wbcs-01€¦ · monitor pitch investment costs closely recent research shows that your agency...

WBCS-01:Run a More Profitable and Client-Centric Agency

René Praestholm, VP Sales Deltek Agency Solutions

• VP of Deltek Agency Solutions and co-founder of WorkBook

• Worked with all sizes and types of agencies worldwide for the past 20 years

René Praestholm

Our Industry Partners

David C. Baker“The Expert’s

Expert” (NY Times)

Our 2019 survey is released in October - sign up to our newsletter on Deltek.com/agencies

Our research - headlinersof agencies report a profit loss of 11% or more due to over-servicing49% of agencies spend up to an hour a day just

analyzing data from different tools75%

Only of agencies track employee

satisfaction. That’s very low considering 30% of all agency people change job every year

17%

of agencies say the biggest challenge to operational management is “acting on the data they have.”46%

of agencies believe that leveraging data to make smarter decisions will have the biggest impact on their ability to grow

44%

of agencies said that projects “often” or “sometimes” go over budget due to scope changes 78%

Digging a step deeper

» Low integrity / quality in pipeline

» Utilisation is not high enough

» We have limited control of costs – purchases & approvals

» Hours are registered in-accurately

» Cash flow forecast is done manually

YOU ARE NOT THE ONLY ONE!

CONFIDENTIAL © Deltek, Inc. All Rights Reserved. 7

How to solve?

Our pillars and today’s focus

Customers

WIN AND GROWREVENUE

by building stronger client relationships

and a healthier pipeline

WIN

RATE

CUSTOMER

GM%

Projects

INCREASEPROFITABILITY

by increasing efficiency,

reducing costs and scoping accurately

PROJECT

GM%

OVER-

RUNS

Time to Cash

GROW BILLIABILITY

by capturing costs andensuring fast and accurate billing

BILLABILITY

%

WRITE

DOWNS

Financials

ESTABLISHBUSINESS CONROL

by implementing smooth and efficient

processes

Month-end

closingCASH

FLOW

Insight

ENSURE BUSINESS INSIGHT

by enabling fact based

decision making

PROFITABILITY!

People

IMPROVEUTILIZATION

by balancing

workloads with better

capacity planning

UTILIZATION

%

EMPLOYEE

TURNOVER %


Win and Grow Revenue

CUSTOMERS

Do not chase bad revenue. Walk away if your agency doesn’t have the right fit with the customer

Define your agency: which competencies do you want to offer? You can’t do everything.

Consider specialising your agency to a specific industry vertical.


Have weekly sales meetings - follow up on progress on open opportunities – close down tire-kickers

Have a clear sales process defined; a good first meeting doesn’t justify the probability rate to be set to 75%

Monitor pitch investment costs closely

Recent research shows that your agency should only have 15-22 active clients at any given point!

If you have many clients some of them will not get the attention they need and you’re not doing effective work on their behalf


What’s the max percentage 1 client should represent of your

total revenue?

Poll

15% 25%

Each client should not represent more than 15% of your

total revenue

Poll

Pay attention to how long a customer should stay with you After 3-4 years the relationship worn out and you start to date their kids You’ll start get questions like “We want the same campaign as last year, only 30% cheaper”

Your intake of new clients should be in the range of 3-4 new clients every year

Monitor Client Profitability and Satisfaction Give them the tools they need to participate Give them transparency into the process (to an extent)

You will need to have around 50 pitch invites each year and participate in around 12 of them

To get invited to 50 pitches, your mailing list should hold around 8000 opt-ins


Build a Healthier Pipeline

Lead Opportunity Quotation In process Forecast insight

LIVE DEMO

How many are tracking review and approval rounds on

creative assets?

Poll

Customers are asking for more content for less money

29% of in-house agencies say the average turnaround time for approvals is a week or more

Are you prepared to ask your clients for more money because they took too long to give you feedback?

Are you giving your clients the tools they need to easily give you what you need from them?


Make it Easy for Clients


Improve Utilisation

PEOPLE

Forecast to match capacity

1 Month 2 Months 3 Months 4 Months 5 Months … 12 Months

Pipeline/

Backlog

Capacity

Timeline

HIRE

FREELANCERS

REDUCE STAFF

No forecast & capacity insight

What should the average staff utilisation in an agency be?

Poll

50% 60%

60%

Poll


Our research shows that theaverage utilisation rate is 42%

Better Capacity Planning

Do you know how much capacity is lost when Creatives have to re-do work because of late feedback or unclear requests?

15-20% of project time and effort can be saved by reducing the amount of unnecessary rework

Improve Utilisation

26

Protect Resource Capacity


Increase Profitability

PROJECTS

In one of our recent surveys, an astonishing 78% said that projects “often” or “sometimes” go over budget due to scope changes

… and the magnitude of the budget overrun is between 10-25%!

If your agency completes around 300 projects per year, with an average budget of $5,000, then you’re looking at a loss of between $117,000 to $292,000 thousand per year.


Selling Projects- Retainer based- Project by Project- Capabilities projects (renting out staff)

- All of the above

Poll

No Right or WrongBut think about the best model

for your agency

Poll


The Fundamentals


Get the brief right

The Mick Jagger brief1969

TheResult


Get estimates and pricing right

In a recent survey 69% of the agencies admitted the information they used to produce estimates

relied too much on guesstimates



Account Services

We can sell this at 100.000

= 500 hours

Delivery

We estimate this to 200.000

= 1.000 hours

Process disconnect btw Sales & Delivery

Make sure to have a clear project execution process defined

Use templates

Track overrun patterns: same type of project, same client, same team, same employee

Use actionable insights to be proactive and continually improve the process


Price pressure / margin pressure

2014 2015 2016 2017

Cost per hour (salaries)

Actual Client rate (revenue)

Rate per hour before write off

Rate per hour before

”biz dev” and write off

Margin

Write off 15 %

Biz dev hours 15%

If you don’t measure – you can’t change

Better Project Visibility

Budget Burn Work left Burn + work left Over-servicing

LIVE DEMO

59% of the respondents in a recent survey said that asset review and approval happen “By email” or in “Project review meetings”

Getting in control of review and approval will get content through the workflow 10 x faster!

Track the number of amends and make sure to bill out extra’s


43

Reduce Delays and Costs


How Can You Get Started?

WorkBook’s Accelerated Best-Practice Implementation

Initiation Build & Test Go Live!

Design & Business Engineering

Prepare Organization

Optimize your agency operations to

support growth

Incorporates best practices and

knowledge from hundreds of

implementations

Pre-packaged setup with full

documentation, plus a pre-

configured set of roles and

processes supports change

management for an accelerated go-

live


Deltek Agency Solutions

Deltek Agency Solutions Customers


Thank You!

wbcs-01€¦ · monitor pitch investment costs closely recent research shows that your agency...

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