November 11, 2023

Grow your agency with Agency OS

Last week, in a coaching session, one of my students (hey, Jack!) was curious if I had any thoughts about creating an operating system for an agency. It's an interesting question—one that I've been giving more thought lately.

Since I have a lot of freelancers and agency owners reading Digital Native, I thought it might be helpful to share my thinking about the best way to set up an agency using what I'm calling Agency OS (Operating System). Let's get into it, shall we?

1. An introduction to Agency OS

Building a digital agency is not just about creating value for clients and teams; it's about understanding the pivotal strategies to help you grow your agency effectively. It's a balance of sharp strategy and seamless execution.

Defining your mindset

Think of your agency as a living organism. It needs to adapt, respond, and grow with the environment. A growth-oriented mindset should permeate every aspect of your operations. Here are some examples I used at my agency, 45royale:

  • Commitment to learning: Staying ahead means being in a constant state of education. Understand your industry, your clients, new tools, and emerging techniques.
  • Agility: In the agency world, change is the only constant. Your ability to pivot and embrace new methods will keep your business moving forward.
  • Strategic foresight: Planning is pivotal. Knowing your next move and anticipating market changes can give you a competitive edge.

Defining your core values and mission

Values and mission statements are not just words; they are the DNA of your agency's identity. They help you attract the right clients and the right talent. They should be clear, actionable, and evident in every task your agency undertakes.

  • Values: What are the non-negotiables in how you operate and interact? Define them.
  • Mission: Your agency's purpose should answer the "why" behind every "what" you do. Make it known.

This foundational work sets the stage for growth. It informs your business plan, your culture, and the goals you set. Next, we will look at how to translate this foundation into a vision and strategy that paves the way for setting up your agency the right way.

2. Setting the stage: Vision and planning

Before you do anything, you need to have a vision for what your agency does, who it serves, and how you plan to suceed and grow. A good place to start is, you guessed it, with a business plan.

Developing your business plan

Building an agency without a business plan is like jumping in a car without GPS. You'll eventually get somewhere, but it might not be where you intended to go. A robust business plan acts as your roadmap, including (but not limited to):

  • Market analysis: Know your landscape. Who are your competitors, and what can you do better?
  • Service offerings: Define what you sell with precision. Clarity here means efficiency later.
  • Financial projections: Understanding your numbers is non-negotiable. Profitability doesn't happen by accident.

Goal setting: Short-term milestones for long-term success

Success is nothing but a series of small wins. Setting and hitting short-term goals creates momentum. Consider SMART goals to keep things measurable and achievable.

  • Specific: Vague goals produce vague results. Be specific.
  • Measurable: If you can't measure it, you can't manage it.
  • Achievable: Goals should be challenging yet reachable.
  • Relevant: Every goal should serve your larger mission.
  • Time-bound: Deadlines drive action. Set them.

The importance of adaptability: Staying agile in a changing market

The digital landscape is mercurial. Your agency must be built on an adaptable foundation. When considering how your agency will grow, ask yourself the following questions:

  • Can I shift gears quickly if a strategy isn't working?
  • Am I keeping up with the latest digital trends and tools?
  • Am I or other leaders in my business empowered to make swift decisions?

To summarize this section, crafting a business plan, setting goals, and ensuring adaptability are the scaffolding for your agency to climb. It's a balanced approach that fuses foresight with flexibility, grounding your agency's trajectory in both ambition and practicality.

Next, let's look at an essential part of the Agency OS—cultivating client and team relationships.

3. Cultivating your clients and team

Your agency is nothing without the clients you serve and the people that serve them. This section of the Agency OS is about setting both parties up to win.

Building your team: Recruitment, culture, and retention

As the engine of your agency, a well-cultivated team is central to your mission to grow your agency. Hire not just for skill but for fit. Cultivate a culture that celebrates innovation, encourages collaboration, and values each member. It's important to empower your team with:

  • Tools that enhance productivity and streamline communication.
  • Regular team-building exercises that solidify bonds.
  • A clear path for growth within the agency that encourages personal development alongside professional progress.

Retention will take care of itself when people believe in their work and workplace.

Clients: From transactions to partnerships

Clients are not just revenue streams. They are partners in progress. Cultivate relationships that go beyond contracts. Understand your client's businesses as if they were your own. In doing so, your clients become powerful allies and advocates for your agency.

And speaking of clients, in the following section, I'll break down client relationships, communication, and expectations.

4. Client relationship management: Onboarding and beyond

The first steps in a partnership can set the stage for everything to come. The onboarding process is a pivotal juncture in the client-agency relationship. It's not merely about paperwork and processes. It's about building trust, understanding, and setting the tone for collaboration.

Here's how to make it seamless:

  • First contact: Beyond introductions, make it a memorable meet. A welcome package or video can add a personal touch that speaks volumes.
  • Information exchange: Employ tools that facilitate easy information sharing. Refer to the tools listed above (Dropbox, Basecamp, etc.)
  • Expectation setting: This one is huge. Clear, concise communication about goals, roles, and responsibilities can mitigate misunderstandings down the line.

Communication cadence: Keeping the rhythm

Consistent communication keeps the client engaged and informed. Establish a rhythm that suits the client's needs and your agency's capacity.

  • Regular updates: Schedule these in advance. Predictability builds reliability.
  • Check-ins: Spontaneous calls or messages can show your client they're top of mind.
  • Reports and reviews: Regular, structured feedback can turn data into actionable insights.

Managing expectations and delivering consistent value

Delivering on promises is just the start. Exceeding expectations is where long-term relationships are made.

  • Transparent processes: Show clients how you work. Involve them in your process.
  • Over-delivery: Whenever possible, give them more than they expect, not less.
  • Adaptable Solutions: Be ready to pivot strategies as the client's needs evolve.

Remember: This section of the Agency OS is about reinforcing the partnership—it's where empathy meets expertise.

5. Operational excellence and efficiency

Maintaining happy clients and team members is part of a larger strategy to grow your agency sustainably by creating systems and processes that help everyone do their best work.

Streamlining your workflow: Systems and processes for agency efficiency

  • Implementing automation for repetitive tasks to free up creative energy.
  • Developing comprehensive Standard Operating Procedures (SOPs) for consistent task execution.
  • Adopting lean methodologies to continuously evaluate the relevance and efficiency of every process.

The tech stack: Choosing the right tools

The heart of agency efficiency lies in its tech stack. It's a digital arsenal that, when chosen correctly, provides the structure and support for all your operations. Here's how to arm your agency with the best tools:

  • Communication platforms: Tools like Slack enable real-time conversations, fostering an environment where ideas can flow and responses can be swift.
  • Project management systems: Asana, Trello, and Basecamp offer varied features to track project progress, assign tasks, and manage deadlines with visual boards and integrated calendars.
  • Customer Relationship Management (CRM): Salesforce or HubSpot can be pivotal for tracking leads, managing customer interactions, and personalizing client journeys.
  • Document collaboration and storage: Google Workspace and Dropbox provide cloud-based platforms for document storage, sharing, and live collaboration.
  • Analytics and reporting tools: Google Analytics for web data, Ahrefs for SEO insights, and Tableau for advanced data visualization ensure you're making informed decisions based on hard data.
  • Creative suites: Sketch and Figma are fan favorites for web and graphic design.
  • Time tracking and billing: Tools like Harvest and Toggl track time spent on projects, simplifying billing and resource management.
  • Email marketing services: Platforms like ConvertKit offer robust solutions for managing email campaigns, subscriber lists, and marketing automation.

The goal is to select tools that mesh well with your team's work style and the demands of your projects. Each addition to your technology stack should offer a clear benefit, improving existing workflows, not complicating them.

6. Financial management: Pricing strategies, invoicing, and cash flow

Sound financial management is not just for longevity but for those who aim to strategically grow their agency. Establishing a solid foundation through strategic pricing, streamlined invoicing processes, and vigilant cash flow management is vital. Important practices include:

Pricing strategies

  • Conduct a thorough market analysis to ensure your agency's pricing is competitive and reflects your expertise.
  • Develop a pricing model that values your services appropriately, perhaps through tiered offerings that cater to varying client needs.
  • Maintain pricing flexibility to accommodate your services' changing scale and scope as your agency evolves.


  • Automate invoicing to minimize time spent on administrative tasks.
  • Ensure clarity in invoicing by itemizing services and clearly stating payment terms, avoiding potential confusion or disputes.
  • Implement a systematic follow-up process for outstanding invoices to encourage timely payments and maintain healthy cash flow.

Cash flow management

  • Engage in proactive cash flow forecasting to anticipate and prepare for financial fluctuations.
  • Establish a financial safety net by building a reserve fund to buffer against unexpected downturns.
  • Carefully manage expenditures; mindful spending can free up resources to reinvest in your agency's growth.

A solid financial foundation is not just a pillar of stability; it's the launchpad for your agency's growth and innovation.

Agency OS: A blueprint for growth

Hopefully, this article has given you the building blocks to create your own Agency OS. They'll all be unique, but no matter what your Agency OS looks like, I'm sure it will quickly become the backbone of your thriving and growing digital agency—harmonizing growth mindsets with solid planning, client and team synergy with operational efficiency, all underpinned by financial strategies that lead to more predictable outcomes.

With this foundation, you're set to navigate the ebbs and flows of the agency world and lead your business toward a future ripe with possibility. Let's get to work!

Frequently Asked Questions

  • How can implementing an Agency OS be a game-changer in your mission to grow your agency?

    An Agency OS provides a structured framework for digital agencies to refine their vision, streamline operations, and improve client relationships, ultimately fostering an environment for sustained growth.

  • What are the key components of operational efficiency in an agency?

    Operational efficiency can be achieved by implementing systematic workflow processes, utilizing the right technology stack for project management, and adopting sound financial management strategies.

  • Can you explain the importance of team culture in agency success?

    A strong team culture promotes collaboration, enhances job satisfaction, and increases productivity, which is essential for delivering exceptional service to clients and driving agency growth.

  • What strategies can agencies use to build lasting client relationships?

    Agencies can establish lasting relationships by transitioning from transactional interactions to partnership mindsets, creating memorable onboarding experiences, and maintaining regular, value-driven communication.

  • Why is adaptability important for a digital agency, and how can it be achieved?

    Adaptability allows agencies to respond swiftly to market changes and client needs. It can be achieved through agile marketing strategies, continuous learning, and fostering a culture that embraces change.

  • How should agencies approach setting and measuring performance metrics?

    Agencies should define clear KPIs aligned with their goals, establish regular feedback loops for continuous improvement, and use these insights to refine their services and processes iteratively.