There is an article headlined in this week's Marketing magazine entitled 'Procurement vs creativity. The oft-derided department can help motivate agencies'. Now you must be thinking why I have chosen the title for this blog, as I have said before about the lack of positive press about procurement and this seems to be at last a breakthrough.
The article (I have a PDF of it if you would like it) starts off well saying that procurement can help in the creative process by putting a Performance Related Fee (or bonus) in place. Sure but this is old news. I put one in place in 2001 - I have even found the original article about it - here it is !.Orange Lowe PRF. The rest of the article then really goes on about different remuneration models like the Anomaly model of sharing in intellectual property rights. There is no real other mention of procurement and some of the great added value areas that they can work with both the client and the agency on e.g. process improvements, measurement and investment in technology to drive efficiencies.
I really think it is time to move away from PRF and I totally agree with Debbie M's view in the article that a lot of people talk about exciting new fee structures but the majority of clients (not agencies) are reluctant to do it.
So , let's be creative and take some risks - happy to help and give my view if any clients or agencies are brave enough.
Showing posts with label Lowe. Show all posts
Showing posts with label Lowe. Show all posts
07 May 2010
09 February 2010
Dealing with Procurement is chic!
As one of my clients said to me when I sent him the headline 'Procurement Pain: TBWA Anoints a Chief Compensation Officer '.
As Ad Age reported :
Rising tensions between agencies and marketing procurement have birthed a new role in the agency C-suite: the chief compensation officer.
Omnicom Group's TBWA/Chiat/Day has appointed Neal Grossman, as its first global chief compensation officer.
The role -- which is distinct from TBWA's chief financial officer -- means Mr. Grossman will be the one leading contract renegotiations with clients and procurement officers, and overseeing fee discussions during new-business pitches. He'll also be tasked with developing value-based compensation models that are mutually beneficial to the agency and its clients.
But as my client said when he was appointed 5.5 years ago there was not this type of headline, but these days is it trendy ? or is it a necessity ? Certainly in the UK market, since I worked at Grey and Lowe, and Emma Nussey at AMV, there has been no significant agency appointments to be that focal point in dealing with procurement.
So I think it is a good sign, as long as they understand both sides and are collaborative in their approach. A defensive stance will not help the commercial relationship to work.
As Ad Age reported :
Rising tensions between agencies and marketing procurement have birthed a new role in the agency C-suite: the chief compensation officer.
Omnicom Group's TBWA/Chiat/Day has appointed Neal Grossman, as its first global chief compensation officer.
The role -- which is distinct from TBWA's chief financial officer -- means Mr. Grossman will be the one leading contract renegotiations with clients and procurement officers, and overseeing fee discussions during new-business pitches. He'll also be tasked with developing value-based compensation models that are mutually beneficial to the agency and its clients.
But as my client said when he was appointed 5.5 years ago there was not this type of headline, but these days is it trendy ? or is it a necessity ? Certainly in the UK market, since I worked at Grey and Lowe, and Emma Nussey at AMV, there has been no significant agency appointments to be that focal point in dealing with procurement.
So I think it is a good sign, as long as they understand both sides and are collaborative in their approach. A defensive stance will not help the commercial relationship to work.
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