“Know when the math stops mathing” was one of my favorite phrases from last week’s ANA Financial Management Conference. The message: at a certain point, cuts and concessions stop making sense, and agencies need to be clear about that—with themselves, their clients, and their prospects.
No one wants to operate at a loss, so it’s important to remind procurement contacts that cutting one cost inevitably impacts something else. The advice: write a list of what you need to protect during negotiations to build long-term, mutually beneficial relationships.
A couple of encouraging data points were shared: no expectations (yet!) for AI-related cost savings, and an openness to revenue models beyond the billable hour.
While it’s not new, my key takeaway is that we must be more confident and proactive in building procurement relationships, asserting new revenue models, and quantifying the value our agencies deliver.
I’m already planning to return next year, but we need a stronger presence from our firms and our discipline. Will you join me?
This is worth your time because these relationships matter.