#13: Building a Great Agency: It Starts with You

It's not a recipe for a perfect agency, but it is how I am doing it. I am a true believer in my approach, having pursued it passionately and thoroughly all this time.

Read or review previous edition #12, ‘What's More Important: Doing or Leading’ for this edition to make more sense.

The work environment is different.

The popular 90s scene of a perfect workplace, with its big glass buildings and people dressed in tailored suits, is gone. No one finds that appealing anymore.

Then there are the fashionable 2010s open space-type offices, complete with indoor gardens, smoothie machines, and personal parking spots. These might look great on the surface, but actually, people don't care about them as much anymore.

What do they care about instead?

Having as much personal freedom as possible, getting their life back, spending time with their families, spouses, and kids, indulging in their hobbies, and enjoying their comfortably set-up homes.

Another thing they care about is the freedom to work on projects they are passionate about, with people they care about.

They value opportunities for growth and development.

Every three months, I participate in an integration call with the new hires to meet everyone, providing an opportunity for people to get to know each other and network. While asking questions, one of my favorites is, “What stood out or excited you about Belkins after you joined?” Ninety-nine percent of respondents say, “We love the people here; everyone is so caring, open, and friendly.” The list goes on, but the highlight is - people.

In today’s newsletter, I'd like to connect the dots between how workplaces have transformed in 2024 and what it is like to be an executive who builds a positive company culture with people who will flourish in this transformed workplace environment.

In software, creative, marketing, and other professional service industries, there's a noticeable shift from traditional employee roles:

• From ‘the employee’: someone I hire and instruct on what to do (I work for someone)

• To ‘the employee’: a collaborator brought in for their specific skill set (I work with someone)

The communication is simple: We are in this together. Let's do the best job we can. If it doesn’t work out, we part ways amicably. That's the approach I appreciate. Don’t you?

We're going to see an increase in fractional work roles like fractional CMOs, VPs of Sales, CTOs, Recruitment, etc. More people are going to prefer signing on as independent contractors.

The workplace dynamic is shifting:

From→:

• Full-time employees

• Scheduled working hours

• Ongoing reporting

• Defined processes and responsibilities

To←:

• Independent contractors

• Flexible working hours

• Focus on resources and budgets

• Emphasis on KPIs

At Belkins, we anticipated this workplace transformation early on. From the beginning, we implemented everything as if the future had already arrived.

Two questions I asked myself back then were:

1. What is the perfect working environment for me?

2. Can I build my company so that people around me are treated as I treat myself?

I was inspired by 'Managing The Professional Service Firm' by David H. Maister, especially the way big law firms and accounting firms are structured.

I wasn't fond of the intern/partner dynamic, where people work endlessly for little return and are often treated poorly. What captivated me was the decentralized, partner-based unit system, where the company comprises multiple partners who work to generate clients, deliver service, retain them, and are paid based on the revenue they generate.

Early on, and over the years, we at Belkins have transformed Maister’s concept into our unique model:

1. We built our agency around the idea of partnership. Not just my co-founder and I, but every person in the company receives a portion of the fee that our clients pay us. It might be a small percentage, but it's significant. Some may see it as a fixed base, but ultimately, it boils down to a percentage.

2. Everyone is tuned into the bigger picture of how the agency performs, linking their KPIs and compensation directly to the company's results.

3. Individuals have the opportunity to earn more by bringing in or retaining more clients, thus generating additional revenue.

4. Since people are treated as partners, they can tailor their work around their personal goals, income desires, and needs. This approach allows for flexibility in working hours, meetings, and location preferences.

5. The level of responsibility and the complexity of the KPIs someone is accountable for directly correlates to their potential risk and reward.

6. Our system thrives only when every member commits and delivers. It's widely recognized that working with someone who doesn't contribute to the collective success is undesirable.

7. Support and care are fundamental. We are in this together, after all.

8. KPIs cannot be achieved by one individual; the entire cycle relies on everyone. From leads → appointments → closed deals → clients → case studies → payroll → HR → recruitment → admin, and back to leads again. If one part of this cycle fails, the entire system suffers, which nobody wants.

This mindset has enabled us to grow not just vertically, but also horizontally, branching out to partners and CEOs who contribute to everyone's success.

Although this is a very high-level description of how things are structured at Belkins, the foundations are:

1. Treat your people as partners.

2. Provide clear KPIs, resources, and budgets.

3. Focus on opportunities for growth.

4. Share client fees to financially motivate people towards success.

5. Maintain transparency with open books on financial results.

This is what I call ‘a modern working environment’.

What kind of leader are you?

In the previous newsletter, we discussed the necessity of being a generalist, a master of all trades, especially during the first five years of running an agency. However, it's more than just that.

Here are my personal top 10 leadership qualities that I believe are essential for running a successful agency:

1. Intelligence - The fewer poor decisions you make, the faster you progress. Read, grow, learn, experience life. Only through this can you be a good leader.

Note: We implemented internal processes in finance, sales, and marketing that were set up for future growth, intelligently planning and preparing for future needs rather than just focusing on the present situation.

2. Discipline/Diligence - This is tough but crucial. Show up first, take minimal sick days, always be prepared. Be disciplined in both life and work, like a professional athlete.

Note: Discipline fosters routine, which brings efficiency, and efficiency yields results. People are inspired by seeing tangible results.

3. Being an example for others - Do your homework, be prepared, share positive energy, grow professionally. Lead the way in your industry and craft, and be a thought leader.

Note: Doing homework ensures smooth meetings, knowing your metrics, offering unique insights, and suggesting data-backed ideas.

4. Kindness/Empathy - Sometimes it's not just about the numbers. Caring and support are essential. Show empathy.

Note: Showing empathy towards client needs or kindness to people in the face of failed campaigns can build loyalty.

5. Flexibility - You will encounter many situations where flexibility is needed with contracts, clients, people, and even KPIs.

Note: Consider targets/KPIs completed at 85% as 100% in cases where maximum effort is evident and you can show support.

6. Firmness - Be unwavering in your values, vision, and decisions. Don’t compromise on these essentials.

Note: Saying 'no' can often be more beneficial than saying 'yes'. Refuse some clients, opportunities, or people that don't align with your current direction.

7. High Quality - Never settle for mediocrity. Strive for excellence and know that those around you are capable of achieving it.

Note: People often don't realize their potential until pushed. Encourage multiple iterations for improvement and provide detailed feedback.

8. Resourcefulness - Be a wellspring of energy. Inspire and energize people, making them excited to dream and work alongside you.

Note: While regular breaks are important, bring full energy, motivation, and creativity when working. I've led many meetings where my energy made a significant difference.

The two most important qualities are:

9. Prioritizing your team - Put your team's interests ahead of your own. Avoid ego-driven decisions. Your success comes through the success of others; you are a servant leader.

10. Thinking the best of people - Assume that if someone didn’t perform well, it wasn’t for lack of effort but a mistake that can be rectified. Provide feedback and support, but always think the best of people. It’s not about micromanaging; it's about providing clear feedback, direction, and expectations.

Having said all this, it starts with you, the 'agency executive'. You need to excel in your relationships with partners, clients, teammates, friends, and family.

Although it might sound cliché, being the best version of yourself is a constant work in progress that transforms both your business and your life. By reading my newsletter, you're already making strides, whether consciously or unconsciously.

Thank you for joining me on this journey and for supporting my work.