The Campaign Agency Already Chosen
You are a procurement business partner in a consumer goods company. The marketing director has already chosen a creative agency for a £120,000 product launch campaign. She says a competitive process will delay the launch, which is six weeks away, and that procurement does not understand the brand. The agency has sent a contract with 40% payable upfront, no performance KPIs, unlimited revisions, and automatic renewal unless cancelled 90 days before expiry. Company policy requires competitive tender above £50,000 and legal review of all contracts above £25,000. The CEO sponsors the launch and has copied you into an email asking why procurement is 'blocking' the work. Procurement holds a framework with three agencies, but marketing says none are suitable. The marketing director is willing to meet for 30 minutes tomorrow. Finance has not yet approved the budget but expects value for money evidence.
1. Map the stakeholders and analyse their interests and influence.
Read the worked answer
Stakeholder mapping:
- Marketing director: high influence, high interest. Wants speed, brand fit and control; may see procurement as an obstacle. Likely to resist a full tender.
- CEO: high influence, moderate interest. Sponsors the launch and has asked why procurement is blocking; cares about launch success and reputational risk.
- Finance: medium influence, high interest. Needs budget approval and value-for-money evidence; may be concerned about 40% upfront and auto-renewal.
- Legal: medium influence, high interest in contract risk, KPIs and termination.
- Procurement: high interest, medium formal influence in this situation; owns policy, framework and supplier governance.
- The chosen agency: high interest, low influence until contracted; has an incentive to avoid competition and lock in favourable terms.
- The framework agencies: medium interest, low influence; may be excluded without a fair process. The key issue is not who is most senior but who controls the evidence, the budget and the contract.
2. Assess the risks of allowing marketing to bypass the tender process and evaluate options available to procurement.
Read the worked answer
Risks and options:
- Bypassing the £50,000 tender threshold is a policy breach. It risks poor value for money, audit findings, legal exposure from the 40% upfront payment, unlimited revisions and auto-renewal, and supplier dependence.
- Option 1: refuse to engage until a full tender is run. This protects policy but probably misses the six-week launch and damages the relationship with marketing and the CEO.
- Option 2: approve the agency as a sole source. This is fast but leaves the company exposed on price and terms, and sets a precedent for future bypass.
- Option 3: run a rapid competitive process using the existing framework plus the agency, with a short specification, 10-day response, legal review and a clear evaluation panel. This preserves competition and gives marketing a brand-fit test.
- Option 4: approve with conditions: legal redraft, payment by milestones, KPIs, no auto-renewal, and a post-campaign review. This is acceptable only if the agency is genuinely the only suitable option and the exception is approved at the right level.
3. Recommend an engagement and negotiation plan that protects the launch date and policy compliance.
Read the worked answer
Engagement plan:
- Meet the marketing director before the 30-minute slot and listen to the brand requirements. Separate the need (a launch campaign) from the chosen solution (this agency).
- Offer a fast route: use the framework to invite the three agencies plus the chosen agency to a 10-day mini-competition, with marketing on the evaluation panel. This gives marketing influence and preserves competition.
- Ask legal to review the agency contract in parallel and identify non-negotiable changes: milestone payments, KPIs, revision limits, termination for convenience, no automatic renewal, and IP ownership.
- In negotiation, trade speed for control: accept a compressed timetable and joint working, but refuse 40% upfront, unlimited revisions and auto-renewal. Ask for a 20% mobilisation payment, the balance against deliverables, and service credits for missed launch dates.
- Keep the CEO informed with a one-page note explaining the compliance requirement and the accelerated route, not a defensive email. Escalate only if marketing refuses all competition; then ask the CEO to approve an exception in writing. Document the decision either way.