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Magic and Logic

Magic and Logic: Redefining sustainable business practices for agencies, marketing and procurement

Redefining sustainable business practices for agencies, marketing and procurement

Magic and Logic is a UK report that contains principles which are world class and should be made available to Canadian practitioners. The originators (and copyright holders) want the widest possible distribution of the text, and have kindly agreed to publication in Canada. The Association of Canadian Advertisers (ACA), Institute of Communication Agencies, formerly the Institute of Communications and Advertising (ICA), Purchasing Management Association of Canada (PMAC) and Association of Quebec Advertising Agencies (AAPQ) have added explanatory footnotes for Canadian practitioners.

This UK report was commissioned by a tripartite group representing Agencies (IPA), Marketing Clients (ISBA) and Procurement (CIPS) to extensively review issues, challenges and current relationships between the three groups with a focus on creating better results in future: producing ‘profitable ideas that make profit’ for all. The document takes steps to unify these three key groups of practitioners around a common understanding and mutual respect, and to find shared objectives, shared beliefs and shared methods.

This 51-page report examines what differentiates profitable and successful agencies from the rest, how these agencies are then rewarded, how the best marketing and procurement people contribute to their agencies’ producing profitable ideas, and what is required for the future to ensure success. There is an accompanying document about specific challenges facing Agencies, Marketers and Procurement staff that asks a series of questions to stimulate an examination of current ways of working by each of the parties, and hopefully will serve as a base for the three parties to discuss and agree together how to take this thinking forward for their mutual benefit.

Table of Contents

  • 1
    • 1.0    Foreword
    • 1.1    Overview
    • 1.2    Introduction
    • 1.3    Magic vs Logic: a useful framework for considering the issues
    • 1.4    Layout of the report
  • 2   What differentiates profitable and successful agencies from the rest?
    • 2.1    Run their Agency as a business
    • 2.2    Have a differentiated product
    • 2.3    In business to create value for Clients and are results oriented
    • 2.4    Confident about their ability and their value
    • 2.5    Run their business with a high degree of professionalism and integrity
    • 2.6    Have disciplined business processes
  • 3   What are the rewards for agencies that operate best practice?
    • 3.1    Earn the best reputation
    • 3.2    Attract the best talent: both employees and third-party suppliers
    • 3.3    Attract the best Clients
    • 3.4    Have more loyal clients
    • 3.5    Improved profitability
    • 3.5.1  Top-line effects
    • 3.5.2  Bottom-line effects
  • 4   How do the best marketing people contribute to their agencies’ producing profitable ideas?
    • 4.1    Professional, disciplined and well organised
    • 4.2    Understand and respect the Agency’s contribution and champion it internally
    • 4.3    Know what they want and are demanding
    • 4.4    Committed to quality and expect to pay for it
    • 4.5    Honest and fair dealing
    • 4.6    Regard Agencies as partners, not just suppliers
    • 4.7    Have a constructive relationship with Procurement
  • 5   How do the best procurement people contribute to their agencies producing profitable ideas?
    • 5.1    Help Marketing deal more effectively with Agencies
    • 5.2    Help Agencies improve their management and processes
    • 5.3    Understand how Agencies create value and their role in it
    • 5.4    Look for win/win in negotiation
  • 6   Key conclusions: what is required for the future?
    • 6.1    Messages to Agencies: how to make a profit from producing profitable ideas for clients
    • 6.2    Messages to Marketing: how to help Agencies produce profitable ideas
    • 6.3    Messages to Procurement: how to contribute more effectively to producing ‘profitable ideas that make profit’
    • 6.4    The way forward for pitching
    • 6.5    Getting paid for value
    • 6.6    Messages to industry bodies: CIPS, the IPA and ISBA
  • Appendix I
    Some signature practices of the most profitable client/agency relationships
    • 1    Financial processes
    • 2    Work flow/management of Agency processes
    • 3    Creating and demonstrating value: processes for producing quality outputs and outcomes
    • 4    Client/agency relationship
  • Appendix II
    How profitable are agencies?
    • 1    Key Performance Indicators for financial success
    • 2    What does good performance look like?
    • 3    Differences by Agency type
  • Appendix III
    Organizations interviewed
  • Appendix IV
    About the Value Framework Steering Group
  • Appendix V
    Magic and Logic Challenges
    Key challenges in a short set of questions facing:
    • 1    Agencies
    • 2    Procurement
    • 3    Marketing

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For more information, please contact:
Jani Yates, (416) 482-1396, Ext. 230