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A place on the advertising roster of COI Communications, which last year recorded an annual advertising spend of pounds 113.5m, out of a total communications budget of almost pounds 200m, is now a coveted prize.

In its remit as the government publicity body, COI briefs offer agencies the chance to influence the public's perception of the new government initiatives. The remit covers areas from blood donation to nursing recruitment. They not only make headlines, but offer the buzz of 'doing something good'.

In the coming weeks, places on the creative agency roster will be up for grabs for the first time since 1997. The COI said last week it would initiate a review in the advertising down-time prior to the general election.

It is likely to kick off as soon as the general election date, expected to be in May, is revealed.

But a place on the COI roster, which includes TBWA/London, Abbott Mead Vickers BBDO, Euro RSCG Wnek Gosper, Delaney Lund Knox Warren, Ogilvy & Mather and St Luke's, is no guarantee that an agency will be awarded one of the more prestigious or well-remunerated advertising and communications initiatives. Once on the roster, agencies are still required to pitch for all new briefs and performance is then closely monitored.

Taking stock of performance

Two years ago the COI, under the guidance of director of marketing communications Peter Buchanan, initiated an agency appraisal system which ranks its current agencies' performances on 18 criteria.

Nine relate to quantifiable performance measurements, such as achieving targets or attitudinal shifts, and nine are concerned with judgmental performance measures such as quick responses to requests or continuity of key personnel.

'It gives our clients in (government) departments a good steer on how successful the agency was in achieving the objectives set out,' says Buchanan.

It also serves to keep agencies on their toes and to boost COI's position as experts on the communication industry. Since the scheme was introduced, the COI has amassed a database of around 60 campaign reports from 18 ad shops. In January it produced a league table, based on the work of 15 agencies on government campaigns during 2000.

Singled out for praise were: WCRS, which worked on the campaign to encourage voting in the London Mayoral election, TBWA/London, which produced campaigns for the Department of Education and Employment; and Cramm Francis Woolf, which worked for the Inland Revenue on payroll giving to charity. Four unnamed agencies were reportedly warned to sharpen up their act.

Buchanan designed the scheme after consultation with agencies, with the Institute of Practitioners in Advertising and with the Government Advisory Committee on Advertising.

He is keen to impress the advantages for both the COI and its clients.

'It gives you insights you wouldn't normally get,' he says. 'For example, one agency has handled four campaigns for us, three scored well, but one scored badly. The important factor turned out to be that we had a different account handling team on one bit of business and that was where the problem had arisen.'

This type of analysis is good news for the client, but surely sends a shudder through agencies? Buchanan admits: 'It makes it more difficult for agencies to wriggle out of the situation.' But he adds: 'It gives both sides a better opportunity to work through any problems.'

Do the agencies agree? 'In many ways it is something we embrace,' says Andy Palmer, managing partner at St Luke's, which has worked on both New Deal and Working Family Tax Credit. 'If the objectives and evaluation criteria are clearly outlined we have them in mind when we're developing the work. We're also not worried about assessment of areas such as service levels because it shows our commitment to the business as a whole.'

Extending appraisal

Not all agencies offer such a whole-hearted level of support: 'The COI assessment does tend to be retrospective,' says one agency insider. In this context the COI assessment scheme becomes more a formal record for the client than a stimulus to sort out areas of difficulty with the agency.

For agencies working on submission documents to impress the COI in the forthcoming statutory review, it might be worth noting that the continuing demand for accountability within the COI means that agency appraisal is likely to grow in importance.

Buchanan admits he is planning to extend the scheme beyond the advertising roster to cover other agencies in the communications spectrum. 'We have a very high level of accountability,' he says. 'Our challenge is we have to constantly strive to add value to what we're doing. This year's added-value becomes next year's norm.'

He also clearly hopes that the COI's agency appraisal scheme is setting a benchmark within the communications industry, where agency assessment tools are becoming commonplace.

Meanwhile, as the COI begins a review of its agencies, it will find itself under appraisal. The government plans to launch a wholesale statutory review of COI Communications. Among the possible options for its future are a wholesale sell-off or the contracting-out of more work to the private sector.

Since 1995, when the government revoked COI's right to run all Whitehall campaigns, it has worked hard to improve both its reputation and its accountability to its clients.

It has come a long way toward achieving success. In 1999-2000 it reported a 15% increase in work from clients and exceeded its pounds 0.1m profit target by pounds 0.8m.

Yet it still has to justify its existence, which it does largely on the basis of the added value to be gained from its consolidated media spend and its marketing expertise, which aids communication between the various ministries and the communications agencies.

As the spotlight falls on COI Communications, this expertise and its database of information on agencies could become a powerful tool in its armoury.

Income analysis by client (pounds 000)

                            1997-8      1998-9    1999-2000

DTI                           4874      20,477       25,913

Education & Employment      16,308      25,737       20,482

DETR                        10,185      10,725       18,619

FCO                           2985         746          573

Health                        4249      12,301       17,909

Home Office                   3816        4014         9434

Inland Revenue                4907        9057       15,028

MOD                         27,805      35,592       27,177

Qualification &

Curriculum Auth.              8347        6231         9684

Social Security               5417        8969         8102

Welsh Office                  1187        2037          586