The New Business Dingo

It’s no secret that ad agencies that have historically relied on reactive new business methodologies have found the past few quarters a little disturbing, as it’s hard to forecast when the phone might ring, or when that treasured RFP pop’s into your inbox.

This morning I met with the VP of Business Development for a large interactive agency in Chicago who expressed her frustrations with trying to make the internal shift from a reactive methodology (which is still keeping them busy, but not moving the agency in the right strategic direction), to a proactive new business methodology.

She wanted to implement a proactive program to demonstrate what’s possible by taking control and driving the bus, rather than simply being a passenger on it.

Why bother you might ask?
Control is something that I’ve noticed over the years, is really great new business people seek out and thrive on. And possibly for more selfish reasons, they can measurably demonstrate the positive impact of their actions to move up in the world. Simple stuff, so I asked her, “So why has it been so hard to get this off the ground?”

Two responses resonated with me as I had heard them many, many times before:
“Because Senior Management sees the new business department busy from inbound leads, they don’t see the need for proactive initiatives. But truth be told, we’re busy with the wrong kind of RFP responses which we aren’t winning because we’re going after everything and anything”.
“No one really understands the time or resources that need to be dedicated to proactive new business, and no one wants the added responsibility of effectively managing a sales program and team.”

I gave some thoughts through our ensuing conversation that I thought I’d share with you as I know her situation isn’t an anomaly in this or any industry, (investing in self promotion… who would have thought such a crazy concept, right?)

Tips to get the conversation started.

1. Help management identify the pain and opportunity
“Yes we are busy, but we’re busy for the wrong reasons”
“We’re not winning these pitches because we’re chasing business outside our sweet-spot”
“If we continue to burn through new business budget responding to these RFP’s without a win, we’re toast”.

2. Identify how much has been invested $, in responding to RFP’s lost due to a poor fit.

3. Introduce the solution - “I have a plan!”

Outline your overall business development plan and talk revenue $

1. Start with retention of existing clients – include a suggestion for proactive approaches to each client, each month with new ways to grow their business and in-turn your agencies slice of it.

2. Set organic growth goals – aim to increase existing business revenue by X% each quarter

3. Add a reactive component – be specific on the types of RFP’s and opportunities you’ll invest in responding to. Make a check-list if you really need to. “We’re only going to respond to opportunities that meet the following criteria….”

4. Introduce your proactive plan – this will provide the agency with the ability to forecast and grow strategically by planning in detail the accounts to be targeted, the decision makers most relevant and the messaging that will resonate most effectively.

5. Be sure to align each business development component to revenue goals that are in line with organizational growth objectives.
For example:
“I’d like to define our next 12 month financial growth goals in both new business and organic business growth".

6. Be armed with a suggestion:
“Would it be fair to assume that we could begin by agreeing that we should aim to grow organically by 20% and drive and additional $1M in fees from new business?”

And if all else fails – why should the agency not have an insurance policy?