WEBVTT 00:00:00.000 --> 00:00:03.180 Welcome to today's deep dive. I'm really glad 00:00:03.180 --> 00:00:04.860 you could join us today. Yeah, thanks for tuning 00:00:04.860 --> 00:00:07.400 in with us. Whether you are prepping for a high 00:00:07.400 --> 00:00:09.900 -stakes marketing meeting, or maybe you're studying 00:00:09.900 --> 00:00:11.919 up on the mechanics of corporate structures. 00:00:12.140 --> 00:00:14.480 Or if you're just insanely curious about how 00:00:14.480 --> 00:00:17.199 massive global businesses actually operate behind 00:00:17.199 --> 00:00:19.899 the scenes. Exactly. We have something really 00:00:19.899 --> 00:00:22.960 special for you today. We're pulling from a fascinating 00:00:22.960 --> 00:00:25.940 stack of notes and research centered around a 00:00:25.940 --> 00:00:28.710 Wikipedia breakdown of a company called project 00:00:28.710 --> 00:00:31.269 worldwide right or as it's often just called 00:00:31.269 --> 00:00:34.469 in the industry project it just project and our 00:00:34.469 --> 00:00:37.310 mission for this deep dive is to uncover how 00:00:37.310 --> 00:00:42.090 a modern global advertising empire is built well 00:00:42.090 --> 00:00:44.310 built fundamentally differently from the rest 00:00:44.310 --> 00:00:46.130 of the pack it's a completely different blueprint 00:00:46.729 --> 00:00:48.869 It really is. We're going to look at how a holding 00:00:48.869 --> 00:00:50.969 company with roots stretching all the way back 00:00:50.969 --> 00:00:54.969 to 1914 transformed into a 100 percent employee 00:00:54.969 --> 00:00:57.890 owned powerhouse. Which is incredibly rare at 00:00:57.890 --> 00:01:00.570 this scale. OK, let's unpack this, because when 00:01:00.570 --> 00:01:04.049 you think of massive advertising networks, you 00:01:04.049 --> 00:01:08.290 probably picture towering skyscrapers in New 00:01:08.290 --> 00:01:10.930 York or London. Oh, absolutely. The traditional 00:01:10.930 --> 00:01:13.519 Madison Avenue vibe. Right. Corporate boards, 00:01:13.900 --> 00:01:16.739 answering to Wall Street shareholders, obsessing 00:01:16.739 --> 00:01:19.859 over quarterly margins, all of that. But Project 00:01:19.859 --> 00:01:23.159 Worldwide seems to completely flip that script. 00:01:23.379 --> 00:01:25.780 What's fascinating here is the operational engine 00:01:25.780 --> 00:01:28.519 driving it. To understand why that matters to 00:01:28.519 --> 00:01:30.420 you as a listener, we really have to look at 00:01:30.420 --> 00:01:33.209 the foundation. So the basics. Yeah. Project 00:01:33.209 --> 00:01:35.750 Worldwide is a privately held advertising holding 00:01:35.750 --> 00:01:38.290 company. But like you said, it's not in New York. 00:01:38.450 --> 00:01:40.950 It is based in Auburn Hills, Michigan. Auburn 00:01:40.950 --> 00:01:43.049 Hills, right. And it was officially founded in 00:01:43.049 --> 00:01:46.010 2010. But the real twist is the ownership model. 00:01:46.170 --> 00:01:49.230 They operate through an ESOP. An ESOP. Yeah, 00:01:49.290 --> 00:01:51.569 which stands for Employee Stock Ownership Plan. 00:01:52.159 --> 00:01:55.599 That means the employees own 100 % of the parent 00:01:55.599 --> 00:01:57.219 company. I want to pause right there because 00:01:57.219 --> 00:02:00.219 that is a massive structural departure from the 00:02:00.219 --> 00:02:02.299 industry norm. It changes everything. Right, 00:02:02.340 --> 00:02:04.120 because for anyone following the advertising 00:02:04.120 --> 00:02:07.000 space, the traditional holding company model 00:02:07.000 --> 00:02:10.979 is highly financialized. You have these massive 00:02:10.979 --> 00:02:14.419 publicly traded umbrellas that just buy up hundreds 00:02:14.419 --> 00:02:17.379 of smaller agencies. And their primary directive 00:02:17.379 --> 00:02:20.520 is always to deliver returns to external public 00:02:20.520 --> 00:02:23.240 shareholders. Exactly. Yeah. So how does an ESOP 00:02:23.240 --> 00:02:25.680 actually change that dynamic on the ground? It 00:02:25.680 --> 00:02:28.039 completely shifts the incentive structure. Instead 00:02:28.039 --> 00:02:30.919 of constantly being under the microscope of public 00:02:30.919 --> 00:02:33.080 markets. Managing to the penny for the next earnings 00:02:33.080 --> 00:02:36.069 call. Exactly. Instead of that. Project is owned 00:02:36.069 --> 00:02:38.849 by the people actually doing the work, the creatives, 00:02:38.870 --> 00:02:41.689 the account managers, the strategy teams. The 00:02:41.689 --> 00:02:44.349 actual workforce. Yes. It moves the focus away 00:02:44.349 --> 00:02:46.889 from extracting profit for Wall Street investors 00:02:46.889 --> 00:02:49.310 and redirects it toward empowering the workforce. 00:02:49.669 --> 00:02:52.050 When the company grows, the share price of the 00:02:52.050 --> 00:02:54.770 ESOP grows. Which directly benefits the employees 00:02:54.770 --> 00:02:57.750 holding those shares. Right. It becomes a long 00:02:57.750 --> 00:03:00.150 -term wealth creation tool for the talent. That 00:03:00.150 --> 00:03:02.310 makes the origin story in these notes even more 00:03:02.310 --> 00:03:04.629 compelling, I think, because this wasn't just 00:03:04.629 --> 00:03:08.460 some, A scrappy startup born in a garage in 2010 00:03:08.460 --> 00:03:10.580 that decided to try a trendy ownership model. 00:03:10.759 --> 00:03:12.939 Far from it. Project Worldwide was formed by 00:03:12.939 --> 00:03:15.419 Robert G. Valley Jr. alongside the executives 00:03:15.419 --> 00:03:18.379 of an event and brand marketing firm called George 00:03:18.379 --> 00:03:22.280 P. Johnson, or GPJ. And GPJ traces its history 00:03:22.280 --> 00:03:26.080 all the way back to 1914. 1914. We are talking 00:03:26.080 --> 00:03:28.759 about an entity that survived two world wars, 00:03:29.020 --> 00:03:31.620 the Great Depression. the advent of television, 00:03:31.819 --> 00:03:34.539 and the Internet age. Which gives them a very 00:03:34.539 --> 00:03:36.699 specific kind of corporate resilience. By the 00:03:36.699 --> 00:03:39.500 time 2010 rolled around, George P. Johnson wasn't 00:03:39.500 --> 00:03:41.659 just a domestic firm anymore. They were global. 00:03:41.879 --> 00:03:44.280 Exactly. They had already acquired several international 00:03:44.280 --> 00:03:47.919 agencies. The historical data points to California 00:03:47.919 --> 00:03:51.580 -based Juxt, Australia's SpineFX Group, and Germany's 00:03:51.580 --> 00:03:53.960 Romtechnik. So they have this century -old legacy 00:03:53.960 --> 00:03:56.759 company that suddenly finds itself managing this 00:03:56.759 --> 00:03:59.360 growing, highly complex international portfolio. 00:03:59.819 --> 00:04:01.919 Right. And they realized they needed a new umbrella, 00:04:02.060 --> 00:04:04.780 a proper holding company structure to manage 00:04:04.780 --> 00:04:07.120 these global assets efficiently. But instead 00:04:07.120 --> 00:04:09.419 of taking the traditional route, like maybe going 00:04:09.419 --> 00:04:12.860 public to raise capital or implementing a rigid 00:04:12.860 --> 00:04:16.699 corporate hierarchy, they build project worldwide 00:04:16.699 --> 00:04:20.139 in 2010 and immediately lock in that ESOP structure. 00:04:20.560 --> 00:04:23.610 It's a brilliant move. It feels like a very deliberate 00:04:23.610 --> 00:04:26.230 defensive strategy to protect the culture of 00:04:26.230 --> 00:04:29.069 a company that had already survived for nearly 00:04:29.069 --> 00:04:31.730 a century. It really is a structural strategy 00:04:31.730 --> 00:04:34.730 designed to keep human capital invested. You 00:04:34.730 --> 00:04:36.709 have to remember, in the marketing world, your 00:04:36.709 --> 00:04:38.689 inventory goes down the elevator every night. 00:04:38.870 --> 00:04:41.149 Oh, that's a great way to put it. The value doesn't 00:04:41.149 --> 00:04:43.930 sit in factories or raw materials. It sits entirely 00:04:43.930 --> 00:04:46.610 in the minds of the creative talent. By making 00:04:46.610 --> 00:04:49.110 the employees the owners, they effectively locked 00:04:49.110 --> 00:04:51.449 in their top performers. They created a system 00:04:51.449 --> 00:04:54.649 where creatives are invested literally and figuratively 00:04:54.649 --> 00:04:57.329 in the long -term success of the network. Rather 00:04:57.329 --> 00:04:59.870 than just waiting to jump ship to a rival agency 00:04:59.870 --> 00:05:02.610 for a slightly higher salary. Right. It's giving 00:05:02.610 --> 00:05:05.370 the talent the keys to the castle. But that raises 00:05:05.370 --> 00:05:08.439 a major operational question for me. A holding 00:05:08.439 --> 00:05:11.259 company's primary function is to grow, right? 00:05:11.399 --> 00:05:13.699 Yeah. Usually by acquiring other companies. If 00:05:13.699 --> 00:05:17.379 you are an employee -owned ESOP without a massive 00:05:17.379 --> 00:05:20.339 public stock to trade, how do you actually build 00:05:20.339 --> 00:05:22.920 out a global network? It requires a very different 00:05:22.920 --> 00:05:25.180 playbook. Looking at the timeline here, there's 00:05:25.180 --> 00:05:28.680 a fascinating pattern. In 2011, they acquired 00:05:28.680 --> 00:05:31.399 an agency called Partners in Napier. in rochester 00:05:31.399 --> 00:05:33.980 new york yeah and then the very next year in 00:05:33.980 --> 00:05:37.259 november 2012 they acquired a full service agency 00:05:37.259 --> 00:05:40.819 called motive out in denver colorado they are 00:05:40.819 --> 00:05:44.040 actively hunting regional powerhouses rather 00:05:44.040 --> 00:05:46.439 than just building one mega agency in new york 00:05:46.439 --> 00:05:50.360 think of it less like a corporate giant gobbling 00:05:50.360 --> 00:05:53.019 up market share and more like a master craftsman 00:05:53.019 --> 00:05:55.779 building a carefully curated creative toolkit. 00:05:56.000 --> 00:05:58.120 A toolkit. I like that analogy. They were looking 00:05:58.120 --> 00:06:00.839 for very specific capabilities and regional footholds. 00:06:01.000 --> 00:06:03.240 But the real secret sauce here is how they integrated 00:06:03.240 --> 00:06:05.980 them. The sources actually highlight a crucial 00:06:05.980 --> 00:06:08.720 detail about that 2011 acquisition of partners 00:06:08.720 --> 00:06:11.000 in Napier. What was the detail? The coverage 00:06:11.000 --> 00:06:13.060 specifically noted that the agency was agreeing 00:06:13.060 --> 00:06:15.379 to be bought, but keeping its autonomy. That 00:06:15.379 --> 00:06:17.620 is the golden thread of the project worldwide 00:06:17.620 --> 00:06:19.680 strategy, and it connects perfectly with their 00:06:19.680 --> 00:06:22.420 ESOP culture. Because when a traditional holding 00:06:22.420 --> 00:06:25.779 company buys an independent agency, the biggest 00:06:25.779 --> 00:06:27.959 fear for those founders and employees is that 00:06:27.959 --> 00:06:30.660 they're going to lose their soul. Exactly. They 00:06:30.660 --> 00:06:33.620 get bought. The parent company comes in, fires 00:06:33.620 --> 00:06:35.819 the back office staff to create, quote unquote, 00:06:36.019 --> 00:06:39.000 synergies. Forces them to adopt corporate branding. 00:06:39.259 --> 00:06:42.000 Right. And the unique culture that made the agency 00:06:42.000 --> 00:06:44.439 successful in the first place is totally destroyed. 00:06:44.759 --> 00:06:47.399 So projects pitched to these independent agencies 00:06:47.399 --> 00:06:50.540 is the exact opposite. Yes. They are essentially 00:06:50.540 --> 00:06:53.660 saying, we are buying you because we love what 00:06:53.660 --> 00:06:55.720 you do and how you do it. Keep your independent 00:06:55.720 --> 00:06:58.259 spirit, keep your leadership, keep your culture. 00:06:58.480 --> 00:07:00.819 We're just here to provide the financial backbone 00:07:00.819 --> 00:07:03.459 and the global network to help you scale. Precisely. 00:07:03.459 --> 00:07:05.620 They want the unique flavor of the agency to 00:07:05.620 --> 00:07:08.500 remain completely intact. That level of promised 00:07:08.500 --> 00:07:11.819 autonomy is rare. But they didn't just rely on 00:07:11.819 --> 00:07:14.060 buying existing companies to fill out their toolkit. 00:07:14.259 --> 00:07:17.160 They also played the role of incubator. Which 00:07:17.160 --> 00:07:19.759 is fundamentally different. Right. In March 2013, 00:07:20.160 --> 00:07:22.860 they funded the launch of an entirely new advertising 00:07:22.860 --> 00:07:25.600 agency based in San Francisco called Argonaut. 00:07:25.779 --> 00:07:28.420 A huge move. And then just two months later, 00:07:28.500 --> 00:07:31.819 in May 2013, they launched a shopper marketing 00:07:31.819 --> 00:07:34.769 firm called Shoptology. So they're looking at 00:07:34.769 --> 00:07:36.949 the landscape, seeing gaps in their capabilities 00:07:36.949 --> 00:07:39.689 and just building the tools from scratch. Yeah. 00:07:39.870 --> 00:07:42.550 Why take on the massive risk of incubating a 00:07:42.550 --> 00:07:45.389 new agency instead of just acquiring an established 00:07:45.389 --> 00:07:48.370 one? It comes down to control over the DNA of 00:07:48.370 --> 00:07:50.529 the new company. When you acquire, you always 00:07:50.529 --> 00:07:52.850 have to manage the integration of legacy cultures. 00:07:52.910 --> 00:07:55.129 Right. That friction. But when you incubate, 00:07:55.129 --> 00:07:57.029 like they did with Argonaut in San Francisco 00:07:57.029 --> 00:08:00.629 to tap into the tech startup ecosystem or with 00:08:00.629 --> 00:08:03.360 Shoptology for the retail environment. You can 00:08:03.360 --> 00:08:05.980 build the culture to match the ESOP from day 00:08:05.980 --> 00:08:09.279 one. That dual strategy is fascinating. Acquiring 00:08:09.279 --> 00:08:11.480 established players for immediate market share 00:08:11.480 --> 00:08:14.540 while incubating new entities for emerging methods. 00:08:14.839 --> 00:08:16.680 It requires a tremendous amount of patience. 00:08:16.819 --> 00:08:18.959 Patience that they only have because they aren't 00:08:18.959 --> 00:08:21.639 forced to hit arbitrary quarterly growth targets 00:08:21.639 --> 00:08:23.980 for Wall Street analysts. Exactly. They actually 00:08:23.980 --> 00:08:26.439 have the breathing room to let a newly incubated 00:08:26.439 --> 00:08:29.519 agency mature. And you can see how that toolkit 00:08:29.519 --> 00:08:32.419 just keeps expanding strategically. Yeah. There 00:08:32.419 --> 00:08:34.440 is a distinct pivot in the notes around 2016. 00:08:34.679 --> 00:08:37.480 The specialization phase. Yeah. Up until then, 00:08:37.580 --> 00:08:40.440 it feels focused on traditional or regional full 00:08:40.440 --> 00:08:44.200 service shops. But in August 2016, they acquired 00:08:44.200 --> 00:08:47.539 Praytel, a Brooklyn -based PR agency. Right. 00:08:47.600 --> 00:08:51.080 Two months later, in October, they bought Wondersauce, 00:08:51.120 --> 00:08:54.200 a New York City digital creative agency. They're 00:08:54.200 --> 00:08:56.840 suddenly grabbing. very specialized, distinct 00:08:56.840 --> 00:08:59.419 tools. They recognized that modern brand building 00:08:59.419 --> 00:09:02.159 requires a multidisciplinary approach. You can't 00:09:02.159 --> 00:09:04.159 just throw an event or shoot a commercial anymore. 00:09:04.379 --> 00:09:06.340 You need public relations to manage the narrative. 00:09:06.559 --> 00:09:09.220 And high -end digital creative to build the interactive 00:09:09.220 --> 00:09:11.500 platforms. And simultaneously, they realized 00:09:11.500 --> 00:09:13.639 they needed to be everywhere their clients were. 00:09:13.799 --> 00:09:16.559 The global push. Yes. In the late 2010s, they 00:09:16.559 --> 00:09:18.659 made a massive geographic push into the Southern 00:09:18.659 --> 00:09:21.970 Hemisphere. In October 2017, they acquired a 00:09:21.970 --> 00:09:24.529 Melbourne -based consumer engagement agency called 00:09:24.529 --> 00:09:26.990 Dig Plus Fish. And then New Zealand right after 00:09:26.990 --> 00:09:29.129 that. Right. December 2018, they moved into New 00:09:29.129 --> 00:09:31.690 Zealand, acquiring an Auckland -based experiential 00:09:31.690 --> 00:09:34.070 agency named Dark Horse. So they are building 00:09:34.070 --> 00:09:37.149 this global map, allowing them to serve multinational 00:09:37.149 --> 00:09:40.429 clients across virtually any time zone with localized 00:09:40.429 --> 00:09:43.230 cultural expertise. A fully global footprint. 00:09:43.750 --> 00:09:46.090 But hold on. Let me pressure test this ESOP model 00:09:46.090 --> 00:09:49.320 for a second. We are painting a picture of this 00:09:49.320 --> 00:09:51.879 collaborative, employee -owned ecosystem where 00:09:51.879 --> 00:09:54.159 everyone has a piece of the pie and total autonomy. 00:09:54.360 --> 00:09:58.360 But business is still business. What happens 00:09:58.360 --> 00:10:00.960 when the portfolio gets bloated? If the employees 00:10:00.960 --> 00:10:03.039 are the shareholders, do the leaders actually 00:10:03.039 --> 00:10:06.179 have the teeth to make hard cuts? Or does the 00:10:06.179 --> 00:10:08.679 ESOP structure make it impossible to fire anyone? 00:10:09.120 --> 00:10:11.480 That is the critical vulnerability people assume 00:10:11.480 --> 00:10:13.700 about an employee -owned structure, but the data 00:10:13.700 --> 00:10:16.379 shows they actually possess incredible strategic 00:10:16.379 --> 00:10:19.700 agility. How so? An ESOP is not a free -for -all. 00:10:19.779 --> 00:10:22.480 The leadership still has a strict fiduciary duty 00:10:22.480 --> 00:10:24.480 to protect the share price for all the other 00:10:24.480 --> 00:10:27.440 employee owners across the network. If an agency 00:10:27.440 --> 00:10:29.840 is underperforming or creating redundancies, 00:10:30.600 --> 00:10:32.620 They have to act. So they do consolidate when 00:10:32.620 --> 00:10:34.759 needed. Absolutely. The sources specifically 00:10:34.759 --> 00:10:38.779 highlight October 2019 when Project merged their 00:10:38.779 --> 00:10:41.799 Los Angeles -based agency, Pitch, into their 00:10:41.799 --> 00:10:44.759 Denver -based agency, Motive. And during that 00:10:44.759 --> 00:10:48.120 consolidation, they actively parted ways with 00:10:48.120 --> 00:10:51.220 the co -CEOs of Pitch. Yes. OK, so that proves 00:10:51.220 --> 00:10:54.559 they aren't just blindly hoarding agencies. When 00:10:54.559 --> 00:10:57.019 it makes strategic sense to consolidate operations 00:10:57.019 --> 00:10:59.700 on the West Coast, they will make the tough leadership 00:10:59.700 --> 00:11:02.379 cuts to protect the overall efficiency of the 00:11:02.379 --> 00:11:05.240 network. Exactly. There's rigorous business logic 00:11:05.240 --> 00:11:07.320 balancing out the employee -centric culture. 00:11:07.519 --> 00:11:09.600 Here's where it gets really interesting, though, 00:11:09.620 --> 00:11:11.960 because that balance is what allowed them to 00:11:11.960 --> 00:11:15.100 transition so smoothly into the modern era. As 00:11:15.100 --> 00:11:17.620 we move into the 2020s, you see them taking active 00:11:17.620 --> 00:11:19.620 steps to future -proof both their culture and 00:11:19.620 --> 00:11:21.379 their business model. Let's look at the culture 00:11:21.379 --> 00:11:23.360 piece first. The notes detail something called 00:11:23.360 --> 00:11:25.879 Project Pledge, which launched in March 2017. 00:11:26.299 --> 00:11:28.580 A matching program. Right. Adweek covered this, 00:11:28.659 --> 00:11:30.960 and it is a massive mashing program for employee 00:11:30.960 --> 00:11:33.679 donations to charitable causes. The numbers on 00:11:33.679 --> 00:11:36.220 that are staggering. The network pledged to donate 00:11:36.220 --> 00:11:39.960 up to $1 million each year to nonprofits, directly 00:11:39.960 --> 00:11:42.179 matching their employees' personal contributions. 00:11:42.620 --> 00:11:44.799 A million dollars a year isn't just a corporate 00:11:44.799 --> 00:11:47.909 PR write -off. When a company is owned by its 00:11:47.909 --> 00:11:50.590 employees, corporate social responsibility has 00:11:50.590 --> 00:11:53.129 to genuinely align with the passions of the workforce. 00:11:53.529 --> 00:11:56.429 It has to be real. Exactly. By putting a million 00:11:56.429 --> 00:11:58.990 dollars on the table to amplify the specific 00:11:58.990 --> 00:12:02.289 causes their employees care about, they are reinforcing 00:12:02.289 --> 00:12:06.350 the core philosophy of the ESOP. Your voice and 00:12:06.350 --> 00:12:09.230 your values dictate the direction of this company. 00:12:09.679 --> 00:12:12.059 That is an incredibly powerful tool for long 00:12:12.059 --> 00:12:14.080 -term morale and retention. Without a doubt. 00:12:14.279 --> 00:12:16.620 And that forward -thinking internal culture clearly 00:12:16.620 --> 00:12:18.960 translated into how they approached the rapidly 00:12:18.960 --> 00:12:21.820 shifting media landscape of the 2020s. They started 00:12:21.820 --> 00:12:24.960 aggressively targeting Gen Z and digital subcultures. 00:12:25.080 --> 00:12:27.820 A very smart pivot. In March 2021, they acquired 00:12:27.820 --> 00:12:31.019 OS Studios. Business Insider did a breakdown 00:12:31.019 --> 00:12:33.299 on this, pointing out that OS Studio specializes 00:12:33.299 --> 00:12:36.820 entirely in gaming and Gen Z culture. They specifically 00:12:36.820 --> 00:12:39.519 noted this acquisition was designed to help legacy 00:12:39.519 --> 00:12:42.860 clients like Pepsi capitalize on the massive 00:12:42.860 --> 00:12:45.460 red -hot gaming business. Traditional advertising 00:12:45.460 --> 00:12:47.860 networks have struggled immensely to organically 00:12:47.860 --> 00:12:50.559 reach Gen Z. You cannot just put a traditional 00:12:50.559 --> 00:12:52.679 commercial in the middle of a Twitch stream or 00:12:52.679 --> 00:12:55.419 a Discord server. The audience will reject it 00:12:55.419 --> 00:12:58.740 instantly. Instantly. By acquiring OS Studios, 00:12:59.120 --> 00:13:01.940 Project Worldwide didn't just buy another agency 00:13:01.940 --> 00:13:05.340 to add to the roster. They bought Native Translators. 00:13:05.440 --> 00:13:07.440 Native Translators. That makes total sense. They 00:13:07.440 --> 00:13:09.620 acquired a team that intrinsically understands 00:13:09.620 --> 00:13:12.539 the language, the unwritten rules, and the platforms 00:13:12.539 --> 00:13:15.320 of a demographic that massive global brands are 00:13:15.320 --> 00:13:17.539 desperate to understand. And they double down 00:13:17.539 --> 00:13:20.320 on that high -end digital content creation strategy 00:13:20.320 --> 00:13:23.470 immediately. Later that same year, in September 00:13:23.470 --> 00:13:27.789 2021, the foundational agency GPJ acquired a 00:13:27.789 --> 00:13:30.690 significant stake in Nomobo. Which is a specialized 00:13:30.690 --> 00:13:33.450 creative video agency. Right. They are clearly 00:13:33.450 --> 00:13:35.429 looking at where consumer attention is shifting 00:13:35.429 --> 00:13:37.789 and aggressively buying the specialized experts 00:13:37.789 --> 00:13:40.409 in that space. And they are still expanding the 00:13:40.409 --> 00:13:43.220 global footprint into emerging markets. In December 00:13:43.220 --> 00:13:46.259 2023, Project made a strategic investment in 00:13:46.259 --> 00:13:49.159 a Dubai -based agency called Talisman. A sports 00:13:49.159 --> 00:13:51.519 marketing agency. Right. A full -service sports 00:13:51.519 --> 00:13:54.480 marketing agency. Think about the explosion of 00:13:54.480 --> 00:13:56.659 global sports investments centered in the Middle 00:13:56.659 --> 00:13:58.740 East over the last few years. That's been massive. 00:13:58.879 --> 00:14:02.019 Project secured a major specialized foothold 00:14:02.019 --> 00:14:05.039 right in the center of that boom. And just recently, 00:14:05.200 --> 00:14:08.240 in September 2024, they continued their European 00:14:08.240 --> 00:14:12.080 expansion by acquiring a Paris -based integrative... 00:14:14.180 --> 00:14:17.820 So looking at the entire board as it stands today, 00:14:17.960 --> 00:14:21.080 they have built a roster of 14 distinct agencies. 00:14:21.379 --> 00:14:23.679 14 agencies. You've talked about a lot of them, 00:14:23.679 --> 00:14:26.419 from Argonaut in San Francisco to OS Studios 00:14:26.419 --> 00:14:28.740 in New York, all the way to Talisman in Dubai. 00:14:29.259 --> 00:14:31.200 But the portfolio also includes highly specialized 00:14:31.200 --> 00:14:33.480 shops like G7 Entertainment Marketing. You've 00:14:33.480 --> 00:14:36.600 got PR, digital, shopper marketing, gaming, and 00:14:36.600 --> 00:14:38.820 sports marketing all sitting under one unified 00:14:38.820 --> 00:14:41.320 employee -owned roof. And this isn't just a fascinating 00:14:41.320 --> 00:14:43.919 experiment. The strategy has been heavily validated 00:14:43.919 --> 00:14:46.509 by the broader industry. Oh, definitely. The 00:14:46.509 --> 00:14:48.789 sources point out that project was officially 00:14:48.789 --> 00:14:52.529 named in Ad Age's 2024 list of the world's top 00:14:52.529 --> 00:14:55.090 agency holding company. That level of recognition 00:14:55.090 --> 00:14:58.570 is huge. It proves that this ESOP model, combined 00:14:58.570 --> 00:15:01.250 with our highly targeted acquisition and incubation 00:15:01.250 --> 00:15:04.070 strategy, can actually stand toe to toe and compete 00:15:04.070 --> 00:15:06.629 with the traditional publicly traded holding 00:15:06.629 --> 00:15:09.850 company giants on the global stage. Which brings 00:15:09.850 --> 00:15:12.070 us to a major historical inflection point for 00:15:12.070 --> 00:15:14.370 the company, because getting to that level of 00:15:14.370 --> 00:15:16.370 global recognition was large. Largely the work 00:15:16.370 --> 00:15:19.309 of one leader. Robert G. Valley Jr. Right. For 00:15:19.309 --> 00:15:21.309 15 years since the holding company was founded 00:15:21.309 --> 00:15:23.950 in 2010, the ship was steered by its chairman 00:15:23.950 --> 00:15:27.370 and CEO, Robert G. Valley Jr. He was the architect 00:15:27.370 --> 00:15:29.570 who guided the transition from the legacy George 00:15:29.570 --> 00:15:33.129 P. Johnson days into this modern 14 agency network. 00:15:33.389 --> 00:15:35.830 But things have shifted. Yes. The notes show 00:15:35.830 --> 00:15:39.049 that as of May 2025, there has been a major changing 00:15:39.049 --> 00:15:41.409 of the guard. Chris Meyer has officially taken 00:15:41.409 --> 00:15:44.149 over as CEO and board member. A founder transition 00:15:44.149 --> 00:15:47.090 is arguably the most dangerous stress test any 00:15:47.090 --> 00:15:50.029 organization can face. Let alone an ESOP. Exactly. 00:15:50.350 --> 00:15:53.629 It is exceptionally complex for a 100 % employee 00:15:53.629 --> 00:15:56.289 -owned company. Chris Meyer isn't just stepping 00:15:56.289 --> 00:15:59.330 in to manage a century of legacy and a sprawling 00:15:59.330 --> 00:16:01.769 international network. He is answering to a workforce 00:16:01.769 --> 00:16:04.049 that literally owns the company he was hired 00:16:04.049 --> 00:16:07.250 to run. His mandate moving forward will be to 00:16:07.250 --> 00:16:10.720 maintain that delicate equilibrium. protecting 00:16:10.720 --> 00:16:13.539 the fierce autonomy of these 14 individual agencies, 00:16:13.799 --> 00:16:16.539 while simultaneously leveraging their collective 00:16:16.539 --> 00:16:19.940 power to serve global clients in an increasingly 00:16:19.940 --> 00:16:23.399 fragmented media landscape. It is a massive undertaking, 00:16:23.620 --> 00:16:25.639 but the structural foundation they have built 00:16:25.639 --> 00:16:27.720 seems practically custom engineered for resilience. 00:16:28.100 --> 00:16:30.289 So what does this all mean for you? Right. The 00:16:30.289 --> 00:16:32.629 core takeaway here. Whether you are analyzing 00:16:32.629 --> 00:16:35.269 organizational design, trying to figure out how 00:16:35.269 --> 00:16:37.850 to scale your own startup, or simply trying to 00:16:37.850 --> 00:16:39.950 understand the invisible corporate forces shaping 00:16:39.950 --> 00:16:42.330 the media and experiences you consume every day, 00:16:42.549 --> 00:16:45.470 the takeaway is clear. Corporate structure is 00:16:45.470 --> 00:16:48.389 destiny. Who owns a company fundamentally dictates 00:16:48.389 --> 00:16:51.360 how that company grows. Exactly. By removing 00:16:51.360 --> 00:16:53.600 the pressure of public markets and Wall Street 00:16:53.600 --> 00:16:57.000 expectations, Project Worldwide managed to build 00:16:57.000 --> 00:17:00.220 an environment where agency autonomy, long -term 00:17:00.220 --> 00:17:03.220 talent retention and employee values could flourish 00:17:03.220 --> 00:17:06.200 right alongside aggressive global expansion. 00:17:06.680 --> 00:17:08.920 If we connect this to the bigger picture, the 00:17:08.920 --> 00:17:11.599 story of Project Worldwide isn't just a Wikipedia 00:17:11.599 --> 00:17:14.559 list of 14 agencies and their acquisition dates. 00:17:14.680 --> 00:17:16.619 That's much bigger than that. It is a living 00:17:16.619 --> 00:17:19.359 case study of reinvention. They took the foundational 00:17:19.359 --> 00:17:22.720 DNA of a regional event marketing firm from 1914 00:17:22.720 --> 00:17:26.059 and mathematically engineered it into a modern 00:17:26.059 --> 00:17:28.859 network that is actively shaping Gen Z gaming 00:17:28.859 --> 00:17:31.099 culture, Middle Eastern sports marketing and 00:17:31.099 --> 00:17:33.960 global experiential design. And they managed 00:17:33.960 --> 00:17:36.460 to do it all while ensuring. that the people 00:17:36.460 --> 00:17:39.579 actually generating the creative ideas reap the 00:17:39.579 --> 00:17:42.380 long -term financial rewards of ownership. This 00:17:42.380 --> 00:17:44.240 raises an important question, and it's something 00:17:44.240 --> 00:17:46.940 I want to leave you, our listener, to mull over 00:17:46.940 --> 00:17:49.299 as we wrap up today's deep dive. I'm ready for 00:17:49.299 --> 00:17:52.180 it. We've just spent this time dissecting how 00:17:52.180 --> 00:17:56.039 a 100 % employee -owned structure allowed Project 00:17:56.039 --> 00:17:58.619 Worldwide the patience to incubate new ideas, 00:17:58.940 --> 00:18:01.619 the agility to future -proof their business for 00:18:01.619 --> 00:18:04.740 new media, and the leverage to attract top talent 00:18:04.740 --> 00:18:08.180 by promising absolute autonomy. If this ESOP 00:18:08.180 --> 00:18:10.759 model is so remarkably effective at fostering 00:18:10.759 --> 00:18:13.259 sustainable, high -quality growth and retaining 00:18:13.259 --> 00:18:16.829 top -tier creatives, Why isn't this the standard 00:18:16.829 --> 00:18:19.490 operating model for all massive corporate networks? 00:18:19.809 --> 00:18:21.930 That is the million -dollar question. Think about 00:18:21.930 --> 00:18:24.769 the implications. What actually happens to the 00:18:24.769 --> 00:18:27.130 fundamental quality, the bravery, and the innovation 00:18:27.130 --> 00:18:29.750 of creative work when the creatives themselves 00:18:29.750 --> 00:18:32.150 own the parent company that owns them? Does the 00:18:32.150 --> 00:18:34.130 art get fundamentally better when the artists 00:18:34.130 --> 00:18:36.990 own the factory? It's a profound question about 00:18:36.990 --> 00:18:39.529 the future of labor, capital, and creativity. 00:18:39.769 --> 00:18:41.829 Keep it in mind the next time you see a brilliantly 00:18:41.829 --> 00:18:45.009 executed global campaign. Does the art get better 00:18:45.009 --> 00:18:47.289 when the artists own the factory? I love that. 00:18:48.150 --> 00:18:50.210 Thank you for taking this deep dive with us today. 00:18:50.369 --> 00:18:52.549 We hope this shortcut to being well -informed 00:18:52.549 --> 00:18:54.750 gave you a few new tools for your own toolkit 00:18:54.750 --> 00:18:57.150 and a fresh perspective on how modern corporate 00:18:57.150 --> 00:18:59.670 empires can be built differently. Until next 00:18:59.670 --> 00:19:02.130 time, keep questioning the structure of the world 00:19:02.130 --> 00:19:02.670 around you.