Robert’s seventh book, Grow Your Digital Agency will be released soon, in the meantime, here is a little taster of what to expect:
How Good Is Your Agency?
This chapter introduces a framework that looks at your agency and its business performance. It is referred to by the acronym FiMO – Finance, Marketing and Operations.
FiMO is a framework which can be used to evaluate the strengths and weaknesses of your agency and to open up discussion to agree the ‘state of play’.
Before you can look at future plans, your route map, you need to know how the agency is performing right now.
MEASURING AGENCY PERFORMANCE TO DATE
‘What measures should be used to assess your company’s performance to date?’
the same list of answers is usually put forward, give or take one or two differences. The list offered includes measures such as:
- gross and net profitmargin
- return on capital employed
- directors’ salaries/owners’ drawings
- wage bill, and so forth.
While these financial measures are commendable, to some degree they miss the point. What really matters is far more than just the financials.
While I don’t dispute the importance of finance – it is poor financial performance that will make you go bust – you need to recognise that:
“finance is simply a consequence of two other factors, marketing and operations…”
To sort your financial performance you probably need to sort your marketing or operations performance.