The Design Crunch

Design

Everyone is feeling the impact of the recession and I know of two or three agencies in Birmingham alone, which have closed since Christmas. With companies being forced to look more closely at the bottom line, and with real pressure on them to reduce costs, I think there are many agencies that will need to look closely at their charging structure and capability mix.

For too long, agencies have developed capability and top-level management structure, especially in account handling departments that ad little value and considerably inflate the clients bill. The days of work falling in through the door are gone and the industry will need to work harder at providing real measurable bottom line value. Many agencies will need to look at outsourcing key capabilities that are not fully utilised. A new kind of agency structure must evolve, - one where teams are build around the client needs and are virtual in there geographical location.

We established a virtual network from the start, which has meant we meet the needs of our client’s projects and not pass on the inflated agency overheads that would normally be associated with such a high level of service. We have noticed that this trend is already being adopted by a number of well know larger agencies as they look towards shedding operating overheads.

We are picking up more and more leads from agencies who are looking for a ‘white labelled solution’. I think this recession is going to be very hard and we will have to change the way we are structured, deliver the service and the way we are held accountable for the value we bring.  

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