APPLES & PEARS
by Nancy Bacher Long

When it comes to selecting an agency, a marketer can go down the network route or the multinational route. Both offer distinct advantages but what does an independent network have to offer?

Taking your PR program global? Better think local. Even the best programs can go disastrously awry when they are not thoroughly evaluated at the regional level. That's why finding the right agency partner early on - before a program is launched - is a critical first step in taking a campaign beyond your nation's borders.

A good partner agency can help you localize an existing PR program, and sometimes that is enough. A great agency will help you to recognize, prioritize and address differences in culture, custom, values and social mores before you even begin developing a campaign.

Whether you choose to work with a large multinational agency, or a network of independent agencies, you'll need to find a partner who is easy-to-manage and works seamlessly with you to execute tactics.

It is important to understand the situation from the perspective of each individual market. Your perception may be that the work you are undertaking is `foreign'. But while it may be foreign to you and even your agency, it is local to target audience in each location.

Just as it is always important to provide media with a local angle, it is equally as important to identify a local agency partner to help you localize your message and deliver the most appropriate tactics to support a PR program. There are a number of ways to access global PR services, and it is important to evaluate your needs for agency support in other markets before hiring an agency partner.

For certain projects, the current domestic agency servicing the account may be able to step in and handle the assignment. If the global needs are relatively simple, clear cut and limited, such as developing template materials that will be distributed to corporate counterparts in other countries, the logical solution is to have the materials drafted by the people most familiar with the account. This method is really only valid if there are no global activities required beyond delivering documents for translation.

For more sizable projects, consider a single agency with a voice in many corners of the world. In recent years, the PR industry has seen significant consolidation, and the world's six biggest communications groups have purchased dozens of independent PR firms. The top three multinational agencies with healthcare groups are Fleishman-Hillard, Ketchum and Porter-Novelli. All three are owned by the Omnicom Group, the third largest marketing communications holding company in the world.

Multinational agencies can be very skilled at serving clients, yet some clients shy away from them, seeking more personal, individualized services. For such clients, the alternative is an independent agency network or partnership. These are groups of privately owned agencies and currently, four such networks exist: IPREX, Pinnacle, Public Relations Organization International (PROI) and Worldcom. (A fifth, GlobalFluency, is comprised of PR agencies focusing solely on technology.)

Such partnerships serve national, international and multinational clients who seek PR services from local PR professionals who speak the language and are intimately familiar with the customs and cultures of the regions in which they work.

They tend to be staffed by local PR professionals, with partner agencies that offer experience at the regional level. Their insight into the nuances of the local media and culture helps to identify opportunities early on, as well as steer clients away from potential pitfalls.

There are additional benefits to using agencies who belong to an independent network. As they are independent, and choose to work together in partnership, they stimulate and reinforce best practices. Member agencies meet regularly to discuss maintenance of standards, conduct integrated training and share work on behalf of mutual clients.

Judy Grossman has been on both sides, working at Edelman Worldwide before joining Stanton Crenshaw, a New York-based agency and Partner in PROI. "The success of each client relationship is critical as we build our agencies and our network. There is no room for error or for ego," Grossman says. "Our network partners all represent strong links in the chain of cooperation."

On the other hand, multinational PR firms do benefit from unity of mission and hold tighter controls over product quality and personnel. "In order to insure that independent networks remain as accountable as a multinational, it is important to look for a network that requires principal involvement" says Grossman. "Networks establish rigorous checks and balances that ensure that the work is consistent from each member agency, and these requirements are taken very seriously by the partners."

Among independent agency networks no single partner seeks to build an international presence, so serving clients' interests may mean referring the business to another group in another location. Grossman says, "We are hungrier and less bureaucratic than the typical multinational. That makes us fast, flexible and focused."

Which route is best?
What are the key differences between a multinational agency and an independent network?

Allard W van Veen, APR, Fellow CPRS, past president and currently corporate secretary and member of the International Management Board, PROI, says: "A multinational has offices in various countries. When a client needs services abroad they are steered to those offices. With a network, if a partner is not the right `connection' for a specific assignment, the network will identify a firm who is. This allows for mix and match, in order to get the right team working on the project."

How do the offerings differ?

There is no difference in level of competence among PR professionals in networks or multinationals. The difference, according to Jean-Pierre Beaudoin, MD of i+e Communications in Paris, is often in the distribution of competence. "Partners in of networks of independents drive their own business based on proven competence in their respective markets, whereas competence can often be very centralized in multinationals, and [may be] inconsistent on the local level" he says.

Regional scope and regional experience are often how systems differ, agrees Christopher Allman, president, Allman & Associates Health Care Public Relations and formerly director of Global Pharmaceuticals for Johnson & Johnson. "A multinational agency may have healthcare experience, for example, in the EU and Latin America, but have limited experience in Asia. It is all based on where the offices are located and the experience of the staff.

"One benefit of an independent network is that it is probably easier to align yourself with an existing regional/local agency than it is to open an office." Allman also noted that the independent networks give a client the freedom to look into other agencies, if necessary, for a particular need.

How does a marketer know which one is right for which situation?

Allman says,"I think it has less to do with the system and everything to do with the central account person. This person must make sure that messages are consistent and strategy is clear, ensure quality control and guarantee results are met. This person must also be skilled (and tested) in getting offices located around the world to work together and be focused. Ultimately, for the client, the system has to appear seamless."

Companies that choose to develop centralized communications platforms to be rolled out in a range of countries are better served by one integrated multinational, with office contacts close to the clients' headquarters. In the majority of other cases, where strategy and execution need to occur on the local level, a network may be most effective.

"For a multinational program to be truly consistent across borders, it is important that clients choose agencies that understand how to adapt global messages and tactics for local market use," says Kate Cronin, partner, director, New York Healthcare Practice, Porter-Novelli.

"The clients need to ask questions to find out who the agency offices or partners report to and `with whom the accountability lies."

What are the advantages and disadvantages of both?

The main disadvantage of independent networks is that, despite their performance, it may be considered a risk for a client to go with a smaller group with limited or no international recognition.

Selecting a large multinational, which has a worldwide brand, may be an easier decision to make and sell to upper management. However, the disadvantages of multinationals is client perception that large account rosters and multiple priorities may threaten or inhibit the individual attention they receive.

Checklist for selecting an agency

• Determine where your critical audiences are
• Make sure the agency or network has the capabilities (resources and people) you need
• Focus on an agency's strategic thinking and program execution talent
• Discuss global experiences and capabilities; what has worked and what has not
• Ensure you have access to an agency's senior management for counsel and input
• Meet the senior members of the account team before making a selection
• During the agency's presentation, watch how the members of the team interact with each other. Are they all equally confident and competent?
• During the agency presentation, ask the agency about an account that did not turn out as planned and what was learned from that experience.

The Author
Nancy Bacher Long, is President, Dorland Public Relations and Chair of the International Healthcare Practice for Public Relations Organization International.

First published in Communiqué Spring 2003.
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