From the pinnacles of power by Fortune editor at large Patricia Sellers
Type Size  -  +
July 21, 2009, 8:16 am

David Ogilvy’s best advice for business

by Patricia Sellers

David Ogilvy, arguably the most influential advertising man in history, died 10 years ago today.

Courtesy: Ogilvy & Mather

Courtesy: Ogilvy & Mather

Measured by his creativity, Ogilvy was most famous for the man in the Hathaway shirt, his pitch for Rolls Royce (“At 60 mph, the loudest noise in this Rolls-Royce comes from the electric clock”), and his clever insight to market Dove soap as 1/4 cleansing cream.

But beyond the ads, this elegant and eclectic Brit pioneered consumer research, direct marketing–and built an industry-leading juggernaut, Ogilvy & Mather. Now owned by WPP Group (WPPGY), Ogilvy is the longtime brand steward for Fortune 500 companies such as Ford (F), IBM (IBM) and American Express (AXP).

I had the privilege of getting to know David Ogilvy in the ’80s and ’90s, when I was growing up at Fortune and writing about big-brand consumer-goods companies. We were at the Fortune 500 Forum in Charleston, S.C. in 1991 when I asked Ogilvy, then a vigorous 80-year-old, to share his advice for building and running a business.

Why I asked him, I can’t recall–maybe because he loved sharing his principles of management. In any case, I’m glad I did. I’ve kept his pencil-scrawled note in my desk drawer ever since. What better day than today to share it with you. So, here is David Ogilvy’s best business advice:

1. Remember that Abraham Lincoln spoke of life, liberty and the pursuit of happiness. He left out the pursuit of profit.

2. Remember the old Scottish motto: “Be happy while you’re living, for you are a long time dead.”

3. If you have to reduce your company’s payroll, don’t fire your people until you have cut your compensation and the compensation of your big-shots.

4. Define your corporate culture and your principles of management in writing. Don’t delegate this to a committee. Search all the parks in all your cities. You’ll find no statues of committees.

5. Stop cutting the quality of your products in search of bigger margins. The consumer always notices — and punishes you.

6. Never spend money on advertising which does not sell.

7. Bear in mind that the consumer is not a moron. She is your wife. Do not insult her intelligence.

David Ogilvy

Charleston

November 15, 1991ogilvy_letter_blog

Years after his death, David Ogilvy is still educating the business community. We will link to this terrific article from our website.

Ron D
http://www.start-a-business-faq.com

Posted By Ron Derven, Piermont, New York : August 20, 2009 8:09 pm

David Ogilvy’s advertising book is a classic that is a must read for anyone wanting a career in marketing. Great post of some of his key business advice.

Posted By Ture Anderson, San Francisco, CA : July 30, 2009 1:40 pm

He was indeed a class act, and built the foundation upon which the post-war advertising industry was built. He believed strongly in the USP, and that’s why we remember all those Dove TV spots. A quick note to our friend from Vancouver – if you take a look back to the campaign that began in 1957, or even earlier, it was 1/4 cleansing cream. And his work not only recognized women’s buying power, it spoke to them without talking down, as much of the work throughout the 1950’s and 1960’s did. Thanks for sharing this, Patricia. I’m going to reference this on the Smith On Branding blog.

Posted By Steve Smith, Sarasota, FL : July 23, 2009 6:47 pm

My marketing instructor once said something to the effect of, “In a world where everyone tells the truth, the liars and the cheaters win.” Actually, they only win in the short term – take Madoff as an example.

Posted By Nora McDougall-Collins, Missoula, Montana : July 23, 2009 3:03 pm

good, good, good!

Posted By bfsiot, belfast, northern ireland : July 23, 2009 10:51 am

I worked in Research at O&M Chicago from 1979-1981 and often quoted his thought re: “the consumer is no moron…she’s your wife.” Admittedly, given the times (“women’s liberation” was at its height), I privately scolded him for the sexism inherent in the thought–as in, aren’t we advising female O&M’ers too?), but had to forgive him nevertheless because the simplicity of the message was so brilliant—and obviously has withstood the test of time! Spent some of the most formative years of my career under his tutelage.

Posted By Linda Stewart, Oak Park, IL : July 22, 2009 11:52 pm

The GFC certainly tested his advice to firstly cut the compensation of executives before firing people.

Whilst we have seen some examples, Ogilvy was uniquely focused on the consumer and touching their hearts and minds.

Thanks – a great story!

Posted By Charles, Melbourne, Australia : July 22, 2009 10:25 pm

Love this piece. I added my two cents and linked back to it from my blog at life-sizedbusiness.com

Especially interesting that Ogilvy was already clear on the purchasing power of women!

Posted By elizabethbaskin : July 22, 2009 2:20 pm

I was lucky enough to meet David Ogilvy as a new employee at O&M back in the 80’s. He stopped me in a hallway and said he didn’t know me, was I new? We had a nice chat, then he asked me what he considered the most important question one could ask an employee – was I having fun? The man was a class act, and the most humble of legends.

Posted By Donna, New York, NY : July 22, 2009 1:57 pm

The old coot must have been delirious. Jefferson did in fact speak the famous quote, “life, liberty and the pursuit of happiness.”

Posted By Anonymous St. Louis, MO : July 22, 2009 1:11 pm

Great piece. Just one note: Dove is marketed as 1/4 MOISTURIZING cream, not “cleansing” cream.

My mom always bought Dove for exactly that reason. Ogilvy knew what would appeal to Dove customers!

Posted By Janelle, Vancouver, B.C. : July 22, 2009 12:52 pm

Excellent, Pattie! Thank you for sharing this very special story.

Posted By King of Prussia, PA : July 22, 2009 10:45 am

Thanks for sharing the note.

Do you believe Ogilvy (and Lincoln) would favor indictments of the bankers, regulators and rating agents who created the current fraud?

Posted By Mike from Texas : July 22, 2009 10:04 am

To the anonymous and confused readers of this magnificant piece: Lincoln used this phrase many times during his public life giving honor to the Founding Fathers. Among those times; his debate with Douglas and the Dred Scott decision in Springfield. Insight as true today as 10 years ago.

Posted By Norman, Braintree, MA : July 22, 2009 8:39 am

You were blessed to have encountered this very generous man who was willing to share the wisdom he had acquired in his journey. Thank you for sharing it with the world. Ogilvy’s perspective and intelligence are sorely missed.

Posted By Mary Katherine, Lansing, Michigan : July 22, 2009 8:28 am

Jeez, the dude was 80 y.o.a. when he scribled his note. Maybe he he was confused about who said what a hundrd years ago; he obviously admired Lincoln. His point is profit should not be the focus. At some point, greed corrupts. His note is 100% spot on.

Posted By Not A. Whiner, Manitowoc, WI : July 22, 2009 8:17 am

10 years after his death eye tracking proves David Ogilvy (still) rocks!
http://thinkeyetracking.com/Blog/?p=199

Posted By Robert Stevens London : July 22, 2009 3:58 am

I didn’t know Lincoln helped write the Declaration of Independence. He must have lived a long life.

Posted By Confused, Saint Louis, mo : July 21, 2009 5:41 pm

I thought it was Thomas Jefferson who spoke of life, liberty and the pursuit of happiness.

Posted By Anonymous : July 21, 2009 4:30 pm

Splendid write up and amaing insights of a man, a legend and a genius of a storytelling marketer.

Be WEll

TD

http://techdivine.com.tdblog

Posted By writer : July 21, 2009 11:28 am
CNNMoney.com Comment Policy: CNNMoney.com encourages you to add a comment to this discussion. You may not post any unlawful, threatening, libelous, defamatory, obscene, pornographic or other material that would violate the law. Please note that CNNMoney.com may edit comments for clarity or to keep out questionable or off-topic material. All comments should be relevant to the post and remain respectful of other authors and commenters. By submitting your comment, you hereby give CNNMoney.com the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying information via all forms of media now known or hereafter devised, worldwide, in perpetuity. CNNMoney.com Privacy Statement.
Sheryl Sandberg Sheryl Sandberg: Don't leave before you leave
COO of Facebook
Tory Burch Tory Burch: Helping women and families in the U.S.
Co-founder and creative director of Tory Burch LLC
Carol Bartz Carol Bartz: Just deal with it!
CEO of Yahoo
Xerox: A smooth CEO transitionOutgoing chief Anne Mulcahy and incoming head Ursula Burns discuss their historic CEO handoff. Watch
BartzYahoo CEO Carol Bartz tells Fortune's Andy Serwer why she took the top job at the tech company.Watch
Pattie SellersPatricia Sellers has written some of Fortune's most talked-about cover stories, including "Can Meg Whitman Save California?", Melinda Gates ("The $100 Billion Woman"), "MySpace Cowboys," Martha Stewart ("I cannot be destroyed"), Ted Turner ("Gone with the Wind") and Oprah Winfrey ("Oprah Inc."). And she has broken ground with insightful pieces on career management issues such as ego ("Get Over Yourself!"), and "Charisma: Do You Need It? Can You Get It?" Pattie chairs the annual Fortune Most Powerful Women Summit, the preeminent gathering of women leaders in business, philanthropy, government, academia, and the arts. And she has helped oversee Fortune's "Most Powerful Women in Business" cover package since its launch in 1998. She started at Fortune in 1984, covering the big consumer brand companies.
Subscribe to Postcards: RSS feed | email newsletter

Jessica ShamboraJessica Shambora started with Fortune as a reporter in June of 2008, following a stint as assistant editor at Travel+Leisure Golf. Shambora has written for Sports Illustrated, SI Latino, Women's Health, and Triathlete. She is a frequent contributor to Postcards.
Every year Fortune and the U.S. State Department sponsor the Global Women Leaders Mentoring Partnership, which brings rising-star women from developing countries to the U.S. to work closely with participants of the annual Fortune Most Powerful Women Summit - among them CEOs Andrea Jung of Avon, Ann Moore of Time Inc., and Ursula Burns of Xerox.
* : Time reflects local markets trading time.† - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges.• Disclaimer
Powered by WordPress.com VIP.