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Optimizing the portfolio for a design agency
We clarified the offering and eliminated unprofitable services to increase operating margins and help the team focus.
Vectora
Decision context
Below, you'll find the starting situation, the decision to clarify and the action steps, just as we worked through them with the leadership team.
Context and decision
Optimizing the portfolio for a design agency
01 — Context
A 25-person agency offered too many services, from branding to social media management. Resources were spread thin, and profitability was declining despite a heavy workload.
The team was constantly on the brink of burnout, and the quality of deliverables was starting to suffer from a lack of specialization.
Identifying the Bottlenecks
We audited the profitability of each type of project over the previous two years. The data showed that 20% of services generated 80% of profits, while the rest consumed most of the management team’s time.
Without a clear way to prioritize its portfolio of initiatives, the agency was stuck in a zone of financial mediocrity.
02 — Decision to clarify
The Decision to Clarify
The founders needed to decide which services to eliminate without jeopardizing short-term financial stability.
The challenge was to accept a temporary dip in revenue in order to achieve a healthier profit margin and stronger market positioning.
How we worked
Optimizing the portfolio for a design agency
A Practical Approach
We facilitated leadership workshops to define the agency’s creative and commercial direction. We set strict criteria for taking on new projects, based on its core expertise.
We redesigned the organizational structure to support the new service pillars, eliminating redundant roles and clarifying each team’s responsibilities.
Case conclusion
Founders and leadership teams: direction and action.
Measurable Results
Reducing the offering to three core pillars increased profit margins by 18% in the first year. The team is now more efficient, and the time spent on project management has fallen significantly.
The agency is now seen as a product design specialist, allowing it to raise its hourly rates by 40%.
Initial conversation
Clarify the decision.
We bring direction.
When change is at stake, start with a precise question: what decision needs to be made now? Tell us about your situation, and we’ll arrange a focused conversation—with no solutions promised upfront.
The next step
Tell us what you need to decide in the coming weeks: repositioning, growth, or prioritization.
Schedule a conversationYou’ll get a direct response, with clear questions about your situation and what’s at stake.