Big and Strong, or Lean and Fast — Two Approaches to Agency Staffing
- Maria Ramos
- Strategy
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Big and Strong, or Lean and Fast — Two Approaches to Agency Staffing
Summary: Agency staffing involves choosing between **Big and Strong** (stability, high fixed cost) and **Lean and Fast** (margin protection, high flexibility). The optimal strategy for profitability is the **Strategic Hybrid Approach**, combining a large, stable core team (60-70% full-time) with a flexible pool of specialists (30-40% contractors) for variable needs.
Agency leaders often have to make a basic staffing decision: should you hire a “Big and Strong” team that focuses on stability and full-service capabilities, or a “Lean and Fast” team that is optimized for speed, flexibility, and margin protection?
There is no one appropriate answer for SPEEDXMEDIA and its strategic partners, but knowing the pros and cons of these two models is important for making money.
The Stability Model: Big and Strong
The “Big and Strong” agency hires full-time, devoted staff in every field it needs, from specialist editors and copywriters to niche strategists.
Pros:
- Stability and Institutional Knowledge: When personnel stays with a company for a long time, they learn everything there is to know about a client, the process, and the brand voice.
- Scale and Immediate Readiness: The agency may start working on big, complicated projects right once without having to look for contractors.
- Consistent Quality: Full-time teams who work together come up with a standard for quality that everyone follows.
Cons:
- High Fixed Cost: The payroll is huge. The agency has to keep selling big retainers merely to pay for its operations, which makes smaller accounts less viable.
- Slower Adaptation: It takes time to move a big ship, and new technology or changes in the market take longer to adapt to.
The Margin Model: Lean and Fast
The “Lean and Fast” firm puts a lot of value on having a small, highly skilled core staff (Account Lead, Strategist) plus a large pool of trusted, specialized freelancers and contractors that can work on short notice.
Pros:
- High Margin Protection: Payroll is directly related to work that can be billed. Costs can change, which protects the bottom line during downturns.
- Speed and Flexibility: The agency can swiftly find the right specialist for a specific, urgent customer need, like a certain AR developer.
- Less Overhead: You don’t have to commit to big office space, equipment, and benefits packages.
Disadvantages:
- Inconsistent Knowledge: When you hire outside contractors, you could forget things that happened in the past, and you have to spend a lot of time onboarding them for each project.
- Possible Problems with Quality Vetting: The flexible pool’s quality is only as good as the internal production control.
The Strategic Hybrid Approach
For most agencies that want to make money in a way that can grow, a strategic hybrid is the best choice. Make a strong and big core (leadership, strategy, client relations) that makes up 60–70% of your overall workforce. Use the Lean and Fast method for the other 30–40% of specialized, changing production needs. This method keeps the large model’s stability while keeping the small model’s financial flexibility—this is the best strategic advantage.
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