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Similar to The Drum, Agency Acceleration Day -'Olympic-sized talent pool' - Diogo Freire
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The Drum, Agency Acceleration Day -'Olympic-sized talent pool' - Diogo Freire
- 1. © 2014 TBG© 2014 TBG
Diogo Freire - TBG
CFO & COO
Olympic-sized talent pool
To be ready for growth but still maintain profit, you need to have the right mix of staff
and the right talent. Is there an ideal balance of junior, middle and senior places on
your team?
- 2. © 2014 TBG
Contents
1. Universal Objectives
2. A Key Question
3. Getting it wrong
4. Skills Matrix
5. Getting it right
- 3. © 2014 TBG
What’s the right mix of skills?
CFO
• 20% operating margin!
COO
• High quality work
• Low Client churn
• Low Staff churn
• Growth
• High staff utilisation
• Etc.
Universal Objectives
- 6. © 2014 TBG
Skills Imbalance Scenarios
• Clients are Happy
• Utilisation 80%+
• Low Profitability
• High Staff Turnover
• Clients Unhappy
• Utilisation 90% +
• Profitability declining/ stagnant
• Staff retention patchy
- 7. © 2014 TBG
Skills Matrix
Too Many Chiefs You’re a Star
Is this your Mission? Too many Indians
HIGHLOW
LOW HIGH
REVENUE/ HEAD
CHIEFS/INDIANS
- 8. © 2014 TBG
REVENUE/HEAD: use with care
Brain Surgeons: $457,000
Efficiency geeks: $130,000
The Independents (2012): $179,000
Goliath (2012): $130,000
- 9. © 2014 TBG
KPI: Profitability per head
- Define your own
- It’s like a red wine
- Early warning signal
- Does not suffer fools
- 10. © 2014 TBG
Getting it right
Too Many Chiefs You’re a Star
Is this your Mission? Too many Indians
HIGHLOW
LOW HIGH
REVENUE/ HEAD
CHIEFS/INDIANS
- 11. © 2014 TBG
LOW/LOW
Profitability: high
Type of work: repetitive, difficult to differentiate
USP: what?
Key to profitability: efficiency
Recruitment strategy: grads
Training: formulaic
Staff retention: culture but there is limits
- 12. © 2014 TBG
HIGH/HIGH
Profitability: high
Type of work: creative, defining, cutting edge
USP: high level of creativity, expertise
Key to profitability: high charge out rates
Recruitment strategy: seeking the best at all levels
Training: mentorship with Senior Staff
Staff retention: continued stream of interesting/ challenging work –
growth!!
- 13. © 2014 TBG
The Yellow Brick Road and other Fairy Tales
Too Many Chiefs You’re a Star
Do all roads end
here?
Too many Indians or a
sweet spot?
HIGHLOW
LOW HIGH
REVENUE/ HEAD
CHIEFS/INDIANS
- 14. © 2014 TBG
Dr Jekyll would been a great COO
Type of work: repetitive, difficult to
differentiate
USP: pricing
Key to profitability: efficiency
Recruitment strategy: grads
Training: formulaic
Staff retention: culture but there are
limits (and that is ok)
Type of work: creative, defining,
cutting edge
USP: high level of creativity, expertise
Key to profitability: high charge out
rates
Recruitment: seeking the best
Training: mentorship with Senior Staff
Staff retention: continued stream of
interesting/ challenging work –
growth!!
- 15. © 2014 TBG
Conclusion
Define who you are
Match your Skills Mix to your offering
Enjoy the ride but don’t indulge
Stars need growth to keep shining
Embrace change