Contract Negotiations: When Trust is (Virtually) Indispensable

Independent Agency Selection

Johannesburg, South Africa

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Johanna McDowell

Founder and CEO — IAS Agency Selection

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Johanna McDowell, SCOPEN partner and CEO of the Independent Agency Search & Selection Company (IAS), highlights the bigger part intermediaries are playing in contract negotiations, online and off.

Intermediaries have become more important than ever, and our scope has broadened to accommodate a number of operations companies would ordinarily have taken on themselves. One area marketers are making the most of the benefits of intermediaries’ knowledge, is in contract negotiations.

This is such a vital part of the new relationship, as the tone of the discussion or a word used out of context can easily damage a relationship before it gets going.

As an intermediary, the IAS plays a pivotal role in ensuring that the correct KPIs for performance management are included at the start of contract negotiations, thereby ensuring clarity on what must be achieved and how this achievement can be measured. If this is not given enough thought upfront, it is likely to impact the relationship down the road.

Clearly, discussions where trust is questioned will usually not run smoothly and where negotiations around financials previously took place largely through a series of e-mails, tone was easily misread and integrity placed in question.

With virtual communication now so commonplace, the cyber face-to-face discussion is as meaningful as being in the same room withal parties. Virtual can, however, prove challenging when, for example, not all cameras are turned on for a more open, engaging meeting where all parties feel comfortable.

To maintain transparency and keep everyone on track, the savvy intermediary will use their well-honed people skills to work through the small issues and get the job done.

Intermediary as the touchpoint

Under the conditions set out by pandemic protocol, the intermediary is the touchpoint that provides impartial information to all stakeholders and brings to the table an in-depth knowledge of the agency: client needs, expectations and the actions that best allow for this to be managed. 

They also bring expert understanding of realistic resourcing required to meet contract objectives and outcomes. Their role is to manage expectations and ensure that frustration does not derail the process, by implementing their in-depth knowledge of the companies involved, requirements and even individual players’ specialised skills.

As I’ve mentioned in other commentary, the trust that marketers are placing in intermediaries at a time when choices are determined by outside forces is well earned, and with the intricate negotiations that contracts demand, every marketers should be asking themselves, “What should we be looking for in an agency intermediary?”

The answer, I believe, must begin with “an entity we trust”.