Agency Management Playbook

1. Agency Management Playbook Follow this simple step-by-step guide to develop a streamlined approach to agency selection, management, and evaluation. AGENCY MANAGEMENT Playbook & Toolkit

2. Table of Contents AGENCY MANAGEMENT Introduction 04 Framework 03 Conclusion 28 About This Playbook 29 Plan 06 09Research 13Select 17Communicate 21Manage 24Transition STAGE STAGE STAGE STAGE STAGE STAGE 1 2 3 4 5 6 Table of Contents AGENCY MANAGEMENT Introduction 04 Framework 03 Conclusion 28 About This Playbook 29 Plan 06 09Research 13Select 17Communicate 21Manage 24Transition STAGE STAGE STAGE STAGE STAGE STAGE 1 2 3 4 5 6

3. 1 PLAN Agency Selection Tool Agency Compensation Model Non-Compete Agreement Template Non-Disclosure Agreement NDA Advertising Agency RFP Template Agency Transition Model Agency Onboarding Checklist Agency Performance Review Project Status Report Template Creative Strategy Survey Tool Agency Transition Assets Database Agency Transition Termination Letter Agency Transition Creative Assignment Agency Transition Meeting Agenda Ad Agency Request For Information Project Charter Template Marketing Strategy Scorecard Marketing Budget Template AGENCY MANAGEMENT Framework Leverage the framework below to quickly empower your organization’s agency management strategy. Click the buttons below to access all related training, tools, templates and other resources. Consultant Evaluation Matrix Agency Compensation Evaluation Tool Agency Alignment Strategy Workbook Agency Compensation Negotiation Checklist Ad Agency Agreement Template Project Management Template Agency Onboarding Model Creative Brief Template Agency Compensation Review RESEARCH2 COMMUNICATE4 MANAGE5SELECT3 TRANSITION6 1 PLAN Agency Selection Tool Agency Compensation Model Non-Compete Agreement Template Non-Disclosure Agreement NDA Advertising Agency RFP Template Agency Transition Model Agency Onboarding Checklist Agency Performance Review Project Status Report Template Creative Strategy Survey Tool Agency Transition Assets Database Agency Transition Termination Letter Agency Transition Creative Assignment Agency Transition Meeting Agenda Ad Agency Request For Information Project Charter Template Marketing Strategy Scorecard Marketing Budget Template AGENCY MANAGEMENT Framework Leverage the framework below to quickly empower your organization’s agency management strategy. Click the buttons below to access all related training, tools, templates and other resources. Consultant Evaluation Matrix Agency Compensation Evaluation Tool Agency Alignment Strategy Workbook Agency Compensation Negotiation Checklist Ad Agency Agreement Template Project Management Template Agency Onboarding Model Creative Brief Template Agency Compensation Review RESEARCH2 COMMUNICATE4 MANAGE5SELECT3 TRANSITION6

4. 4AGENCY MANAGEMENT Plan Research Select Communicate Manage Transition 1 2 3 4 5 6 Introduction How to Use This Consulting Playbook This document consists of five stages, each with a description, steps, and action items. Action items include using our premium tools and templates. Our intention with this playbook is to guide you through the Agency Management Process by helping you: Evaluate the performance of the agency that you have selected Select the right agency for your business Manage the relationship between the two parties What is an Advertising Agency ? An advertising agency or advert agency is a service business dedicated to creating, planning, and handling advertising for its clients. Ad agencies come in all sizes and include everything from one - or two - person shops, small-to-medium-sized agencies and large independents. Typical ad agency departments include, but are not limited to: 1. Creative (Copywriters, Art Directors, etc.) 2. Account Services (Account executives) 3. Media Buying (Modern agencies might have a media planning department integrated) 4. Production (ensures the creative gets produced) 4AGENCY MANAGEMENT Plan Research Select Communicate Manage Transition 1 2 3 4 5 6 Introduction How to Use This Consulting Playbook This document consists of five stages, each with a description, steps, and action items. Action items include using our premium tools and templates. Our intention with this playbook is to guide you through the Agency Management Process by helping you: Evaluate the performance of the agency that you have selected Select the right agency for your business Manage the relationship between the two parties What is an Advertising Agency ? An advertising agency or advert agency is a service business dedicated to creating, planning, and handling advertising for its clients. Ad agencies come in all sizes and include everything from one - or two - person shops, small-to-medium-sized agencies and large independents. Typical ad agency departments include, but are not limited to: 1. Creative (Copywriters, Art Directors, etc.) 2. Account Services (Account executives) 3. Media Buying (Modern agencies might have a media planning department integrated) 4. Production (ensures the creative gets produced)

5. 5AGENCY MANAGEMENT Plan Research Select Communicate Manage Transition 1 2 3 4 5 6 Introduction Outputs from This Playbook Stage 1 - Plan Stage 4 - Communicate Project Charter, Project Goals & Objectives, Project Budget Creative Strategy Survey, Creative Brief Template Stage 2 - Research Stage 5 - Manage Ad Agency RFI, Non-Compete Agreement, Non Disclo- sure Agreement, Agency RFP Project Management Schedule, Agency Performance Evaluation Stage 3 - Select Stage 6 - Transition Agency Selection Tool, Consultant Evaluation Matrix, Ad Agency Agreement Agency Transition Model, Transition Termination Notice Letter Template 5AGENCY MANAGEMENT Plan Research Select Communicate Manage Transition 1 2 3 4 5 6 Introduction Outputs from This Playbook Stage 1 - Plan Stage 4 - Communicate Project Charter, Project Goals & Objectives, Project Budget Creative Strategy Survey, Creative Brief Template Stage 2 - Research Stage 5 - Manage Ad Agency RFI, Non-Compete Agreement, Non Disclo- sure Agreement, Agency RFP Project Management Schedule, Agency Performance Evaluation Stage 3 - Select Stage 6 - Transition Agency Selection Tool, Consultant Evaluation Matrix, Ad Agency Agreement Agency Transition Model, Transition Termination Notice Letter Template

6. Plan STAGE 1 AGENCY MANAGEMENT During Stage 1, you will work with your team to plan for the agency-selection process. Key activities for this stage include: STEP 1: Organize Your Resources STEP 2: Identify Goals & Objectives STEP 3: Set & Track Your Budget Plan STAGE 1 AGENCY MANAGEMENT During Stage 1, you will work with your team to plan for the agency-selection process. Key activities for this stage include: STEP 1: Organize Your Resources STEP 2: Identify Goals & Objectives STEP 3: Set & Track Your Budget

7. 7AGENCY MANAGEMENT Project Overview Project Description Key Success Factors Stakeholders Objectives Programs, Initiatives and Actions Key Performance Indicators & Metrics Target Timeframe to Achieve Objectives Organize Your Resources Identify Goals & Objectives STEP 1 STEP 2 Action Item Action Item Use the Project Charter Template to organize resources for the new agency selection project by establishing a clear project scope, decision rights, and executive sponsorship. Document goals, objectives, KPIs, and target timeframes related to the agency-selection project in the Marketing Strategy Scorecard. This tool will help you to outline the following: This tool will help you identify and document the following: V I E W R E S O U R C EV I E W R E S O U R C E V I E W R E S O U R C E Introduction 1 Plan Research Select Communicate Manage Transition 2 3 4 5 6 7AGENCY MANAGEMENT Project Overview Project Description Key Success Factors Stakeholders Objectives Programs, Initiatives and Actions Key Performance Indicators & Metrics Target Timeframe to Achieve Objectives Organize Your Resources Identify Goals & Objectives STEP 1 STEP 2 Action Item Action Item Use the Project Charter Template to organize resources for the new agency selection project by establishing a clear project scope, decision rights, and executive sponsorship. Document goals, objectives, KPIs, and target timeframes related to the agency-selection project in the Marketing Strategy Scorecard. This tool will help you to outline the following: This tool will help you identify and document the following: V I E W R E S O U R C EV I E W R E S O U R C E V I E W R E S O U R C E Introduction 1 Plan Research Select Communicate Manage Transition 2 3 4 5 6

8. 8AGENCY MANAGEMENT Man Hours Travel Opportunity Costs of lengthy process (brand erosion, loss of market share, loss of project momentum, etc) Set & Track Your Budget STEP 3 Action Item Include this project in your Marketing Budget Template and be sure to obtain approval from key stakeholders. A few of the costs associated with your agency-selection project can include, but are not limited to: Introduction 1 Plan V I E W R E S O U R C E Research Select Communicate Manage Transition 2 3 4 5 6 8AGENCY MANAGEMENT Man Hours Travel Opportunity Costs of lengthy process (brand erosion, loss of market share, loss of project momentum, etc) Set & Track Your Budget STEP 3 Action Item Include this project in your Marketing Budget Template and be sure to obtain approval from key stakeholders. A few of the costs associated with your agency-selection project can include, but are not limited to: Introduction 1 Plan V I E W R E S O U R C E Research Select Communicate Manage Transition 2 3 4 5 6

9. Research STAGE 2 During Stage 2, you will gather information about potential agencies. Key activities for this stage include: STEP 1: Reviewing Agency Compensation Models STEP 2: Gather Background Information STEP 3: Protect Your Business STEP 4: Write a Request for Proposal AGENCY MANAGEMENT Research STAGE 2 During Stage 2, you will gather information about potential agencies. Key activities for this stage include: STEP 1: Reviewing Agency Compensation Models STEP 2: Gather Background Information STEP 3: Protect Your Business STEP 4: Write a Request for Proposal AGENCY MANAGEMENT

10. . 10AGENCY MANAGEMENT Introduction 2 Research Reviewing Agency Compensation Models STEP 1 Action Item Review the Agency Compensation Model to evaluate the different options available when it comes to compensating an agency partner. Choosing a compensation model that is suitable for your chosen agency is an important part of the relationship between your orga- nization and the agency team. Different compensation models produce varied nuances in the way that agencies and organizations communicate and measure results. V I E W R E S O U R C E Plan Select Communicate Manage Transition 1 3 4 5 6 STEP 2 Gather Background Information Action Item Use the Ad Agency Request For Information Template to learn more about potential advertising agencies before inter- viewing them. RFIs allow agencies to provide background information on their firms and to highlight successes they have had with similar clients. The company presenting its profile can show example cases of different advertising projects that have worked well in the past. Additionally, advertising agencies can highlight specific details about the agency, providing information on the members of the proposed account team. V I E W R E S O U R C EV I E W R E S O U R C E

11. . 11AGENCY MANAGEMENT STEP 3 Protect Your Business Action Item Use the Non-Compete Agreement Template and the Non-Disclosure Agreement Template to protect yourself from unnecessary risk by ensuring that confidential and proprietary information can he shared openly when dealing with third parties. V I E W R E S O U R C EV I E W R E S O U R C E V I E W R E S O U R C EV I E W R E S O U R C E Introduction 2 Research Plan Select Communicate Manage Transition 1 3 4 5 6 STEP 4 General Information Statement of Work Proposal Submission Procedure Write a Request for Proposal Action Item Use the general Ad Agency RFP Template to help you create a formal invitation to request agency proposals that meet your business requirements and criteria. For more specific applications, check out the RFPs for an Adver- tising Agency, Branding Marketing Agency, Design Agency, Direct Marketing Agency, Full Service Marketing Agency, Internet and Digital Agency, Media Planning and Buying Agency, Promo- tion Agency, and PR Marketing Agency. The main sections of this document include: V I E W R E S O U R C EV I E W R E S O U R C E Agency Information Estimated Budget & Resources Required

12. . Select STAGE 3 In Stage 3 you will define your requirements, evaluate agencies & consultants, and get an agreement in place. The key activities in this Stage are: STEP 1: Evaluate Agency Candidates STEP 2: Consider and Compare Consultants STEP 3: Determine the Best Compensation Model STEP 4: Align Goals and Strategy with Compensation STEP 5: Sign an Agreement with an Agency STEP 6: Review Negotiation Best Practices AGENCY MANAGEMENT

13. . 13AGENCY MANAGEMENT Experience Skill Set & Approach Creativity & Innovation Methodology & Tools Ability to Achieve Objectives Concept and Channels Used Relevant Experience Skill Set Professionalism Methodology & Tools Personality & Fit Evaluate Agency Candidates Consider and Compare Consultants STEP 1 STEP 2 Action Item Action Item Use the Agency Selection Tool to evaluate and compare different ad agencies by analyzing the options across a set criterion. Use the Consultant Evaluation Matrix to evaluate and compare different ad agencies by analyzing the options across a set criterion. Sections of the evaluation include: Sections of the evaluation include: Introduction Select 3 V I E W R E S O U R C EV I E W R E S O U R C E Plan Research Communicate Manage Transition 1 2 4 5 6

14. . 14AGENCY MANAGEMENT Determine the Best Compensation Model Align Goals and Strategy with Compensation STEP 3 STEP 4 Action Item Action Item Use the Agency Compensation Evaluation Tool to under- stand which agency-compensation model is the strategically best approach for your organization’s needs. Use the Agency Aligned Goals Strategy Workbook to ensure that your organizations goals are aligned with how the agency is compensated for their work. Every organization is going to have different needs, and based on how they operate internally (including how they review their goals and results) will need a compensation model that is a win-win for both agency and organization. It is important in advance of any working relationship with an agency to clarify what your organization’s expectations are in terms of the goals you want to achieve, but also how the agency’s compensation aligns and interacts with those specific metrics. V I E W R E S O U R C EV I E W R E S O U R C E Introduction Select 3Plan Research Communicate Manage Transition 1 2 4 5 6

15. . 15AGENCY MANAGEMENT Sign an Agreement with an Agency Review Negotiation Best Practices STEP 5 STEP 6 Action Item Action Item Use the Ad Agency Agreement Template to put a formal agreement in place with an ad agency. It is important that you list each part of the agreement to help clarify the roles and responsibilities of the ad agency and your company. Leverage the Agency Compensation Negotiation Check- list to help your team while negotiating the compensation agreement with an agency partner. This template allows you to clearly specify the services that an agency will be providing your company, in addition to the fees, terms of payment, duration, on-boarding approach, transition plan, and more. In this template you can also write the general conditions of the agreement, which will include your company’s responsibili- ties. This template can be easily used in collaboration with the legal department of a company. During an agency contract negotiation, deciding on an equally fair compensation is often one of the most important line items to get right. Both parties need to feel that they are being treated fairly, and that the contract will result in a win-win. V I E W R E S O U R C E V I E W R E S O U R C E Introduction Select 3Plan Research Communicate Manage Transition 1 2 4 5 6

16. . Communicate STAGE 4 To this point, you have researched potential agencies and have selected the right agency for your business. Now, it’s time to operate with complete transparency. In this stage you will focus your efforts to: STEP 1: Discover Agency Onboarding Best Practices STEP 2: Execute an Agency Onboarding Process STEP 3: Share a Creative Brief STEP 4: Start Your First Project AGENCY MANAGEMENT

17. . 17AGENCY MANAGEMENT Introduction Communicate 4 Discover Agency Onboarding Best Practices Execute an Agency Onboarding Process STEP 1 STEP 2 Action Item Action Item Review the Agency Onboarding Model to understand the best practice process recommended for onboarding your new agency partner. Leverage the Agency Onboarding Checklist to ensure the onboarding process runs smoothly. At the beginning of any agency relationship, it is important to provide visual assets and creative direction, including the creative and aesthetic guidelines for your brand as well as any strategic resources the agency can use on your behalf. To ensure the first stages of partnership between your organization and any newly appointed agency are hassle-free, we recommend that you keep an eye on what steps need to occur (from the orga- nization’s perspective, and outside of any agency-provided list of action items). V I E W R E S O U R C E V I E W R E S O U R C E Plan Research Select Manage Transition 1 2 3 5 6

18. . 18AGENCY MANAGEMENT Definition Audience Competitors Goals Identity & Branding Communications Aesthetic Brand Dichotomies Share Your Strategic Direction Share a Creative Brief STEP 3 STEP 4 Action Item Action Item Use the Creative Strategy Survey Tool to provide your creative agency partner(s) with a detailed project plan that includes your strategic direction and ideas for creative devel- opment that will coincide with your strategy. Use the Creative Brief Template to ensure that your creative agency or team understand the strategic objectives for your company, product, and/or program. Sections of the survey include: Sections of the creative brief include Background, Corporate Facts, Overall Assignment, Tactical Objectives, Product and Service Facts & Benefits (Client Perspective), Market Overview & Competitive Situation, Customer Profile, Awareness Levels, Key Messaging & Corporate Positioning, Campaign Measurement, Campaign Execu- tion, Proposed Timelines, Budget & Additional Resources. V I E W R E S O U R C EV I E W R E S O U R C EV I E W R E S O U R C E Introduction Communicate 4Plan Research Select Manage Transition 1 2 3 5 6

19. . Manage STAGE 5 Now that you have started your first project, you need to track the results of the program to deter- mine success. We also recommend that you evaluate your agency every 6 months. In this stage, you will: STEP 1: Manage Individual Projects STEP 2: Create a High-Level Status Report STEP 3: Evaluate Your Agency’s Performance STEP 4: Evaluate the Agency’s Compensation AGENCY MANAGEMENT

20. . 20AGENCY MANAGEMENT Introduction Manage 5 Project Name Start Date/End Date Project Team Time Off Project Summary Project Vital Signs Project Cost & Schedule Manage Individual Projects Create a High-Level Status Report STEP 1 STEP 2 Action Item Action Item Use the Project Management Template to manage the project schedulewhenworkingwithyouragency.Thistoolsletsyoulist individual tasks, assign ownership, and identify start/end dates. This template can be used to track project status. If you are working on multiple projects with your agency, use the Project Status Report Template to create a reporting tool that you can use to communicate project status with key stakeholders. Start by indicating the following: The project status report should highlight specific items that key stakeholders need to know about without getting into too much detail. The three broad areas this template covers are: V I E W R E S O U R C EV I E W R E S O U R C E Plan Research Select Communicate Transition 1 2 3 4 6

21. . 21AGENCY MANAGEMENT STEP 3 STEP 4 Overview of Previous Period Accomplishments, Obstacles, Strengths, and Opportunities Goals, Targets, and Action Items Suggestions for Organizational Improvement Competency Manager-Evaluation of Agency Agency Development Plan Evaluate Your Agency’s Performance Evaluate the Agency’s Compensation Action Item Action Item Use the Agency Performance Review to assist you with gathering measurable feedback regarding an agency’s past performance, attitude, and ability to do their job. Use the Agency Compensation Review to help guide your organization’s review of the compensation model and approach used with an agency partner. During an annual review, sections of the evaluation include: Agency compensation is an independent item for review beyond general performance and is recommended 6 months after the start of a working relationship to ensure the correct compensation model is being employed based on the results produced to date. An incorrect compensation model can cause problems in your agency relationship and reduce the results you could expect, so consistent review is recommended. V I E W R E S O U R C E V I E W R E S O U R C E Introduction Manage 5Plan Research Select Communicate Transition 1 2 3 4 6

22. . Transition STAGE 6 Sometimes an agency relationship won’t work out, or you may want to consolidate multiple agen- cies’ work into a single agency partner for ease of management. If your contract is properly set up in advance, this process should already be defined and understood, but it will still require execution. The following steps will help you execute a peaceful and productive transition from one agency to another. In this stage, you will: STEP 1: Review Agency Transitions Best Practices STEP 2: Send a Termination Notice STEP 3: Acquire All Assets Before Departure STEP 4: Organize a Transition Transfer Meeting STEP 5: Transfer Creative Assignments AGENCY MANAGEMENT

23. . 23AGENCY MANAGEMENT Introduction Transition 6 Review Agency Transitions Best Practices Send a Termination Notice STEP 1 STEP 2 Action Item Action Item Review the Agency Transition Model to understand the best practices required to transition from one agency partner to another. Leverage the Agency Transition Termination Notice Letter Template to send a letter to your existing agency partner notifying them about the end of your relationship, and begin- ning of the transition process. Althoughtherearemanydifferentwaysanyorganizationcandecide to transition from one agency to another, there are industry best practices that are recommended to ensure a transition is successful, and avoid any unnecessary conflict. The transition between one agency and another often begins with a termination letter sent from your organization to the existing agency. This letter sets the wheels in motion for all of the steps required to begin the transfer of assets, information, and ownership of projects. V I E W R E S O U R C E V I E W R E S O U R C EV I E W R E S O U R C E Plan Research Select Communicate Manage 1 2 3 4 5

24. . 24AGENCY MANAGEMENT Acquire all Assets Before Departure Organize a Transition Transfer Meeting STEP 3 STEP 4 Action Item Action Item Use the Agency Transition Assets Acquisition Database to collect and track all of the assets you will need to have trans- ferred over to your new agency partner. Use the Agency Transition Transfer Meeting Agenda Template to set up a successful transition meeting between your old and new agency partners. It is important that your organization takes an active role and respon- sibility in ensuring that all of the required assets your new agency partner requires are handed over in a timely and consistent manner. We recommend to audit all required assets and track their transfer from start to end of the transition. Your existing agency will need to meet and work with your new agency partner to make this transition a successful one. This transfer meeting is an important first impression for the relationship between both agencies, and we recommend that you lead this meeting to make success certain. V I E W R E S O U R C E V I E W R E S O U R C EV I E W R E S O U R C E Introduction Transition 6Plan Research Select Communicate Manage 1 2 3 4 5

25. . 25AGENCY MANAGEMENT Transfer Creative Assignments STEP 5 Action Item Use the Agency Transition Creative Assignment Transfer Plan Template to plan the handing over of creative work from one agency to another. When your organization switches from one agency partner to another,theremaybeongoingprojectsthatyoumayneedtoensure are properly transferred to the new agency. Creative information and assets will need to be shared in a timely manner to ensure a hassle-free transition. V I E W R E S O U R C E Introduction Transition 6Plan Research Select Communicate Manage 1 2 3 4 5

26. . Conclusion At the end of any business process, it’s always a good idea to review it and identify areas for improvement. Demand Metric has the tools and expertise to help you with the following: Set up an agency management process Audit your existing agency management process Assist with using any of the tools referenced in this playbook Provide hands-on assistance to accelerate achieving your goals. To learn more, contact Demand Metric: info@demandmetric.com AGENCY MANAGEMENT

27. . About This Playbook AGENCY MANAGEMENT Demand Metric is a marketing research and advisory firm serving a membership community of over 106,000 marketing professionals and consultants in 75 countries. Offering consulting playbooks, advisory services, and 500+ premium marketing tools and templates, Demand Metric resources and expertise help the marketing community plan more efficiently and effectively, answer the difficult questions about their work with authority and conviction, and complete marketing projects more quickly and with greater confidence — thus boosting the respect of the marketing team and making it easier to justify resources the team needs to succeed. To learn more about Demand Metric, please visit www.demandmetric.com

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