Author: Sheila Campbell, President, Wild Blue Yonder, Washington, DC.
Yeah, it seems logical. Everybody in the agency focuses on the clients and their work, and senior management takes care of the agency.
Only it just doesn’t work like that. Here’s why: The big guns at the agency write the client contracts, but it’s everybody else who determines if we’re going to hit those profit targets. If everybody’s not on the alert for scope creep and write-offs, it doesn’t matter what the contract says. We’re losing money.
And, other than the obvious that nobody loves being a loser, why does that matter?
Because an agency that isn’t making money doesn’t have enough to invest in bigger and better new business pitches. So they can’t land the kinds of clients everybody really wants to work on. If your staff tells you they wish for better, more interesting clients, then they need to help your agency make money.
And the agency won’t be giving out juicy raises, either, or hiring the new people that staff believe they need to handle all the work. When the agency makes less money from a client than it expected to make, there’s just less money to go around for everybody who works there.
And here’s the big thing: For anybody who wants to rise up in the ranks in the agency business, handling the money well makes them VERY noticeable to senior management. Account managers have got to be able to talk about money with clients. Can they really do that convincingly if you have no clue how your own business works?
Everybody who works in the agency needs to know about how we make money, how we lose money, how to talk about money, how to manage the money we’re spending every day.
Get your staff signed up for Filament’s May 9 web clinic which is a primer on agency finances:
Knowledge = Profit: What Account/Creative/Media Staff Need to Know About Agency Finances on May 9 so they can understand how their everyday decisions impact the financial health of the whole agency.
To learn more and to register: http://ow.ly/xDhq30bkCjA