Growing Up – The Leadership Framework to Take your Agency from Six to 60 Employees
Leading a team at any sort of scale is a VERY different prospect to sitting in a room surrounded by 8-10 early employees.
To begin with, you feel like you can do no wrong as the ‘leader’ you always thought you could be. But eventually, that close-knit team becomes one that is pulled apart by poor communication, errors, and warring ambition.
And it catches many founders off guard. And for the other, it can become a transition challenge so big that it stops them in their tracks for good.
Most insidiously of all this huge challenge is one that sits in the shadows, slowly but surely digging its claws into your company before you even realise the issues exist. Slowly, drip by drip and day by day it hurts your culture and growth until before you know it there is terminal risk.
The question then is how does this happen, why and how do you prevent it from negatively impacting your growing business?
The answer lies in a dual-tiered process; one which requires both your left and right-brain leadership qualities and skill sets.
Why does this happen?
Before we dive into the ‘how’ it’s worth understanding why a company finds itself in this situation to begin with.
Building a business and ensuring that communication flows is relatively easy in the ‘early days. Often everyone knows everyone and will most likely work on the same, or very similar work.
This makes it easy to create a sense of ‘culture’ (or what you believe is culture) and camaraderie.
If you work in the office, you will be able to plan and work on projects in sync.
Slowly, however, this becomes harder. With more people joining it starts to ask questions about existing operational task planning, and how work is assigned and owned.
You’ll all too often be too busy growing to take time out to reinvent your processes at this stage (even though you absolutely should)
What does it look like?
The manifestation of the issue is almost imperceivable at the start. Initially, you may see it play out as a couple of your employees getting closer and separating themselves from the wider team occasionally. You may also see it come to life through the occasional mistake, or delay, in client work delivery or end product.
These early signs are exactly that; a warning system that should kicks you into action because there really is truth in the sating:
“Every time you double revenues you should be reinventing 50%+ of your processes.”
And I bolt onto this:
“And the same is true of culture. Each time this happens you should survey staff and understand what it is you need to change next culturally.”
The cadence of change is much slower for culture but in many ways its impact is great – negatively if you don’t time it correct.
How do you change course?
But how do you steer the oil tanker? When you are in growth mode finding five minutes to even think about strategy can be difficult but think AND ACT you must.
The answer lies in a process that creates clarity for all, whether they are left or right brain thinkers.
A two-tiered process:
Let’s look at those two approaches to scaling communication, responsibility, and accountability and, above all, a sense of clarity and ownership amongst all employees as you grow.
1 – Hard process – Targets and OKRs
Ordinarily, you may think about this challenge as one of leadership, or ‘management’ and of course that has a part to play but rather than starting there it actually pays to think about the challenge through the lens of what you want the business to become.
Whilst leadership (we will come to this!) is critical at all stages it is imperative now, but it is the foundations for the future that matter most now.
To emphasise that the secret is to tie people and their actions and priorities directly to performance and targets of the wider business.
The best way of doing that, practically, when you don’t have the back-office support that a larger company might, is to focus on a more streamlined approach to target setting and cascading into your teams and their employee members.
Starting at the Top
Without significant support across finance setting targets can be all consuming. But it doesn’t have to be. We are fans of simple and so the process starts with a straightforward budget setting process.
To create a simple budget for the next year, start with your last 12 months P&L as a template and you can then apply some basic data analysis and a sense of ‘feel’ to the forward-looking months.
To do it start with the last full financial year as a monthly P&L. Here’s a generic example of what we mean:
You then have two choices.
- Replace the year along row one from the last year to the current and next.
- Copy your most recent month into each column so you, in effect, have 12 months of your most recent month.
Both of these then allow you to build up a more accurate picture of what may happen in the new financial year either from current performance or as a basis from where you can add a simple % uplift to each month.
In the first instance you can use the percentage uplift method as it will then also help you understand and reflect seasonality better.
And in the second version you are closer to current performance and so by duplicating each of the last month you are closer to the realities of right now.
For both versions however you MUST have a clear view of your forward-looking sales pipe.
The best way of adding in potential sales opportunity is to create a line for ‘new’ with revenue added in that you know has a good probability of converting.
To do this you must already be running a probability adjusted pipe report that looks at the stage the new deal is at and only assigns value based on its probability of converting.
An example of those stages may look a little like this:
The above report is one we use in most Board packs to help assess how pipe shape changes over time. This is imperative to avoid issues with revenue and sales closing further down the line.
But for this example, we should just look at the ‘A’ and ‘B’ columns as you can see how the probability to convert increases as you get closer to ‘close’.
With this data you can add the value in on this basis knowing you are avoiding over committing to revenue you don’t yet have.
You can then repeat this process for cross sell and upsell lines if you are advanced enough to have these separated out for each month and you should come to a reasonable revenue number for your overall rev target.
If you don’t have these things, then you can decide to add a percentage increase to each monthly number based on your assessment of how quickly you may grow next year. In a good market you may want to look at 25%+, whilst in a tougher, or more cautious market like we are witnessing now, a 10-15% plan may be more reasonable.
You can always reforecast (and should plan this in quarterly anyway) so don’t worry too much – the key is following a simple but logical and data-led approach to getting to a revenue number to target.
You can then repeat this process on all your cost lines, thinking about how many people you will need to deliver that revenue, and all the variable costs that are reasonable too.
This line-by-line build up will eventually produce a reasonable view of targets across things such as:
- Revenue
- Gross Profit
- Salary and related costs
- Operating profit
- Marketing
- Etc.
We have a separate post coming up soon on those metrics and which to monitor dependent upon your scale so for now we will leave that other than to say that setting top level targets across revenue, profit, and key metrics such as people costs and people utilisation is always critical to ensure that all teams understand what they are aiming to achieve in the year.
But the real key move here is to follow that line of thought through, connecting the dots for employees and teams so it is simple to understand how THEY contribute to those lofty goals.
Enter the world of OKRS (Objectives and Key Results) …
Simple OKRs
We’ve spent an immeasurable amount of time over the years trying to find the right balance for OKRs. They can be overbearing and overly complicated and that’s never a great basis from which to build clarity across your organisation. Get them right though and they are a powerful goal-setting framework that aligns the company, teams, and individuals towards a common vision. In this guide, we’ll break down the process of writing OKRs for your agency, from the overall company objectives to individual team and employee goals.
1. OKRs for the Company: Establishing the North Star
The first step in crafting OKRs for your agency is to define the high-level objectives that align with your agency’s mission and vision. These objectives should be ambitious yet achievable and serve as the guiding North Star for the entire organization. Remember, the key is to keep the list concise, usually limiting it to 3-5 objectives. For example:
Objective: Increase Market Share and Brand Awareness
KR1: Achieve a 20% increase in market share by the end of the quarter.
KR2: Increase brand mentions on social media by 30% over the next six months.
KR3: Launch a targeted advertising campaign to reach 1 million potential customers.
2. OKRs for Teams: Aligning with Company Objectives
Once the company objectives are in place, it’s time to cascade them down to the various teams within your agency. Each team should develop their OKRs that directly support the broader company goals while considering their specific responsibilities. Encourage teams to collaborate, as some objectives might overlap, and cross-functional cooperation can be highly beneficial. For instance:
Objective: Enhance Customer Satisfaction and Retention
Team A (Marketing)
KR1: Increase customer engagement metrics (likes, comments, shares) by 40% on social media.
KR2: Launch a customer referral program and generate 500 new referrals in three months.
Team B (Customer Support)
KR1: Reduce average response time to customer inquiries by 50%.
KR2: Achieve a customer satisfaction rating of at least 4.5 out of 5 in customer feedback surveys.
3. OKRs for Individuals: Driving Personal Growth and Contribution
To ensure that all employee’s efforts are aligned with the company and team objectives, individual OKRs are essential. These goals should be specific to each employee’s role and responsibilities, fostering personal growth while contributing to the overall agency success. It’s crucial to involve employees in setting their OKRs, as it increases ownership and motivation. Some examples could be:
Objective: Enhance Professional Skills and Productivity
Employee A (Designer)
KR1: Complete an advanced design course to improve proficiency in Adobe Creative Suite.
KR2: Reduce design review iterations by 30% through clearer communication with stakeholders.
Employee B (Account Manager)
KR1: Attend three industry events to expand the network and acquire potential clients.
KR2: Increase client satisfaction ratings by 15% through proactive communication and personalized service.
Tips for Writing Effective OKRs:
Ambitious, yet Realistic: OKRs should challenge your agency to push boundaries while remaining achievable within the given time frame.
Measurable and Quantitative: Key Results should be specific and measurable, providing a clear indication of success.
Transparent and Aligned: Ensure OKRs are visible and accessible to everyone in the organization to promote transparency and alignment.
Frequent Review and Adaptation: Regularly review progress towards OKRs and make necessary adjustments based on changing circumstances.
Celebrating Achievements: Acknowledge and celebrate successes, both big and small, to boost morale and motivation.
Writing OKRs for your agency can be a transformative process that aligns teams and individuals towards shared objectives. Remember that OKRs should be dynamic, evolving with your agency’s growth and adapting to new challenges. With clear and well-defined OKRs in place, your agency can thrive, achieving remarkable results and continuous improvement.
Our Template
And if you want to have a go yourself a template that accurately captures them ready for comms is key. The one we use is available for free. Simply click the banner below to claim your copy.
As explained though, process and structure are only half the battle. It’s a necessity, sure, but at the same time they’ll all be completely wasted unless you leader from the front in the right way.
And that is all about your sense of mission….
2. The Mission – Leadership Time…
Combining the strategic goal-setting framework of OKRs with a clear and compelling mission can transform an agency into a cohesive and purpose-driven powerhouse. As agency leaders, we’ve witnessed first-hand how the ‘why’ and ‘how’ of our agency’s mission plays a pivotal role in leading people on a mission to achieve outstanding results. It’s something we’ve written about previously here but let’s dig a little more into the importance of ‘purpose’ and a sense of mission is to those in the early stages of scale.
It all starts with time spent truly understanding how to explain why you exist.
1. Articulating the ‘Why’: The Essence of Mission-Led Leadership
A strong and well-defined mission serves as the beating heart of an agency. It answers the fundamental question of ‘why’ the organization exists and why its work matters. Mission-led leadership begins with clearly articulating this purpose, rallying everyone around a shared sense of meaning and direction. When employees understand the ‘why’ behind their work, they feel a deeper connection to the agency’s objectives, making them more invested in the success of the organization.
Clear communication of the ‘why’ also helps employees see the broader impact of their efforts, beyond the day-to-day tasks. For instance, if your agency’s mission is to “empower small businesses with cutting-edge marketing strategies,” employees will better understand how their work positively affects the success of these businesses and, in turn, local communities.
2. Communicating the ‘How’: Aligning Actions with Values
The ‘how’ of an agency’s mission embodies its core values and principles. Mission-led leaders must effectively communicate and uphold these values throughout the organization. It’s not just about what the agency does, but how it does it. Are you fostering a collaborative and innovative culture? Do you prioritize integrity and transparency in all interactions?
By aligning actions with values, leaders create a positive work environment that encourages growth, trust, and teamwork. When employees witness leaders embodying these values, it reinforces the agency’s mission and inspires them to do the same. This alignment between values and actions fosters a sense of unity, where everyone is moving in the same direction and working towards a common goal.
3. The Symbiosis of Mission-Led Leadership and OKRs
Mission-led leadership and OKRs complement each other beautifully. While OKRs provide a structured framework to set and achieve goals, the mission adds depth and purpose to those goals. When crafting OKRs, it’s essential to tie them back to the agency’s mission. By doing so, employees can clearly see how their specific objectives contribute to the larger mission, creating a sense of significance and motivation.
For example, if the agency’s mission revolves around “inspiring creativity and innovation in the digital space,” individual and team OKRs could be designed to reflect that aspiration:
Objective: Enhance Creative Campaigns and Innovative Solutions
- KR1: Implement at least three unique creative concepts for client campaigns, aligning with the agency’s innovative mission.
- KR2: Increase the utilization of cutting-edge technologies in digital marketing strategies by 20% to foster creativity and stay ahead of industry trends.
4. Leading with Clear Communication
Effective mission-led leadership demands clear and consistent communication. Regularly reinforce the agency’s mission and values through all communication channels, including team meetings, town halls, and internal newsletters. Leaders should use storytelling techniques to share the impact of the agency’s work, illustrating how the mission comes to life through the achievements of individuals and teams.
Open communication channels also provide opportunities for employees to share their perspectives and ideas. Encourage feedback and suggestions that align with the agency’s mission and be receptive to new insights. When employees feel heard and valued, they become more engaged and proactive in contributing to the agency’s success.
In conclusion, the combination of mission-led leadership and OKRs creates a powerful dynamic that propels an agency forward.
By clearly communicating the ‘why’ and ‘how’ of the agency’s mission, leaders can inspire and align their teams, fostering a shared sense of purpose and commitment. As a result, employees are motivated to chase ambitious OKRs, driving the agency towards unprecedented growth and success, all while staying true to its core values and mission.
And therein lies the delicate balance required as you transition from ‘what got us here’ to ‘what will get us there’; the wider story of which is one we plan to tell very soon, so watch this space.
