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Propulsion: Exploring the "next practices" of successful marketing communication firms

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Agencies Can’t Save Their Way to Success

June 15, 2009 | Author: Tim Williams

Times are indeed tough. Most of us have never experienced an economic recession of this magnitude. Virtually every agency – from the smallest independent to the largest multinational – has experienced a wave of layoffs. Some firms have implemented across-the-board pay reductions, furloughs, or cut the length of the work week. Many have suspended 401k contributions and reduced agency-funded insurance benefits.

There's no doubt that cost cutting is an absolute necessity at a time when clients are reducing budgets, delaying projects, or just cancelling work altogether. Clients are paying later and banks are cutting or freezing agency credit lines, creating a dangerous and uneasy cash flow crunch for...

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