When is the right time to recruit a Project Manager in your agency?
I often get asked by Agency Founders when is it the right time to hire a Project Manager? While there is no hard and fast science there are some key things to look out for which indicate your readiness…
For smaller agencies operating under a gross profit of 500K annually and with fewer than nine full-time employees, a hybrid Project Management / Account Management role is likely present in your agency at the moment.
Whilst functional in the short term, relying solely on hybrid roles may impede scalability and efficiency as the agency expands. The dependency on individual talents creates potential bottlenecks, risking the agency's stability.
Therefore, it's critical to assess the existing talent pool and identify specialised roles — determining whether individuals are best suited for Account Management or Project Management. Streamlining responsibilities ensures smoother workflows and reduces dependency on individual capacities, fostering a more scalable agency structure.
When is the right time?
The decision to onboard a dedicated project manager hinges on a comprehensive understanding of the agency's unique needs, financial readiness, challenges, and long-term objectives. It's about recognising the pivotal juncture where introducing a specialised project manager will significantly enhance the agency's operations, efficiency, and growth trajectory.
Drawing from Cactus's extensive experience collaborating with diverse agencies over decades across our Partners, we've found that reaching a gross profit milestone of 500K often signals the agency's readiness to invest in its inaugural Project Manager. However, for those inclined toward risk aversion, a strategic approach involves pre-selling the role to clients, thereby expediting its transition into a billable position within a shorter time frame.
9 common triggers which can signal the need for a Project Manager:
Increased Workload: When the workload becomes overwhelming for the existing team, and project management needs exceed the capacity of current staff.
Scale and Growth: During periods of growth or when taking on larger projects, a project manager becomes essential to maintain organisation and ensure successful project delivery.
Complex Projects: Introducing a project manager becomes necessary when dealing with multifaceted or complex projects that demand specialised oversight and coordination.
Client Demand: If clients require dedicated project management or if there's a need to improve client satisfaction by providing better-structured project handling and communication.
Process Improvement: When there's a necessity to streamline workflows, optimise processes, and implement project management methodologies to enhance efficiency.
Resource Allocation: Hiring a project manager helps in better resource allocation, ensuring that team members are appropriately assigned tasks based on their skills and availability.
Risk Mitigation: As projects become more intricate, a project manager helps identify and mitigate risks, ensuring smoother project execution and delivery.
Quality Control: When there's a focus on delivering high-quality work consistently, a project manager can oversee quality control processes and standards.
Strategic Planning: If the agency aims to expand its services, enter new markets, or diversifying its portfolio, a project manager plays a critical role in strategic planning and execution.
Looking to add to your Project Management team?
When pondering the expansion of your Project Manager team, my advice is to maintain a lean approach and refrain from hiring solely based on perceived busyness — rely on data first.
During my tenure building Project Management teams from scratch, I employed a data-centric approach before adding to the team. I scrutinised utilisation rates, current billable time versus capacity, project statuses, and team workloads. I aimed to optimise existing resources by minimising waste, reducing unnecessary meetings, automating reports, and redistributing responsibilities among the team members. Conducting this audit not only saved time and resources but also ensured a more agile response to fluctuating project stages and workloads.
To gauge readiness for hiring additional Project Managers, aim for a visible workload scheduled at least three months in advance, factoring in both ongoing commitments and potential new business. This alignment should instil confidence in commencing the recruitment process for a new PM.
In the dynamic sphere of smaller digital agencies, investing in a dedicated Project Manager often aligns with hitting around a 500K gross profit annually.
While a hybrid role may suffice initially, showcasing its value to clients can transform it into a billable entity. Expanding the Project Manager team warrants a lean, data-driven approach, evaluating utilisation rates, streamlining processes, and predicting commitments to identify the optimal recruitment window. Recognising triggers like increased workload, scalability, client demands, and process refinement signifies the need for specialised project oversight.
Integrating a Project Manager transcends mere staffing; it's a strategic manoeuvre towards bolstering efficiency, ensuring quality assurance, and fostering sustained growth within the digital agency landscape.
If you need help with where to start and how to set this new role up for success or need support splitting your current Account Manager and Project Manager roles get in touch today.
