Scope of work diagnostics, using SCOPETRACK® and SCOPEMETRICS®

Diagnostic Concept

Scopes of Work (SOWs) document the agreed strategic and creative deliverables (or briefs) that clients plan and agencies carry out on behalf of client brands. Each deliverable in a SOW is documented in ScopeTrack®. Each deliverable has a unique ScopeMetric® Unit (SMU) value that defines a deliverable’s size. The sum of SMU values for each deliverable defines the SOW size.

Diagnostic calculations

ScopeTrack® carries out the calculations that measure SOW size and agency resource requirements.

Examples:

  • A 30-second TV original spot, with high creative complexity, has a ScopeMetric® Unit (SMU) value of 1.43 SMUs.

  • A 30-second TV original spot, with average creative complexity, has a ScopeMetric® Unit (SMU) value of 0.62 SMUs.

  • A 30-second TV original spot, with low creative complexity, has a ScopeMetric® Unit (SMU) value of 0.40 SMUs.

  • An Instagram post, adapted from other material, with average creative complexity, has a ScopeMetric® Unit (SMU) value of 0.011 SMUs.

  • SOWs can contain thousands of deliverables, with each deliverable having a unique SMU value.

Scope of Work Data Gathering

We partner with our agency clients to gather and input the deliverables in ScopeTrack®. Our ScopeTrack® template is easy to use and helps us and our clients better understand the nature of the SOW deliverables.

ScopeTrack Diagnoses

We use our proprietary metrics to evaluate and determine the agency resources and fees needed to support a given Scope of Work. Our ScopeTrack® diagnostics show which metrics are below standards and need attention to optimize agency performance.

Rate Cards

We can use ScopeTrack® to generate Rate Cards, which are appropriate prices for each of the different types of deliverables in an agency SOW.

Recommendations & Action Plans

Our recommendations for agency resources and compensation include “Gold Standard” productivity level benchmarks that enable our clients to strike a balance between efficiency (agency productivity) and high creative quality output.

We develop and recommend action plans that enable our clients to focus on process improvements and to manage Scope of Work processes. These process improvements help both agencies and their clients achieve more collaborative, productive relationships and higher levels of performance.

Key Sow Metrics

While we’ve worked with advertising agencies and advertisers since 1992, our rigorous R&D ensures that our SOW workload metrics are always up to date. Our Scope of Work database includes over 4,000 unique briefs across all media types, from traditional advertising to direct marketing to the latest digital and social media initiatives. We continually add deliverables to our database and validate our SMU values with every diagnostic engagement.

These are some of the key measures used by ScopeTrack® to help advertisers and agencies evaluate their staffing levels and productivity:


  • Number of SMUs in a Scope of Work (this defines the workload)

    Each project in a SOW has an SMU value. Typically, across a wide range of SOWs, involving originations and adaptations in a wide range of media, including traditional and digital / social media, there are as few as 2 projects per SMU to as many as 100+. The number of projects in an SMU is an indicator of the typical "size" of the project in the SOW.


  • FTEs per SMU

    The recommended agency staffing levels to efficiently and effectively manage and execute the Scope of Work. Staffing involves Client Service, Strategic Planning, Creative and Production. An appropriate level varies from 0.5 to 0.7 FTEs per SMU in appropriately-staffed relationships.


  • SMUs per creative per year

    The recommended level of creative output per creative per year for optimal productivity and high creative quality. The recommended level averages between 4.1 to 5.0 SMUs per creative per year, although in practice, much higher levels of output per creative are being experienced due to inadequate fee levels for excessive SOW workloads. Creative quality is very much at risk in these high output situations.


  • Price per SMU 

    The price (fee divided by SMU workloads) that clients are paying for the agency's Scope of Work. Industry prices have declined from $435,000 per SMU (1992) to about $124,000 per SMU (2021) in constant dollars. This price pressure has led agencies to downsize and juniorize despite the increased complexity and volume of the work they are doing. Agencies should seek to maximize price per SMU by client as an indicator of the quality of their work and the results they are generating.

If you’d like to discuss how we can help you, please call Michael Farmer at +1 (917) 544-8974 or email us and we'll get back to you in less than 24 hours: