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

Bill Duggan, ANA: How will AI change agencies?

Avigail Schlosser, Yes& Agency: AI isn’t just going to improve agencies, it’s going to redefine what an agency is, how it makes money, and what clients expect from it. AI changes the pricing model, shifting from labor-based, hours and headcount to leverage-based or selling outcomes and IP. At Yes&, AI is our partner, it helps our team focus on strategy, creativity, and craft.

Duggan: You have a perspective re: “profitability as a creative catalyst.” Meaning, sound financial management directly enables better creative output. Please discuss that.

Schlosser: As the CFO at Yes, an independent marketing and communications agency, my focus sits at the intersection of M&A, 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 isn’t just a financial outcome - it’s what makes everything else possible. It’s 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, it’s actually a core part of it.

Duggan: What’s one thing clients should know about agency financial operations that they might not be aware of today?

Schlosser:I think one thing that isn’t always fully visible is how interconnected everything is inside an agency model. When a client makes a decision, whether it’s around scope, timing, budget, or even the number of rounds of feedback, it doesn’t 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 one.  And unlike many other industries, our product is our people and their time, energy, and thinking.

So 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 “how do we manage costs” and more about how to design the conditions for great work to happen on both sides.

Duggan: If you could “wave a magic wand,” what industry issue or problem would you fix?

Schlosser: If I could wave a magic wand, I would reset how value is defined between agencies and clients. For a long time, we’ve anchored value to inputs, hours, deliverables, outputs, because they’re easy to measure and compare. But the real value has never lived there. It lives in outcomes – 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 we’re trying to create together - it would unlock better work, stronger partnerships, and a much more sustainable model for everyone.

Duggan: See you in Orlando, Avigail!

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