I interviewed Brian Russell, Managing Director of Function Growth, about why he turned to productization to overcome his firm's challenges, its impact on his team and clients, and his advice for other firms considering productizing their value. Here’s what he said.

While many agencies wrestle with the limitations of a time-based revenue model, other firms have been embracing alternative compensation structures that prioritize value, performance, and outcomes. Here’s what three agency leaders said about their transition.

Agencies that use a value-led revenue model may need help when negotiating with price-driven buyers. Here’s how they can use the power of AI to guide their pricing strategy and negotiations.

Labor-based compensation remains dominant in our industry, and most agencies remain designed to sell billable time. But this is about to change.

Modern revenue models do not rely on billable hours, so agency leaders ask, "How can we effectively manage engagements without timesheets?" This question will seem logical for anyone who has worked in an agency, but it's the wrong question.

Let’s eliminate all the ways your agency is wasting away its margins. Once you know what to look for, you’ll see this everywhere. “Waste” is anything in your agency’s processes that prevents or slows down the delivery of value to your clients.

Many agencies make the mistake of assuming that if they were to focus on a specific service area or market segment, they would limit their growth potential– that a narrow focus doesn’t scale and equates to a small business. While this seems logical, it’s not true.

For greater accountability in your agency, throw out your job descriptions. The average job description is prescriptive and emphasizes activities over outcomes, which limits a person’s potential.

Every agency’s organizational structure and operating model are currently being stress tested. This points to a need for agencies to rethink how they work.

What do we mean when we say a hybrid work model? There are many ways to operationalize a hybrid model.

In a formal review meeting, managers will attempt to review 12 months of an individual’s performance AND their compensation AND to provide guidance on professional development planning. That’s quite a lot to cover in a 30-60 minute discussion.

As an agency leader, your clients want everything to be “better, faster, and cheaper.” On the other, your employees want the freedom and resources to do great work while enjoying a work/life balance.

Quick, can you describe your agency in an interesting, relevant, memorable, and differentiating way — in 30 seconds? If not, you haven’t devoted the necessary time and energy to defining your agency’s positioning strategy.

Many agency leaders feel that it’s become increasingly tougher to maintain and grow their business. If this feels familiar, your agency’s operating model may be failing you.

The traditional organizational structure — the type found in most full-service and creative agencies is likely the root cause behind many of your challenges.

As a leader of a growth-focused agency, you should always be looking for new ways to improve performance. One impactful way to do this is by rethinking your organizational structure.

One of my favorite quotes about company culture comes from Patty McCord, former Chief Talent Officer of Netflix and Author. The culture Patty describes is one that welcomes constant change.