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Managing Advertising Agency Performance

Our work with larger advertisers managing their communication providers

Case Study

The following case study describes how our agency evaluation tool is being used to evaluate performance & value in the relationships of a global advertiser with their roster of communication services providers, including creative and media agencies, digital providers, etc:

In an effort to increase performance and optimize expenditures, “Enterprise X” (not their real name) decided to focus its attention specifically on improving the effectiveness of the bottom 20% of its high value, strategic supplier segment.

To accomplish this task, it turned to Decideware’s supplier evaluation solution to identify and optimize the relationships with their strategic suppliers that had critical working relationships with their various business divisions.

The enterprise’s mid-level managers collected feedback using scorecards for each strategic supplier within their assigned sub-category.

The scorecards included information on each supplier’s ability to meet stated business objectives, as well as performance & value feedback collected from both business and supplier personnel regarding the status of their working relationships.

The supplier development scorecards combined raw business data (including sales, supplier financials and business objectives) with performance and value related information such as:

Rating scores from both internal and supplier employees regarding their perception of their working relationships.
Those suppliers that had re-engineered their business systems in the past year to meet the company’s needs and the results that were achieved.
The suppliers that had demonstrated the highest and lowest level of performance relative to their projects.
Specific contributions made by each supplier in meeting their quality objectives during the past year.
Financial stewardship, both in optimizing costs and improving efficiencies.

On request, scorecards from each mid-level manager were aggregated into a single sortable report that provided the executive team with the ability to rank their suppliers. This allowed their senior management team to determine those that required review, those that required a concrete action plan to improve their performance and also the high performers that deserved recognition.

The bottom 20% of suppliers (those having the lowest scores), that are unable to improve their performance scores and incorporate the recommended improvements were targeted for non-renewal of their contracts.