This is a presentation delivered at the Drum Agency Acceleration Day in 2014. It provides a simple model of what to consider to get the right mix of senior and junior staff in a services business

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

4. © 2014 TBG
KEY QUESTION

5. © 2014 TBG
Who are we?
• Without defining what kind of business you are or
want to be, you can’t get your skills mix right
• Skills mix must be align to the services you are
providing but also how you are providing them
• This clip from Mad Man is a great reminder of this:
http://youtu.be/QDadJaSERwg
It’s a great clip but more relevant from 1’19”

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Skills Imbalance Scenarios
• Clients are Happy
• Utilisation 80%+
• Low Profitability
• High Staff Turnover
• Clients Unhappy
• Utilisation 90% +
• Profitability declining/ stagnant
• Staff retention patchy

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Skills Matrix
Too Many Chiefs You’re a Star
Is this your Mission? Too many Indians
HIGHLOW
LOW HIGH
REVENUE/ HEAD
CHIEFS/INDIANS

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REVENUE/HEAD: use with care
Brain Surgeons: $457,000
Efficiency geeks: $130,000
The Independents (2012): $179,000
Goliath (2012): $130,000

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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

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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

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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!!

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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