Improving Agency Relations with Marketing Procurement JUNE 13, 2017 AAAA NEW BUSINESS COMMITTEE MEETING, RPA SANTA MONICA, CA

Improving Agency Relations with Marketing Procurement JUNE 13, 2017 AAAA NEW BUSINESS COMMITTEE MEETING, RPA SANTA MONICA, CA

How did we get here? 10 years ago Improving Agency Relations with Marketing Procurement Somehow got to this point today: Improving Agency Relations with Marketing Procurement Lets get to: Agency & Client Relations, How do We GROW together?

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Topics asked to cover Lucky 7 1. Marketing procurement's role and responsibilities 2. Procurement KPI's and how they are evolving 3. Misconceptions about marketing procurement/strategic sourcing 4. Perspectives on "Overall VALUE rather than always about price" 5. Procurement thought leader views on the relationship between procurement and agencies 6. What could be changed to facilitate more constructive relationships? 7. Best in class marketing procurement process and critical success factors

What is Procurement? Direct vs Indirect Direct Procurement Commodities Indirect Procurement aka, Strategic Sourcing Marketing and Advertising (typically highest spend in the company) IT Logistics HR Facilities Important: Indirect Procurement typically reports into Finance, Supply Chain, or directly to CEO More mature Marketing Procurement organizations may report into Marketing Org structure typically plays an important part in developing KPIs for Procurement

1. Marketing procurement's role and responsibilities 10 careers in one

1. Marketing procurement's role and responsibilities Jack of all trades Marketing SME Procure, Buy, Purchase Time for a name change swell Roles are different at every company - Mandatory vs Chosen Partner 5+ bridges to build Agencies, Marketing, Procurement, Legal, Finance All procurement organizations are in some form of transformation Tactical vs Strategic

2. Procurement KPI's and how they are evolving Cost efficiency is maximized by default when a solid relationship is built Supplier Relationship Management and stakeholder engagement Value based deals, vested interest Renewals, saves all time and money, success should be rewarded Contracts, we need them, we all do Risk mitigation, e.g. audits, process for transparency of OOP costs, surveys for what is working and what is not Become customer of choice, agency team talent management

3. Misconceptions about marketing procurement 1. They don t care about the work 2. They are the decision makers 3. They cut budgets 4. They don t like agencies 5. They aren t interested in creative, don t value the work

4. Perspectives on "Overall VALUE rather than always about price" Ties back to KPIs, efficient relationships exist when communication, thought leadership, strategy designed up front, insights shared and scope is clear Best when win-win deal developed Requires both parties to take risks If you have to run a RFI and/or RFP, is the process set up for success? i.e. looking at the total investment

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Duval partnership blog June 2017

5. Procurement thought leader views on the relationship between procurement and agencies Many procurement professionals have performed gap analysis surveys and found that the issues are limited or rather have much to do with processes, communication, lack of clear direction Ask yourself, how long has the client been a partner? When was the last time you partnered with your client to pursue a gap analysis survey? ANA AFM partnership has grown, possible resource for cross functional training We are all advertisers and influencers, so we can and should drive positivity into this conversation. Be accountable

6. What could be changed to facilitate more constructive relationships? Invite your procurement partners to your agency 360 Surveys Shared goals/kpis, monitor and address, communicate early and often Explain company strategies early and often, monthly touch base (e.g. production, head hours for annual fee, other.) Offer for clients to sit in on the work process, kinesthetic learning is like a small hinge that opens a very big door to the partnership Make sure the work has financial concurrence BEFORE starting Use procurement to gain company insights, how to work best within the culture and org structure. Frequency to stay engaged, presenting new business, etc. Understand what type of partner you are to the client

7. Things that can help to build best in class marketing procurement process and critical success factors Procurement. Its much more than that. Time for a name change Have everyone in the room to drive to success, no outliers Report on successes and challenges as partners (trifecta plus partners) Know marketplace, brand, competition, be open and coach proactively Talent should have marketer or agency background. Balance. Proactively attend trade org meetings, conferences, take courses in marketing, attend staff meetings and thought of as a part of the team. Learn. Have to have a process, but customize to the need. i.e. don t do an RFP if you don t need to, create long term partnerships when it makes sense, be transparent with the agency on budget, scope, changes, etc.

How to improve agency relationships with marketing procurement Sharing is caring Have your CEO come speak to your clients exec leadership. Perspective. Education is key Take time to understand those you partner with. Grace. Park your ego at the door Procurement done right is servant leadership. We both service clients. Humility. Question the process Do you need to run an RFP, is the process cumbersome or catered to drive results? Push for change. Tools, do you use them? Familiarize yourself. Ariba unfortunately is a bit of a monopoly, understanding this system makes the process easier. That said, is there a better way? Raise ideas.

In parting, I ask that you ask yourself one question each day What am I doing or can I be doing to help make the partnership better? Perspective. Respect. Grace. Humility. Innovation. Communication. THANK YOU Mary Ann Brennan https://www.linkedin.com/in/maryabrennan