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	<title>Agency Management Institute</title>
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		<title>The Agency Owner’s Guide to Finding the Right Peer Group</title>
		<link>https://agencymanagementinstitute.com/the-agency-owners-guide-to-finding-the-right-peer-group/</link>
		
		<dc:creator><![CDATA[Drew McLellan]]></dc:creator>
		<pubDate>Thu, 05 Mar 2026 22:11:11 +0000</pubDate>
				<category><![CDATA[Agency leadership]]></category>
		<category><![CDATA[Agency Management]]></category>
		<guid isPermaLink="false">https://agencymanagementinstitute.com/?p=24255</guid>

					<description><![CDATA[Running a marketing agency is often a lonely endeavor. While you have a team to lead and clients to serve, there are few people who truly understand the weight of making payroll or the nuances of agency-specific scaling. This is where peer groups become essential. Why Agency Peer Groups are Essential for Growth A peer  [...]]]></description>
										<content:encoded><![CDATA[<p>Running a marketing agency is often a lonely endeavor. While you have a team to lead and clients to serve, there are few people who truly understand the weight of making payroll or the nuances of agency-specific scaling. This is where peer groups become essential.</p>
<p><strong>Why Agency Peer Groups are Essential for Growth<br />
</strong>A peer group isn&#8217;t just a networking circle; it is a confidential board of advisors. For agency owners, these groups provide two critical components that are hard to find elsewhere: unfiltered best practices and comparative financial benchmarks.</p>
<ul>
<li>Perspective: See how other owners handle similar staffing or client challenges.</li>
<li>Accountability: Peer pressure from other successful owners keeps you focused on your long-term goals.</li>
<li>Benchmarks: Access to data on AGI (Adjusted Gross Income), overhead ratios, and profitability targets.</li>
</ul>
<p><strong>What to Look for in a High-Value Peer Group<br />
</strong>Not all groups are created equal. To ensure you are getting the most out of your investment, look for the following criteria:</p>
<ol>
<li><strong>Financial Transparency</strong><br />
The hallmark of a professional agency peer group is the willingness to share numbers. You cannot improve what you do not measure. A group should facilitate the sharing of P&amp;L statements in a standardized format so you can compare your performance against the industry&#8217;s top performers.<br />
2. <strong>Non-Competitive Environments</strong><br />
To ensure total honesty, most elite groups—including those at Agency Management Institute—ensure that no two members in the same room are direct competitors in terms of geography or niche.<br />
3.<strong> Expert Facilitation</strong><br />
Self-managed groups often lose momentum or devolve into social clubs. Professional facilitation ensures the conversation stays focused on high-level strategy, financial health, and operational excellence.</li>
</ol>
<p><strong>How to Evaluate Peer Group Options<br />
</strong>When researching groups, ask the following questions to the organizer:</p>
<ul>
<li>What is the average tenure of the members in the group?</li>
<li>What specific financial benchmarks do we track and compare?</li>
<li>How are the meetings structured? (In-person vs. Virtual)</li>
<li>Is there a vetting process to ensure all members are of a similar agency size or maturity?</li>
</ul>
<p><strong>Conclusion: Investing in Your Leadership<br />
</strong>Joining a peer group is an investment in your agency’s future and your own sanity. By surrounding yourself with owners who have already solved the problems you are currently facing, you shorten your learning curve and increase your agency&#8217;s valuation.</p>
<p>Ready to find your tribe? <a href="https://agencymanagementinstitute.com/memberships/live-owner-peer-groups/">Explore the AMI Peer Groups</a> to see if you qualify for a seat at the table.</p>
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		<title>Agency Health Check Up</title>
		<link>https://agencymanagementinstitute.com/healthcheckup/</link>
		
		<dc:creator><![CDATA[Drew McLellan]]></dc:creator>
		<pubDate>Mon, 09 Jun 2025 17:31:19 +0000</pubDate>
				<category><![CDATA[Agency leadership]]></category>
		<category><![CDATA[Agency Operations]]></category>
		<guid isPermaLink="false">https://agencymanagementinstitute.com/?p=23178</guid>

					<description><![CDATA[We do a lot of strategic consulting with agencies and, over the years, we've created what we call Agency Advantage.  It's what would happen if all of the generic management systems out there -- EOS, Rockefeller Habits, E-Myth, Lean Start Up, Balanced Scorecard, McKinsey 7S framework etc., had a baby but specially designed it to  [...]]]></description>
										<content:encoded><![CDATA[<p>We do a lot of strategic consulting with agencies and, over the years, we&#8217;ve created what we call Agency Advantage.  It&#8217;s what would happen if all of the generic management systems out there &#8212; EOS, Rockefeller Habits, E-Myth, Lean Start Up, Balanced Scorecard, McKinsey 7S framework etc., had a baby but specially designed it to be the perfect fit for small to mid-sized agencies like yours.</p>
<p>One of the tools we&#8217;ve developed for Agency Advantage clients is what we have brilliantly called the Agency Health Check Up. It consists of 20 questions that will quickly help you diagnose where your agency needs leadership attention and focus.</p>
<p>You&#8217;re welcome to download the <a href="https://agencymanagementinstitute.com/wp-content/uploads/2025/06/Agency-Check-Up.pdf">Agency Health Check-Up</a> here.</p>
<p>To use it most effectively &#8212; have your entire leadership team take the check-up independently each quarter.  Share the results. Tally up the questions where you consistently score the lowest and make 2-3 your priority focus items for the quarter.  The goal, as you might guess, is to keep improving your overall score to build a healthier agency.</p>
<p>BTW &#8212; every single item on the check-up is a factor in determining the value of your agency.  If you want to sell in the next 5-7 years&#8230; NOW is the time to start using the health check-up to increase the value of your agency.</p>
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		<title>Here’s why most agencies are leaking revenue (and how to fix it)</title>
		<link>https://agencymanagementinstitute.com/heres-why-most-agencies-are-leaking-revenue-and-how-to-fix-it/</link>
		
		<dc:creator><![CDATA[Drew McLellan]]></dc:creator>
		<pubDate>Wed, 04 Jun 2025 17:03:23 +0000</pubDate>
				<category><![CDATA[Agency math/finances]]></category>
		<category><![CDATA[Agency Operations]]></category>
		<guid isPermaLink="false">https://agencymanagementinstitute.com/?p=23144</guid>

					<description><![CDATA[Submitted by Ignition (a BABA Summit sponsor)   If you’re running a creative or marketing agency in 2025, chances are you’ve already increased your rates or are seriously considering it. According to new data from Ignition’s 2025 Agency Pricing &amp; Cash Flow Report, 97% of agencies plan to raise prices this year. But pricing is  [...]]]></description>
										<content:encoded><![CDATA[<p>Submitted by <a href="https://www.ignitionapp.com/">Ignition</a> (a BABA Summit sponsor)</p>
<p>&nbsp;</p>
<p>If you’re running a creative or marketing agency in 2025, chances are you’ve already increased your rates or are seriously considering it. According to new data from <a href="https://www.ignitionapp.com/2025-agency-pricing-cashflow-report">Ignition’s 2025 Agency Pricing &amp; Cash Flow Report</a>, 97% of agencies plan to raise prices this year. But pricing is only part of the equation.Despite the uptick in rates, many agencies are still quietly leaking revenue. From unbilled work to late payments and inconsistent revenue streams, the most common financial issues agencies face are less about what they charge and more about how they operate.</p>
<p>Ignition’s report, based on a survey of over 270 U.S.-based agency leaders, illuminates where money is slipping through the cracks and what smart agencies are doing to stop it.</p>
<p><strong>Scope Creep: The Hidden Drain on Profitability</strong></p>
<p>Nearly 80% of agencies say they rarely or only sometimes charge for work that falls outside the original scope of a project. More than half estimate they’re losing between $1,000 and $5,000 each month. For 30% of agencies, those losses exceed $5,000 per month.</p>
<p>That’s not just a margin issue, it’s a growth problem.</p>
<p>Scope creep often begins innocently: a few extra revisions, an unplanned strategy call, a bonus round of creative. But over time, these extras add up. And when teams absorb them without compensation, they reinforce the idea that boundaries are flexible and service is unlimited.</p>
<p><strong>How to Respond:</strong></p>
<ul>
<li><strong>Clarify the scope up front</strong>. Every proposal should spell out what’s included, how many revisions are allowed, and what happens if the project grows.</li>
<li><strong>Walk through the contract live</strong>. A live review helps ensure the client understands (and agrees with) the scope boundaries.</li>
<li><strong>Build a change order habit</strong>. Normalize the idea that additional work requires additional agreement. This will protect your team and keep projects profitable.</li>
</ul>
<p>Agencies treating scope discipline as a business necessity, not a client risk, are far better positioned to maintain margins and relationships.</p>
<p><strong>Hourly Billing: Familiar, But Flawed</strong></p>
<p>Despite the growing popularity of value-based pricing, nearly 30% of agencies still rely on hourly billing as their default model. It’s familiar and easy to explain, but it often undervalues strategic work and ties your income to your effort, not your impact.</p>
<p>By contrast, nearly an equal share of agencies are adopting subscription-style or productized services. This shift is particularly common among firms offering recurring services like content marketing, digital advertising, or web maintenance.</p>
<p>The benefits are clear: predictable revenue, better margins, and fewer disputes over how many hours were logged.</p>
<p><strong>What to Consider:</strong></p>
<ul>
<li><strong>Package your services</strong>. Take repeatable projects and bundle them into fixed-scope offerings.</li>
<li><strong>Offer tiered options</strong>. Let clients choose between service levels (i.e., basic, premium)</li>
<li><strong>Anchor pricing in value</strong>. Don’t just think in terms of deliverables. What outcome are you helping the client achieve?</li>
</ul>
<p>It’s not about abandoning time tracking altogether. It’s about aligning what you charge with the value you deliver.</p>
<p><strong>Late Payments Are a Structural Problem</strong></p>
<p>According to the report, 97% of agencies deal with late client payments. 71% say at least one in four invoices is overdue, and 56% say clients typically pay two to eight weeks after the invoice due date.</p>
<p>When agencies operate on thin margins or rely heavily on one-time projects, that delay isn’t just inconvenient, it’s risky.<br />
The issue isn’t just client behavior. Many agencies still rely on manual invoicing, follow-up emails, and a “we’ll send it when we remember” approach to collections. Only 16% ask for full payment up front, and only a fraction use automated billing platforms that collect payment details in advance.</p>
<p><strong>What Works:</strong></p>
<ul>
<li><strong>Get paid before the work starts</strong>. Even a partial deposit helps filter serious clients and stabilize cash flow.</li>
<li><strong>Automate follow-ups</strong>. Systems that send reminders or auto-debit accounts eliminate most of the awkwardness of chasing money.</li>
<li><strong>Enforce consequences</strong>. If your contract includes late fees, apply them. Respect for your process starts with you.</li>
</ul>
<p>Waiting 30 to 60 days to get paid is the equivalent of giving clients an interest-free loan. That’s money you could be using to pay staff, invest in tools, or fund growth.</p>
<p><strong>Chasing Consistency in Revenue</strong></p>
<p>Beyond scope creep and late payments, the broader problem many agencies face is inconsistency. According to the report, only 8% of agencies say their monthly revenue is highly predictable. Most are operating in a cycle of feast and famine.</p>
<p>This volatility makes it difficult to plan, hire, or invest. And while retainers and recurring work aren’t the right fit for every agency, most firms have at least one service they could package that way.</p>
<p><strong>Ideas to Explore</strong>:</p>
<ul>
<li><strong>Add a follow-on plan</strong>. After a project wraps, offer a monthly support, content, or optimization package.</li>
<li><strong>Start small.</strong> You don’t need to convert all clients to retainers. Even a handful of recurring contracts can add financial stability.</li>
<li><strong>Forecast regularly</strong>. Build a rolling three- to six-month projection that accounts for active proposals, likely renewals, and payment timelines.</li>
</ul>
<p>Agencies with even modest recurring revenue report more confidence in hiring, investing, and scaling.</p>
<p><strong>Strong Operations = Strong Margins</strong></p>
<p>The need for operational structure is what ties all these issues together—pricing, scope, billing, and cash flow. The most resilient agencies aren’t just good at client work but also at running a business.</p>
<p>That doesn’t mean building a bureaucratic machine. It means implementing repeatable systems so your team doesn’t have to reinvent the wheel with every new project.</p>
<p><strong>Try This:</strong></p>
<ul>
<li><strong>Audit your proposal templates</strong>. Are the scope boundaries clear? Do they include payment terms and renewal clauses?</li>
<li><strong>Create a billing playbook</strong>. Standardize how and when you invoice, follow up, and escalate.</li>
<li><strong>Schedule routine check-ins</strong>. Make pricing reviews and client renewals a recurring part of your quarterly planning.</li>
</ul>
<p>These are the unglamorous habits that quietly protect your revenue.</p>
<p><strong>A Wake-Up Call Worth Heeding</strong></p>
<p>The findings from Ignition’s 2025 Agency Pricing &amp; Cash Flow Report serve as a timely reminder. Agencies aren’t just losing money from poor pricing—they’re leaking it through inconsistent practices, outdated billing models, and a reluctance to enforce boundaries.</p>
<p>But none of this is inevitable.</p>
<p>Better systems are within reach, whether you’re a two-person shop or a 50-person firm. And the payoff isn’t just profitability. It’s peace of mind. It’s clarity about what’s coming next, and it’s the ability to focus on creative work without constantly worrying about whether the invoices will clear.</p>
<p>Want to benchmark your own agency? Read the full report at <a href="https://www.ignitionapp.com/2025-agency-pricing-cashflow-report">ignitionapp.com/2025-agency-pricing-cashflow-report</a>.</p>
<p>&nbsp;</p>
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		<title>Do you have a feedback approval clause in your SOWs?</title>
		<link>https://agencymanagementinstitute.com/do-you-have-a-feedback-approval-clause-in-your-sows/</link>
		
		<dc:creator><![CDATA[Drew McLellan]]></dc:creator>
		<pubDate>Tue, 04 Jun 2024 16:59:39 +0000</pubDate>
				<category><![CDATA[Agency Operations]]></category>
		<category><![CDATA[Client Relationships]]></category>
		<category><![CDATA[Legal Issues]]></category>
		<guid isPermaLink="false">https://agencymanagementinstitute.com/?p=22002</guid>

					<description><![CDATA[Ahhh, the joys of getting client feedback on time. If anything throws our work out of scope, it's revisions and feedback debacles.  One way to protect your agency and your client's budget is to define the rules of engagement upfront. You'll want to wordsmith this into your style and specific rules, but it's a good  [...]]]></description>
										<content:encoded><![CDATA[<p>Ahhh, the joys of getting client feedback on time. If anything throws our work out of scope, it&#8217;s revisions and feedback debacles.  One way to protect your agency and your client&#8217;s budget is to define the rules of engagement upfront.</p>
<p>You&#8217;ll want to wordsmith this into your style and specific rules, but it&#8217;s a good starting point.</p>
<p>In the event that [Client Name], hereinafter referred to as the &#8220;Client,&#8221; receives a request for feedback from [Your Agency Name], hereinafter referred to as the &#8220;Agency,&#8221; the Client agrees to provide feedback within three (3) business days from the date of receiving such a request.</p>
<p>If the Client fails to respond with feedback within the specified three (3) business days, it shall be deemed that the Client has reviewed and approved the work or matter in question. The Agency may proceed with the work, project, or matter as if it has received explicit approval from the Client, and the Client shall be bound by any decisions or actions taken by the Agency based on the assumption of approval.</p>
<p>It is the Client&#8217;s responsibility to ensure that timely feedback is provided to the Agency. The Client acknowledges that the failure to provide feedback within the specified timeframe may result in delays, additional costs, or other adverse consequences, and the Agency shall not be held liable for any such consequences.</p>
<p>This clause is intended to streamline the communication and approval process between the Client and the Agency. The Client understands that their failure to respond within the stipulated time frame will be construed as their explicit approval, and they shall have no claim or dispute related to the matter in question-based on lack of feedback.</p>
<p>This clause is an integral part of the Client Agreement between [Client Name] and [Your Company Name], and both parties agree to abide by its terms.</p>
<p>Client Name: _____________________________</p>
<p>Client Signature: ___________________________</p>
<p>Date: _____________________________</p>
<p>Your Agency Name: _____________________________</p>
<p>Agency Signature: ___________________________</p>
<p>Date: _____________________________</p>
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		<title>Employee versus contractor &#8212; where do they live in your P&#038;L?</title>
		<link>https://agencymanagementinstitute.com/employee-versus-contractor-where-do-they-live-in-your-pl/</link>
		
		<dc:creator><![CDATA[Drew McLellan]]></dc:creator>
		<pubDate>Sun, 18 Feb 2024 00:28:26 +0000</pubDate>
				<category><![CDATA[Agency math/finances]]></category>
		<category><![CDATA[Agency Operations]]></category>
		<guid isPermaLink="false">https://agencymanagementinstitute.com/?p=21600</guid>

					<description><![CDATA[This may be one of the hottest debated topics when it comes to agency math.  Many generalist accountants want to include ALL labor expenses in your cost of goods.  Others, want to just include your billable staff in cost of goods and count your non-producers as overhead. All of them are wrong when it comes  [...]]]></description>
										<content:encoded><![CDATA[<p>This may be one of the hottest debated topics when it comes to agency math.  Many generalist accountants want to include ALL labor expenses in your cost of goods.  Others, want to just include your billable staff in cost of goods and count your non-producers as overhead.</p>
<p>All of them are wrong when it comes to agency math.  This is why you need an accountant with lots of experience working with agencies.</p>
<p>Before we dissect this… let’s review.</p>
<ul>
<li>Gross billings is everything that shows up on all of your invoices to clients.</li>
<li>Cost of goods (COGS) are expenses you incur on behalf of a client (media, printing, photography, influencer fees, contractors/freelancers, etc.). The key to this is… if you didn’t have a particular client or weren’t working on a particular project, you would not just buy these things or give these people money.</li>
<li>Adjusted gross income (AGI) is what’s left after you subtract the cost of goods from your gross billings.  AGI is the money you get to keep to run your agency.  You use that money for your loaded payroll/people expenses and overhead expenses, and hopefully, there’s some left over for profit.</li>
</ul>
<p>ANY employee (not a contractor or freelancer) falls below the line and is part of your adjusted gross income calculations.  It’s the only way all financial metrics/KPIs specific to agencies will work.  But what about contractors?</p>
<p>It used to be very simple.  All contractors, except for outsourced admin resources like an accountant or attorney, were coded as cost of goods.</p>
<p>This will be easier to understand if we get specific.  So, let’s create a cast of characters.</p>
<ol>
<li>Babette is a W2 (in the US) employee</li>
<li>Jack is a US-based independent contractor/freelance graphic designer who works for your agency episodically – about 40 hours a month.  You send Jack a 1099 each year.</li>
<li>Mabel is an Australian web coder who works 30 hours a week for your agency. If she were US-based, you would send her a 1099.</li>
<li>Jasmine is an independent contractor/freelance writer who works 40 hours a month for your agency. You send Jasmine a 1099 each year.</li>
<li>Doug is your outsourced accountant.  You send Doug a 1099 each year.</li>
</ol>
<p>From your P&amp;L’s perspective, here’s how you would sort these 5 people.</p>
<ol>
<li>Babette – part of your AGI expenses (payroll/people)</li>
<li>Jack – COGS</li>
<li>Mabel &#8211; COGS</li>
<li>Jasmine – although the IRS might argue the point because you violate the rules of what should be an employee – she’d be a COG.</li>
<li>Doug – part of your AGI expenses (overhead). Imagine Doug is not just Doug but it’s Doug’s accounting firm.  That’s one way to help this make sense.</li>
</ol>
<p>But today, a new role is emerging.</p>
<p>Many agencies are going through offshore employment agencies and HIRING a full-time staff member who happens to live in a foreign land. They are treated like true employees (get paid vacation, etc.) and are completely dedicated to the agency for 40+ hours. The only reason they do not get a W2 is that they don’t live in the US (or the country that the agency is based in).</p>
<p>Here’s the defining difference.  You pay this person for their 40-hour workweek, whether on vacation, fully billable, working on internal projects, or attending internal staff meetings.  They have a paid benefits package that is part of their compensation from you but supplied by the employment agency because they’re in the same country. They participate in things like agency outings, team meetings, retreats (even if they connect remotely), and your bonus program.</p>
<p>We will call this new type of employee Penelope.  Where would you put her on your P&amp;L?  If Penelope lived in the US (or your country) – she’d get a W2 (or your country’s equivalent like Canada’s T4 slip/Statement of Remuneration or the UK’s For P60 or Australia’s PAYG summary).</p>
<p>The ONLY reason Penelope doesn’t get your government’s version of the W2 is that she is a foreigner. Therefore… her compensation (even though you pay it through a third-party employment company) would be part of your AGI expense (payroll/people).</p>
<p>Going back to our previous example but adding Penelope:</p>
<ol>
<li>Babette is a W2 (in the US) employee</li>
<li>Penelope is the equivalent of a W2 employee and, for accounting purposes, is considered an employee</li>
<li>Jack is an independent contractor/freelance graphic designer who works for your agency episodically – about 40 hours a month.  You send Jack a 1099 each year.</li>
<li>Mabel is an Australian web coder who works 30 hours a week for your agency. If she were US-based, you would send her a 1099.</li>
<li>Jasmine is an independent contractor/freelance writer who works 40 hours a month for your agency. You send Jasmine a 1099 each year.</li>
<li>Doug is your outsourced accountant.  You send Doug a 1099 each year.</li>
</ol>
<p>From your P&amp;L’s perspective, here’s how you would sort these 6 people.</p>
<ol>
<li>Babette – part of your AGI expenses (payroll/people)</li>
<li>Penelope – part of your AGI expenses (payroll/people)</li>
<li>Jack – COGS</li>
<li>Mabel &#8211; COGS</li>
<li>Jasmine – although the IRS might argue the point because you violate the rules of what should be an employee – she’d be a COG.</li>
<li>Doug – part of your AGI expenses (overhead). Imagine that Doug is not just Doug, but also Doug’s accounting firm.  That’s one way to help this make sense.</li>
</ol>
<p>Hopefully, this is helpful as you talk with your accountant about the KPIs that matter to agencies and why you must get this right.</p>
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		<title>7 Practical Mental Models for Digital Agency Owners&#8217; Success</title>
		<link>https://agencymanagementinstitute.com/7-practical-mental-models-for-digital-agency-owners-success/</link>
		
		<dc:creator><![CDATA[Manish Dudharejia]]></dc:creator>
		<pubDate>Tue, 23 Jan 2024 05:11:14 +0000</pubDate>
				<category><![CDATA[Agency Management]]></category>
		<guid isPermaLink="false">https://agencymanagementinstitute.com/?p=21550</guid>

					<description><![CDATA[A guest post by Build A Better Agency Sponsor Manish Dudharejia from e2msolutions Building and scaling a digital agency comes with its unique set of challenges. In the dynamic world of digital marketing, success often hinges on making effective decisions. To navigate this landscape, digital agency owners can benefit from adopting practical mental models that  [...]]]></description>
										<content:encoded><![CDATA[<p>A guest post by <a href="https://agencymanagementinstitute.com/babasummit/">Build A Better Agency Sponsor</a> Manish Dudharejia from <a href="https://www.e2msolutions.com/">e2msolutions</a></p>
<p>Building and scaling a digital agency comes with its unique set of challenges. In the dynamic world of digital marketing, success often hinges on making effective decisions. To navigate this landscape, digital agency owners can benefit from adopting practical mental models that serve as guiding frameworks for decision-making. Let&#8217;s explore seven such practical mental models that can contribute to the success of digital agency owners.</p>
<ol>
<li><strong>Build with Generalists, Scale with Specialists</strong></li>
</ol>
<p>In the words of venture capitalist Vinod Khosla, <em>&#8220;While Building, Hire Generalists While Scaling, Hire Specialists.&#8221;</em> This mental model underscores the importance of crafting an agile and versatile team during the initial stages of building your agency. Generalists bring a diverse skill set to the table, enabling the agency to adapt to various challenges.</p>
<p>As the agency grows, the focus shifts to specialization. Specialists bring in-depth knowledge and expertise, allowing the agency to delve deeper into specific niches and provide unparalleled services. Striking a balance between generalists and specialists ensures a robust and adaptable team capable of meeting the evolving needs of clients.</p>
<ol start="2">
<li><strong>Hire Job-Doers, Title-Givers Later</strong></li>
</ol>
<p>Often, rigid job titles can limit the potential of team members. The mental model here suggests <em>&#8220;Hire people who’re doing a job without a job title and then give a title to them.&#8221;</em> This approach encourages agency owners to prioritize skills and performance over predefined roles.</p>
<p>By recruiting individuals based on their ability to get the job done, agency owners can assemble a team that is not bound by traditional job descriptions. After understanding each team member&#8217;s strengths and contributions, titles can be assigned accordingly. This flexible approach fosters a culture of adaptability and continuous learning within the agency.</p>
<ol start="3">
<li><strong>Trust First, Gain Trust Later</strong></li>
</ol>
<p>Building a strong foundation of trust is crucial for any successful team. The mental model <em>&#8220;Trust people at the first place in order to gain their trust back&#8221;</em> emphasizes the importance of establishing trust from the outset. Trust is a two-way street; by extending trust to team members, agency owners can create a positive work environment.</p>
<p>This approach encourages open communication and collaboration, laying the groundwork for a cohesive team. Trust gained early on contributes to a work atmosphere where individuals feel empowered and supported, ultimately fostering creativity and innovation.</p>
<ol start="4">
<li><strong>Align Incentives for Collective Success</strong></li>
</ol>
<p>The <a href="https://www.e2msolutions.com/blog/solve-principal-agent-problem-to-build-successful-digital-agency/">principal-agent problem</a> is a common challenge in agency-client relationships. To address this, the mental model <em>&#8220;Your incentives and incentives of people who work on behalf of you for your clients should be aligned&#8221;</em> highlights the importance of shared goals.</p>
<p>Ensuring that the interests of your team align with the agency&#8217;s objectives and, critically, with the goals of your clients, promotes a collaborative mindset. This alignment minimizes conflicts of interest and creates a collective focus on delivering successful outcomes for both the agency and its clients.</p>
<ol start="5">
<li><strong>Embrace Radical Candor for Growth</strong></li>
</ol>
<p>Constructive feedback is a cornerstone of growth. The mental model &#8220;Follow 4A Radical candor system framework mentioned in <a href="https://www.norulesrules.com/">No Rules Rules: Netflix and the Culture of Reinvention book</a>&#8221; encourages digital agency owners to adopt a culture of radical candor.</p>
<p>The 4A Radical Candor system, as outlined in the book &#8216;No Rules Rules: Netflix and the Culture of Reinvention,&#8217; provides a framework for delivering honest feedback while maintaining a supportive environment. Embracing radical candor fosters a culture of continuous improvement, enabling team members to learn and grow.</p>
<ol start="6">
<li><strong>Delegate Tasks to the Passionate</strong></li>
</ol>
<p>Time is a precious resource, and agency owners must use it wisely. The mental model &#8220;Look for the person who loves to do what you hate to do&#8221; suggests identifying team members who are passionate about tasks that may be challenging for the agency owner.</p>
<p>Delegating responsibilities to individuals who genuinely enjoy specific aspects of the work not only enhances efficiency but also contributes to a more engaged and satisfied team. This approach allows agency owners to focus on strategic aspects of the business, knowing that tasks are in the hands of passionate and capable individuals.</p>
<ol start="7">
<li><strong>The L.I.O.N Framework: Sprint When Inspired. Rest. Repeat.</strong></li>
</ol>
<p>Productivity is not about constant hustle; it&#8217;s about strategic bursts of energy. The L.I.O.N Framework, encapsulated in the mantra <em>&#8220;Sprint When Inspired. Rest. Repeat,&#8221;</em> encourages digital agency owners to recognize and capitalize on moments of inspiration.</p>
<p>Instead of adhering to a relentless work pace, this model advocates for periods of intense productivity when motivation is high, followed by deliberate periods of rest. This cyclical approach enhances overall productivity, prevents burnout, and allows for sustained creativity over the long term.</p>
<p>In conclusion, adopting these practical mental models can empower digital agency owners to make informed decisions, foster a positive work culture, and ultimately drive the success of their businesses. By integrating these frameworks into their approach, agency owners can navigate the challenges of the digital landscape with confidence and resilience.</p>
<p><strong>Mental Model Framework Resources</strong></p>
<p>To further delve into the world of mental models, digital agency owners can explore resources from thought leaders in the field:</p>
<p><a href="https://fs.blog/">Farnam Street</a> – Visit Fs.Blog for insights on clear thinking by Shane Parrish.</p>
<p><a href="https://jamesclear.com/">James Clear</a> &#8211; Subscribe to &#8216;The 3-2-1 Newsletter&#8217; for concise and actionable advice on habits and decision-making.</p>
<p><a href="https://www.navalmanack.com/">The Almanack Of Naval Ravikant</a> &#8211; Explore the wisdom of Naval Ravikant, a renowned entrepreneur and investor, for profound insights into life and business.</p>
<p>&nbsp;</p>
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		<title>What is undersharing costing you?</title>
		<link>https://agencymanagementinstitute.com/what-is-undersharing-costing-you/</link>
		
		<dc:creator><![CDATA[Drew McLellan]]></dc:creator>
		<pubDate>Fri, 11 Aug 2023 12:57:34 +0000</pubDate>
				<category><![CDATA[Uncategorized]]></category>
		<guid isPermaLink="false">https://agencymanagementinstitute.com/?p=21117</guid>

					<description><![CDATA[We spent the weekend in Dallas as I completed a bucket list goal of seeing a baseball game in every ballpark in North America. After pursuing that goal for 15+ years, just walking into the final ballpark was going to be pretty exciting. But I couldn’t have imagined just how amazing the weekend would turn  [...]]]></description>
										<content:encoded><![CDATA[<p class="bard-text-block style-scope">We spent the weekend in Dallas as I completed a bucket list goal of seeing a baseball game in every ballpark in North America.</p>
<p class="bard-text-block style-scope">After pursuing that goal for 15+ years, just walking into the final ballpark was going to be pretty exciting. But I couldn’t have imagined just how amazing the weekend would turn out to be.</p>
<p class="bard-text-block style-scope">Danyel and I could have just gone to the game, and it would have been awesome. But I’d been sharing this goal with people for years. Odds are, even if we’ve never met, you probably know I’ve been chasing this dream for a long time. As a result of sharing that goal, people wanted to help or participate. They’d ask which parks I had left. I got invited to games or people offered to get on a plane and meet me at the final ballparks.</p>
<p class="bard-text-block style-scope">They were cheering me on and felt engaged.</p>
<p class="bard-text-block style-scope">As a result, for my final ballpark — we were surrounded by 30 family and friends who were very invested and wanted to celebrate the milestone with us. Their participation made it so much more than just a checking of the box.</p>
<p class="bard-text-block style-scope">At AMI we are constantly reminding you that we learn faster and better when we learn together. That’s true inside our shops as well.</p>
<p class="bard-text-block style-scope">One of the things we hear from your employees over and over is “I wish we understood the agency’s/owner’s goals so I could help us get there.”</p>
<p class="bard-text-block style-scope">I know you think you share the goals. But most of you don’t do it often enough, with enough detail or context so they get excited about helping you get there.</p>
<p class="bard-text-block style-scope">This has been a tough year for many of you and I know that’s weighing on you. But many of you are bearing this weight alone. Or maybe sharing it occasionally with your leadership team.</p>
<p class="bard-text-block style-scope">A couple weeks ago, we facilitated our Digital Summit and hung out with 50+ agency employees. The common denominator was that they all desperately want to contribute. They want to be amazing team players. They’re hungry to be vitally useful to you, your team, and your clients.</p>
<p class="bard-text-block style-scope">The truth is, no one can help us accomplish our goals if they don’t know what they are. Your employees want to contribute. Let them.</p>
<p class="bard-text-block style-scope">As summer winds down and we think about the final months of 2023, make the agency goals (and not just the financial goals) a part of your ongoing conversations. Invite them to help you find solutions. Share progress and obstacles.</p>
<p class="bard-text-block style-scope">You will get there faster together.</p>
<p>&nbsp;</p>
<p><i><span style="font-weight: 400;">This was originally published in the weekly AMI newsletter.  To subscribe, click</span></i><a href="https://agencymanagementinstitute.com/newsletter-sign-up-form/"> <i><span style="font-weight: 400;">here.</span></i></a></p>
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		<title>How do you eat an elephant?</title>
		<link>https://agencymanagementinstitute.com/how-do-you-eat-an-elephant/</link>
		
		<dc:creator><![CDATA[Drew McLellan]]></dc:creator>
		<pubDate>Fri, 04 Aug 2023 11:30:57 +0000</pubDate>
				<category><![CDATA[Uncategorized]]></category>
		<guid isPermaLink="false">https://agencymanagementinstitute.com/?p=21002</guid>

					<description><![CDATA[(Or a HUGE zucchini if you’re a vegetarian)   When I was a kid, my mom kept a vegetable garden. I’m not going to disparage her abilities but let’s say that we still bought a lot of vegetables every summer! Which made my mom’s crowning achievement as a gardener all the more amazing. One morning,  [...]]]></description>
										<content:encoded><![CDATA[<h1 class="bard-text-block style-scope">(Or a HUGE zucchini if you’re a vegetarian)</h1>
<p>&nbsp;</p>
<p class="bard-text-block style-scope">When I was a kid, my mom kept a vegetable garden. I’m not going to disparage her abilities but let’s say that we still bought a lot of vegetables every summer! Which made my mom’s crowning achievement as a gardener all the more amazing.</p>
<p class="bard-text-block style-scope">One morning, while she was weeding, she discovered a ginormous zucchini. Like the size of your thigh level zucchini. In fact, it was so big the local TV news did a story on it. (Imagine a camera crew in our backyard while my mom hoists this monstrosity of a vegetable in her arms — clearly a slow news day!) We ate that zucchini for days.</p>
<p class="bard-text-block style-scope">In a vast number of different ways. There’s no way we could have consumed it all in one meal, even if we’d invited the entire neighborhood. It was definitely a one bite at a time task.</p>
<p class="bard-text-block style-scope">Whether you’ve owned your agency for 20 years or 20 months&#8230; it’s a work in progress. I don’t know about you, but I find that both incredibly frustrating and equally exhilarating.</p>
<p class="bard-text-block style-scope">After many years of facilitating our agency specific version of Traction, I can tell you one of the biggest obstacles to improving your agency is that you are overly ambitious. You bite off more than you and your team can possibly chew and when it gets overwhelming (which it does pretty quickly) you abandon all of the efforts.</p>
<p class="bard-text-block style-scope">It takes a lot of patience and discipline to recognize that the ONLY way you can create sustainable, meaningful change in your agency is to eat the elephant (or zucchini) one bite at a time. An agency cannot focus on more than 3-4 big initiatives a quarter. And you aren’t going to get something big done faster than 3 months unless you put a dedicated FT team member on it for 40+ hours a week.</p>
<p class="bard-text-block style-scope">So let’s assume you’re with me on reducing the number of big goals you’re going to try to accomplish and you’re going to be reasonable about how quickly you can complete one.</p>
<p class="bard-text-block style-scope">The next question becomes when you have so many ideas, priorities, opportunities and challenges — how do you know where to focus your attention?</p>
<p class="bard-text-block style-scope">That’s why we created the agency check up! (<a class="bard-text-block style-scope" href="https://agencymanagementinstitute.com/wp-content/uploads/2023/07/Agency-Check-Up.pdf" target="_blank" rel="noopener" data-track-key="link_41975">Download it here</a>)</p>
<p class="bard-text-block style-scope">Take this simple assessment (a smart thing to do with your leadership team) and see what patterns and priorities emerge. Then, rank them in order of importance and ideate how you’d like to improve your score/outcome.</p>
<p class="bard-text-block style-scope">Take the top 3-4 solutions (which all may be focused on one problem area or might be scattered among a couple) and assign them an owner. This person is responsible for getting the solution implemented. That does not mean they have to do all the work. They might form a task force or partner up with someone else on the leadership team.</p>
<p class="bard-text-block style-scope">But it’s their job to get it done and in place by the end of the quarter.</p>
<p class="bard-text-block style-scope">If you try this — mark your calendar for one year from today. Call it the Eating the Elephant review. I think you’re going to be astonished at how much you actually completed and accomplished.</p>
<p class="bard-text-block style-scope">It turns out that when it comes to agency growth and improvement, slow and steady does in fact win the race.</p>
<p>&nbsp;</p>
<p><i><span style="font-weight: 400;">This was originally published in the weekly AMI newsletter.  To subscribe, click</span></i><a href="https://agencymanagementinstitute.com/newsletter-sign-up-form/"> <i><span style="font-weight: 400;">here.</span></i></a></p>
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		<title>What if you didn&#8217;t&#8230;</title>
		<link>https://agencymanagementinstitute.com/what-if-you-didnt/</link>
		
		<dc:creator><![CDATA[Drew McLellan]]></dc:creator>
		<pubDate>Fri, 28 Jul 2023 11:08:54 +0000</pubDate>
				<category><![CDATA[Uncategorized]]></category>
		<guid isPermaLink="false">https://agencymanagementinstitute.com/?p=20992</guid>

					<description><![CDATA[Are you feeling pressed for time? Does your To Do list feel overwhelming? Do you wish you had more time to just chill with your family this summer? In the process of writing my keynote for this past year’s BABA Summit, I spent some time researching how we can all create some margin in our  [...]]]></description>
										<content:encoded><![CDATA[<p class="bard-text-block style-scope">Are you feeling pressed for time? Does your To Do list feel overwhelming? Do you wish you had more time to just chill with your family this summer?</p>
<p class="bard-text-block style-scope">In the process of writing my keynote for this past year’s BABA Summit, I spent some time researching how we can all create some margin in our lives.</p>
<p class="bard-text-block style-scope">Margin for reading. Margin for enjoying sunsets. Margin for digging into a deep conversation. Margin for doing work that matters. Margin for just catching your breath.</p>
<p class="bard-text-block style-scope">Some of these numbers blew me away.</p>
<ul class="bard-text-block style-scope">
<li>The average American spends 4.9 hours a day watching TV. And we watch reality TV garbage like Selling Sunset as opposed to watching something inspiring, educational, or redeeming in any way.</li>
<li>Americans spend almost 4.5 hours a day on their mobile devices.</li>
<li>In contract — Americans spend 15.6 minutes a day reading, 14 minutes a day exercising, and only sleep 6.8 hours.</li>
<li>We spend less than 8% of our time outdoors and a whopping 37 minutes of quality time with our family a day.</li>
</ul>
<p class="bard-text-block style-scope">I’m not suggesting you stop watching TV or smash your cell phone and I’m guessing most of you live a life that’s more balanced than these stats would suggest. But when someone tells me there’s not enough time in the day and they can’t possibly accomplish all they want to do — I have to call foul.</p>
<p class="bard-text-block style-scope">Our lives are a collection of our habits. Which of your habits are serving you? Which help you be the best version of yourself? Which feeds your soul, your mind, your creativity, and your body?</p>
<p class="bard-text-block style-scope">Here’s my challenge for you. First — if you magically had an extra hour a day, how would you spend it? Where would you invest that precious hour?</p>
<p class="bard-text-block style-scope">Second — find an hour. Just one hour a day. If you can’t find an hour, start with 30 minutes.</p>
<p class="bard-text-block style-scope">And then spend it wisely.</p>
<p>&nbsp;</p>
<p><i><span style="font-weight: 400;">This was originally published in the weekly AMI newsletter.  To subscribe, click</span></i><a href="https://agencymanagementinstitute.com/newsletter-sign-up-form/"> <i><span style="font-weight: 400;">here.</span></i></a></p>
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		<title>In a blink</title>
		<link>https://agencymanagementinstitute.com/in-a-blink/</link>
		
		<dc:creator><![CDATA[Drew McLellan]]></dc:creator>
		<pubDate>Fri, 21 Jul 2023 13:10:40 +0000</pubDate>
				<category><![CDATA[Uncategorized]]></category>
		<guid isPermaLink="false">https://agencymanagementinstitute.com/?p=20938</guid>

					<description><![CDATA[Our oldest daughter Kelsey turns 30 today. 30. As in years of existence. How in the heck did that happen? In a mere blink ago she was banging her head on the coffee table as she learned how to walk. (A baby bike helmet seemed like a good idea at the time!) Another blink —  [...]]]></description>
										<content:encoded><![CDATA[<p class="bard-text-block style-scope">Our oldest daughter Kelsey turns 30 today. 30. As in years of existence.</p>
<p class="bard-text-block style-scope">How in the heck did that happen? In a mere blink ago she was banging her head on the coffee table as she learned how to walk. (A baby bike helmet seemed like a good idea at the time!) Another blink — her first day behind the wheel of a car. In what felt like half a blink — I was walking her down the aisle.</p>
<p class="bard-text-block style-scope">Time has a way of catching us off-guard, doesn’t it? And we don’t get it back. It’s very difficult to go backwards and undo something we did or even tougher&#8230; do something we should have done a long time ago.</p>
<p class="bard-text-block style-scope">The consequences of not being mindful of time’s fleeting nature can be painful and costly.</p>
<p class="bard-text-block style-scope">I don’t have a lot of regrets in my life but if there’s a theme around the regrets I do have it’s often “I wish I’d done XYZ sooner.”</p>
<p class="bard-text-block style-scope">I’m looking at the calendar and feeling time’s hand on my shoulder. We only have five more months in the year. I have a small handful of To Do items, changes in our business, relationships to invest in, and new ideas to explore that I keep saying&#8230;”later this year.”</p>
<p class="bard-text-block style-scope">It’s NOW later this year and honestly, I haven’t touched most of them. I have all the ready excuses. Super busy, full calendar of meetings, calls, and coaching, lots of travel days, got married, etc. etc.</p>
<p class="bard-text-block style-scope">Time doesn’t care about my excuses. It just keep marching on. And my “after in the year” window keeps getting smaller. Not only that — but my back of the napkin math suggests I’ve probably left $50-100K on the table because I didn’t master my time better.</p>
<p class="bard-text-block style-scope">How about you?</p>
<p class="bard-text-block style-scope">I’ve identified the three top priorities for me to complete before the end of the year. As you might imagine, they were the same three a few months ago. But here’s what I am doing to make sure the back half of the year is more intentional and fruitful than the first half.</p>
<ol class="bard-text-block style-scope">
<li>I’ve blocked time on my calendar to actually have the head space and work time to get things done</li>
<li>I’ve outlined exactly what I need to do in each case and what success/done looks like</li>
<li>I’ve told our team what needs to be done and have promised to provide updates once a month so they can hold me accountable</li>
<li>I’ve set milestones in each project. I can’t say yes to anything new/more until I reach the 75% done milestones. I’m hoping by then the momentum and being able to see the finish line will keep my focus</li>
</ol>
<p class="bard-text-block style-scope">Okay — your turn. You have 6 months left. What are you letting time steal from you and what are you going to do about it?</p>
<p>&nbsp;</p>
<p><i><span style="font-weight: 400;">This was originally published in the weekly AMI newsletter.  To subscribe, click</span></i><a href="https://agencymanagementinstitute.com/newsletter-sign-up-form/"> <i><span style="font-weight: 400;">here.</span></i></a></p>
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