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This week I attended one of the Marketing Industry Network events in Manchester which discussed the future of the independent digital agency. The panel including agencies like Cool Pink, Code Computerlove and Chapter8 and come question time I asked whether the change within the industry is been driven by clients or agencies. It was interesting discussion and inspired this post which will explore how the structure of the two sides of the agency/client relationship seem to affect the working relationship, projects undertaken, and results gathered.

We’ll cover this is this order:

• Agency structure
• Client structure
• How this affects projects and results
• The future

Agency structure

Agencies can obviously be structured in many different ways and there are probably more ways than I could ever think of. Having said this however we can normally say that there is what is seen as a standard agency model driven by departments.

One department does the creative, one the technical build, one the testing / QA, one media planning and so on. Projects are passed from department to department to be worked on and generally go back and forth. The departments don’t always communicate that much with each other. They are lead by the account director or executive who’s the communication path to the client. This model is a pretty natural output of a growing company in it’s attempt to cope with scale.

I will call the above the silo approach. Team’s are quite separate and not all that collaborative.

The other way of working is focused much more on collaboration. Whether it’s a lot of smaller teams with someone from each discipline in each, or, in the case of a smaller company, one giant collaborative team.

Client structure

A similar situation exists within clients as well. A spectrum between collaborative and silo based organisations. The difference with clients is also where the decision makers lie for different projects. Where they lie can make a dramatic difference to what projects are prioritised and why, and how the relationship can be affected.

First lets discuss structure. In my experience there are a lot of different structure possibilities within organisations and a lot of this is dependent on how they have grown. Here’s a couple that we have come across in charge:

• Business managers / Business development
• Direct Business (If the company has a retail arm)
• Managing director / CEO
• Marketing
• Ecommerce
• IT

It makes such a huge difference who is responsible for a digital/ecommerce project as to the results which we’ll discuss later. The stereotypes of the above departments / decision makers can be very true. IT are generally more interested in how much work it means for them and security (rightly so), business development and CEOs are very much about the bottom line and marketing tend to be more aesthetically orientated.

The key with how the client is structured however is less who is the point of contact, and more about the level of collaboration within the organisation. If each part hardly ever talks, it means something very different to if they have regular catch up and joint planning.

How this affects projects and results

If you’ve worked at any agency for a period of time, you know some projects go better than others, some seem simpler, even hen the project is more complex. Often the less complex the project, in a paradoxical way, can be harder.

I believe that the alignment of client and agency structure can play a big part in how well they work together. You could argue that a good account handler should protect the agency and client from any differences that can cause friction. To a certain extent that’s true. I do believe though, that the underlying structure and therefore culture of the organisations will always come out.

Combo One – Collaborative client, Silo agency

If a collaborative client tries to work well with a silo’d agency, they will become frustrated that things cannot be more collaborative. They will crave to have good, productive meetings with all of their major players, and all of the agency’s major players.

Combo Two – Silo client, Collaborative agency

If a silo’d client tries to work with a  collaborative agency, the agency will become frustrated by the fact their ideas and forward thinking fall often on deaf hears depending on the contact within the client. Ideas and work are constantly filtered through their eyes resulting in their view dominating. When work is finally presented often other organisation stakeholders are disappointed as it’s so focused from one area. More work for the agency.

Combo Three – Silo client, Silo agency

If a silo’d agency works with silo’d client, things go very, very slowly. Communication is drawn out, Chinese whispers are prevalent. Work takes a long time to get done and there’s a lot of back and forth from agency to client and inter department within both client an agency. Even after a drawn out process, the work produced will end up not really pleasing anyone either side unless there’s on dominant personality as the client contact.

Combo Four – Collaborative client, Collaborative agency

If a collaborative agency works with a collaborative client, projects can go exceptionally well (in our experience). The stakeholders get round the table and talk out what they want from the project. Everyone’s views get aired and they feel like they have been heard. The agency then works together on the project, discussing the possibilities for the project. Again, all parts get heard and discussed. Projects move faster and results are generally better. There are a couple of caveats. Trying to get all the stakeholders together can be difficult and therefore slow things down waiting for a meeting. Sometimes both clients and agencies can get too many people involved with too many view, and a project can lose direction and clarity. You can never please everyone.

Conclusion and the future

So what does this mean? We can’t all magic the right clients or change our current clients, organisational change takes time. I think one of things all agencies need to realise is that one of the reasons digital agencies seem to be doing well is that their attitude to collaboration and change. Digital moves so fast as an industry, that the agency has to be collaborative and good at change. This helps them with clients as well, to learn and adapt.

In my opinion, all agencies must work hard to be as collaborative as possible and encourage clients to do the same.

Filed under: Agency talk, Digital Media

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