How to create seamless agency operations in 7 steps

Agency operations encompass everything that goes on behind the scenes in your agency – from HR and client management to processes and tools. They’re what keep your agency running smoothly, your employees happy, and your clients satisfied.  

But without the right systems in place, things can get chaotic, fast. At best, delays and confusion. At worst, all-round dissatisfaction. 

The solution? Taking a proactive approach to streamline and improve your processes.

With that in mind, I’ve created this guide to agency operations, with seven actionable steps to help you build an agency that’s organized, efficient, and ready for growth.

What are agency operations?

Agency operations refer to the day-to-day activities and processes involved in running an agency. They’re usually managed by the agency owner, or by agency operations professionals like a chief operating officer (COO) or an agency operations manager.

Key areas of agency operations include:

• Human resources – Hiring, onboarding, training, and retaining talent
• Project management – Planning, executing, and delivering work efficiently
• Client management – Onboarding, communication, and managing client expectations
• Process optimization – Standardizing workflows to reduce inefficiencies
• Technology and tools – Choosing software to streamline work and collaboration
• Financial management – Budgeting, invoicing, and making sure the agency is profitable
• Risk management – Preparing for challenges like scope creep, client drop-offs, or resource shortages

Effective agency operations management is essential for keeping the wheels turning smoothly behind the scenes. It ultimately leads to increased client satisfaction, improved employee retention, and successful project delivery time after time.

So, without further ado, here’s how to optimize agency operations in seven steps. 

1. Prioritize people

In an agency environment, your people are your greatest asset – and often your biggest expense. So recruiting and retaining the right people is key for maintaining smooth agency operations. Prioritizing things like training, culture, and well-being is vital for keeping your people happy and minimizing operational disruption. 

After all, a motivated, skilled, and supported workforce will deliver better results, collaborate more effectively, and stay loyal to your business for the long haul. 

Invest in training

58% of employees would leave their company if they didn’t have professional development opportunities. Help your team grow and boost retention by providing plenty of opportunities for upskilling. 

That might include attending industry events, enrolling in online courses, or joining in-house training sessions. Providing plenty of opportunities for talent development keeps your team happy and fulfilled, and your agency competitive and future-proof. It’s a win-win situation!

Create a positive work culture

Culture might have become a bit of a buzzword of late, but it really is important for keeping teams motivated and engaged. In fact, according to recent Gallup research, employees who feel connected to their organization’s culture are four times as likely to be engaged at work.

Source: Gallup

Here are a few ways to create a positive work culture:

• Celebrate successes, big or small, to show your team that their efforts are valued
• Encourage creativity by giving employees the freedom to think outside the box and experiment with new ideas
• Set realistic goals and key performance indicators (KPIs) to inspire employees without overwhelming them 
• Create an environment where employees feel comfortable sharing ideas, feedback, and concerns
• Offer opportunities for growth to keep your team engaged
• Prioritize managing resources effectively to balance workloads and prevent employee burnout

Support employee wellbeing 

The last thing you want is for your team to burn out. So, show your team you care by promoting work-life balance and offering practical support like flexible hours and mental health resources. 

Small gestures like regular check-ins and wellness perks go a long way toward building a happy team.

2. Establish scalable processes

As your agency grows, so do the complexities of managing multiple clients, teams, and projects. Without scalable processes, things can quickly spiral into chaos. 

That’s why it’s important to build processes and workflows that can scale with you, so that your overall agency operations remain smooth and adaptable, no matter how fast you grow.

Create repeatable workflows

Streamline your processes by creating workflows that can easily be replicated across projects. Standardized steps and templates save loads of time and help your team work more efficiently. Plus, they make sure there’s consistency in quality control and delivery as you scale so that nothing falls through the cracks. 

Choose scalable software solutions

The right tools can make a huge difference in keeping your agency operations smooth and efficient as you grow. Make sure you invest in software that can handle an increasing workload and scale with your agency.

Here are some types of agency software to consider:

• Project management software – Tools like Asana or Monday.com for project planning, task management, and to track project progress
• Feedback and approval software – Client feedback tools like Filestage to consolidate feedback from project stakeholders, support quality assurance, and speed up sign-offs
• Resource management software – Tools like Float or TeamGantt for resource allocation and capacity planning
• Communication software – Platforms like Slack or Zoom to make it easy for internal teams and clients to communicate and collaborate efficiently  
• Accounting software – Tools like Xero or QuickBooks for creating invoices, tracking cash flow, and generating financial reports

Automate as much as possible 

Automation is an absolute game-changer when it comes to operational efficiency. Start by identifying tasks that eat into your team’s day – think email scheduling, data entry, reporting, and other administrative tasks. 

Then, leverage tools with automation capabilities to take these tasks out of their hands. For instance, scheduling features in email marketing platforms or auto-generated analytics in reporting tools. 

This eliminates repetitive tasks, reduces human error, and frees up your team to focus on higher-value work like creative strategy and client management.

Find out more about workflow automation software. 

3. Streamline your onboarding experience

A smooth onboarding experience sets the tone for a successful client relationship. It’s your chance to build trust, align expectations, and start every project on the right foot. 

If onboarding is clear, thorough, and efficient, the rest of the project typically runs much more smoothly, with fewer hiccups or misunderstandings along the way. 

Use onboarding templates

We’ve already touched on repeatable workflows – and onboarding is a perfect example. Create standardized documents that cover key steps like welcome emails, project timelines, and kickoff meeting agendas. 

Once you’ve got these templates, it’s quick and easy to customize them for each new client – saving you time and helping you deliver a consistent experience for every client. 

Set clear expectations from day one

Use your onboarding process as a chance to set clear expectations from the get-go. This prevents misunderstandings and lays the foundation for smooth, conflict-free collaboration throughout the project.

• Timelines and deliverables – Outline what will be delivered, when it will be completed, and any key milestones along the way
• Communication channels – Agree on how and when updates will be shared (e.g. weekly calls, daily email updates, or via an agency project management tool)
• Review and approval – Define how feedback will be collected, how many review rounds are included, and approval deadlines
• Client responsibilities – Be upfront about what you need from your client, such as providing assets, responding to questions, or giving feedback and approval promptly

Want to know what a day in the life of a 2040 agency will look like? We asked 31 agency creatives to give their predictions. Read the results.

4. Make clear communication a priority

Good communication is essential for seamless agency operations. When teams and clients know how to communicate effectively, it reduces confusion, prevents delays, and keeps projects on track from start to finish. And that helps your agency tick along like clockwork. 

Set communication guidelines

Setting clear communication guidelines for teams and clients keeps everyone on the same page – reducing unnecessary back-and-forth and allowing for smoother collaboration. 

Your guidelines should cover:

• Preferred channels – You might choose to use project management software for status updates, Slack for day-to-day questions, and Filestage for feedback and approval
• Response times – Set expectations for how quickly team members or clients should respond to messages
• Meeting schedules – Decide how often there should be check-ins or status updates to keep everyone aligned

Encourage transparency and honesty

Fostering a culture of transparency helps prevent small issues from growing into unnecessarily huge problems. Encourage your team and clients to share updates, voice concerns, and address challenges as and when they come up – without waiting for things to escalate. 

This open communication and culture of honesty builds trust and helps project teams proactively solve problems before they derail projects.

5. Keep a close eye on your finances

Financial operations are key to survival. Without clear oversight of your agency’s finances, you risk running into cash flow issues, underpricing your services, or being caught off guard during quieter periods. 

By keeping a close eye on your finances, you can make sure your agency stays financially healthy and ready for the future. No matter what it has in store. 

Track budgets and cash flow

Regularly review project budgets to make sure you’re staying within scope, and keep a close eye on cash flow to avoid unexpected shortfalls. 

Using accountancy tools like QuickBooks or Xero makes it significantly easier to track income and expenses in real time – and they’ll scale with you as you grow too.

Know your profit margins

Not all clients or projects are equally profitable. Let’s say Client A pays a lower fee but consistently requests extra revisions, messing up resource allocation and reducing your overall profit margin. 

Meanwhile, client B pays a higher fee for a retainer and sticks to the agreed scope, allowing you to deliver client work efficiently and maximize profitability.

Understanding the profit margins for each client or project helps you identify which types of work are worth prioritizing. And where you may need to adjust your pricing or renegotiate terms.

Be prepared for slow periods

Every agency experiences ups and downs – it comes with the territory. Agency leaders should prepare for quieter periods by making sure there’s always a financial buffer in place. 

Another way to prepare is by diversifying revenue streams so that you’re not relying too heavily on a single client or service. 

You might want to consider:

• Securing retainer clients for a predictable monthly income
• Offering additional services like consulting, workshops, or strategy sessions
• Generating passive income by selling templates, toolkits, or online courses related to your expertise

6. Plan for worst-case scenarios 

As well as slow periods, it’s important to prepare for a number of other worst-case scenarios. This includes everything from client drop-offs to resource shortages and sudden crises. 

By proactively identifying risks and doing everything in your power to prepare for them, you can avoid panic, stay calm, and keep agency operations running smoothly when things don’t go to plan.

Identify potential risks early

Start by going through your agency operations with a fine-tooth comb to look for any weak spots. Are you overly reliant on a single client or team member? Do you have backup plans for tight deadlines or sudden scope changes? Spotting risks before they happen gives you time to address them and prevent them from escalating into major disruptions. 

Create contingency plans

Once you’ve identified potential risks, lay out plans for how you’ll handle them. For example, what happens if a client suddenly leaves? Or if a key team member resigns mid-project? By creating contingency plans, such as having backup freelancers or savings to cover gaps, you can respond quickly without disrupting workflows.

Build a flexible workforce

Speaking of freelancers, consider building a pool of trusted freelancers or contractors who can step in when workloads become overwhelming or unexpected gaps arise in your workforce. 

A flexible workforce allows you to scale up or down as needed without overloading your core team.

Maintain strong client relationships

Good client relationship management really proves its worth during tough times. When you’ve built a strong relationship with your clients, and they like, trust, and respect you, they’re more likely to stick with you – even when challenges arise. 

7. Regularly review and optimize processes

Things might be running smoothly for now, but what works today won’t necessarily work in the months and years to come. To improve collaborative agency operations and keep everything running as smoothly as possible for the long haul, take time to regularly review how things are going and identify areas for improvement.

Here are the key processes that should regularly be reviewed and optimized:

• Project management process
• Review and approval process
• Client onboarding process
• Communication process
• Resource allocation
• Financial process
• Technology usage
• HR process
• Risk management process

Conduct regular process audits, gather feedback from your team and clients, and stay up to date with industry best practices. By doing this, you’ll keep your agency ahead of the curve and ready to adapt to whatever challenges lie ahead. 

Final thoughts

Creative agencies, marketing agencies, consulting agencies, and more can all benefit from improving their operations. Successful agency operations pave the way for better project delivery, happier clients, and a more motivated team. So by implementing these steps, you’ll not only streamline your processes but also set your agency up for long-term success.

If you’d like to see how Filestage can help improve review and approval workflows as part of your agency operations, you can start a free trial here →