First, the bad news: A recurring theme in the responses from agency leaders
is that the best way to survive—even thrive—in a recession is to
have been doing things right all along. The good news? Past recessions yield
myriad lessons. There are additional tactics and strategies your agency can
embrace now to help it make it through the slump.
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Dave Imre
Partner and President
Imre Communications |
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Jason Mandell
Partner and Co-Founder
Launch Squad |
What's particularly interesting is that rather than
focus on what to cut or trim, the experts consulted focused primarily on what
an agency needs to continue doing well. Dave Imre, partner
and president, Imre Communications, framed it accordingly:
The key to consistent success is to "build smart, work efficiently and
constantly deliver results to customers." That's sound counsel,
regardless of the economy. Here's the best of the advice we culled from
our sources this week:
1. Be prepared—practice increased
fiscal prudence. Jason Mandell, partner and co-founder of Launch
Squad, captured the spirit of many of the responses: "The
best way you handle a downturn is by making really good decisions when things
are going well."
Imre offered a similar insight: "A simple lesson to be learned from
past bubbles, including the dot-com bust, is not to build a business on speculation." Along
the same lines, he stresses fiscal prudence. Obviously, you still need to pay
attention to the budget. But again, that's something a smart firm has
been doing all along. Imre Communications "has never been, nor will we
ever be extravagant spenders. It's important for us to be good stewards
of our clients' resources in both good and recessionary times."
2. Fight recession from home base—focus on your core values. Look
to what made your agency a success in the first place, counsels Imre. "Planning,
customer service, new business and transparency are our four solutions to a
challenging business environment," he says.
Stick to your core principles and values, adds Mandell. "Don't
get carried away when things are good…and you shouldn't be caught
off guard." But embracing your core values doesn't mean
you should keep your head down and avoid change, he warns.
3. Enhance services—innovate and stay relevant. Launch
Squad continues to evolve and enhance its services—especially in digital
media. The temptation, Mandell says, is to "go back to your bread and
butter," to "hunker down" and not invest. That's a
big mistake. Companies are clamoring for new services, and smart agencies are
poised to provide them. "Keep innovating," he counsels. If your
agency doesn't stay fresh during the recession, you'll have
to play catch up during the recovery, he warns.
Along those same lines, an agency needs to stay relevant. "An agency's
services should be constantly reviewed, especially during a recession, to ensure
they are relevant to the PR and marketing environment," says Imre. "We
continually evaluate our services, understand our clients' needs, and
offer new ideas. If you constantly prove your value, you're more likely
to remain a partner."
4. Think and sell strategically—clients want more big picture
planning. "Good planning necessitates strategic approaches
rather than a bunch of disconnected tactics," Imre says: During a recession,
value is going to be more deeply examined; clients are going to demand that
the communications plans match the overall organization's goals."
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Steve Cody
Managing Partner
and Co-Founder
Peppercom |
5. Look inward—emphasize possibilities, not
limitations. Use the down time to take stock of the culture of the
organization, says Steve Cody, managing partner and cofounder
of Peppercom. For the last three years, Peppercom has had
a company "dream day" offsite. Everyone from receptionists to
managing partners spends a day together offsite, dreaming about the possibilities
for Peppercom. In the first two years, their gaze was outward. But in 2008,
the focus was 100 percent internal.
Tom Coyne, president, Coyne PR, made
a similar point in last week's article: The extra time you have during
a downturn can be used to strengthen your agency.
6. Treat your people well—keep services levels high. As
noted in last week's article, treating your stars well is crucial. But
really, that applies to everyone. A bad economy is not an excuse to overwork
people or under-staff your business, says Coyne. "It's just the
opposite: You should keep your service levels high. You can't cut back
on your talent."
Launch Squad is running a very lean business, says Mandell. But while it's
not hiring, neither is it cutting staff. And it still had a holiday party.
The lesson? Don't neglect your people in favor of the bottom line, he
warns. It's about long-term success, not short-term gains. "It's
not about this year. It's about having a great company."
7. Be frank—but eschew scare tactics. As discussed
last week, honesty is important. Let your staff know what's going on,
says Mandell, but at the same time, cultivate a positive attitude.
"We learned in the last recession: It's important to stay positive," he
says. That's especially true for the management team, because their attitudes
will set the tone for the entire agency. "Stress takes years off your
life," Mandell adds. What you don't want to do is create a culture
of fear and paranoia. Be totally direct about the negatives, but be sure to
communicate the positive as well.
Coyne agrees. "The last thing you want is your people losing sleep" about
the business. Leadership is always crucial, but especially in tough times.
The lesson? "Don't forget to be a leader," he says. And don't
forget to show the firm that you've been through this before: Reassure
them that you have a plan for dealing with the downturn—and "make
sure you have a plan."
—by Roxanna Guilford-Blake [roxannaguilfordblake (at) yahoo (dot)
com] |
