IBM is currently conducting the largest public relations agency search in history. Over $40 million is up for grabs as the technology giant consolidates the workload divided
among 50 PR firms worldwide into no more than three accounts. IBM's search, a model of efficiency and fairness, will undoubtedly lead to the best choice of long-term PR
partners.
Unfortunately this doesn't always happen. The primary reason for constant agency turnover that plagues some companies is a flawed agency search process. The costs of that
turnover in time, budget and reputation to already overworked corporate staffs are simply unacceptable.
Whether your budget is $40,000 or $40 million, you can ensure that you make the right choice by following a few simple steps and avoiding some common pitfalls.
Determine where you need help. Work with your internal clients to determine
exactly what business goals need to be accomplished, identify what communications
resources you need to accomplish those goals and determine what capability you
already have internally. Focus your search on the capabilities gap. Plan for
a clear division of labor.
Articulate measurable objectives. Based on the business goals you need
to achieve, prepare actionable communications objectives for the agency. Identify
metrics and other tangible factors that will indicate success. Mush objectives
like "create awareness" lead to weak programs and no accountability.
Prepare a "request for credentials". Draft an invitation letter that
tells candidate agencies the objectives and scope of the proposed program, describes
your "hot buttons" and asks them to provide a summary of their capabilities
to execute that type of program; relevant case studies and client references;
and a description of how they would share research and knowledge and staff and
manage your account. If you send a "request for proposal" rather than a credentials
request, be prepared to spend significant time providing data for agencies to
do a credible response. Also, you will be obligated to pay for any strategic
or creative recommendations from agencies you don't hire.
Create a short list. There is no ideal firm size; only ideal firms.
A good list contains four or five firms of different sizes and scope - regional
and national, specialty and full service. Find background on firms in the directories
of the various trade publications, or consult Find-a-Firm at http://www.prfirms.org
to screen firms by size, location and specialty. Then create an automatic short
list with direct links to each firm's web site. Beware of the temptation to
invite too many firms; you'll lose the focus of your search.
Set your terms in the invitation. Send a letter to the CEO of each firm
on your list with a copy of the request for credentials, a timetable for written
submissions and presentations and any issues, such as conflicts, that would
disqualify a firm. Let the candidates know the names of their competitors and
provide them with a confidentiality agreement to cover any proprietary corporate
information that you give them, and offer to protect any information they give
you. Advise agencies to keep submissions brief and focused.
Test for chemistry in the presentations. Assuming all the written submissions
pass muster, schedule presentations for each firm. To get the best feel for
the character of each agency, you and your search team should receive the presentations
in their offices. The ideal presentation is a substantive informal discussion
that allows you to get a feel for the personalities and intellects of the proposed
account team. Look for how well the agency staff interacts with each other as
a sign of their collaborative style. Ask which participants will be permanent
members of the account team and which specialists serve many accounts. Don't
expect the agency to have an entire proposed account team available and identified.
An overly elaborate presentation with lots of "bells and whistles" may indicate
an agency that spends all its time on new business rather than client service.
The decision. The search team should keep a checklist throughout the
entire process. Immediately after the presentations are completed, the team
should score their checklists. If there is an obvious winner, the decision is
easy; if not, the team should meet to come to a consensus. Once the decision
is made, the senior corporate PR officer should call each agency to inform them
about the choice with a brief critique of the firm's presentation. Delays in
notification suggest indecisiveness.
The launch. Within a week, the company and winning agency should issue
a joint announcement concerning the engagement. Within a month, the account
team and all the members of the client staff involved with the program should
meet face-to-face, preferably off site, to work out strategies, messages and
joint responsibilities for a successful program. Joint planning by phone and
e-mail creates lots of useless paper and loses the dynamism and chemistry you
were seeking during the presentations.
Jack Bergen has been on both sides of the search process as SVP at Westinghouse
and CEO of GCI Group. He now serves as president of the Council of Public Relations
Firms. Contact him at 1-877-PRFIRMS (773-4767) or [email protected].
The Agency Checklist
Assign a value from zero to three points (weak to excellent) for each item on the following list. Tally up points to see which agency has the most winning slate of credentials.
CLIENT SERVICE
Responsive during review process
Enthusiastic
Committed to excellence
Measurement protocols
Client references
Approach to financial account management
Understands industry
Able to meet all our needs
Subtotal
DEMONSTRATED PERFORMANCE
Case studies
Creativity
Strategic thinking
Innovation
Multi-stakeholder approach
Accountability for results
Subtotal
ACCOUNT STAFF
Qualifications
Professional Development
Management skills
Industry experience
Personality compatibility
Subtotal
AGENCY CHARACTER
Mission and values
Serve multiple account needs seamlessly
Established and proven
Client conflicts discussed and resolved
Industry recognition/awards
Subtotal