of money in my pocket, but I’d disadvantage everyone else.” Three layers The client list at The Richards Group reads like a who’s-who of successful companies. In addition to Chick-fil-A and Motel 6, the company works with The Home Depot and Expo Design Center, Fruit of the Loom, Georgia-Pacific, QuikTrip, Zales Jewelers, Comcast, Bridgestone Firestone, and many others. However, companies don’t have to have mega budgets to hire The Richards Group. Unlike most ad agencies that are vertical with as many as seven layers of account management, The Richards Group has no more than three. “Most agencies our size can’t handle small clients,” Richard said. “We can do it because we don’t have a bunch of people peripherally involved but charging the client for their time. Our only concern is about how good the work is.” That requires a nimble workforce and a whole lot of teamwork. This may sound hokey, but no one has an office, which eliminates tribal barriers that crop up at some companies between the haves and have-nots. Collaboration is encouraged, and lines of communication are wide open. Perks, such as prime parking places and an employee’s name on one of the more than four dozen conference rooms, are reserved for those with the longest tenure, which means the folks in accounting have as much chance of gaining these perks as the top art director or the senior people in account management. The company isn’t segregated by function, so people with diverse roles sit together, bounce ideas off each other, know the status of any account, and interact with clients. “This is not a place where people are managed, and not everyone will thrive in this environment,” Richards said. “That’s why my preference is to hire right out of school. We have a great track record of finding great kids before they learn bad habits and keeping them for a very long time,” he added, noting the agency’s retention rate is highest among competitors. Four questions Being independent means that Richards can reward good work. While his employees are paid well, he said salaries are in line with similar companies. The Richards Group offers a base salary, bonus, profit-sharing, and a 401(k). “If we were part of a holding company, the bulk of the profit would go there,” Richards said. “Here, it goes to those who earn it.” Before accepting a new client, Richards said the company answers four questions about the relationship: Can we do great work? Can we make a difference? Can we make a profit? Can we have fun? Making a difference isn’t based on what the CEO’s spouse thinks of the campaign, but by what happens at the cash register, Richards said. Likewise, profit parameters are agreed on in advance so the client knows exactly what he’s getting for his money. “We have to like the people we’re working with and be treated with respect,” Richards said, “so we ask those four questions on the front end. We have to say ‘yes’ to each of them, and that doesn’t always happen.” After spending a large portion of his life in the advertising industry, Richards said it energizes him as much now as it ever did, noting that he plans to keep working until his health fails, he feels he’s no longer effective, or he drops dead. “I still thoroughly enjoy what I do, being around bright, young, committed, talented, focused people,” Richards said. “I never envisioned how far we have come and can’t wait to see where The Richards Group goes next.” Grayson Walker, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , is a freelance writer based in Atlanta.

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