So.
Vendor relationships are always tricky … a vendor is hired for an expertise and yet the ‘hirer’ mentally wants a … well … vendor.
This means most Client/Agency/Service Supplier relationships are a balancing act.
The best relationships represent a combination of two experts constantly challenging each other, finding times when each is, respectfully, right or wrong, and throw in a good dose of actually liking each other. But typically before you get to the relationship part you have to consummate a deal.
It is because of this I call this “the art of the deal” (see the upcoming Client Agency Relationships Part 2: the Art of the Relationships for a relationship point of view) because, philosophically, how you strike ‘the deal’ often dictates what becomes the ultimate client/agency relationship.
In other words, often the success of that relationship is dictated by how well the initial deal was struck.
As for who is responsible for making a good deal?
Well, while I have seen Client/Agency relationships sour because of either party, I would suggest that agencies more often than not are most culpable for failures and bear the brunt of the responsibility in establishing the deal. Having sat down in dozens of meetings between an agency and a prospective client I have seen the good and the bad unfold not only as the deal is being consummated but also after the meeting as the deal unfolds. I have seen how agency people rush towards the finish line saying anything that needs to be said to get there.
And I have seen the expressions on the faces of the people back at the agency when they have seen what promises have been made to make the deal.
And, bottom line, I have seen that I don’t want to go through that disappointment when facing my own people.
It is very simple if you stick to your guns. I suggest there are six critical steps to sealing a good deal (and having a hope of a successful relationship).
Let’s call this what it takes to stand up and feel good about shaking hands on the deal as the contract is ready to get signed.
1. Alignment of Expectations:
Nothing is worse than if either side of the partnership (or dealmakers) is expecting something the other partner is not prepared to do, or even worse, cannot do.
2. Communicate:
Alignment means both parties need to communicate. This means clearly articulating expectations and capabilities to meet expectations.
Am I meeting your needs?
Am I meeting your expectations?
Both sides asking questions. Both sides talking to each other. Sometimes it is a dialogue. Sometimes it is simply asking the correct questions. But each of those options includes speaking versus silence.
3. Honesty:
Good communication requires honesty. Honesty with yourself first and foremost, i.e., can I honestly say we are doing a good job? And, of course, “I need to be honest now or it could continue to build up into big trouble.” Honest discussion on the good and the bad. It’s easy to talk about the good stuff, more difficult on the hard things. ‘Fess up honestly in all cases and you earn trust.
4. Respect:
Honesty is typically best when there is mutual respect. Respect speaks for itself. We all feel good when respected.
5. Compensation:
If you have the 1st four right (alignment, communicate, honesty, respect) then the money discussion becomes easier, not easy, but certainly easier.
It’s a value equation. Agencies need to feel like they are being fairly compensated for actions. Clients need to believe they are receiving valuable activity/action. And there needs to be an alignment on this value equation or it becomes a battle of nickels & dimes and instead of talking business you are constantly talking about money (and that is bad).
6. Chemistry:
Finally, it always helps if you like each other. It doesn’t have to be ‘best friends’ but if each party respects and likes each other than there is at least a fighting chance to make it through the tough times as well as truly enjoying/celebrating the good times. “Double the joys and halve the griefs” as it has been said.
Conclusion:
That is what makes a great deal between a Client and an Agency/Service Supplier.
I know, it sounds simple, but it is harder than it looks. The sight of the finish line makes people do and say funny things (and it can certainly create amnesia with regard to knowing the “right thing to do”).
Agencies want to make the deal (and that desire can blind you to some things).
So.
In the end?
Take a deep breath when you are getting ready to cross the finish line and ask yourself do you really want to win. Ask yourself honestly are you clear on all six criteria. And ask yourself the hard question even if it is at the last minute – did you really want to run this particular race and was it really the right race for you?
Make sure you know what you are going to win.
Make sure the Client knows what they will win.
And then make the deal.