‘Agency profits should be double current level’ say Backwith and PRCA in new book
PR and communications agencies are consistently failing to reap the financial rewards that their creative abilities deserve.
That’s the contention of a new book on how to double PR profitability, written by Neil Backwith and published by the Public Relations Consultants Association (PRCA).
Entitled ‘Managing Professional Communications Agencies’, the book examines why PR agencies lag behind consultants in other sectors in making profit and gives practical advice on what they can do about it. Looking at every aspect of agency business from a commercial perspective, with particular reference to the curse of overservicing, the book de-bunks the myths and replaces them with logical, joined-up thinking.
“For as long as I can remember agencies have over-serviced their clients and delivered less than impressive profitability” says Backwith. “Every year the various benchmarking surveys show that average profitability is still hovering around 10% with over-servicing levels of more than 30% still common.
“And even though agency boards are aware of the issues, many feel that it is something they just have to live with. This simply isn’t true.”
Backwith’s assertion is that many agency directors and leaders have never been exposed to the commercial model on which their businesses are based.
“They learn how to manage their businesses ‘on-the-job’ and rarely get any commercial management training” he says. “As a result they are ‘professionally’ rather than ‘commercially’ driven; they see their role primarily as delivering excellent client service and great work; commercial success comes a poor second” he says.
“This book is unique in looking at PR entirely from the commercial viewpoint. But it is not a text book, far from it, it is very readable, full of anecdotes and easy to digest and implement. I know, I have done it and it works” he added.
The book is the first venture into commercial publishing by the PRCA and according to Director General Patrick Barrow fits exactly into their mission to help members become better businesses.
“Our own experience teaches us that the industry needs a book like this and it is a natural fit with the PRCA’s raison d’etre.” He said. “Agencies are essentially simple businesses and Neil, whose track record in this is unquestioned, lays out exactly how to manage such businesses. This work needs to be within grabbing distance of every CEO, FD and agency director at all times.”
Managing Professional Communications Agencies is available from the PRCA priced at £29.99 (£26.99 to PRCA members). To order your copy, please contact the PRCA on 020 7233 6026,
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or www.prca.org.uk
For further information contact either Patrick Barrow at the PRCA or Neil Backwith on 01608 652 342 or
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Note to Editors: Neil Backwith joined Countrywide Communications in 1982 after 10 years on the client side. He developed and managed Countrywide Advertising and Marketing (later BMP Countrywide) for 10 years before working with Peter Hehir to develop Countrywide into Porter Novelli, the global public relations firm. From 2000 to 2004, Neil was CEO of Porter Novelli UK, CEO Porter Novell EMEA and a member of the global board.
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