Package Design - May 2015 - (Page 72)

DEBATE & DISCUSS DESIGN AGENCY SELECTION AND COMPENSATION Gary Chiappetta Chief engagement officer at Kaleidoscope How do you define spec work? We define speculative work as unpaid work completed with the intent of securing a project or contract. The intent is to qualify our experience, thinking and talent in the context of a client's brand portfolio, not ours. Done right, the spec work still requires a team, some level of audit, observation and research to develop a cursory strategy. It's up to each agency to decide if the investment in spec work is right for them. Every scenario is different, and we would advise agencies in that position to think about whether or not it would lead to a good partnership, the purity of the intent, and the potential size of the contract in comparison to the necessary upfront work. It's a balance between risk and reward, but it has to be a good fit by our own definition of "fit." From our perspective, the fundamental difference between spec work and pay-for-performance projects is the nature of the client relationship, the size of prize and the compensation agreement. Pay-for-performance is interesting because it requires a partnership of shared resources: money, people and time. What we like about paid performance is that everyone has skin in the game and is invested in the outcome. Both parties are invested in working toward a defined set of goals and metrics. Again, the terms have to work for both parties on multiple levels. Agencies should be looking at new markets even without client interaction. They need to challenge themselves, challenge the status quo and learn to be market makers. 72 MAY 2015 How can a performance-based payment scheme help an agency deliver more revenue for both the design firm and the brand? First of all, if it's a payment "scheme," we're out! Performance can be measured in other terms beyond revenue. It could be measured by an agreed upon set of metrics such as funding, launch date, placement, distribution, market share, revenue, profits, etc. More importantly, from our experience, this will differ with every client, whether the client is a start-up or established national or global brand. But because there are lots of variables and inherent risks associated with every new launch, agencies need to carefully shape the engagement with metrics that can be measured and rewarded. Also, if the up-front investment is lower, clients may be more open to taking risks that would lead to greater returns. How could moving away from a traditional project-price model hurt the brand-agency relationship? Trust could be impacted. The reason that the current model works well is because both parties agree on specific parameters, scope and budget. There's a definable outcome, timeframe and financial terms, which makes business planning on both sides easier. Agencies need to have

Package Design - May 2015

Table of Contents for the Digital Edition of Package Design - May 2015

Package Design - May 2015
Contents
Editor’s Letter
Front Panel
Snapshots
Design Matters Series: Ximena O’Reilly
Brand Characters
Dialogue by Design
Hba Preshow Planner
Product Focus: Special Effects
Accessing Premium Style
Robust Meets Sophistication
Debate & Discuss: Design Agency Selection and Compensation
Index of Advertisers
Field Notes
Package Design - May 2015 - Intro
Package Design - May 2015 - BB1
Package Design - May 2015 - BB2
Package Design - May 2015 - Package Design - May 2015
Package Design - May 2015 - Cover2
Package Design - May 2015 - 1
Package Design - May 2015 - Contents
Package Design - May 2015 - 3
Package Design - May 2015 - Editor’s Letter
Package Design - May 2015 - 5
Package Design - May 2015 - Front Panel
Package Design - May 2015 - 7
Package Design - May 2015 - 8
Package Design - May 2015 - BI1
Package Design - May 2015 - BI2
Package Design - May 2015 - 9
Package Design - May 2015 - Snapshots
Package Design - May 2015 - 11
Package Design - May 2015 - 12
Package Design - May 2015 - 13
Package Design - May 2015 - Design Matters Series: Ximena O’Reilly
Package Design - May 2015 - 15
Package Design - May 2015 - 16
Package Design - May 2015 - 17
Package Design - May 2015 - 18
Package Design - May 2015 - 19
Package Design - May 2015 - 20
Package Design - May 2015 - 21
Package Design - May 2015 - Brand Characters
Package Design - May 2015 - 23
Package Design - May 2015 - 24
Package Design - May 2015 - 25
Package Design - May 2015 - 26
Package Design - May 2015 - 27
Package Design - May 2015 - Dialogue by Design
Package Design - May 2015 - 29
Package Design - May 2015 - 30
Package Design - May 2015 - 31
Package Design - May 2015 - Hba Preshow Planner
Package Design - May 2015 - 33
Package Design - May 2015 - 34
Package Design - May 2015 - 35
Package Design - May 2015 - 36
Package Design - May 2015 - 37
Package Design - May 2015 - 38
Package Design - May 2015 - 39
Package Design - May 2015 - 40
Package Design - May 2015 - 41
Package Design - May 2015 - 42
Package Design - May 2015 - 43
Package Design - May 2015 - Product Focus: Special Effects
Package Design - May 2015 - 45
Package Design - May 2015 - 46
Package Design - May 2015 - 47
Package Design - May 2015 - Accessing Premium Style
Package Design - May 2015 - 49
Package Design - May 2015 - 50
Package Design - May 2015 - 51
Package Design - May 2015 - 52
Package Design - May 2015 - 53
Package Design - May 2015 - Robust Meets Sophistication
Package Design - May 2015 - 55
Package Design - May 2015 - 56
Package Design - May 2015 - 57
Package Design - May 2015 - 58
Package Design - May 2015 - 59
Package Design - May 2015 - 60
Package Design - May 2015 - 61
Package Design - May 2015 - Debate & Discuss: Design Agency Selection and Compensation
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Package Design - May 2015 - Index of Advertisers
Package Design - May 2015 - Field Notes
Package Design - May 2015 - Cover3
Package Design - May 2015 - Cover4
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