Metric’s Conflict Policy Explained

It’s been said that “two similar accounts put you in conflict, but three make you a specialist.” So how does a conflict of interest come about, and when is it an actual conflict? More importantly, how is it handled?

Overlap is Inevitable

Conflict is a potentially serious issue that every in-demand agency must consider when doing significant work for more than one client within the same industry or sector. The best approach is to put a clear policy in place to address any potential for conflict.

Here’s an example of how conflict doesn’t and does arise. If an agency is known for doing standout work for an investment firm, other similar firms will want to engage their services because that agency knows and understands their sector and business. Is that a conflict? No, it’s merely overlap—which is inevitable. Conflict arises when the intellectual property from one client creeps into the work of another, or when the interests of the agency come before the interests of the client.

Actual Conflict of Interest

To be clear, conflict doesn’t occur whenever there are two competing clients, or when an agency gives the same advice to two clients in the same space or industry. Conflict occurs when something inappropriate has happened—such as sharing safeguarded information or choosing to do something for personal gain over duty to a client.

Sometimes conflict isn’t intentional, but it can still be inappropriate. Perhaps advice was given to a client that wasn’t appropriate for them but would be for another client. Or, maybe a decision made by an agency employee for one client was inappropriately influenced by knowledge of work that was done for another.

Conflict can also arise when loyalties are split or compromised, or when the motivation for an agency to do excellent work for one client is corrupted or lessened in some way, compared to their motivation for another client.

These are actual conflicts, but there are ways to safeguard against and respond to them. Our Conflict Policy outlines some of the ways we actively mitigate the threat or presence of conflict.

Metric’s Conflict Policy

In order to avoid, prevent or resolve conflict, or the potential for conflict, Metric will do the following:

1. We will always make decisions that are in our clients’ best interests.
2. We will never compromise, concerning situations of conflict or potential conflict.
3. If a client believes that there is a possibility of conflict, we will assemble and assign a separate strategy team to their account, and that team will be responsible for branding, advertising, public relations and media strategy, and for ensuring confidentiality and discretion.
4. Unless it is perceived a conflict could arise, implementation work will not be segregated but the research, insights and reasoning behind a campaign, outreach project or product positioning will be protected inside the agency.
5. If we, or the client, believe a deeper conflict is possible, we will assemble and assign a separate and distinct strategy and implementation team to each account.
6. The costs associated with any segregated teams will be passed along to the client, with their agreement.
7. If we, or the client, believe that a conflict has occurred, we will inform the appropriate competing clients, discipline or release any staff involved in the breach, and offer to resign the account. The agency will be owed and paid for any work up until the conflict occurred, and ownership of work completed before the conflict occurred will be passed on to the client.

Establishing a Conflict Solution

If a conflict situation does arise, the solution we provide will depend on the following factors:

1. The size and length of the client’s contract
2. Whether the work is project or long-term agreement based
3. The willingness of a client to compensate us for the cost of dedicated staff, segmented teams and facilities, and/or support systems
4. How much impact we are invited to apply vs. implement in terms of making decisions

In Summary

If we do our job properly, our clients who fall within the same industry or sector will not be in competition but truly differentiated from one another by our services. Where there is no impropriety, there is no conflict.

There is as much value in implementing marketing campaigns as there is in developing the ideas to support and launch them. The clients who stand to benefit the most and have the least likelihood of conflict are those who are disciplined and willing to follow our recommendations.

The better we do at positioning¹ a client’s product or service, the less possibility for conflict there will be. Although there may appear to be competing interests on the surface, in fact the deeper levels of marketing and implementation we provide—when planned and executed thoughtfully and appropriately—preclude actual competition and conflict.

¹ Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors. – Source Wikipedia