Hiring (and firing) agencies goes with the territory for brand marketers. But what was once a multi-year (or longer) relationship between the brand client and their agency has become much more fluid. Whether you're talking about bringing in a new agency of record or adding another player to your agency mix, brand-side clients are always evaluating agency talent, and the fast pace of digital means that brands will likely have to sign on the dotted line with greater frequency.
Consider the view from Diane Slayton's seat. As the VP for consumer and member marketing and communications for United Healthcare, Slayton finds herself evaluating agencies as fast as Silicon Valley can invent new digital channels and users can populate them.
"The dynamic world of digital marketing changes in warp speed," Slayton says. "It has been our experience that digital agencies typically have expertise in a few core areas. Our role is to identify the arena where they're out front."
Of course, being "out front" isn't the only criteria for hiring an agency, because reputation can only tell a CMO so much. And while there are no absolutes when it comes to predicting agency performance, there are a lot of things a savvy CMO can do during the search process to help avoid disasters and pick a partner that can make the brand shine.
Start with honesty
There are a number of places a CMO can start when hiring a new agency, but one basic question should always come first for a CMO in such a position, says David Wiggs, the founder of Hitch, a consulting firm that helps advise brand clients on hiring the right digital agency.
"Start by asking, 'why do we need a new agency?' Maybe you've inherited them and you just can't work together -- you've tried, but it's a chemistry thing," Wiggs says.
According to Wiggs, that basic question -- why do we need a new agency? -- will always lead to some rather profound insights, if the brand can be honest about its own corporate culture as well as what's gone right (and wrong) with the relationship at hand. While that may sound like simple advice, it's a pill not easily swallowed by many clients.
"Often, many clients believe that my agency should just know they're not happy," Wiggs says. But for those clients, Wiggs has a blunt answer: "Don't assume!"
The assumption that the onus is on the agency to make its client happy won't get a CMO very far in the long-run because it obfuscates the possibility that the client may share at least some of the blame for what went wrong. If that's the case, it's rather difficult for the CMO to make an informed decision about the next agency, because their problems may just carry over to the next vendor.
"Consider if the issues in the partnership are their fault or yours," Wiggs advises. "Likely, it's a bit of both. So what kind of clues could you look for to take the pulse of this marriage? Broadly speaking, ask yourself if your company culture supports the changes the agency is trying to make? Examine your relationship to see if it allows for shared risk. Is the agency forced to stay inside a box or are they given some freedom?"
Those answers may not always be available because in some cases, the relationship may have become so bad that it's nearly impossible to see the forest through the trees. However, CMOs who take the time to reflect on their own corporate culture and how it interplayed with their previous agency stand a much better chance of getting it right with their next hire.
Beware of the specialist search
Scan the tech blogs and you'll quickly see that digital creates new communication channels faster than advertisers can figure out how to use them. But CMOs who want to integrate their media strategy face a difficult dilemma: Do you opt for a "specialist" agency -- a social media shop, for example -- to work in a highly technical area, or do you hire one agency that can bring it all together at the risk of sacrificing some key knowledge in an emerging area?
The answer depends more on your own organization's strength and weaknesses than anything else, says John Padgett, who directed the agency of record for numerous brands on behalf of Coca-Cola and Minute Maid before leaving to become the VP of media at the Hauser Group.
"It's all about orchestration," Padgett says. "If you have the time and staff to orchestrate across multiple specialists, then you have the option to spread the love. If you're like most organizations, however, and you're short-staffed and time-crunched, then you should find and assign a lead agency and have them sub-contract for the specialists."
Padgett says he prefer the latter approach, in part because of his brand experience.
"If you try to have a specialist for every niche, you'll constantly be searching for a specialist for the next new thing," Padgett says. "If you have a lead agency responsible for bringing holistic thinking, then they will have the responsibility to be constantly searching for those specialists and providing you with thought leadership and success."
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