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Turning down business to grow business appears counterintuitive, at first glance.
But it works for ChappellRoberts, an Ybor City advertising, marketing, branding and public relations agency, which expects revenue to exceed $10 million this year.
Saying no is important for the firm's long-term growth, says CEO Colleen Chappell, who knows you can't be everything to everyone.
When a prospective client seeks out ChappellRoberts, the customer isn't the only one doing the interviewing. “If they don't align with our business model and what we know we can deliver in the long run — they won't be a fit,” says Chappell.
If the firm placed an ad for business, it could read: “In search of exclusive, long-term relationship. Others need not apply.”
ChappellRoberts will only represent one company in any given industry at a time. For example, it now represents Florida Hospital Tampa Bay Division, part of the Adventist Health System, one of the largest health care providers in Florida. So it won't work for other hospital companies.
The ChappellRoberts business model is based on exclusivity and depth of knowledge. The firm's employees develop an intimate knowledge of their clients' business, including the business model, business plan, business risks and financials.
Turning away work, while never easy, was especially difficult in the recent economic downturn when advertising and marketing budgets were slashed industrywide to compensate for shrinking revenue.
“It took a lot of discipline,” the CEO says. “It's very easy to be reactive during tough times and take on any work that's out there.”
By sticking to its strategy, the firm grew revenue by $2.9 million, or nearly 44%, between 2010 and 2012. Revenue has tripled in the past 10 years.
The firm's average agency-client tenure of five years beats the national average of three years. And some customers have been with the agency for more than 15 years.
“Our ultimate goal is to be a trusted adviser. ... You have to build a strong relationship from day one,” she says. “We will never risk our long-term reputation for any short-term gain.”
The client roster at ChappellRoberts includes the Dali Museum, Mosaic, PSCU Financial Services, Suncoast Hospice, Sage Healthcare and the Sarasota Convention & Visitors Bureau.
Moving up
To help Chappell with her long-term strategy and her goal of moving the company to the next level, she has two professional coaches — Donna Manion of RYB Consulting and Mary Owens of Black Diamond Associates — on retainer to work with her and top management.
Manion's focus is growing the capabilities of Chappell's leadership team, including the senior account executives. She meets with them regularly, usually monthly, to discuss business goals they've established with Chappell. They discuss the obstacles and challenges they're running into and how to overcome them.
In addition, each manager works on individual goals to grow as a leader. If a manager wants to set personal goals, Manion helps with those, too.
Manion has one-on-one discussions with each manager on how he or she is progressing.
Personal feedback is key to improving in today's fast-paced environment where the world runs nonstop 24/7 thanks to technology and where customers demand immediate results, says Manion.
“You have a lot of competing demands for delivery of highly creative, highly innovative solutions in a narrower time window,” she says. “It's tougher to be a leader and manager than it ever has been.”
Professional coaching helps management deal with the challenges without getting lost in the chaos, Chappell says.
In their sessions, Mary Owens and Chappell discuss strategies that will take the business to the next level. Owens helps Chappell step back from the day-to-day operations to look at the big picture. She also helps her come up with solutions to vexing problems.
“In many ways I'm her sounding board,” Owens says.
Chappell strives to improve as a leader to position the business for increased growth, Owens says. They've worked on different skills that make great company leaders.
“Most people want to do their job, but we need to equip them with everything they need, including clarity as to what their role and responsibilities are,” Owens says.
And it's important for the company leader to instill a sense of ownership in employees.
Owens reminds Chappell to focus on the long view.
Last year, Chappell was struggling with a decision to fire a troublesome customer — one of the agency's larger accounts, Owens says. The client was creating problems, draining resources. It was no longer the right fit for ChappellRoberts.
“We talked it through,” Owens says. “We discussed what was best for the firm's long-term future.”
After Chappell decided to end the relationship, Owens and Chappell developed a strategy to win other business.
“It was very gutsy,” Owens says. “She replaced that business and had her best year yet.”
Up next
Although ChappellRoberts is focused on long-term success, the CEO says she doesn't have a five-year or 10-year plan.
“We're always looking at strategic growth,” Chappell says. “It may not mean getting bigger. It does require us to be at the forefront of change.”
She can discuss in great detail where the industry is headed. Marketing will be more individualized and targeted. There'll be fewer large-scale campaigns. One of the agency's biggest growth areas is research, on which some larger companies spend many millions.
ChappellRoberts is able to take the data and create tailored, complex marketing campaigns.
Asked if she expects to sell the business in the future, the CEO says she doesn't know.
“I never thought I'd be in the agency business,” she says. “I never thought I'd own my own agency.”
But her worst day as a business owner, says the former marketing director at what became Verizon Wireless, is far better than her best day ever in Corporate America.
Founding Inspiration
Chappell's biggest challenge as CEO, she says, was the loss of her friend and business partner, Deanne Roberts. “There is no greater adversity than losing a business partner who was also a community icon, trusted partner and dear friend for more than 20 years,” she says.
Roberts started the business in 1978 as Deanne Roberts & Associates, a public relations firm. More than two decades ago, Chappell, a student at the University of South Florida, met Roberts while interning at St. Joseph's Hospital. Roberts became Chappell's mentor and through the years one of her closest friends.
In 2002, Roberts asked Chappell to become her business partner. “Deanne was the entrepreneur, I'm not,” says Chappell.
She credits Roberts making something of nothing.
“I'm all about taking something to the next level,” she says.
Chappell, who had worked as director of marketing at what became Verizon Wireless, joined Roberts at the firm, which was renamed ChappellRoberts.
Last year, Chappell and Roberts were in the midst of a five-year succession plan when Roberts died of cancer.
Her death affected not only Chappell but also the employees.
To honor Roberts, the firm has turned her old corner office into a sitting room with funky furniture. Employees use it for meditation and inspiration.
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