Agencies and Their Clients Need to Set Performance Measures Including 3rd Party Evals

Having been on both sides the fence, I have a clear understanding of the dynamics that can arise in the relationship between corporate communications/public relations
departments and PR firms. I think a critical issue for agencies and corporate teams is to remember to remain focused on the highest standards of public relations practice, as
exemplified by the Page Principles, including telling the truth, acting with integrity and understanding that public relations -- as a function of executive management -- is
central to the success of the corporation.

One of the most significant issues for an agency is maintaining staff continuity within accounts and continuously fostering deep and abiding knowledge of each client's business
at all levels of the agency. Turnover at the mid-level is frequently an issue inside an agency, as the best talent rises to the top and senior management gets spread thin. When
this occurs, knowledge gaps usually open within the account team and this sparks difficulties of all kinds both for the agency and the client. On the corporate side, the most
productive communications dollars are spent in retaining an agency, which can provide extra hands as well as invaluable third party perspective and independent thinking about
products and services. The challenge is hiring and retaining an agency that can consistently perform well and add value to the business.

One way to improve both the client-agency relationship and business outcomes is for the corporate team and the agency to set performance measures. The corporate communications
staff can set standards, which tie fees to various measurements including how well the agency demonstrates its knowledge of the client's industry over time. If the agency does not
meet these performance measures, there will be a financial consequence.

An agency also can self-monitor its performance by inviting an objective third party to evaluate how it is delivering value to the client, identify best practices and analyze
strengths and weaknesses in service delivery. Performance measures can include criteria such as creativity, program management, results and quality of staff. The agency can also
perform diagnostics to determine how to implement improvements and ensure quality of service at all levels of the agency.

James E. Murphy is global managing director, marketing and communications, Accenture, and CEO, Murphy & Company. Murphy served as CEO of Burson-Marsteller, Americas and he
is a member of the leadership team of the Arthur W. Page Society. He can be reached at 917.452.4598; [email protected].