7 Ways to Increase Agency Profits

7 Ways to Increase Agency Profits

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  WE ASKED AGENCIES: Whatare the best ways to increase profitability? We list their top seven responses. 7 WAYS TO INCREASE AGENCY PROFITS Offices of LHM, Synergist users
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  1. STAFF UTILISATION Clientwork by Tayburn “Synergist makes [big decisions] feasible, because we know exactly when it makes sense from a staff utilisation viewpoint, and everything is tracked so we’re in control.” STEVEN CLARK, FINANCIAL & COMMERCIAL MANAGER, TAYBURN It’s all about time. Synergist users give staff utilisation a top profitability rating because it answers questions at the heart of every agency’s business: How effectively is our time being spent? What’s the ratio of chargeable to non- chargeable work? WHAT’S IT ALL ABOUT? It spells out where the issues are hidden. Focusing on the chargeable / non-chargeable ratio lets you steer the direction of one of your agency’s highest costs — your people. Remember: just having a busy team doesn’t guarantee profitability. HOW DOES IT INCREASE PROFITS?
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  2. JOB HEALTH Clientwork by Tayburn Client work by Purestone “We can act before it’s too late. We now see issues sooner.” SIMON BUTLER, CO-FOUNDER OF PURESTONE Full control and total visibility of jobs. Jobs and projects can slip. It’s inevitable. But if you aren’t given any warning about it, you can’t do anything to fix it. Job Health is all about being informed and having the reassurance that there are no big surprises lurking. WHAT’S IT ALL ABOUT? It warns you of issues while there’s time to act. In combination with Staff Utilisation, the way to profitability is to ensure jobs come on or under budget. Knowing about delinquent jobs at the moment they miss target gives you a chance to solve them. HOW DOES IT INCREASE PROFITS?
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  3. SAVING STAFFTIME Client work by Draw for Jimmy Choo “We used to spend masses of time searching for information or pulling together reports or estimating work or doing invoices. Such a waste. Now, that’s all cleaned up. It leaves more time for client focus.” KENT VALENTINE, MD, DRAW / FOCUS Speeding up processes, releasing time for more productive work. You can’t increase the number of hours in a day. But you can substantially reduce time spent on administrative work or searching for information that’s scattered across the company. WHAT’S IT ALL ABOUT? More time, a unified system and better client service. One factor alone — the time saved — more than justifies the ROI. The rest is a bonus: efficiency, everything in one place, better client service. And you can take on more work without adding staff. HOW DOES IT INCREASE PROFITS?
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  4. BETTER DECISION-MAKING Clientwork for Knight Frank by Creative Jar “Synergist makes it easier to make those tough decisions about jobs, because the information is there to back up your hunch. Today, we don’t have to make as many hunches. Now we have the data to back up our instincts.” IAN MAY, PROGRAMME DIRECTOR, AND GARETH MOORE, CHIEF OPERATING OFFICER, CREATIVE JAR Business intelligence. If the decisions you make each day are based mostly on hunches and guesswork, you’re bound to be making some expensive errors from time to time — and it’s not your fault. You just need better data to support you. WHAT’S IT ALL ABOUT? It brings clarity to your decisionmaking. A comprehensive system will bring transparency and reason to difficult decisions about clients, recruitment and pricing. And, in any agency, there aren’t many more challenging questions than those. HOW DOES IT INCREASE PROFITS?
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  5. RESOURCE SCHEDULING & CAPACITY PLANNING Client work for Marston’s by Clevercherry “Synergist pulls everything together. Jobs, estimating, scheduling, purchase orders, quotations.” DEEP SANGAR, PRODUCTION MANAGER, CLEVERCHERRY Reducing nasty surprises in your resourcing. Planning resources is all about trying to even out the load as far as possible. Knowing everything you can know about the days and weeks ahead helps you avoid expensive resourcing issues. WHAT’S IT ALL ABOUT? It gives you more control. Reducing reliance on last-minute freelancers and other recruitment costs is a big win. Your ability to schedule with confidence also helps client service. And internal comms also win — everybody knows what they should be working on. HOW DOES IT INCREASE PROFITS?
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  6. ACCURATE ESTIMATING &QUOTING Creative work by LHM “When estimated costs logged to a job reach 50% we see whether we are half way through completing the job. It flags up problems early. So when we get to 100% there aren’t any surprises.” STEVE LAWRENCE, OPS DIRECTOR, LHM Accuracy, speed, intelligence and presentation. In the enthusiasm of setting out prospective work to clients, it’s so easy to overlook details, make a mistake in the budget or not learn from similar previous jobs. Once a quote’s issued, you’re stuck with it. WHAT’S IT ALL ABOUT? It increases focus and rigour in a crucial element of business. Correct pricing is obviously vital for profitability. With the right system, quotations are going to be more accurate, faster and more likely to reflect previous experience. HOW DOES IT INCREASE PROFITS?
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  7. NEW BUSINESS “Synergistpulls everything together. Jobs, estimating, scheduling, purchase orders, quotations.” DEEP SANGAR, PRODUCTION MANAGER, CLEVERCHERRY “Synergist helps us throughout our whole process. From monitoring our lead generation, pipeline and new business activity all the way through to setting up client projects and monitoring their health.” SARAH WELLER, MANAGING DIRECTOR (LONDON), MUBALOO Client work for The Met Office by Mubaloo www.synergist.co.uk 01625 572 690 Implementation and consultation by www.theagencyworks.co.uk 01455 553 246 Keeping track of opportunities and helping to smooth the flow of business. It’s important to know, as far as possible, what bumps and hazards are looming in the road ahead. New business planning helps you match resources and initiatives as needed. WHAT’S IT ALL ABOUT? It triggers the actions needed to maintain revenue flow. Better management of the flow of business helps avoid the peaks and troughs that lead to under- or over-resourcing. And better tracking of opportunities helps you avoid overlooking new business. HOW DOES IT INCREASE PROFITS?