Friday 31 July 2009

Cushioned Landing

I read in Campaign that supposedly Helen Calcraft had had a bit of a strop after the result of the B&Q pitch. It was reported that she had learnt about the result from one of her clients - not the B&Q client. I actually heard that it had been through other sources – still not the B&Q client. Either way, her kicking the cushions around reception (or whatever she did to vent her anger) seems justified as her agency and her competitors had been working on the pitch process since January. So well done to Chris MacDonald and his team at McCann and commiserations to MCBD, Rapier etc but I have a question. How come clients, knowing that the grapevine is very active in agencyland and considering the time and effort that pitching clients demand of agencies in the process don’t have the wherewithal – I think I just mean common decency – to tell everyone straightaway?

Financing Placements

Here’s a question. Work experience in account handling– should agencies pay newbies or not?

Just from a practical point of view, I would ask yourself how long the placement is for and which side is getting they most out of it. If we are talking about a week or two weeks in the summer holidays - to give a student invaluable experience of what an agency is about - then I would see the payment happening "in kind". If you need someone for longer and to cover for excessive workload then it feels right to pay them.


Nevertheless, if you cast your mind back to when you started, money has always been an issue to newcomers in London and unless your student is staying in his chairman uncle’s pied à terre in Knightsbridge and using the company driver, you may want to take pity and subsidise travel costs etc.

Friday 24 July 2009

Money Too Tight To Mention

We are about to renegotiate our contract and monthly fee with a major client. We have had good reviews recently. I am the main account person and will be attending the meetings with our commercial director. However, in such an economic time – when they are looking to make budget cuts - are we about to driven into the ground on costs? It’s happened on other clients.

The thing I see in this recession is that there are no blanket patterns. One day we are hearing about green shoots of recovery in one sector, the next we are hearing of gloomy long term forecasts. I know of agencies really hurting because of what is going on, others (though in the minority) have had their best trading periods. One thing we know is that there are always going to be both winners and losers. So your presumed prognosis of the negotiations is a little premature.

But let’s face it - it is a difficult market out there. You’ve got agencies undercutting each other, others using their existing business to subsidise the servicing of new areas for the client. In fact, you have every example of aggressive business practice – it is just more acutely present in a downturn. I was at a breakfast seminar recently, run by Chris Merrington of the training company Spring8020, and a lot of people there from network agencies and independents were saying that they were facing some pretty harsh challenges. The topic being discussed was negotiations in these difficult times ; it was suggested that agencies need to bear in mind the 3 principles of 1) knowing one’s value, 2) holding one’s price and 3) being confident. Good advice – but what does this mean for your agency’s situation and your personal role in the negotiations?

1) You personally are probably even better placed than your commercial director to know what the various clients value about your agency’s service delivery. You are working with them on a day to day basis. You know what is currently in the minds of the clients. And you are aware what the business or marketing strategy is. This context will help you evaluate whether, for example, it’s your creativity, a particular individual on the team, your speed of response or your board director’s leverage with their CEO which makes you invaluable to them. In your regular conversations with the client (way before the negotiations), you need to be subtlety playing this back to them. In agency performance reviews or new client introductions, you should be doing the same – with the result that when they weigh up moving agencies or downgrading your involvement, it is not an option: they have come to rely heavily on the agency. So, as you can see, this is not something you can cosmetically conjure up for the negotiation but it is something you can exploit within the negotiation if it is there.

2) Holding one’s price is easily said. Many a tough managing director has buckled under the stress of hard negotiation or the chilling realisation that the particular piece of business is vital to the health of their company. But what is more chilling is that even a 10% cut in hourly rates can reduce your margin by 50% - a serious business constraint.
I am not going to go into all the preparation which is needed for such a negotiation but a few thing areas are worth mentioning. Both of you need to have discussed a strategy around how the conversation should go. You both need to know what you are willing to give up and when you need to walk away. You, as an account person, may be more hard-wired to concede to clients’ demands - your commercial director will be able to set you boundaries to avoid this happening. Also if you both have to give some up, get something back in return –whether introductions to other parts of the business, change in payment terms or something as small as inclusive travel costs. In addition, if they do want to cut costs, be a bit more creative and see if it can work in your favour too. (eg introducing an agreed menu pricing to cut down on your time haggling over costs, or automating some processes)

3) Confidence comes from a number of sources. Make sure for example that you and the commercial director are aligned – don’t assume that you are both on the same page –have a rehearsal with a colleague firing different questions at you both. Confidence comes from being able to explain any figures under discussion in the meeting. And ultimately, confidence will also allow you to use time – a very strong negotiating tool – to walk away from the meeting not having agreed everything but allowing you to deliberate your next move.

So, good luck. I am sure I have missed some stuff out. Maybe we might get a few more suggestions in the comments to this post to help you out. In the meantime, have a look at this video. I feel a fraud including it as it has done the rounds a bit in the US – but – hey - as we know from the green agenda, recycling is what it’s all about these days. Anyone who has been beaten down on a project cost will recognise some of these scenarios:

Monday 20 July 2009

Account Handling Prêt à Porter

Mike, you asked me for a question to start your blog off. I know you are wanting to encourage serious debate but let me be a bit left of field and get to the root of what’s bugging me. Maybe I am getting old but I am not sure our younger account handlers have quite got the measure of what they should be wearing in client meetings. Particularly the guys. Does anyone else find this? Any advice?

OK, interesting question particularly for you. I remember a few years ago some of my female industry friends felt it was inappropriate for some girls in agencies to be wearing crop-tops at work. But I don’t remember you, my friend, getting on the barricades about this. So with this knowledge I will be taking a more balanced view in my answer. And sorry ladies I might just limit myself to what I know but I would encourage you to give me your views on the female perspective. So here goes...

Let’s face it. It’s been 10 years since the start of the decline of the tie in agencies. And although Mark Jacobs and friends have reintroduced it in the skinny form as a sort of “nouvelle vague” new wave, it hasn’t led to wholesale re-adoption. When someone proposed the theory of ties would come back in with the recession, I was interested in whether the theory would have as much credence as the one about length of women’s skirts and the health of the economy. But considering the acuteness of the crunch in certain agency disciplines, I see no change - the theory does not float. In fact the lack of tie thing has impacted on the wearing of suits by account handlers.

Surely modern times require modern thinking? Or, in other words, we need a dress code to suit the time we operate in. And we operate in a post-modernist world - full of fragmentation and cross-referencing. We are a result of where we have come from and what is currently happening to break down the old barriers- and it doesn't feel reversible.

Though , you are definitely not alone in your comments. At one agency I went into recently, one of the directors was complaining about the scruffiness of one of his account directors and I had to agree with him. But with the current vogue for beards, the mishmash themes of the high street and shoe-systems which were developed for rugged treks of the Andes, it is easy to appear like a colour-blind devotee of Joaquin Phoenix fresh from the Inca trail.

Having worked in a very informal agency with a mix of quite formal clients, I have seen the potential minefield that you are alluding to. My only sartorial tips are 1) always get the shoes right, 2) dress for expectations and 3) don’t confuse the concepts of fashion and style.

The shoe thing is funny as I don’t immediately check out people’s shoes but am one of these people who think you can tell quite a lot from shoes. I know that when I looked down at the shoes of quite an impressive agency CEO, I recognised in them the scuffs and flaws from his playground childhood. And, as I say, I do not seek shoes out but I know loads of people who do.

Dressing according to people’s expectations is not just about varying your clothes for meetings at the client offices but if you have a boss like you, my friend, one needs to know what signals are being given out by one's attire.

And getting fashion to work in a stylish way is an art in itself - colleagues and I amuse ourselves in surreal discussions about current use of double-denim in streetwear. Anyway I do not feel qualified to offer up state of art advice in this area other than what I have said in relation to clients and colleagues but I will end this post by referring to one of my favourite photo blogs who definitely understands style and where fashion fits into it: thesartorialist.blogspot.com

...and if you are still struggling with the reference to Joaquin Phoenix you may want to check out this as well...

Friday 17 July 2009

Client Services vs Project Management

Is there a size of account/project under which pure account management isn't a necessity? We find that sub £100k it is much more cost effective to have both PM and AM roles performed by a hybrid producer. Is this the best way to do things?

Hybrid? - like half man, half plant? Presumably we are talking about a digital project – I think a lot of design and digital agencies are looking at the client services vs project management question at the moment. I have been working in this area with a digital company and my experience is that a lot of the time it is about a mindset than a fundamental difference in process between the two.

You will be best placed to say whether your hybrid producer with his/her individual skills can fulfil both the internal project management task and the client service roles. But your ultimate decision depends on your overall approach to clients. I think if you want to develop project-based clients into longer-term ones then a hybrid may fall short because they are covering too many bases in the short term. Ideally an account director should understand the business your client is in, identify the business challenges and match what you can offer to their needs. Good ones are hard-wired to identify new opportunities, be sensitive to the politics of the organisation and promote the agency in the best way. They should also be thinking about where the account could be going and what the client thinks of the agency. This does not mean that they should be swanning around at the client’s and not focused on the delivery of a particular project. So a project manager will be responsible for the day to day delivery but the account director should be making sure the vision of the client is being realised in the work and quality-controlling that aspect. The best teams are where the roles are dovetailing in every aspect of the delivery but I think you have to be very clear with the client how the roles work together so there is no confusion and feeling of duplication.

I also don’t know what say a £80k project would include – ie are we talking technical build or do you back off at wireframes etc? Either way, that strikes me as quite a large project still and if you are wanting more projects from the same client then your hybrid producer may be too stretched to be able to extend the momentum of the account as they are concentrating on just delivering the project.

Oh by the way, on a related subject, I know my friend Paul Canty (paul@preloaded.com) is looking for someone at group account director level to work across some pretty exciting clients like the BBC, Channel 4, The Arts Council etc. A funky outfit but serious operators.

Thursday 16 July 2009

Keeping in Touch with Failed Pitch Clients

We were recently invited to pitch for a large project/account which we didn't win. Feedback was that they liked us and would keep us in mind for future projects. How can we ensure we remain on their radar and be first in line next time a project comes up?

My friend at MCBD, Nina Jasinski, would have a whole contact strategy around keeping failed pitch clients warm until the next opportunity. She would put them on the e-newsletter circulation, send them examples of new work, diarise courtesy calls and send messages of congratulations from holiday when they are promoted. It is a very small world and even if they do not award you business in their current role, they may put you on the pitch list when they inherit a dog of an agency in a new role down the line.

If the chemistry is good, catching up for a coffee on a regular basis (or initially after a few months) may be something they are willing to commit to.

But be wary of clients who cannot give valid feedback and just want to be loved by all losing agencies and most pertinently just want to move on from the arduous pitch process. The number of agencies who come a “close second” can sometimes equal the total of pitching agencies minus the successful one. So validate and qualify if/why they liked you and keep in mind for future conversations.

And sometimes you should just be thankful that you didn’t win but that’s another story…

Wednesday 15 July 2009

Useless Client Feedback

As account director on a client, I can see my team getting hacked off with the feedback on creative work which they get. There are particularly 2 or 3 clients who are either vague or very proscriptive. What can I do before my creative director gives the order to issue the AK47s?

Well hold on there. Before war is declared, I have a few suggestions but I get the feeling I will be returning to this subject again and again in different guises in other posts.

Here are some quick questions which may provoke some ideas how to solve this deadlock:

1) Ask yourself if the issue is further up the line at the client. I’ve found a lot of the time the problem is that the senior decision makers are approvers of the creative but have not seen the brief or been exposed fully to the thinking that got you there. Maybe a shorthand rationale of the thinking emailed to the senior client before they see any creative. Ideally what saves time in the long run is a face to face presentation of the work to all approvers.

2) Do the clients feed back via phone or email? I reckon the vagueness comes from interpretations of verbal comments. Ask your guys to encourage the clients to follow up any unclear phone calls with emails. Hopefully the process of writing it down should identify any anomalies and get more logic into their feedback.

3) Can you put together a short workshop run by your planner and/or creative director/team? It would could be positioned as a “value add”, establish how you want to get feedback, may show them the error of the ways and get them to think how they want feedback from their colleagues. Use of humour can sometimes hit the nail on the head and show people the error of their ways. My proof? Exhibit A – well not this but like this....or yes like this...or not..


Tuesday 14 July 2009

New Business Crash Course

I am a senior account manager and although I think I’m good at what I do with clients I have not had much new business experience. In fact I have only worked on one pitch as an account executive. We have just lost a major client and we are trying to get on more pitch lists. I have been asked to get involved in a pitch next month. Can you give me any tips?

Definitely. The best book about agencies I have read for some time is Jon Steel’s Perfect Pitch. To be honest, I found Truth, Lies and Advertising great for the case studies but quite tough to read. Perfect Pitch – about the whole area of new business - is a very easy read with some great tips for newcomers and veterans like.

My other observations about your situation is that the instincts and client management skills you have developed on existing clients will stand you in good stead for communicating and interacting with clients. Also as someone who has something to prove in this area, you have the opportunity to shine. Do your research on the customer, product and client through trawling reports, mystery shopping and looking up old press stories and you can add invaluably to the team’s thinking. Also – if you have a role in the presentation, just put yourself in the customers’ or clients’ shoes and you will be a step closer to a good response.

Also thanks for the question, after finishing Perfect Pitch I said I would email Jon Steel what a good book it is and got waylaid. I am going to do it now.

Monday 13 July 2009

Going Green

My client takes CSR really seriously. My agency just starts a few green initiatives every so often when we are pitching for a socially responsible client. We are a relatively small agency and my MD is not someone who would do this naturally. How can I get them to take things more seriously as we should do a lot more and I also think it will win us a few points with our client?

I lived in Germany as a student (some while ago - let’s just say the Wall was still up in those days) and it’s funny how long it has taken for the UK public to adopt some of the environmental habits which the Germans and Scandanavians took for granted even then. Although the crunch has slowed down the recent Green momentum in the UK, it is something which younger generations and certain baby boomers will not let go away. I applaud your determination to do something and more and more agencies are taking it seriously and not using it as a “greenwash”.

And as you know, a lot of this stuff can start at grass roots level without the company needing to change radically to begin with. My present agency has a self-appointed Green Team who have educated themselves about office environment initiatives and then established certain ones themselves.

I know it will sound the norm to certain agencies but the first thing I noticed was the use of double-sided printing as the default setting on the printers and copiers. For the first week it was so, so annoying but then I got used to it and then I thought I had discovered sliced-bread. Anyway these types of initiatives which also have economic advantages maybe will get more cynical management interested and a momentum going.

Your big question should be why certain initiatives have not worked previously and how you can avoid this.

It sounds as though your MD may be the major stumbling block. I also suggest targeting other board members individually who you feel could support your cause – particularly if you can show a business advantage – whether internally or via clients. Then getting group of like-minded people together and planning an easily actionable set of measures to begin with. Ask for a slot at the next company meeting and also make sure you recruit into your team people who can cajole people into changing their ways and can get heavy if things are not happening.

My Green Team colleagues recommend having a look at www.recyclenow.com. And also making sure you have really investigated the benefits they will give you as a business (by getting your validated arguments ready for the disbelievers). At Rufus they are doing a really good job. Here is one of their ads which adorned the loos for seated comtemplation during Obama’s inauguration:




Any questions?

Let me know if you have any questions you want answered in this blog by commenting below. I will either answer them myself or get someone I know to give their opinion. They should pertain to the agency-client relationship and will be dealt with according to how relevant they are to the ongoing discussions.(Usual comment policy applies -no defamation, inflamatory remarks etc).

Friday 10 July 2009

About this blog

Openmike is my idea for a discussion blog about client services and the agency-client relationship in advertising and marketing agencies. I think a lot of what we do in dealing with clients is common-sense psychology but sometimes such principles don't give us all the answers - it is the dynamics of the situation which dictate the outcome. Because of the changing nature of clients and agencies and particularly at this economic time I also think we should be reassessing how we work with clients.

I suppose why I am doing this is because I miss the creative output that writing two books gave me. Putting them together furthered my thinking in the whole area of client-agency relationships. Yet, as anyone has published a business book alongside the day-job will tell you, it is a very large commitment and I have no particular desire to go down that route again for some time. So I like the informality of a blog and the possibility to interact with others on the same wavelength – and maybe with those on different ones.

Also along the way I have been given some good advice. Other times I could have done with some to stop me making the mistakes I have. So in Openmike I will be calling on other people’s experience to answer some of the issues posed - keeping it down to earth and practical, avoiding any academic discourses and having a bit of fun. And I have my own questions – like “why are agencies programmed to make the same mistakes?”, “can we work with clients differently?” and “why do all planners at the moment seem to be called Ben?”

It is for account handlers, working on the day to day of client business and agency management, trying to fathom solutions to client issues.

So there will be a chance to ask questions, look at what’s going on and have a bit of fun at the same time.

I don’t know if people need another blog but here goes. In the meantime enjoy! And let me know your questions.