The relentless rise of Hamish ‘the Hammer’ McLennan

A young McLennan (then Y&R global chairman) with Alex Hamill.

When Hamish McLennan arrived at promoting company Young and Rubicam Australia as chief government in 2002, he ripped up the ground, painted the workplace white and knocked down all the interior partitions.

The places of work of Y&R had been darkish, wood-panelled and stuffed with unhealthy 70s and 80s furnishings. McLennan knew it was the primary place a possible shopper would see after they entered the company. The firm additionally did not have any cash so he purchased new chairs and tables from Ikea. The price of the reception refit got here in beneath $500.

“We had to symbolise that Y&R had changed,” he says.

McLennan realized in regards to the significance of a grand gesture early in his profession working for veteran UK adman Sir Martin Sorrell, who put in him as chairman and CEO of Y&R Australia at simply 36. Advertising is about making impressions and it is a stunt McLennan has pulled off a number of occasions.

When he turned the worldwide head of Y&R he satisfied News Corp boss Rupert Murdoch to attend a dinner along with his new promoting shoppers in New York. He spent his first night within the Network Ten workplace sipping vodka with Lachlan Murdoch earlier than dismissing the tv broadcaster’s head of promoting, Tony McMaster. When he turned chairman of Rugby Australia he appointed an advisory board that includes former prime minister John Howard, former Governor-General Sir Peter Cosgrove and Wallabies legend John Eales to supervise Australia’s 2027 Rugby World Cup bid.

It’s an strategy that has served McLennan effectively. Having began within the mailroom of a neighborhood advert company he has amassed a set of directorships that makes him one of the influential figures in Australian enterprise – on paper not less than. The 54-year-old is chairman of News Corp’s most necessary asset, on-line actual property firm REA Group, chair of radio and billboard enterprise Here, There & Everywhere, and deputy chair of $100 billion funds administration agency, Magellan Financial Group. And then there’s his new function at Rugby Australia, which is arguably his best problem but.

During his early days at Y&R McLennan turned often called “the Hammer”. No one can agree on the place it got here from. Some colleagues say it was due to his capability to get offers carried out rapidly in the identical method a hammer comes down at an public sale. Others declare he hammered individuals who weren’t performing. One particular person mentioned he was relentless, like a hammerhead shark.

“He’s pretty intimidating,” says Matt McGrath, a pal and former colleague who now runs advertising and marketing for accounting agency Deloitte. “He’s obviously tall and he’s a big guy. He doesn’t take any prisoners. He is not a heartless person. He is just absolutely focused on winning.”

Peter Tonagh, the previous Foxtel boss who labored with McLennan on the board of REA, has an identical take. “Of course he is polarising, that’s why they call him the Hammer.”

McLennan may give off the impression he does not care what individuals take into consideration him. But like most executives he worries about his status and admits he used to search out the nickname unflattering.

“It doesn’t worry me so much now,” he says. “It was all said in jest at the time. We had to turn the company around. It was in a terrible state.”

The origin of the nickname isn’t the one factor in dispute about McLennan. In the identical method his bosses Rupert Murdoch and Sorrell have divided the trade, McLennan is without doubt one of the trade’s most polarising executives.

He is revered by a few of the 25 present and former colleagues who spoke to The Sydney Morning Herald and The Age for this profile and loathed by others. Several interviews started with a deep sigh or chortle. One name ended when his title was talked about. Two of McLennan’s most well-known bosses – Sorrell and Lachlan Murdoch – refused to remark.

McLennan does not tread rigorously. But he’s conscious of the toll his ruthless strategy has on the individuals he has labored with.

“Obviously there are consequences and these organisations are often broken and need tough calls. I struggle with the human consequence of what happens,” he says.

‘Tough little bugger’

The second of three sons to Colin McLennan, a tv producer, Hamish Roy McLennan grew up in a cushty north shore residence in Sydney the place packages and advertising and marketing had been mentioned across the dinner desk. After graduating from the Sydney Church of England Grammar School (Shore), McLennan skipped college and went straight to promoting company George Patterson Bates the place he began as a mailroom boy. He was required to drive the chairman round and run errands for executives.

“We gave him all the shittiest jobs there were because he was a tough little bugger,” says Alex Hamill, a former promoting government who employed McLennan.

A younger McLennan (then Y&R world chairman) with Alex Hamill.Credit:Jon Reid

McLennan took an curiosity in promoting as a result of it taught him to find out about a variety of companies and the way they made cash. His first shoppers had been MeadowLea Margarine and Arnott’s.

“I have never been afraid of hard work and I loved the business. I was lucky to be attracted to an industry that I was well suited for,” he says.

McLennan was decided and persuasive and rose up the ranks rapidly. Former colleagues say he was capable of attraction shoppers. But he may see the trade altering – and consolidating. At this time he met Sorrell, one of many trade’s most well-known promoting executives. He was poached to guide Y&R Australia.

McGrath remembers the weekend he and McLennan sat down collectively to try to win the coveted Telstra account, a shopper that would change the fortunes of the struggling Y&R. The pair had been the final to current to a really drained group of Telstra executives late on a Friday afternoon.

Among the concepts had been a recent set of advertisements for Yellow Pages, a brand new strategy to bundling merchandise and plans to focus on younger individuals – a demographic Telstra was struggling to succeed in.

But first, they wanted to make the executives chortle. They started with awkward footage of them as toothless younger kids with haircuts carried out by their moms. It labored. They gained many of the Telstra account.

Winning the Yellow Pages account changed the fortunes of a troubled Y&R agency under McLennan's leadership.

Winning the Yellow Pages account modified the fortunes of a troubled Y&R company beneath McLennan’s management.Credit:Craig Sillitoe

“We went from zero to $100 million in business in one phone call,” McGrath says.”That was a turning point.”

In the identical method McLennan knew easy methods to make an impression, he understood early on the facility that comes from being related to influential figures. In his first few weeks as world chairman at Y&R, he organised a shopper dinner in New York with Murdoch, who he had been launched to by then News Corp Australia boss John Hartigan. The shoppers, who worshipped Murdoch, had been fascinated.

During his time in New York he additionally turned recognized for a sequence of talks at a preferred promoting pageant in Cannes. Former US vp Al Gore, Murdoch, Peter Chernin and Who lead singer Roger Daltrey had been amongst those that appeared at his talks.

“For Hamish it was real brownie points,” says household pal and music promoter Harvey Goldsmith, who launched Live Aid. “All of the media agencies started to invite their big clients to Cannes. Y&R was always a big agency but it became a much bigger global agency under his chairmanship.”

McLennan’s first few years in New York had been tainted by a courtroom case in Australia over the sale of promoting company George Patterson by Pacific Equity Partners to WPP. McLennan was compelled to defend himself towards accusations of false and deceptive conduct. Sources near McLennan on the time mentioned it brought on him misery – he was apprehensive in regards to the long-term influence it could have on his profession. The case was settled out of courtroom and McLennan was issued an unreserved apology. The allegations had been withdrawn.

When McLennan stepped down from Y&R in 2011, there was hypothesis he had been dismissed by Sorrell as a consequence of a falling out however this was not the case. It was true, nevertheless, that Sorrell was sad – a mixture of McLennan not profitable sufficient shoppers and struggling to be an efficient chief.

Two of McLennan's influential bosses: Sir Martin Sorrell (left) and Rupert Murdoch (right).

Two of McLennan’s influential bosses: Sir Martin Sorrell (left) and Rupert Murdoch (proper).

“He didn’t live up to expectations,” an promoting government aware of the connection mentioned.

McLennan’s subsequent job was government vp, workplace of the chairman at News Corporation. McLennan didn’t know Rupert Murdoch earlier than arriving in New York however was aware of sons Lachlan and James as a result of Y&R had the promoting account for Foxtel, News Corp’s Australian pay TV enterprise. During his stint at News, McLennan was put in control of a variety of duties – consolidating the newspaper and broadcasting firm’s promoting company accounts into one world group was amongst them. He additionally took up the place of chairman of what was a small real-estate firm referred to as REA Group, as a option to get extra direct administration expertise.

Working for Murdoch gave McLennan the prospect to carry his kids again to Australia and commute to and from New York. There are some former colleagues who contemplate McLennan to be a loner however he’s very near his household.

McLennan met his spouse Lucinda at a celebration in Palm Beach as an adolescent. They have two grownup kids, Olivia and Ted. The household has been a key purpose for adjustments in his profession.

“[Lucinda] is my best friend. She backs me 1000 per cent,” he says. “She’s been fantastic – always good counsel. She tells me if she thinks I’m going off course too.”

[Lucinda] is my greatest pal. She backs me 1000%

Hamish McLennan

Lucinda supported the return to Australia. And a yr later he left Murdoch senior’s workplace to work for Lachlan as chairman and chief government of Ten. The broadcaster’s chief government, James Warburton (one other Shore outdated boy), had simply been fired. Ten was in unhealthy form as a consequence of poor rankings and a big pile of debt and McLennan had a mandate from its highly effective shareholders Lachlan Murdoch, mining magnate Gina Rinehart, WIN founder Bruce Gordon and on line casino billionaire James Packer to revive it.

McLennan launched new packages together with I’m A Celebrity Get Me Out of Here, Family Feud and The Bachelor and landed a broadcasting deal for the Big Bash League and V8 Supercars. Numerous the content material slate, together with a reinvigorated Masterchef Australia, remains to be on air at Ten.

Former Nine boss David Gyngell, Cricket Australia's chief executive James Sutherland and McLennan at the announcement of the new broadcasting rights of Australian Cricket.

Former Nine boss David Gyngell, Cricket Australia’s chief government James Sutherland and McLennan on the announcement of the brand new broadcasting rights of Australian Cricket.Credit:Jesse Marlow

One of McLennan’s different well-known acquisitions was the Sochi Winter Olympics. The deal was accomplished inside two weeks – carried out so rapidly that lots of his key executives and a few board members (however not Lachlan Murdoch) had been unaware of it till it was carried out. At the time Seven thought it had secured the rights, however McLennan may see a chance. To the shock of many, Ten gained.

The Sochi Olympics was an extravagant occasion regardless of Ten not paying a lot for it. McLennan invited Packer, Ginia Rinehart (Gina’s daughter) and Lachlan Murdoch as his company and so they travelled in personal vehicles between occasions. Multiple former colleagues from Ten say the community spent practically $2 million on leisure on the Olympics (the rights had been purchased for about $7 million). Despite smashing income data, it solely simply broke even on the occasion.

There had been infinite events and boozy nights. One occasion hosted by Ten on the lodge featured a few of the trade’s most well-known promoting executives – Russell Howcroft, Peter Vogel, Mark Pejic, John Steadman, James Greet and John and Evelyn Sintras and Sue Squillace who had been joined by Ten executives together with McLennan after which chief gross sales officer Lou Barrett. The occasion went late into the night time till the music stopped. McLennan was extremely dissatisfied, calling out for the music to proceed.

McLennan confronted many challenges at Ten. Some of his personal making together with a courtroom case over makes an attempt to poach veteran programmer John Stephens from Seven. Most Ten executives believed the Stephens job supply was an try and undercut chief programming officer Beverley McGarvey, who was closely pregnant and did not learn about it. McGarvey, now head of Ten (which at the moment holds rugby TV rights), and McLennan nonetheless don’t get alongside.

The causes for McLennan’s exit from Ten are nonetheless disputed. He had carried out a stable job turning the community round and his resignation got here as a shock. The press launch made the connection appear amicable – Ten non-executive director David Gordon, who was appointed chairman, mentioned McLennan had led a turnaround within the firm’s efficiency. McLennan obtained 12 months base pay of $1.975 million over his discover interval and one other $250,000 “negotiated termination payment”.

Multiple sources who had been concerned in Ten’s technique at the moment say McLennan fell out of favour with some members of a fractious board by doing offers that they felt went past his delegated authority. Sochi, for instance. They mentioned he was unable to handle the dimensions of Ten and struggled to not intrude with individuals additional down the chain. An ABC article from the time urged it was a part of an effort to “de-Murdochise” perceptions about the way forward for the broadcaster.

The reasons for McLennan's exit from Ten are still disputed to this day.

The causes for McLennan’s exit from Ten are nonetheless disputed to today.Credit:Louise Kennerley

Others insist it was a cross-media possession subject. Foxtel had purchased 15 per cent of Ten, Lachlan Murdoch had private shares and McLennan was chairman of REA on the time.

It’s laborious to be exact about McLennan’s relationships with the Murdochs. He will not discuss it and neither will they. His place on the REA board suggests he’s near not less than both Rupert or Lachlan. Those near the household don’t agree.

Just how close McLennan and the Murdoch family are remains unclear.

Just how shut McLennan and the Murdoch household are stays unclear.Credit:Rob Homer

When individuals who know McLennan discuss his profession, they usually reference the individuals he is aware of. His connections with Sorrell and the Murdochs are a purpose why many concern him. But it’s laborious to kind the parable from actuality. When contacted by The Sydney Morning Herald and The Age, Sorrell refused to speak.

Relentless ambition

One factor individuals can agree on is that McLennan is resilient, works laborious and does not endure fools.

“Mercurial, bullshit-free and possessed of a relentless ambition, McLennan has emerged as the blue-eyed boy of the Y&R empire,” an article on commerce web site Campaign mentioned in 2006.

Former colleagues from his time at Ten beforehand advised media and advertising and marketing commerce web site Mumbrella that he was a “clinical henchman”. A bit in The Australian Financial Review in 2015 mentioned he spent an excessive amount of time managing up and that always-on model – late-night and early-morning texts and calls – made him unpopular amongst his colleagues.

“Hamish smiles upwards and shits downwards,” one Murdoch loyalist beforehand near McLennan says. “He’s a user. He can be quite manipulative.”

On one event McLennan did not like an commercial for Ten that was emailed to shoppers. He despatched a one-word electronic mail round to a handful of his executives: “Pathetic.”

“He is an agent of change,” Hamill says. “He’s quite ruthless and he knows where the problems are. He’s not a person that will take a long time to make a decision about a business. In fact, I suspect he makes it up in the first five minutes.”

McLennan’s relentless administration is fueled by 5 double-espressos a day – normally drunk earlier than 3pm. There are some who respect his hands-on over-communicative strategy together with Tonagh who remembers the hours spent on the telephone from LA speaking about an funding for REA.

“Every hour until morning once we decided to do it he would call,” Tonagh says. “Anyone who pursues a goal as relentlessly and passionately as Hamish is going to create both fans and foes. I’m in the fan category.”

Anyone who pursues a aim as relentlessly and passionately as Hamish goes to create each followers and foes. I’m within the fan class.

Former News Corp boss Peter Tonagh

Other trade figures say McLennan could be awkward, notably in social settings. He and his household as soon as turned as much as an airing of The Voice (a Nine program) when he was the boss of Ten. In the tribal world of free-to-air tv, it was thought-about very odd to be ingesting champagne and wandering round in enemy territory. For his half McLennan did not assume it was unusual in any respect. He hoped to see a dwell Coldplay efficiency (his children had been followers).

McLennan’s function at Ten was his final as a chief government and the place his machiavellian management turned notorious. But whereas he rubs some individuals up the fallacious method, he has a observe file of adjusting organisations. Magellan chairman Hamish Douglass, who met McLennan greater than 20 years in the past when their children attended Mosman Preparatory School, says he’s “not afraid at all at making the tough calls”.

McLennan doesn’t apologise for moving into the element whilst chairman.

“A good chair should guide and not over manage, but from time to time companies do need a level of intervention,” he says. “I get really invested in the companies and the people and it’s a point of personal pride and reputation that I want to do a good job. I like winning.”

McLennan’s love of labor contrasts along with his different pursuits. He is fascinated with Africa and would like to personal his personal safari park. “We just love being out in the middle of nowhere,” he says. “The bush and the animals – it’s beautiful…[and] there’s an element of danger.”

McLennan has spent most of this yr on his household property in Berry (a spot the place he has hosted many executives over time). But when he is not on the farm, he enjoys snowboarding, travelling and browsing. He can be fascinated by documentaries and biographies. One of his favourites is Ovitz by Robert Slater, which is about Michael Ovitz, one in all Hollywood’s strongest brokers and former president of The Walt Disney Company.

Blood sport

HT&E chief government Ciaran Davis was relieved when McLennan determined to take up the function at Rugby Australia. “For a few weeks at least I wasn’t getting 20 phone calls a day – I was getting 10,” Davis laughs.

McLennan received his first style of rugby union taking part in fullback in school and nonetheless loves to look at the sport. But he has turn into pissed off with what it has turn into. Wallabies losses, the emergence of enormous nationwide AFL audiences, lack of free-to-air publicity for the Super Rugby and an incapability to innovate the sport are among the many causes for rugby’s points.

McLennan has known interim rugby CEO Rob Clarke since their days in advertising. They were fierce rivals.

McLennan has recognized interim rugby CEO Rob Clarke since their days in promoting. They had been fierce rivals.Credit:Getty

Already, McLennan has plans. As effectively as lodging a bid for Australia to host the 2027 Rugby World Cup, he has proposed two new recreation ideas – The State of Union and Super Eight – which he hopes will carry skilled rugby again to life. McLennan can even must determine on a everlasting chief government for the sport and final Friday introduced Australia gained the rights to host the 2020 Rugby Championship.

“Most highly ambitious people who are only interested in themselves would not deliberately take on something that is seriously challenging, because you could dent your reputation. That’s not how his ego works,” Douglass says.

Rugby Australia interim chief government Rob Clarke, who used to battle it out for shoppers towards McLennan when he was main rival promoting company Leo Burnett Australia, says McLennan is as formidable as he was within the 1990s and 2000s. He strongly disputes a suggestion by Alan Jones in The Australian that McLennan is just too busy for the rugby job.

Former Wallabies captain John Eales says Rugby Australia will be McLennan's biggest test.

Former Wallabies captain John Eales says Rugby Australia shall be McLennan’s largest check.Credit:Getty

“Advertising, like rugby, is a blood sport,” Clarke says. “He is here for the right reasons.”

He’s dedicating an unlimited period of time to the duty, which is required. That is one thing that may stand the sport in excellent stead. He is tackling the key points, he isn’t dodging or sidestepping issues resembling constitutional reform and governance reform and people meaty subjects that may typically be put within the too-hard basket.

Magellan director and former Wallabies captain John Eales, who has recognized McLennan for greater than twenty years, believes this function shall be his largest problem and thinks he’s as much as it.

“Sport is totally different to enterprise. People can go in underestimating it and usually in the event that they do, they fail as a result of extra individuals may have a view. Whether their view is grounded actually or in any other case, their view can get a extremely disproportionate quantity of airtime and that may actually complicate issues,” he says.

McLennan believes he may help: “There’s a pure conservatism in rugby, which on one hand is nice as a result of the historical past and the worldwide nature of the sport is revered. But rugby must put stress on itself to proceed to innovate.”

Business Briefing

Start the day with main tales, unique protection and skilled opinion from our main enterprise journalists delivered to your inbox. Sign up for the Herald‘s right here and The Age‘s right here.

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *