A well-controlled Scope of Work program is an integral part of a robust framework for planning and communication between client and agency.
As with other professional services categories the Scope of Work process is becoming ever more important in managing marketing spend. A well-controlled Scope of Work program is an integral part of a robust framework for planning and communication between client and agency.
The Scope of Work / Scope of Service process generates a wide range of benefits.
The key outputs of the agency are driven by talented and creative people applying their skills to produce deliverables across a range of initiatives and projects. But with all the current discussion on how the agency should be paid, it is easy to lose sight of why the agency is being paid and for what. Indeed by viewing your SOW program as a core strategic driver in your marketing organization, centralizing, standardizing and streamlining the processes around it will provide dramatic improvements in both supply management efficiency and marketing effectiveness.
One of the clearest messages heard from leading advertisers is that the objective for a better SOW and compensation process is not to reduce the actual amount of money that is going out the door. Indeed for most enterprises, marketing spend is seen as an investment in growth rather than a cost center. So the primary driver is normally to ensure optimal spend of the allotted budget.
“I want to make sure that the right team is working on the right business at the right time”.
In this message there are two aspects to consider.
For new business, a well-defined SOW makes sure that an agency that has just won a new account keeps appropriate focus after the pitch process.
“This is one of the biggest stumbling blocks in contractual relationships. The service providers nominate the cream of their resources (The A Team) in their offers, and when the relationship is formed, the B Team walks in!”
Equally, another common misconception around the “right team” is that this means the agency needs to apply its most experienced (and most expensive) resources to every part of the client’s business.