It is essential to reduce unplanned over-servicing and to maximise profitability, especially in a tight market. It is also essential not to overreact to news coming from the financial markets. There are many areas of the market for PR services not affected by the drop in equities and house prices.
It makes every sense to cut out excess costs in all areas, but in the past agencies have sometimes cut back on key areas for their future growth - such as developing the skills of the business managers and client-facing staff. That just makes it more difficult to service clients profitably and to restore growth when the market inevitably improves.
Ian Metherell, director, Aflame.info.