Selecting A New PR Agency - Best and Worst Practices

published 2004

Most weeks, somewhere in Australia, a PR agency or consultancy is being hired - either to replace an incumbent agency or as a new appointment.

However, as indicated by continuing complaints from both clients and agencies, there is not a large amount of experience in hiring PR agencies in the marketplace.

The closest analogy is the hiring of an advertising agency - but there are some significant differences between hiring a PR agency and an advertising agency.

The essential difference is that the remuneration of PR agencies is solely based on a time basis.  That means it’s vital for the scope of work - or alternatively a budget for PR - to be clearly defined upfront.

Visual creative concepts and media selection - both vital elements in advertising - are missing in PR.

Here are some best and worst practices, based on guidelines prepared by the Council of Public Relations Firms in the US for organisations embarking on a search for a PR agency.

The Search Process

Best Practices:

• Disclose the anticipated size of the business at the outset so you can allow the  competing agencies to determine whether the investment in time and resources you seek is proportional to the potential return.
• Define the criteria for selection, clearly outline the steps and process involved, allow sufficient time for a quality response, and manage the whole process according to the ground rules.
• Consider compensating the agencies for administrative expenses associated with them competing - either a standard fee or an agreement on specific out-of-pocket costs.

Worst Practices:

• Offering, or not disclosing, an unfair advantage to one agency.
• Conducting a search for any purpose other than agency selection ie - to improve the performance of the incumbent agency or to seek creative or strategic ideas without compensation.

The Capabilities Phase

Best Practices:

• Briefing agencies in depth on an individual basis, giving them access to people and products and even allowing them to meet with other organisations you use - ad agencies, brand consultancies etc.
• Define the budget and/or the scope of work.  If you know what tasks/activities you want PR to tackle outline these into a ‘scope of work’ proposal  - either ask the agency to estimate how much it will cost to do these or put a budget cap on it.  If you are new to PR you might decide to outline the requirements and ask what can be done for (say) $200,000.
• Getting to know the agency and its team, preferably by visiting the agency.
• Discussing conflicts of interest - your policy and their situation.

Worst Practice:

• Providing insufficient information and no access for agency to understand requirements better.
• Seeking a written document and not meeting with the agency to personally review their capabilities.

The Final Phase/Selection

Best Practices:

• Limit the search to a maximum of 2-3 agencies.
• If you want to test them design an assignment to demonstrate their strategic thinking or creative ability. If the assignment is related to a real challenge you are facing offer compensation for the response which gives you ownership.  If no compensation is offered any strategies and concepts presented remain the property of the agency.
• When comparing agencies in terms of cost, do so on a basis specifically related to the project.  Outline the specific work scope and total budget and ask that they describe the proposed staffing, labour hours and expenses associated with that work.
• Recognise that the search process is artificial and seek to interface with the agency to test the chemistry.
• Talk to agency referees.
• Enter into compensation negotiations after making your agency choice.

Worst Practices:

• Seeking an agency to develop specific and detailed creative or program proposals and/or strategic or tactical proposals.  This practice is fraught with difficulty at this point, unless there has been a very thorough briefing.  Again, where agencies develop this, it remains their property - unless they are chosen!
• Seeking specific and detailed financial and performance data about the agency.  Normally it should be adequate for an agency to provide generic data - eg client wins and loss, average length of client relationship etc.
• Seeking information about the salaries of individual agency staff or data that would enable this to be calculated. 

Acknowledgement: Council of Public Relations Firms: ‘Standards for Conducting a Public Relations Firm Search - Principles and Practices’.

Footnote:

Grant Common, the Editor of PR Influences, specialises in helping organisations manage PR agency relations and selection processes.

You may have an interest in, or obtain value from, these articles:

1) How stronger management is the key to better PR agency relationships

2) How better briefs and RFP's contribute to improved PR outcomes

3) How Australian PR agency selection processes are changing