Are agencies damaging their profits by failing to embrace changes in the way they work?
Collectively, there’s nothing that comes close to the creativity, innovation and strive for excellence displayed by the individuals and companies within the creative services industry. Creativity is what your business is built on, what you are passionate about, your USP and how you make your buck.
But why then are some agencies standing still when it comes to managing creativity – and not building in processes and measures to maximise performance and returns? It is a curious juxtaposition and exposes an industry at odds with itself as it struggles to put a price on its service and product. Creativity is in most ways intangible, and it is hard to forecast the success of that next great idea and put a value on it.
It goes beyond just establishing a robust pricing model, because this will always be a moving target as the nature of your services and client demands evolve at ever increasing speeds. But what it does mean is establishing an internal infrastructure to manage and bill these different models, being able to account for your people’s time, and managing efficiency in creative delivery is critical to your agencies success. There is a return on investment that results from deploying an agency management system to do all this and more. Such a system should not be looked at as a ball and chain that will restrict creativity and put added controls on your people. Yes, some change management is definitely going to be required if you are implementing a new system or upgrading, but the resulting impact to your bottom line is worth this short term change. To quote my colleague Ray Kieser, ‘Changing the way you think unlocks greater creativity, but only changing the way you work brings related profit’.
At a minimum, Deltek clients are seeing an uplift of 5% in efficiency from deploying an agency management system, that impacts directly on their bottom line. The vast majority report far greater than this. What does 5% greater annual profits means to your agency - £20,000, £200,000, £2,000,000? Regardless of the scale, the ROI is clear. You can’t afford to do nothing, as the costs of that are endless;
- Loss of visibility across your agency
- Inaccuracies in project scoping antiquated internal processes
- Frustrated creative staff weighed down by admin
- Annoyed clients who lack visibility and schedules
- Damage to cash flow
So the fear of change should not hold your agency or profits hostage. The answer is simple - find out what an agency management system can do for your creative business.