The interactive industry is vast, wild, and largely unexplored. In fact, no one truly knows how many interactive agencies operate in the Polish market. In addition to large and well-known companies, there are hundreds, if not thousands, of small one- or two-person boutiques. Surprisingly, many of them operate from attics or private apartments.Managing an interactive agency in such an environment is a real challenge. Not only that, but one must also handle daily project-related tasks while effectively managing a team of creative yet independent individuals. Therefore, this requires organizational skills, flexibility, and negotiation abilities. Without them, it is difficult to maintain a balance between creativity and a business-oriented approach to clients. Furthermore, keeping up with the industry’s rapid changes is essential. After all, these changes can completely rewrite the rules of the game in a short period.

Estimating the exact number of agencies is pointless. Nor are they the target audience for our guide. We are addressing companies that:

• Have already established their position in the market
• Appreciate the value of competent employees
• Do not need to take on every project just to survive
• Prioritize profit over revenue
• Believe their potential can be better utilized

This will not be an article about creating spectacular projects or brilliant designs that win numerous awards—passion cannot be instilled that way. Nor will it be a guide on handling difficult clients, stress, or lack of sleep—those lessons are usually learned firsthand. Instead, this will be a straightforward text about building profitability, maximizing a company’s potential, and laying a solid foundation for sustainable growth. While high-profile campaigns generate publicity and build an agency’s brand, it is crucial to remember that interactive agencies are, first and foremost, businesses that must generate revenue—and they have immense opportunities to do so. The main challenge for managers, however, is that the brilliance of a project does not always translate into profitability.

How to Recognize a Company’s Potential?

The scope we will explore is defined by two key elements. The first is know-how, which includes solutions, products, methodologies, and, most importantly, the intellectual capital of employees. It is no coincidence that a company’s intellectual capital is considered one of the most critical indicators of its potential. Great ideas, creativity, and the ability to integrate everything into a cohesive project significantly impact client acquisition and an agency’s portfolio.

The second element consists of clients and their associated projects. Clients are not only the main source of revenue but also a form of “trophy hunting”—an agency can showcase its clients in various presentations.Both elements are crucial and highly sensitive. On the surface, running an agency may seem easy—one would simply need to secure the biggest clients and hire the best specialists. In reality, however, things do not work that way.In fact, this mindset has led many firms into traps because managing an agency requires flexibility, a personalized approach to clients, and an understanding that its services are worth only as much as a client is willing to pay.

As a result, amid the sea of clients and projects, it is easy to lose sight of profitability. Moreover, the status of a client often dictates how many and what kind of employees are assigned to their project. this sometimes happens at the expense of other clients.

Yet, efficiency should never be overlooked. In many cases, utilizing the same team for multiple smaller projects can generate significantly more revenue. Based on this, we suggest evaluating an agency’s potential primarily through the capabilities of its employees rather than the stature of its clients. And when measuring potential, the most fundamental metric should be revenue in the form of monetary value.

Questions Every Agency Manager Should Ask

Since clients are the primary source of revenue and salaries are the main expense, every interactive agency should ask itself two fundamental questions:

1. Can we receive more money from our clients?
2. Can we utilize our employees’ potential more efficiently?

While these questions may seem simple, answering them fully requires identifying specific clients and projects that do not yield satisfactory profits, as well as recognizing employees whose potential is being underutilized.

To illustrate the complexity of this issue, we present a list of questions that can help pinpoint areas where money is leaking out of the company:

• Are we billing for all the hours our specialists work?
• What is the current status of all ongoing projects?
• Are our specialists optimally scheduled?
• Are we invoicing and collecting payments fully and on time?
• Do we have budget overruns on fixed-price projects?
• Do we have proper management reporting?
• What is our utilization rate in relation to employees?
• What is the profitability of specific projects, clients, teams, and employees?

A full picture of the situation emerges only when these questions are applied across the entire scope of the business. Even if minor inefficiencies are detected at the project or employee level, their cumulative effect often represents a significant sum that either leaks from the company or never enters it due to poor planning and management.

IT Systems in an Interactive Agency

Many interactive agencies were founded and developed based on the intuition of their leaders. However, in the long run, intuition alone is not enough. Tracking every employee’s work and monitoring every project’s progress is beyond the capability of a single person. This is where an IT system becomes essential. A well-designed system should primarily reflect the company’s condition through clear tables, charts, and reports. Its goal is to provide data that helps answer questions about the actual state of the business and its potential.

The challenge with IT systems is that most were designed for traditional production companies—and managing a company that builds a stadium is vastly different from managing one that creates its virtual version in Second Life.

Interactive agencies do not manage concrete deliveries, but rather knowledge and the time of highly skilled specialists, such as project managers, developers, and designers. On the other hand, agencies may be tempted to develop their own solutions—”after all, we are an interactive agency with our own developers.” This is natural and seemingly more cost-effective. However, this situation is comparable to choosing between a paid highway and a free local road—opting for the free road may save money upfront, but it often costs time and lost opportunities. The final balance may not be as favorable as expected.

Therefore, let’s define what an interactive agency should expect from an IT system.