How Simple Operations Changes Took Our Agency from 10% to 39% Profit

How do you make an agency more profitable without simply chasing more revenue?

In this talk, I share the story of how we transformed Verve Search from an agency with a 10% profit margin into one achieving 39% — in just two years.

I break down the practical operational changes behind that transformation: from financial forecasting and understanding the real cost of delivery, to tracking billed vs actual time, improving client profitability, saying no to the wrong work, developing the right people and building a leadership team around my own strengths and weaknesses.

These weren’t complicated systems or huge technology investments. They were relatively simple changes that gave us much greater visibility, accountability and control over the business — while still allowing us to do ambitious creative work.

Verve Search went on to win more than 50 awards, including Best SEO Agency three years running, and was acquired by Omnicom Media Group in 2017.

Originally presented at Agency Hackers Clockwork Conference

Transcript

1. How Simple Ops Moves Rocketed Our Profits
2. Who dat Lisa Paasche? • Founder & CEO of Verve Search – SEO & Digital PR Agency • Won 50+ awards, incl Best SEO Agency 3 Years running • Sold Verve to Omnicom Media Group in 2017, exited in 2021 • Mentor & Advisor to Agency & Tech Leaders @EKTE • Neuroscience and Psychology Enthusiast • Standup Comedian @StandupLisaMay • Podcast Host & Producer @Am I Crazy? Or…
3. Founded Verve in January 2009 • Started off doing SEO, PPC, Analytics & Socia Media • Had my second child in 2010 • Profitable each year • By 2014 we were 22 people
4. By end of 2014 profits were a bit shit 10% profit margin
5. Tech SEO 10% On Page 20% Off Page 70%
6. 74 websites everything else
8. We had to change strategy, think smarter!
9. When everyone draws CROSSES – draw a CIRCLE XXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXOXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXX
10. January 2015, I made 40% of the agency redundant and closed down the “content” team
11. The idea was that we had to create creative campaigns on par with creative agencies to get the best possible links
12. we reframed and used the slogan:
13. “WE THINK LIKE 50s AD EXECS & EXECUTE LIKE GEEKS”
14. We hired designers, developers, copywriters and set up an outreach team (digital PR)
26. We would get coverage on TV TV3 (Sweden) NBC ITV
27. Shared by global organisations Greenpeace WWF NASA
29. We went from 10% profit margin to 39%
30. To 39% profit margin in just two years!
31. And in September 2017 Verve Search sold to Omnicom
32. Let me tell you what we did and how
33. 1 Financial Forecasting
34. Using Management Accounts for financial decisions is madness
35. Hybrid Forecast & Management Accounts – becomes more accurate as year goes by
40. 2 compulsory time tracking with time sheets
41. Made timesheets part of the performance review process.
43. We used Harvest + Python to import data into Google Sheets
44. Now I would use Ai (obviously)
46. 3 Analysing capacity utilisation
47. Be Realistic With Capacity – Deduct and Deduct Again! + No one is ever 100% efficient and ON! 75% max
48. Not All Teams Are Billable
49. Billed Vs Actual Time
50. Billed Vs Actual - By Department
51. Some are notoriously hard to charge for
52. Some Departments Should and CAN be improved
53. Some Departments Are Clearly More Profitable
54. Transparency Help them understand the business.
55. No Change Board
56. Link Score, Link Bell & White Whale
57. 4 Focus on retaining and growing existing clients
58. Multi Markets and Multi Vertical Clients
59. It takes time to get to efficient delivery with any client
60. 5 Saying NO when budget or ”fit” wasn’t right
61. 3 RULES of New Business
62. 1. Get Results 2. Money (actual profit!) 3. Learn Something
63. 6 Recruiting & developing PEOPLE
64. I had to be honest with my strengths & weaknesses
65. Finding the yin to my yang - but making sure our values alligned
67. Recruiting for GRIT not experience
68. The advantage of disadvantages
70. Different job ads for the same job
71. Rehauled HR & Review Process
72. Managing people isn’t for everyone. Yet managing people is the only way to the top in most companies.
73. Single Contributor Track
74. Pathways to promotion
75. Performance Review Process
76. Having a scoring metric that was the same for everyone increased accountability Manager and Self Assessment –compare No self assessment = no review
77. Scandinavian Transparency on Salaries
78. Encourage Connection
79. LOVE Week – a 3 year experiment
80. 1. Everyone picked a name at random 2. Do something nice for that person every day for a week (without them knowing it is you)
82. Friday Reveal
84. And that is how…………
85. We went from this
86. to this…
87. Thank You! Lisa Paasche lisa@ekte-vision.com @EKTEvision