CO500C SCEIS YEAR-END PROCESS - PROCUREMENT/INVENTORY MANAGEMENT WORKSHOP FOR AGENCIES
Agencies and procurement
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Transcript of Agencies and procurement
Data protection 2013
Friday 8 February
#dmadata
Supported by
Agencies and procurement: towards a model that worksTuesday 10 June 2014#dmacips
Welcome from the Chair
Will Hamilton, Managing partner, Hamilton Associates
#dmacips
4.00pm Registration
4.30pm Welcome from the ChairWill Hamilton, Managing partner, Hamilton Associates
4.40pm Agencies perspectiveSamantha Nolan, Chief client officer, RAPPGavin Wheeler, Chief executive, WDMP
4.50pm Procurement perspectiveTina Fegent, Director, Tina Fegent Limited
5.00pm Finance perspectiveColin Fleming, Chief operating officer, AMV BBDO
5.10pm Panel discussionSamantha Nolan, Chief client officer, RAPPGavin Wheeler, Chief executive, WDMPTina Fegent, Director, Tina Fegent LimitedColin Fleming, Chief operating officer, AMV BBDO
5.50pm Closing commentsWill Hamilton, Managing partner, Hamilton Associates
6.00pm Drinks and networking
Agenda
Paying the
Agency…
There are
Differing
Remuneration
Models
Good Reading Remuneration Guides
The Dilemma
• We have moved from the age of commission to the age of fee, time based schemes, to the era of ‘what on earth are we going to do next?’
• Commission was predictable, and linked agency fortunes to the success of a brand– But had nothing to do with scope of work or agency costs
• Fees reflect scope of work and agency cost– But are difficult to negotiate– And do not relate to whether the marketing
communications are working – Or marketplace success– Some agencies like more risk/reward than others
The key questions
• Are we really moving away from time based remuneration models
• Is there any further future in commission?
• How well is Payment by Results (PBR) working?
• Paying by value?
• Are there any new ideas?
No Sacred Cows
No Silver Bullets
No Black Boxes
No “one size fits all”
Lets hear a perspective from:
• Advantages (Pro)
• Disadvantages (Cons)
Agencies perspective
Gavin Wheeler, Chief executive, WDMP
#dmacips
Market in growth
Rising costs
The perfect storm
Pitching
• Retained
• Strategy Retained
• Project Costs
• Performance Related Fees
• Value Based Pricing
• Commission
• Equity
Agencies perspective
Samantha Nolan, Chief client officer, RAPP
#dmacips
So, this is the way I see it..
3 things……..
Relationship Value
Bravery
£
3 things……..
What are we?
Supplier or Partner?
Looking upwards
2. Value over Cost
Being brave……..
Procurement perspective
Tina Fegent, Director, Tina Fegent Limited
#dmacips
Finance perspective
Colin Fleming, Chief operating officer, AMV BBDO
#dmacips
My 5p’s worth
Panel discussion
Samantha Nolan, Chief client officer, RAPPGavin Wheeler, Chief executive, WDMPTina Fegent, Director, Tina Fegent LimitedColin Fleming, Chief operating officer, AMV BBDO
#dmacips
Closing comments
Will Hamilton, Managing partner, Hamilton Associates
#dmacips
Ten Step Process to Success
• Client provides agency with goals.
• Negotiation on extensive scope of work.1. PREPARATION
• Agreement on tenure 2. TENURE
• Vital to establish the territory covering the appointment
3. TERRITORY
• Agency prepares costs on agreed scope of work
• Prepares work plan based on people hours4. FIRST SUBMISSION ON
AGENCY COSTS
• We feedback ranking only - and then agency makes Second submission to form agreement5. SECOND SUBMISSION
Ten Step Process (6-10)• Both sides agree level of agency remuneration…At
the point where cost provision and the cost of people hours intersect
6. AGREEMENT
• Client confirms KPI’s to Agency. The two sides agree PBR terms (which may involve ratcheting the profit margin)
7.KPI’s
• At this point Client and Agency come to terms on how much Client is going to pay the Agency
8. TERMS AGREED
• Client and Agency agree how performance is going to be evaluated…and remuneration reviewed in a year’s time.
9. PERFORMANCE EVALUATION
• The final step: definitive discussions on exactly how the agency is to be paid and on the form of contract to be used
10. FINAL TERMS
Drinks and networking
#dmacips