the word from national media is all about how the agency world is handling Damocles’ sword and turf wars. Hopefully the many have long term embedded relationships with their clients. But the clients are getting mounting pressure to slim down on current programs. This raises the central issue and the biggest hurdle for professional services: to prove they’re an investment not a cost.
Typically, if the client is half way in and/or obliged to complete the brand overhaul, reputation push or campaign, the funds will remain, often because the switch out costs is too high. However, if you’re heavily project based, you’ll quite likely experience cut backs and cancellations.
For example, latest rumours from KPMG’s advisory business is that they’re urging their clients to cut back severely on their use of consultants as a way to substantially reduce expenditure. Clearly over the coming months each category speciality will also be making similar remarks to protect their client relationship and their professional turf and fees. So its dog eat dog, or is that bull eats bull?