In a billable-hours model, it's a priority for people to be busy to bill hours. In a productized-value model, it's a priority for people to be "effective," which happens best when they are not always busy.
The shift in mindset is significant, and the benefits are substantial.
When agencies adopt a productized-value model, they move away from the pressures of billable utilization targets as a performance measure. They can redesign their operations to ensure their people have the proper time and environment to think, experiment with new ideas, mentor others, and pursue professional development. But this also means agencies will need new ways to measure their performance not tied to billable hours sold.
In a productized-value model, measuring an agency's effectiveness in helping clients solve problems, achieve outcomes, develop new abilities, or achieve goals becomes the priority performance indicator.
For agencies to be most effective, their people will require periods of "doing" mixed with periods of idleness for agency staff to release their best thinking.
David Ogilvy knew this. In Ogilvy on Advertising, he shared that "Big ideas come from the unconscious. This is true in art, in science, and in advertising. But your unconscious has to be well informed, or your idea will be irrelevant. Stuff your conscious mind with information, then unhook your rational thought process. You can help this process by going for a long walk, taking a hot bath, or drinking half a pint of claret. Suddenly, if the telephone line from your unconscious is open, a big idea wells up within you."
Relaxing and enjoyable idling releases dopamine. As authors, Scott Barry Kaufman and Carolyn Gregoire explain in Wired to Create, "dopamine facilitates psychological plasticity, a tendency to explore and engage flexibly with new things, in both behavior and thinking," which can spur creativity.
This is how agency staff will do their best work.
I wrote more about this here: https://lnkd.in/gB5Cg6VG
Your agency can productize its value, too.
It’s about packaging its intellectual capital as repeatable solutions to high-value problems that it is uniquely qualified to solve.
Here’s how I’ve done it in a 3-month program for my agency clients. We:
1) Leverage your firms strengths to sharpen its positioning and place it higher on your clients value chain
2) Reconfigure your services as high-value solutions, programs, and products and divest commoditized, price sensitive, low-value services
3) Create a go-to-market plan and adapt your operating model for repeatable success
As a result, your firm’s value will:
• Speak to right-fit clients, high-value problems, and high-margin outcomes
• Gain pricing power because we differentiate your firm by leveraging its expertise
• Scale revenue because we price the outcomes from its solutions, not hours
If you’re ready to prioritize effectiveness over hours within your agency, DM me.
Digital Marketer | SEO Executive| Digital Marketer| Inbound & Outbound Marketing | Social Media Marketing | Email Marketing | Product Marketing | 6+Years of Experience in Content Writing and Digital Marketing.
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