Yet in 2004 big and successful agencies continue to devote just as much resource to new business as they did in 2002 when the market was flat or falling. I will give you three reasons why I am convinced they are wrong to allocate 20-25 per cent of their billable time to other people’s clients.

First and most obviously, clients expect commitment from agencies of record, and become disillusioned when star performers seem to be spending time on pitches.

Second, and almost as obvious, the relentless new business efforts of rival agencies will destabilise relationships that are being underserviced.

Third, we have observed agencies hell-bent on new business missing out on opportunities to help existing clients grow their business and harvest the organic growth potential arising from that. If my theory is right, how would I suggest agencies behave differently?

One, they should drive client retention and development even harder than they drive new business. Top management should be as involved in retaining clients as they are in winning new business. Equally, agencies should be as proactive in building and inspiring their teams to work across disciplines to deliver synergies to clients as they are in getting on to pitch lists.

Two, agencies should pitch regularly to their own clients. The best solution is the anniversary pitch – to take place on the date of acquiring the account every year. These “pitches” will concentrate on reviewing success so far and looking forward to the next steps.

But it shouldn’t end there. Clients want to know how their agency is doing, and will welcome a formal update of triumphs for other clients, corporate happenings and plans for the future.

Beta Factor agencies win more creative and effectiveness awards, attract superior talent, and rise up the league table. Paradoxically, they also tend to do well in new business – not by selling hard, but by being in demand. That’s what success in developing old business can do.

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