Create More Value
A closer look at your agency’s value chain
Understanding the value chain can reveal where profit is being created and where it is being lost.
You see most agency owners know their revenue. Far fewer understand exactly where value is created across the business.
Your agency has a value chain. From winning the client and pricing the work, through strategy, creative delivery, project management, technology, client service and finally invoicing and collection.
Every stage consumes time and resources. Every stage should contribute to value.
The problem is that many agencies measure performance only at the end. They look at total revenue and gross profit without understanding which clients, services or processes are actually generating that profit.
A value chain review changes the question.
Instead of asking, “How much did we make?”, ask:
“Where are we creating value, and where are we destroying it?”
Perhaps your creative team is spending too much time on revisions. Perhaps project management is absorbing unproductive hours. Perhaps pricing does not reflect the complexity of delivery. Or perhaps your most profitable clients are receiving the least attention.
For creative and digital agencies, understanding the value chain can uncover opportunities to improve pricing, productivity, client profitability and cash flow without simply chasing more revenue.
At Highwoods Group, we help agencies connect their financial information with how the business actually operates.
Because more revenue does not necessarily create more value. Better economics do.
Partner with Highwoods Group, your trusted advisor on the journey from startup to success.
Explore our growth support services today at highwoodsgroup.co.uk.
