How an Agency Successfully Dismantled Their Traditional Structure: A Roadmap

If you’re a principal of a small to medium sized agency, this post is vital reading. It’s also an unofficial continuation of sorts to of one of our more popular posts earlier this year on The Small + Smart Agency Model and we encourage you to revisit it prior to reading Cathy’s post for a fuller perspective. Thanks to Cathy and Riggs Partners for the insight.

In Defense of Radical Change

By Cathy Rigg Monetti

Let me state for the record: I believe we are living in extraordinary times. Step out of the chaos that has become everyday life and you will see revolutionary change moving across the cultural landscape. Change, moving fast and furious, uprooting much more than convention.

It is from this vantage point—as a keen cultural observer and small business owner—that I write this commentary on employment. Twelve months ago our company made a radical, and very scary, change in our own business model that moved us from an old school org chart structure, with managers and employees, to a horizontal consultancy with five equal partners and no staff. There is no reporting structure; there are no performance reviews. Instead, each partner represents a different discipline in developing branding and communications programs for our clients. Then under the supervision of the partners, the work is executed by a cadre of best-in-class marketing subspecialists whose expertise is in exact alignment with the assignment.

We believe this modular structure, which allows us to pull together and break apart teams as budgets and expertise necessitate, is our holy grail. It gives us a sense of comfort to know we can manage workflow and costs in a more efficient way during these recessionary times, of course. But a much bigger consideration is the ability to provide the inexhaustible list of communications services our clients need during this digital revolution. With uncertainty in the economy, we simply could not bulk up fast enough to prevent our clients from going direct to specialists, bypassing their “traditional” ad agency altogether.

We saw it happening all around us, not just in our industry. In the marketplace there is a move toward modular, competitive, multi-partner agreements that is shaping a new business paradigm. Still, agency/client relationships have been defined through exclusive arrangements and lengthy contracts for decades. It was a significant move to make in an industry founded on the phrase agency “of record.”

Will you allow me one more disclaimer? I do believe in the cyclical nature of trends. My friend and business partner, Kevin Smith, says, “Outright disgraceful indulgence will make a comeback and I will be waiting with open arms.” He is probably right. But I do believe there are some fundamental shifts that have long-term implications.

Specialization is where it’s at.

Technological advances have rendered generalists extinct. Today, the market gives two options: (1) Large corporation with depth and breadth of expertise (think of the overhead!), or (2) Small firm that brings in highly trained experts as needed, per project.

Specialists must have multi-disciplinary vision.

Specialization does not equal tunnel vision. To be truly effective, it is vital that specialists understand how their specialization can interface across a broad spectrum. That’s where the magic happens.

Adaptability is more important than ever.

Today’s smartest staffing models can quickly adapt to changing market dynamics. (Tomorrow’s success stories will be told by those who were able to capitalize most quickly on an emerging need today.) Lightening speed is required.

Take advantage of connections.

It could well be that the single best definition of this decade is not “Recession” but “connection.” As just one example, consider the many ways human beings are finding each other in the digital space, through social and professional networking sites. The ability to move, without geographic limitation, in and out of groups, to converse, to introduce, to re-form— is truly transformational. Can your organization model this in some way?

Respect the power of Open Source.

I like this definition of “open source”: The idea of making the inner workings of a technology or process not just visible, but accessible. Others go on to say, Think of it as the triumph of participation by the many over ownership by the few. It’s a concept that is making its way into the marketplace and changing the dynamic in a forceful and lasting way.

These are certainly not definitive guidelines for any organization considering radical change. But they are the recurring concepts we talk about when we gather around the table for partner meetings at RP. We know they are a good foundation for our decisions because they reflect dynamics that are occurring organically in the world today. And that, we believe, is the most sound guideline of all.

Cathy Rigg Monetti, bio:

A brand consultant for Riggs Partners , Cathy Rigg Monetti is a voracious student of all things Next. She leads an initiative that tracks consumer behavioral trends in this new economy and serves on a number of industry, nonprofit and higher education boards. She is also co-founder of the national CreateAthon Network , which to date has donated more than $11 million in creative services to 1,100 nonprofits around the country. Previously, Cathy served for 22 years as writer and creative director for the ad agency she founded, RIGGS.

Originally posted on midlandsbiz.com