Paying the agency: a better solution?
Agency professionals are rightly concerned about whether they have the right set of business practices to guide them through today's cross-functional multi-channel marketing environment. This becomes an even more burning issue when applied to the question of how agencies get paid for what they do.
Now more than ever, agencies are struggling to keep their margins. A lot of agency managers believe that a big part of the problem is their firm's chronic tendency to exceed estimated hours on client relationships and assignments. As a result, agency organisations are feverishly trying to improve their estimating systems, while at the same time pressing their accounting departments for increasingly detailed analyses of how agency time is spent. They are on a quest to improve how their firms estimate, track and bill their time.