by Connie Burtcheard
Chief ADvisor – Agency ADvisor

Agency Management Systems are software programs that help everyone in the agency manage their work - from the moment a job enters the pipeline to getting paid by the client.  There are currently a dozen or so Agency Management Systems designed specifically for the Advertising Industry.  The major benefit of having an Agency Management System is that the entire agency’s’ information is stored in one central location eliminating duplication of data entry and better, more accurate reporting capabilities.  Most of the systems have the same basic functionality, although each system does have its uniqueness.  Some of the systems have a more comprehensive Customer Relationship Management (CRM) module.  Others are more GAAP compliant in the way they handle the accounting functions.

Agency Management Systems are different than other software programs you use because everyone working in an Agency should have at least one touch point with your Agency Management System.  Because of their complexity, there are five main things that you need to continually do to get the most out of your Agency Management System.  No matter how long you have been using your Agency Management System, ensuring that these 5 steps are being met will exponentially improve the benefits you receive from the software program.

1. Make certain that your system is setup correctly for YOUR agency.
   
2. Continuing education (training)
3. Know what all of the parts and pieces are within the system and what they are there for.
   
4. Ensure that you are entering the information into the system correctly to get the information you need.
   
5. Submit enhancement requests regularly

Below are the most frequent concerns I have encountered when working with our agency clients and solutions to each situation.

Symptom # 1 – You have a set of reports that you have regularly used in your prior system.  Now that you have a new Agency Management System, you no longer can get the same information.  You setup the system exactly like the software company instructed you to do.  But none the less; you are not able to get the information you need.
Solution # 1 - Make certain that your system is setup correctly for YOUR agency. There is no one specific way to setup any Agency Management System.  Implementing a new system should start with a review of how your agency operates, your processes, workflow and culture, and what information you need to get from your Agency Management System.  Most of the companies that provide Agency Management Systems assign an implementation specialist or have independent consultants to help you through this process.  If the company you bought your system from doesn’t provide this service or a list of consultants, you should ask them for it.  I have too often been contracted to find the best Agency Management System for clients when in fact, the system that they were currently using was the best fit for them.  The problem was that it was not setup to meet their individual needs.  You invested in your Agency Management System to streamline YOUR workflow and have instant access to the information YOU need to make the import decisions.  If you are not able to do this with the system you have in place, there is a chance that it could be the system is truly not a good fit for your agency, but most likely, YOUR system wasn’t setup to fit YOUR agency.  YOUR agency is not like any other agency.  YOUR system should not be setup the same way as every other agency.

Symptom # 2 – You recently have been contacted by or viewed an online demo of an Agency Management System that is different than the one you are using.  The demo reveals the really cool interface, navigation and all the bells and whistles.  You now envision this system taking care of all the things that you and your staff has been frustrated with because you are not able to do this with the system you are currently using.  And, what system designed for the Advertising Industry wouldn’t do this?
Solution # 2 - Continuing Education (Training) - Before you throw out your current system make sure that you are fully trained on all of its functionalities.  I often see agencies abandon their Agency Management System because they get a demo from another software company and see all that it can do and focus on what their current system cannot do – or so they think.  It is a major investment to convert to a new system.  Not only is there the financial investment, but you also must commit a huge amount of time from your staff as well as the natural frustrations associated with the learning curve of a new software program for everyone.  It typically takes about 2 – 3 months just to get the new system setup and have everyone trained.  Then, there is about 2 – 3 months before everyone is comfortable with the system.  Converting to a new Agency Management System will cost your agency tens of thousands of dollars.  Training your staff on your existing system will cost only hundreds to a few thousand dollars.  While the thought of a new system is exciting, make certain that you NEED to make the change before you do so.

Symptom # 3 – You have schedules setup for each job and have the specific steps assigned to those responsible for their completion.  Even though you keep the schedules current, you are not able to forecast your staffing needs.  You can’t even see which employees are over-loaded and who is playing Call of Duty.
Solution # 3 - Know what all of the parts and pieces are within the system and what they are there for.  While you may have setup your schedules to reflect the start and end dates for each step and designated the appropriate persons to each of the steps, you may not have allocated the hours that each person needs to complete their respective steps.  If this information is not setup in your system, the system doesn’t know how much time to put towards each person’s workload – it only knows that the person has a step to work on between a given date range.

Symptom # 4 – Your Income Statement seems to be overstating your income one month and then understates it the next month.  Last month we were extremely profitable, but this month we are reflecting a loss.
Solution # 4: Ensure that you are entering the information into the system correctly to get the information you need.  Chances are you are billing your client one month (when the income is recorded) but entering and posting the costs into the month that the invoices are received (when the cost of goods is recorded).  This may be the result of billing your client in advance of the job being completed.  If you do so and show that billing as income instead of deferred revenue, your income will be included in the billing month, but the costs will not be stated until they have been incurred.

Symptom # 5 – You have determined that your Agency Management System does not have a certain functionality that you would like for it to have.  For example, your system allows you to submit files for approval to your clients and you want to pull a report showing where in the process each file is at (approved, pending, not approved).  A system expert has confirmed with you that this information is not available from your particular system.
Solution # 5 - Submit enhancement requests regularly – Regardless of how unusual or complex the functionality you need may seem you should always submit everything to your systems provider.  Most of the software companies have an enhancement request tracking system.  Typically, the new features that are added into the systems are the features that are requested most by their clients.  If you don’t tell them what you want the system to do, you most likely won’t see those features added in future releases.  Even Microsoft listens to its’ clients as exemplified in the current Windows 7 commercials.

An Agency Management System provides a foundation for streamlining your agency’s workflow and is the first step to improving your efficiencies and profitability.  Following the five critical steps above, ensures that your systems will continue to support your agency’s growth and provide you a return on your investment.

Not sure you have the right system in place or what to look for in an Agency Management System?  Read the latest min-e-book "Agency Management Systems: Making the Right Choice for your Advertising/Creative Agency."