Thursday 16 October 2008

Aporia


Article written for Design Week on what agency's might do to prepare for more difficult times
16th October, 2008
Speaking to a very well read friend of mine at the beginning of the week I learnt of a lovely little word.
Aporia.
Meaning to be in two minds about where to start or what to say. Timely I should hear of this word in a week I have this column to write. And also timely in a week where the world is dealing with the current economic crisis.
I think it would be fair to say that it still isn’t particularly clear how painful the current market conditions are going to be or how long they might be around for. And it doesn’t seem to matter who you ask be it one of the many financial experts driving black cabs around the West End or one of the many market analysts interviewed on Breakfast TV each morning, every opinion is different.
One thing that does seem consistent is the gloomy outlook. I haven’t heard anyone yet say it might be over by Christmas or that it’s not as bad as it looks.
I was asked recently by one of the team at Design Week how agencies might be able to beat the Credit Crunch. My answer which might not sit very comfortably is that you can’t. Trying to beat it will be futile. Unless you have a government’s wealth (and even then Mr Brown’s looking scarily exposed) all you can do is prepare for it. But the question remains what are we preparing for?…and that leaves you back in the black cab with the opinionated Eastender opining his views on the pro’s and con’s of the Scandinavian bailout of the nineties and what we can learn from the great depression of 1929.
So a difficult one, an Aporia – where do I start and what do I say? Having now been kept awake by this for the last week I have come to the conclusion that all we can rely on is good business.
So I would suggest you focus on 3 main things.
Firstly, communication. Most things in life can be improved through better and more effective communication – indeed the design industry is built on that premise.
So is it a case of ‘the Cobblers children go the worst shod’ that the relationship between client and agency often suffers from such poor communication? Whatever the reason for it, your client is a real human being so treat them as such. Explain to them that you are looking for ways to prepare for more difficult times. Now is the time to speak to your clients and emphasise the importance of them to your business, always a nice sentiment for your client to hear. But this time its not the normal warm and fuzzy, sycophantic approach you are taking. No this time you need to emphasise how your business operates and the responsibility your client has. Explain the place your business is in financially, if good explain that you want to keep it that way and see if there are ways to streamline current processes for your clients (an your) benefit – in doing so emphasise your payment terms, etc. If not so good, explain this to your client, it won’t be easy but a lot easier than your client having to negotiate with the liquidators. Clearly illustrate you have it under control and a plan is in place, show your client where they fit in this plan. Good or bad, organise regular meetings  - I would suggest monthly meetings and a review of the WIP. Use these meetings to build a stronger relationship with your client.
Secondly, admin. I know it’s the unglamorous bit, but focus on it. Ensure that the whole expense/purchase order/invoice dynamic is in order. Keep an eye on your payment terms and make sure the balance between your debtors and creditors doesn’t put your company in jeopardy. Once this is done, take it all down to your bank and do a show and tell. Banks are probably going to be the institutions whose outlooks change the most – they will be more risk averse and much more aggressive in how they protect their interests. A bank manager who understands and has confidence in your business will be an absolutely priceless asset in the coming months or maybe years. Agree how often they would like to see you and if they seem ambivalent insist on quarterly catch-ups.
And thirdly, the work. Now is the time more than any ever to invest all of your and your teams efforts in creating the best work you ever have. Brilliant, effective design that fulfils and even excels the clients brief and expectations will ensure that your value to you clients organisation will increase. In turn this might lead to new briefs and certainly a more secure income stream. Over the last couple of weeks I’ve spoken to many friends and colleagues of mine at client organisations all over the UK, the story is consistent, marketing budgets are being scrutinised – not necessarily reduced but scrutinised. So do all you can to convince your client and your clients board that what you do should be seen as an investment in, not an expense to, the business.
The good news is that having had the honour and privilege of being asked to judge this years Design Week Awards and the recent DBA Effectiveness Awards collectively the industry is raising the bar ever higher. From what I have seen I am confident the industry will demonstrate that when times are tough continued investment in design is crucial.

No comments:

Post a Comment