Tracking AGI is one thing. But, do you know your yield on any given project or client relationship?
For a lot of small and medium-size agencies, lack of and commitment to processes can turn a profitable client into a losing proposition.
I had to learn this the hard way. I want to spare you the profit-draining mistakes I made.
I’m not professing that you need an over-abundance of processes. But, enough to ensure your AGI is profitable AGI.
Here’s a quick tip. Calculate your internal blended hourly rate. Using your projected AGI on any given effort, divide the AGI by the internal blended hourly rate. The result is the number of internal hours you should devote to completing that project.
Sounds simple? Yes, but if you don’t have processes in place to allocate hours to each appropriate function and track those hours, you could discover when you thought your agency was earning an average of $200 an hour, in reality, it’s $75.
This is just one of several ways that processes help you run a profitable, sustainable agency.
Craig really helped me fine-tune our new business and staffing strategies. Asking the right questions and providing the right insights, Craig provided a very practical guide to how to better run my agency. I’m already seeing more ‘at bats’ in new business and tighter integration of account and creative teams, leading to better work for our clients. A very valuable investment in the long-term success of my company.
Rob Rosenberg, President
Springboard Brand & Creative Strategy – Chicago
We can help you by conducting an audit of your current processes and then develop a plan, along with implementation assistance to shore things up.
This takes a top-down commitment. We’ll work with you and your staff to successfully adopt and embrace putting the appropriate processes in place for your agency. Sometimes, it’s just a couple of small changes that will make the most difference to your overall profitability.
Here’s a partial list of how we’ve helped other agencies:
- Establishing productive vendor management processes, including helping agencies move vendors from hourly. rate relationships to fixed-price agreements.
- Creating scope-of-work documents that protect agencies from “scope creep.”
- Fine tuning strategy and creative briefs that better define and align client expectations.
- Firming up processes for efficient creation and consistent time frames for delivery of client conference/meeting reports.
- Developing better billing practices.
- KPI dashboards to monitor agency financial health.
- Workflow and traffic systems for improved efficiency.
As with our other consulting services, we’ll first assess where you are and then develop recommendations. Call us 314-409-1063 or send an email to schedule a time to talk about increasing your yields. We can also assess your account teams’ performance and their AGI production.