3 Bad Habits To Avoid With Your Creative Agency KPIs

3 Bad Habits To Avoid With Your Creative Agency KPIs

It’s the measure that determines your project’s success. Your boss loves it. And as a professional in your field, you strive to achieve it.

Key Performance Indicators (KPIs) helps us understand how well a team, individual, or agency is performing compared to their strategic goals and objectives. To unlock success with your KPIs, take note of these 3 common mistakes agencies make.

Not Tracking

One of the most significant challenges agencies are faced with is tracking both billable and non-billable time. With project resource management software, agencies can review these numbers in efficiently-produced reports that will demonstrate the performance of an agency’s projects. When time is not tracked properly, or reports are cumbersome to produce, they tend not to get done or are produced too late to make any nimble changes in the course of a project. As well as having time tracking software in place, it’s important to have both cost and billing rates established, so that you can examine the true profitability of projects.

Not Investigating

Many agencies have strong reporting systems in place but stop short at investigating some of the reasons why projects are, or are not, profitable. Of course, there are one-off events that affect the profitability of a single project, but it’s worth looking at a specific series of projects to see if there are trends affecting performance. When analyzed, do those one-off events indicate a consistent problem in the process? Another area to examine under the microscope is individual clients, to determine if they’re worth working for, given the historical data on their projects.

Not Adjusting

Changes are constantly taking place in the industry, and you may experience changes within your agency. This is a good time to use your project resource management software to review your rates and your ongoing profitability. Retainers should be reviewed after each month, to see whether the agency is on-target, or whether adjustments need to be made. The historical data of fixed-fee projects should also be examined upon completion so that fees can be changed for future fixed-fee projects.

Function Point is a SaaS business, providing project resource management software designed with creative agencies in mind. To learn more about how Function Point can make your creative agency more efficient and profitable, be sure to book a free demo with one of our experts and we’d be happy to show you around the system!

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