Selling Strategy in an Execution-Focused World
As an agency owner, you've likely faced the challenge of selling strategy to your clients. Far too often, clients opt to skip strategic planning in favor of immediate implementation. I imagine you're nodding in agreement right now. This rush toward quick, tangible results often sidelines the strategic planning that should happen first. Knowing the potential pitfalls of this approach, you might find yourself offering strategic insights for free, hoping to build goodwill for future projects. Unfortunately, this well-meaning gesture often fails to produce the desired outcome, as clients typically remain fixated on execution, paying little attention to the strategic framework guiding your marketing efforts.
This scenario underscores a deeper issue within the client-agency dynamic: There is a significant disconnect in recognizing the value of strategy and its role in driving revenue.
In this article, we’ll explore how your agency's positioning might be unintentionally making it difficult for clients to recognize the importance of strategy and their willingness to invest in it.
Strategy vs Execution
You know the saying, "There are two types of people in the world"? Well, the same concept applies to marketing firms: they are either insights/strategy-focused or execution/implementation-focused. An easy way to differentiate between the two is that strategy firms are compensated for thinking, while execution firms are rewarded for doing. Although this distinction may seem clear-cut, the reality is that many agencies straddle the middle ground, offering both services. In practice, offering both services is often necessary—you need strategic thinking to guide your work, and execution work typically allows you to charge a retainer or develop some type of subscription service.
What Type of Agency Are you?
Identifying your type of agency goes beyond introspection; it involves recognizing how your agency operations are structured, the skill sets you hire for, and how you interact with clients. Below is a simple guide to help you determine whether your agency leans towards being a strategy firm, an execution firm, or somewhere in between.
Strategy Firms: The Thinkers
Signs You're a Strategy Firm:
You're Paid for Thinking: Your agency is often compensated for high-level thinking, planning, and problem-solving, rather than just the deliverables.
Measurable Success: You can point to metrics and case studies where your strategic input directly contributed to client success.
Advisory Role: You guide clients through strategic decisions and are fine with not executing the resulting campaigns.
If, after reading this, you find yourself nodding in agreement or thinking, "Word," "Say less," or "This is us," then your firm likely falls into the strategy category. Strategy-focused firms make money by focusing on the "why" and "how" to guide client decisions.
Execution Firms: The Doers
Signs You're an Execution Firm:
You're Paid for Doing: The bulk of your revenue comes from producing deliverables, such as campaign elements, websites, or event activations.
Client-Driven Briefs: Projects often begin with a strategy or creative brief provided by the client, which sets the direction you follow.
Reactive Nature: Your projects are typically responsive, focusing on immediate needs rather than long-term strategic initiatives.
Agencies fitting this description thrive on turning strategic visions into tangible realities. Execution firms are indispensable in bringing strategies to life, focusing on the "what" and "when" to ensure timely and effective delivery. Many of you reading this likely run an execution shop and have faced the challenge of trying to sell strategy.
Can You Excel at Strategy and Execution?
Yes, and many agencies find themselves needing to blend both strategy and execution. However, it's important to honestly assess where your agency's strengths truly lie. Are you an execution shop that develops strategy mainly to secure execution work, or are you a strategy shop capable of implementing your ideas, yet perfectly comfortable outsourcing the execution? Being open to outsourcing execution may lead clients to perceive your core expertise as strategy. Conversely, if a significant portion of your revenue comes from execution work, it signals to clients that this is your area of expertise. So although you might be able to excel at both, clients will tend to perceive you as being stronger in one area over the other.
The other challenge of playing the middle is that these differing positions require unique internal processes and staffing. Balancing work between these two models can complicate planning and team building, as each requires a distinct set of skills and resources. Execution-focused firms need more production or junior-level resources, alongside project managers and processes designed for quick, reactive tasks. In contrast, strategy-focused firms thrive with specialized, highly trained staff, strategic account services, and longer project timelines.
Why No one is Buying Your Strategy
The challenge you're facing in selling your strategy could be due to clients seeing you primarily as an execution shop. If you're not showcasing your expertise and strategic thinking consistently—be it through articles, podcasts, videos, or any other medium—you're missing an opportunity to differentiate yourself. Clients need to sample your strategic insights, or they'll pigeonhole your agency as more of a doer than a thinker. It’s up to you to put your thought leadership on display and shift their perception.