TO be the most sought-after bride as more international agencies are seeking to enter the Nigeria market through partnership, marketing communication agencies in Nigeria must begin to restructure by complying with corporate governance ethics, former Managing Director of Sterling Bank, Mr. Tunde Dabiri, has said.He made this known while speaking in Lagos last week at the 2012 Association of Advertising Agencies of Nigeria (AAAN) Annual Business Seminar.Some of the guests at the occasion were publisher, Vanguard newspaper, Sam Amuka, former and current president, Outdoor Advertising Association of Nigeria, Kole Ademulegun and Chijide respectively, chairman, Advertising Practitioner Council Of Nigeria, Lolu Akinwumi, Chairman, STB-McCann Lagos and Zenith International Bank Plc, Sir Steve Omojafor, Segun Olaleye, Sunny Irabo and a host of others.For many stakeholders, the industry should begin to take corporate governance and ethics seriously because they were the ingredients missing in the industry.While speaking on the topic, 'Corporate Governance and Accountability', Dabiri, stated that the industry needs to 'buckle up' to cope with the growth demands of its local and international clients, warning that, 'It needs to prepare itself for the inevitable entrance of international agencies into the market as they follow their global customers into the local space.'The industry is presently too fragmented, with mainly key person, organisations, especially due to low entry barriers and the Nigerian factor. Very few agencies have tried to build institutions.'Access to capital to withstand competition and institutionalise will to a large extent require restructuring in line with the dictates of good corporate governance.'In spite of its various challenges, Nigeria's economy is growing at over seven per cent. All sectors of the economy have to immediately start preparing themselves to be able to withstand competition from international entrants that would follow their global companies.'The advertising industry as a whole could be better prepared. It needs to consolidate and adopt corporate governance principles.'He also said that there was low compliance on corporate governance code because rivalry was fierce, with high bargaining power of suppliers, very low threat from substitutes, and low barrier to entry for new entrants and high bargaining power of clients.In moving forward, he suggested that stakeholders should put in place a well-structured corporate governance code.On why organisations should embrace corporate governance principles, he said, 'Adopting proper corporate governance principles makes it easier to create a lasting organisation that outlives the founders and their immediate family. A legacy can then be created. It is usually the safer way to ensure that the great, great grandchildren can be assured of a long term income stream, and help the immediate and larger community to grow and develop.'Successful and growing institutions create jobs which are useful to all societies. Creating institutions help in producing professional managers, who apart from being critical assets of their own organisations, also leave and help spread best practices principles'.Enumerating more tips for successful succession plan, Dabiri suggested that organisations must, among other things, 'Ensure open and honest communication involving all stakeholders (the owners, board and management), develop and implement a careful, intentional succession process, develop a timeline for shifting control of the company, secure endorsement of the board and senior executive team for the subsequent CEO and install the successor.'For family businesses, ensure that the successor is installed during the lifetime of the founder'.
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