The Nantucket Fire of 1846 and what it means for your agency support today

I recently returned from a summer holiday spent on Cape Cod in the northeastern United States. Two of many highlights were catching my first fish -- ever -- and spending a day on the island of Nantucket. It's a tiny and isolated place, yet well known for its incredible beaches, wealthy inhabitants and history as a major whaling center in the early 1800s. My husband and I took a walking tour of the island and learned about the great fire of 1846, in which much of the commercial infrastructure was wiped out and the island dealt a major blow from which many would argue it took a century to recover. The fire spread quickly because the two volunteer fire departments showed up at the scene, but then argued about who would get the credit for putting it out as volunteer brigades were paid only when a fire was successfully extinguished. While they argued and got into fist fights, the town burned down around them.

This story got me thinking about a parallel to today's agency/client environment. All too often, internal politics within agencies create a similar dynamic to Nantucket's dueling fire departments. Multiple P&Ls and the rewards associated with meeting P&L-linked targets pit internal groups against each other, often at the expense of client service, work products and cost-efficient delivery. Every firm will tell you that they work seamlessly across practices and geographies, but the truth is often quite different and doesn't become apparent to the client until it's too late.

When soliciting agency support via RFPs or in-person interviews, it's critical to ask a few questions on this topic:

1. What metrics drive compensation and bonuses at the end of the year? What's the mix between individual performance, team performance, local/regional performance and global performance?
2. How many P&Ls does the firm have? Is this number increasing or decreasing?
3. How does a firm determine who will lead an engagement and what process does that person use to source and commit the best talent for the job?
4. How does client satisfaction factor into the engagement lead's performance bonus?
5. What are examples of superior delivery across P&Ls, as well as examples of when it's failed (and what's been learned from the failure)?

Lastly, it's important to talk to other clients of the firm to find out what the specific experience has been to rise above a P&L structure. Don't only take a firm's word for it.

I'm curious to hear what experiences you've had on this topic -- feel free to comment below.

Christopher Hannegan is a senior adviser in employee engagement, culture, communications, and inclusion and diversity.