Why Profitability is a Core Part of the Creative Process: An Interview with an Agency CFO

Bill Duggan ANA How will AI change agenciesAvigail Schlosser Yesampamp Agency AI isnamp8217t just going to improve agencies itamp8217s going to redefine what an agency is how it makes money and what clients expect from it AI changes the pricing model shifting from laborbased hours and headcount to leveragebased or selling outcomes and IP At Yesampamp AI is our partner it helps our team focus on strategy creativity and craftDuggan You have a perspective re amp8220profitability as a creative catalystamp8221 Meaning sound financial management directly enables better creative output Please discuss thatSchlosser As the CFO at Yes an independent marketing and communications agency my focus sits at the intersection of MampampA integrations growth and operations helping bring things together in a way that enables great work to happen And over time being in that seat you start to see patterns You start to see what unlocks momentum and what quietly holds it back And one idea has really stuck with me Profitability isnamp8217t just a financial outcome itamp8217s what makes everything else possible Itamp8217s what gives teams the space to think to create to take smart risks to build Profitability is what turns good work into great work and makes it sustainable So rather than sitting outside the creative process itamp8217s actually a core part of itDuggan Whatamp8217s one thing clients should know about agency financial operations that they might not be aware of todaySchlosser I think one thing that isnamp8217t always fully visible is how interconnected everything is inside an agency model When a client makes a decision whether itamp8217s around scope timing budget or even the number of rounds of feedback it doesnamp8217t just affect that one project It ripples across teams capacity and ultimately the ability to deliver great work consistently Agencies are balancing a mix of fixed and variable costs talent being the biggest oneamp160 And unlike many other industries our product is our people and their time energy and thinkingSo when timelines compress or scope expands without adjustment or pricing is anchored to purely hours it can unintentionally put pressure on the very thing that clients value most the quality of work and the team behind it The opportunity and where I think things are evolving is when agencies and clients start to think about this more as a shared system When we align on outcomes set clear expectations early and build in the right level of flexibility it actually creates more space for better ideas stronger partnerships and ultimately better results So less about amp8220how do we manage costsamp8221 and more about how to design the conditions for great work to happen on both sidesDuggan If you could amp8220wave a magic wandamp8221 what industry issue or problem would you fixSchlosser If I could wave a magic wand I would reset how value is defined between agencies and clients For a long time weamp8217ve anchored value to inputs hours deliverables outputs because theyamp8217re easy to measure and compare But the real value has never lived there It lives in outcomes amp8211 growth impact transformation When we anchor to inputs we unintentionally create a system where efficiency gets penalized creativity gets compressed and both sides feel pressure If we could shift the conversation to shared outcomes what weamp8217re trying to create together it would unlock better work stronger partnerships and a much more sustainable model for everyoneDuggan See you in Orlando AvigailPosted at MediaVillage through the Thought Leadership selfpublishing platformClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillageorgMyersBizNet

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Why Profitability is a Core Part of the Creative Process: An Interview with an Agency CFO

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