SCJ / DraftFCB new business implications, part two

Hello, new business fans. First, I must again thank George Parker at Adscam for calling attention to part one of this series. And yes, George, I did buy a copy of Confessions of a Mad Man! I look forward to the read.

For those of you new to the site, thanks for coming. Explore a bit. Sign up for the RSS feed and get some free thinking on how to make your next RFP Response more effective. For the regulars, my apologies for the plug. And hope you continue to find a helpful and different perspective on all things new business related.

While the SCJ business shift has many implications and learnings, one of the facts that struck me was that the client is moving from one agency to two. This is part of a trend that’s been happening in recent years – to break up a piece of business into multiple parts.

Depending on your perspective, of course, that’s a good thing or a bad thing, right? With this in mind, here are some thoughts you might just file away. Consider them… should the topic come up in a conversation, pitch, RFP or negotiation coming soon to a theater near you.

You will find these are fairly generic bullets that may not apply to a given situation. Clearly they will need to be adjusted for fit. They are ranked in order of what Stephen Colbert might call “truthiness.” The following also assumes the same discipline is being considered. (So, two different digital agencies, for instance.) And that it’s a one brand for one agency situation. But there could be many brands. Or, maybe even audiences. Or…

All of this suggests you may have to take some of these with a handful of salt.

Client benefits of keeping all business with one agency

  • A lower price.
  • Fewer relationships to manage, coordinate and direct can drive efficiency, mitigate risk and mean less time spent managing the agency (and more on the business).
  • Greater consistency. More projects through one agency sharpens the process and lowers the number of lost hours due to change.
  • Faster client/agency alignment. One agency will “get” you faster.
  • More attention. You spend more at an agency, you get more. In the agency-speak, that can mean more senior level access and thinking. Improved service is a potential outcome, as well as higher quality thinking. But that’s subjective.
  • Fewer client-side resources needed to manage the business end. An outside audit, for instance, would cost less (one firm to audit vs. multiples).

Client benefits of splitting up the business

  • More and different ideas. Different agencies will approach the business differently.
  • Increased competition. Keep your partners on their toes. (Sigh.) This is why being a good looking sister is a huge new business advantage.
  • Lower risk of disruption in service.
  • Conflict avoidance. (Again, may or may not be appropriate).
  • Leverage specialty thinking or expertise. If you as a client have a broad group of brands that appeal to different targets, for instance, multiple agencies with different specialties could be very valuable.

Any one of the above could be exploded with some smart thinking and rationale.

If you have anything to add, particularly you search consultants out there, shout. Would love to get your perspective here!

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A couple of related posts about procurement, supply chains and new business are below:

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