Skip to main content
Back to writing
Governance

The agency relationship nobody talks about

3 min read

Tom W Dixon · Senior Product Manager and Digital Platform Lead

The agency relationship nobody talks about

Everyone talks about choosing the right agency. Nobody talks about what happens after you sign the contract.

The technology agency selection process in most large organisations is thorough. RFPs, capability assessments, reference checks, commercial negotiations. Significant time and effort to identify the right partner. And then, once the contract is signed, the day-to-day relationship is handed to whoever is managing delivery and the strategic intent behind the selection often fades quickly.

This is where most agency relationships start to drift.

The first six months set everything

The quality of an agency relationship at eighteen months tends to reflect how it was set up in the first six. The working rhythms, the communication norms, the expectations about quality and responsiveness, the level of commercial openness: these things get established early and are difficult to shift once they become the default.

Most organisations spend the first six months getting the agency up to speed on systems, processes, and stakeholders. This is necessary. But the first six months should also be spent establishing the governance structures, the escalation paths, and a shared understanding of what good looks like.

Leaving these things until a problem arises usually means spending time managing the problem rather than preventing it.

Commercial transparency as a trust signal

One of the most reliable indicators of a healthy agency relationship is commercial transparency. When both sides have a clear and shared view of where time is being spent and what it costs, decisions tend to get made faster and more openly.

Where commercial transparency is low, the dynamic changes. Agencies scope defensively. Risks go unflagged because uncertainty feels uncomfortable to surface. Requests that should be challenged get accepted because agreement feels easier in the short term.

The output is a team that is technically delivering but not genuinely advising. The advisory dimension, bringing judgment and perspective to the work rather than just executing instructions, is where a lot of the real value in an agency relationship lives.

When to reset and when to replace

Most long-running agency relationships reach a point where performance has drifted and the question becomes whether to reset or replace. This decision is harder than it appears because it is rarely about capability. The question is usually whether the relationship can be rebuilt on better foundations.

A reset is worth pursuing when the underlying capability is strong but the governance and communication have degraded. It requires an honest conversation about what is not working, a set of specific changes to how the relationship operates, and genuine commitment from both sides to work differently.

Replacement makes sense when trust has broken down, when the commercial model is misaligned, or when the agency direction has moved away from where you need to go. It is almost always more disruptive and costly than a reset, which is why it tends to be deferred longer than it should be.

The least productive outcome is neither resetting nor replacing. Managing a relationship as it is, absorbing the underperformance, until something forces a decision. By that point the options tend to be more limited and more expensive than they would have been if the issue had been addressed earlier.

The question worth asking annually

Every year, any organisation with a significant agency relationship is worth asking one question honestly: if we were selecting a partner for this work today, would we choose this agency?

If the answer is yes, invest in the relationship. If the answer is no, decide what to do about it. The least useful outcome is knowing the answer and sitting with it.

The key point

Everyone talks about choosing the right agency. Nobody talks about what happens after you sign the contract.

← All writing

Get in touch

Let's talk.

Whether you want to discuss a role, explore a collaboration, or simply connect, I would be happy to hear from you.

Get in touch