Michael Farmer's recent piece, "What Agencies Must Do to Restore Success," shines a light on a painful truth: agencies have drifted from their core purpose. As he puts it, the real crisis isn’t about creativity, fees, or RFPs. It’s about failing to help clients grow.
But the problem isn’t just that agencies have lost their way. It’s that the traditional agency model is structurally outdated.
The Legacy Model No Longer Works
Most agencies are still built around ideas and outputs: campaigns, content, assets, and impressions. But that model was designed for a world where marketing budgets were stable, attention was cheap, and brand loyalty was a given.
Today, CMOs are under pressure to prove ROI, drive profitable growth, and do more with less. In that world, agencies who simply "make things" are expendable.
If we want to matter again, we have to evolve.
From Vendor to Growth Partner
To become indispensable, agencies must shift from service providers to strategic growth partners. That means:
Business fluency: Every strategist, creative, and account lead needs to understand the client’s business model, growth levers, and market dynamics. We should speak the language of revenue, margin, and lifetime value—not just reach and awareness.
Outcome-driven scopes: Traditional scopes of work are activity-based and often misaligned with client goals. Agencies need to co-create scopes that define success in business terms, and then design creative, media, and digital efforts to deliver on those outcomes.
Measurement that matters: Vanity metrics don’t drive renewal or trust. Agencies should implement modern Marketing Mix Modeling (MMM), revenue attribution, and brand tracking to prove impact.
Smarter, not bigger: Rather than growing headcount to match scope creep, agencies must become more agile, partnering with specialists and building modular teams around strategic needs, not internal structures.
The New Agency Playbook
What replaces the old model? A hybrid model that blends:
The rigour of management consulting (data, diagnostics, growth strategy)
The craft of brand and experience design (positioning, storytelling, CX)
The agility of modern product teams (sprints, MVPs, test-and-learn)
Agencies that operate like this can help clients make smarter bets launch faster, and scale what works. They don't just market the brand—they help shape the business.
A Diagnostic Framework
Before jumping into change, it’s essential to understand where your agency stands. Too often, leaders adopt new language without shifting behaviours or models. This simple diagnostic helps create clarity on your current state—and where to focus next. Here’s a quick diagnostic to evaluate your agency's readiness to evolve:
Where Are You on the Evolution Curve? (Score 1–5)
We deeply understand our client's business models and growth levers.
Our scopes are tied to measurable business outcomes.
Our pricing reflects the value delivered, not the hours worked.
We use data and diagnostics to guide strategic decisions.
We have a clear positioning and point of view in the market.
We’re building proprietary tools, frameworks, or IP.
Our culture attracts and grows strategic, entrepreneurial talent.
Scoring:
30–35: You’re leading the way—focus on scaling your model.
20–29: You’re evolving—double down on structure and positioning.
Below 20: Time for a strategic reset.
Concrete Moves to Make Now
Knowing what needs to change is one thing. Knowing where to start is another. These moves help lay the foundation for becoming a truly modern, outcome-driven agency—one rooted in business value, not just marketing outputs.
Audit your current scope of work. Are they aligned to client business goals or just outputs?
Invest in business acumen. Train your teams to understand the client’s P&L, not just their brand guidelines.
Redesign your pitch process. Lead with insight into the client’s growth challenges—not just your creative reel.
Shift compensation models. Go beyond billable hours. Explore outcome-based pricing, value-based fees, or shared upside models. Price your work based on its strategic impact, not how long it takes to produce.
Refine your positioning. Specialization isn't limiting—it's differentiating. Define your focus: what category you lead in, who you serve best, and how you're uniquely equipped to solve their challenges.
Build proprietary tools and IP. Don’t just sell services—sell thinking. Develop methodologies, diagnostics, or tech-enabled frameworks that enhance your value and create leverage.
Rebuild internal culture around purpose and performance. Create career paths that reward business impact, strategic thinking, and collaboration—not just output or utilization.
What This Means for Clients
Of course, this shift in thinking isn’t just an internal exercise—it radically changes the value proposition agencies offer to clients. This isn’t just an agency problem. It’s a client opportunity. If you lead a brand and are working with agency partners, this shift directly affects the value you get—and the growth you achieve. Here's how to evaluate whether your agency is truly serving as a growth partner.
If you’re a CMO, VP of Marketing, or founder working with agencies, this shift matters to you too. Ask yourself:
Is your agency helping you diagnose growth blockers—or just executing campaigns?
Are they bringing business insight to the table—or just delivering assets?
Can they connect their work to revenue, margin, and long-term brand equity?
If the answer is no, it may be time to rethink who’s on your bench. Great agencies won’t just make things for you—they’ll make growth possible with you.
Implementation Path
Reinvention doesn’t happen in a single step. Agencies need a practical roadmap to evolve without disrupting operations. This phased approach balances ambition with momentum—helping you move from intent to action.
Moving from a traditional agency model to a growth partnership doesn’t happen overnight. Here's a phased approach:
Phase 1 – Diagnose & Align
Map client business goals to current scopes.
Revisit your agency's positioning and competitive advantage.
Identify capability gaps in the team, tools, and culture.
Phase 2 – Prototype & Prove
Pilot a value-based scope with a growth-minded client.
Build a proprietary framework or diagnostic tool.
Assemble a cross-functional team for a growth-focused sprint.
Phase 3 – Scale & Systematize
Redesign compensation and incentive models.
Evolve your pricing and proposal process.
Institutionalize business acumen and strategic thinking into onboarding and training.
Future Signals to Watch
The world isn’t standing still, and neither are your clients. These signals represent emerging forces that will reshape the industry. Agencies that anticipate them—and adapt—will have a meaningful advantage in the years ahead.
To stay ahead, agency leaders must track signals that will shape the next era:
AI-assisted strategy: Insights, creativity, and performance optimization will become increasingly automated.
Productization of services: Clients will favour agencies that deliver repeatable value through proprietary models.
Strategic procurement: Procurement teams will reward clarity, specialization, and measurable business impact.
CMO transformation: The most progressive CMOs will prioritize partnerships that drive enterprise-wide growth—not just brand exposure.
Why Reinvention Can't Wait
As Farmer points out, "making the numbers" by sacrificing talent, margins, and long-term viability is no longer acceptable. Agencies that want to thrive must stop chasing the past and start building what’s next.
The future belongs to those who reimagine their role—not as vendors or executors, but as catalysts for business transformation.
Those who embrace this shift will rise. Those who cling to the old model will be left behind.
This Is the Moment
If you're leading an agency and still waiting for a perfect time to reinvent—this is it. The industry is shifting under our feet. Clients are demanding more. Talent is reevaluating where it wants to grow. And the window for quiet evolution is closing.
Pick one client. One scope. One bet.
Redesign it for business impact. Price it for value. Measure it with confidence.
Show your team—and the market—what the future looks like.
The next era of agency leadership won’t be won by those who hesitate. It will belong to those who move now, with purpose and conviction.
Are you ready to lead?
