Client Conflicts
Answer
Yes.
The legal entity will stay the same (with the same company number, employees, and financial standing), it is only its name that is changing.
No, we are not assigning the client agreements, they will stay with the same legal entity, just with a new name.
Therefore (apart from a few exceptions), serving a simple notice to our clients is enough. For the few exceptions to the above statement, legal will flag these separately and provide business with specific clients/contact names to reach out to in order to provide required consent.
Exclusivity and non-compete commitments are typically tied to either a specific entity (or entities) and/or to named Key Personnel, not to the brand.
So, while the brand and the name of the contracting entity is changing, the legal entity itself is not changing, nor is there any intention to move required Key Personnel off applicable projects.
Example. We could have one country where we have two clients in the same industry (e.g. FS) for whom we are providing brand strategy and creative services. Now, one or both of those client agreements could contain non-compete clauses, but we have so far managed this so that one contract is with an Interactive entity and the other with an Accenture operating entity. Despite the rebranding exercise, we will still be able to continue to fulfil our previous non-compete commitments, as the Interactive entity and its team will remain separate from the Accenture operating entity - it will just change its name.
Example. We could have one country where we have two clients in the same industry (e.g. FS) for whom we are providing brand strategy and creative services. Now, one or both of those client agreements could contain non-compete clauses, but we have so far managed this so that one contract is with an Interactive entity and the other with an Accenture operating entity. Despite the rebranding exercise, we will still be able to continue to fulfil our previous non-compete commitments, as the Interactive entity and its team will remain separate from the Accenture operating entity - it will just change its name.
Yes, exclusivity provisions are common in the interactive space and often required to win client business.
This has been and will continue to be taken fully into account while making any decisions relating to our company and operating structure. We will continue to be able to agree to new exclusivity and non-compete provisions, however, we will definitely need to be more connected and better aligned as to what restrictions we agree to and how we define such restrictions, ensuring they are as narrowly tailored as possible. The Legal team is creating further guidance on recommended, pre-approved positions.
We will be able to agree to wider non-compete provisions if the opportunity is large enough to warrant our agreement, and as long as we communicate and align with one another – and define the restrictions carefully.
We will also have to be mindful to ensure we have the ability to end the restrictions if a business case calls for it. This way, we will be able to address the client needs and concerns, but at the same time, we are not limiting our ability to do business unnecessarily. Legal will be providing further guidance for this.
In many countries yes, there will be more than one Accenture Song entity that can be utilised for contracting/providing such services and managing non-competes.
In other countries, we can continue to leverage the local Accenture operating entities for managing conflicts.
Capabilities, practices and geography will help our teams self-identify and communicate in a clear manner where they sit in the organisation and what role they play.
Post-migration brand architecture and taxonomy will be shared to provide clarity ahead of your brand migration date.
Although we will have a unified brand name, the individual agencies, underlying entities, personnel and required “information walls” shall remain unchanged and effective.
As exclusivity obligations are typically structured geographically based on where services are being provided/deliverables will be utilised, clients will have comfort we can continue to operate as they need from a confidentiality standpoint while sharing a global brand identity.
Accenture prides itself on Information Security (IS).
All employees are well versed in proper actions and precautions to take when dealing with client confidential information and are required to pass Annual IS Trainings tests relating to cybersecurity as well as real world best practices. Further, in the event agencies move into a shared building together and a sensitive project or potential conflict between two clients exists, arises, or is required by contract, client leads will have the ability to arrange for designated client/team areas within the building to ensure no accidental transfer of information occurs.
Operationally nothing changes from when entities were all carrying different brands.
I.e. We will still have separate entities and teams that can be identified and segmented from the others. Further, even in situations where competition and conflict exist between two clients, we have had success managing competing clients within the same agency/entity and geography by providing assurances of operational segmentation and/or “information walls.”
No, we are not planning to roll any personnel off current projects as part of this operational change.
We anticipate this change to be a positive shift that will create a greater strength and momentum for our team, bringing employees together under one united front, working towards a shared purpose.
Use these guidelines to update your signature, Teams backgrounds, and more.
Included in the article are links to the Accenture Song channel social posts - we encourage you to like, comment and share. There will also be a post in Sprinklr Advocacy (along with suggested copy) that you can adapt into your own voice and post on your personal channels. As always, please be thoughtful and use good judgement when posting or engaging on social media.
Talk to your People Lead if you have any questions about sharing publicly.
Talk to your People Lead if you have any questions about sharing publicly.