The Balanced Scorecard: Guaranteed To Reduce PR Agency Client Attrition

4978686242_3213d97e16The balanced scorecard (BSC) measurement system, which measures a business and business relationships across four critical categories, will absolutely positively save — and even grow — accounts when appropriately tailored and implemented for your public relations agency and clients’ needs.

I got religious about the BSC scorecard during my tenure with global PR firm Porter Novelli.  Gary Stockman, an executive at Porter Novelli at the time, introduced the BSC to the firm in the late 90’s (if memory serves me).  We modified the traditional structure of the BSC to suit the requirements of a PR agency while fully guarding the traditional scorecard’s integrity and intent.

And when we used it properly, it not only saved a number of key, global accounts but uncovered numerous organic growth opportunities that may not never had been uncovered otherwise.

More recently, I was part of a BSC exercise with a firm’s very important (I know, they’re all important) client and the results were less than stellar.  Among the reasons for the surprising results was that the client was “too nice” to be honest about how they were feeling about the relationship and the agency — until the BSC was introduced — wasn’t asking the right questions.

On the surface, the relationship was motoring along nicely.  In reality, the relationship was skating on thin ice (you can read about the outcome in the P.S.).

If you’re not familiar with the BSC (some argue it’s really a management system that has measurement as a key component), it was created by Robert S. Kaplan and David P. Norton of Harvard Business School and was introduced to the business world 21 years ago.

Since then, it has been implemented by scores of organizations around the world as a way to measure the strength of a business and a business relationship beyond financial parameters. Of course, there’s a Balanced Scorecard for Dummies if you’re interested in taking a deeper dive on your own; and related works that could fill a BSC library. There’s also the Balanced Scorecard Institute which apparently has trained more than 5,000 people on BSC practices.

A traditional balanced scorecard has four legs: a measure of a client’s level of satisfaction with a company’s products and/or services; a financial track; the internal business process leg (IE, what are we better at than anyone else?), and finally, the knowledge, education and growth leg (in simplistic terms, how do we improve upon our core competencies?).

For PR agencies, a BSC can be structured similarly with only a few modifications.  It could go something like this: Top-4-Online-Invoicing-Tools-Make-2010-Relaxed-For-Your-Customers

  • 1, Strategy — these are questions that help an agency understand the client’s world. Questions like, “Does the agency understand my business?” and “Does the agency understand my internal challenges?”
  • 2, Execution & Tactics — the goal of this leg is to understand from the client if the agency is acting strategically.  Questions like, “Does the agency come up with program recommendations I would not have come up with on my own”? and “Do the agency’s program ideas reflect bigger picture thinking?”
  • 3, Results/Impact — questions that get at issues around desired value and showcase the agency’s impact among client senior management.  Questions like: “Are the agency’s results viewed by my management as having an impact?”
  • 4, Income & Investment — is the client seeing a return on its investment.  Questions like, “Does the agency do a good job of managing my budget”? and “Has the agency had a positive, measurable impact on my business.”

Any thoughts on using the BSC in your agency or if you’re a client, asking your agency about developing one?  Are the categories reflective of a holistic approach to measuring and managing agency-client relationships?

P.S.  The agency-client relationship that was skating on thin ice just prior to the BSC ultimately survived thanks to the quick action both sides took on the heels of the BSC.

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4 Steps To Reduce A PR Agency’s Client Churn – The Old-Fashioned Way

ImageWhen a public relations agency chases a business prospect that is in a non-aligned business, then expect client churn.

When an agency over promises a prospect during the hunt and can’t deliver later, then expect client churn.

When an agency takes on a new client that it can’t create and sustain value for, then expect client churn.

When an agency takes on a new client ( aka a “dog” of a client) only because it needs revenue, then expect client churn.

When agency principals keep the client relationship at arm’s length, then expect client churn.

And when an agency doesn’t take the time to proactively manage and measure a client’s expectations, the relationship itself and the value that’s being delivered — guess what? Expect client churn.

So what’s your agency’s client retention methodology?  If it has one, here are a few ideas that can give it a shot in the arm.

  • Work with clients you can deliver immediate and ongoing value to.  If you’re a tech B2B shop with expert, relevant experience in cloud computing, mobile and security, don’t think you can add immediate value to a healthcare IT company. Firms who have tried and failed to fake domain knowledge give the PR profession a bad name.
  • Develop an expertise in your employees.  Having more “experts” than generalists in-house means the agency will likely be more valuable to a client and will lead to greater client retention.  An account supervisor who understands mobile computing ecosystems is much more valuable to an organization than someone who pinch hit on a couple of mobile-related accounts and who may have just a cursory knowledge of the market.
  • Find a way for staffers to work more deeply on fewer accounts. At a previous agency I called this “fewer-deeper.”  Clever, huh? Clients know when they do and when they do not have the attention of their account team. Expecting account executives to offer significant value on more than four (five tops) accounts is unreasonable and unfair to the employees and the clients.  No one benefits from such a model.
  • Work harder to retain employees.  There’s a direct correlation between employee churn and client terminations.  Losing the lead player on a key account will disrupt that account to no end. Bury an employee in too many accounts, dogs or not, and you could say sayonara to the employee and the business.

What am I missing?

Things a New A.E. Should Not Assume About Client Relationship

Original post appeared August 20, 2013 by Arthur Solomon in PR News.

Arthur Soloman

By Arthur Solomon

So you’ve been promoted to a level where you will have your first substantive client contact. Congratulations. This is the opportunity that you’ve been seeking. You now have a chance to show your stuff. But good work is not enough. Good client relations are just as important as good results (often more so) in your quest to climb the agency ladder. Conversely, good results will not necessarily advance your career if you can’t hit it off with clients. Just as in your personal life, relationships are important in the business world. Never forget that. I say this from experience.

During my 30 years in public relations, before, during and after my nearly 25 years at Burson-Marsteller (where I played key roles and managed national and international sports and non-sports accounts and traveled as a media advisor with high-ranking foreign government officials), I have seen account people whose work I thought was below par advance on accounts because, as a client told me about one person, “If I told him to jump out of a 35th-floor window for me he would.”

Below are some lessons about client relations that in all probability were not covered in communications schools but that might help you survive the client-agency dance.

> Don’t assume that the gorgeous young woman who accompanies your client is his daughter.

> Don’t assume that your client isn’t miffed when you always win at tennis or golf. (Lose occasionally.)

> Don’t assume that if you ask if your work is satisfactory, you’ll get a positive answer.

> Don’t assume that if you go drinking with a client, it’s okay to say, “You look terrible” when you meet the next morning.

> Don’t assume that, just because you have a good social relationship with your client, it will assure you of a good year-end account team review.

> Don’t assume that when a client complains about being passed over for promotions that you can vent about your situation.

> Don’t assume that what a client tells you about your work is necessarily what will be told to your superiors.

> Don’t assume that when a client says, “As long as I run this account, you’ll be on my team” that it is written in stone.

> Don’t assume that when you’re about to leave on vacation and a client says, “It’s really not necessary to tell me how to contact you if an emergency occurs,” it means you don’t have to leave contact information.

> Don’t assume that when a client says “no rush” regarding a request, that there isn’t a “rush.”

> Don’t assume that when a client, (or your agency superior), says, “I’m going up the corporate ladder and I’m taking you with me,” that they mean it.

> And finally, don’t assume that all the praise the client showers on you will change what your agency superiors think of you.

Do your best to stay on the good side of a client by doing high-quality work that will make your client contact look good to his or her manager, but always remember your fate is in the hands of your agency supervisors. They sign your paycheck.

Arthur Solomon was a senior VP/senior counselor at Burson-Marsteller. He can be reached atarthursolomon4pr@juno.com