4A's, ANA To Collaborate On Pitch Process, Compensation Research

The 4A's has set a busy agenda for 2023 including research addressing key agency issues, one of which is a collaborative deep dive into the new business pitch process with the ANA. 

The 4A's will also be developing research and programs that address overall agency operations, M&A and succession planning issues, business transformation, client relationships and sustainability practices. Other issues are also on the agenda.

The group has laid out its priorities for the year in a "Look Ahead" report that can be accessed here. 

4As CEO Marla Kaplowitz says that the pursuit of new business--always an Adland priority--is even more so now given concerns about the macroeconomy (which was broadly addressed by the 4As last fall with a report on how agencies can "recession proof" their businesses). 

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"It has a real impact on agency business and people are really focused on it now," says Kaplowitz, of agency efforts to hone business development efforts. 

This year the ANA and the 4A’s are developing research to better understand the financial impact of the review process for both agencies and clients. The research will be conducted by Advertiser Perceptions and will quantify spending on agency reviews. 

Also, the 4As and the ANA are creating a so-called "Client Relationship Roundtable" to deliberate pain points in the search process that a joint survey uncovered last year.

Separately the two organizations will also examine evolving client-agency compensation models, particularly those that "focus on better outcomes for both brands and their agencies," per the Look Ahead report. "By creating joint guidance and structuring a framework to assess a variety of compensation models and how to implement them, we hope to move the industry forward and create healthier, long-term strategic partnerships."

Sustainability issues are also capturing more attention, says Kaplowitz, particularly in light of so-called "greenwashing" accusations that have been leveled at both brands and agencies. The Look Ahead report notes that the FTC has announced its plans to release expanded "Green Guides" this month. Per the report, "The Guides are expected to be greatly expanded to provide the industry with far more updated guidance around what does and does not constitute greenwashing."

On the operations and business transformation front the 4A's last year established a roundtable of industry executives with expertise in different areas. They're tasked with gathering intelligence and best practices for the development of a holistic approach to operations management that encompasses scope of work management, resources management/billability, change management/business transformation, technology strategy/investment, and finance/operations collaboration strategies.

That work continues with the goal of publishing later in the year a report titled, Agency Operations/Business Transformation Standards Playbook.

Another 4A's priority for 2023 is developing an internal practice addressing agency M&A and succession planning. "We expect member interest in potential M&A, succession planning and divestiture services to continue growing, especially given the economic uncertainty," that continues into 2023, the Look Ahead report states.

With that in mind the 4A's will launch the Merger, Acquisition, & Succession Planning Services Group in the first quarter of 2023. It will offer general consulting, but also "targeted services" around defining and building value at agencies.   

Also in the works this year are 4A's surveys examining employee compensation, tools and technology and progress on expanding diversity within the overall agency workforce.
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