Sometimes, we all need some help. Emily Ruth Cohen consults with small to mid-size creative firms and in-house corporate design departments. This breadth of experience gives her insight into a wide range of issues that face creative businesses. As she prepares to host and moderate the SMART/MODELS day conference, DESIGNY had the opportunity pick Emily’s brain about common problems design businesses face.
You consult with many different types of designers and businesses, what do they come to you for?
My clients come to me for many reasons. The primary reason is that they have been in fire-fighting mode, working under a business model that has been driven largely by clients. They allow clients to shape how they run and manage their business. I get a call me when they’re finally ready to take control and learn how they can better plan and manage clients, staff and projects.
This often happens after an emergency happened (a client got mad, didn’t pay, the economy has impacted their business, they are ready to hire, etc.).
How much do the clients a creative firm has (or wants to have) determine the business model? How much depends on the personalities of the business principals and employees?
It depends not only on the personality of the principals but also on their unique skill sets. For example, if the owner is horrible at new business development, organization, or finanances, this shapes their business. The skill set of employees is important, but I try to determine how we can leverage existing resources in shaping a new or revised structure. Sometimes this does require tough decisions.
What are some examples of tough decisions?
The biggest one is saying “no” to a client or pushing back and aligning thier expectations. Designers often allow clients to recieve far more services than initially budgeted for. They allow clients to delay schedules and expect tight turnarounds. Clients need to be trained and educated.
The second tough decision is determining who your ideal client is and what to do with the clients that no longer are qualified clients. Another is increasing salaries within a small firm, as ultimately you reach a ceiling and great staff can outgrow the business’s needs.
What are the characteristics of a business that has model that fits well? Do you look for happiness, profitability or growth?
Most firms or creative departments are run largely by creative individuals that don’t always have great business skills (sometimes they do). The symptoms come from the creative personality itself: they typically prioritize emotional, instinctive thinking over more logical approaches.
I look at what are the firm’s overall drivers are, asthey are unique for each firm. Some firms are driven by doing only great work, profitability if less important. Others,= are driven purely by money. I try to shape their business around everything—passion, profitability, creativity and great work/life balance.
And you help them re-align those priorities?
I do try to help them re-think their priorities, or at the very least, recognize their strengths and weaknesses and show the related impact on their business. Do you know the expression, “the fish stinks from the head down”? Well, that truly applies to most creative businesses.
It’s a great expression, but my clients don’t like it!
The truth hurts! Do you see industry-wide trends or changes in what models are most prevalent and those that are most successful?
As an active member of the AIGA and frequent speaker I see first-hand that the industry-trends change really really quickly. Currently, the trend is that clients expect far more integrated services from a designer—writing or editorial leadership, strategic thinking, marketing advise, etc. I help my firms to address these needs.
What do you think has led to this expectation? Is it because designers have made it clear they perform those services well? Do the clients not have anywhere else to turn?
The challenge with this trend is how a small firm (which most firms are) can provide all of these services, if they should, and how they manage alliances.
I think it’s related to the success of our profession in proving our worth, but on the opposite side, it also is a result of clients still not understanding the difference between agency-models and design-firms—or more accurately, that difference is becoming harder to define. Design firms in general have really split into two groups: those that design and execute a client’s visions/directions and those that are more strategists, visual thinkers. My clients have a tendency to fall into the latter group.
I think most designers will find that encouraging. I certainly do!
Design firms get paid higher fees if they can provide more high-level services. Other firms are beating their prices on design and execution, but client are willing to pay for the other services if they see it’s impact on their business.
Therein lies the challenge of allowing your clients to drive your business direction.
What do you hope to learn (and what will attendees learn) at SMART/MODELS?
I think it’s important for the audience to learn that their isn’t one right way to run your business, but rather ther are many inspirational models. What I want them to see is that they control their business far more than they allow themselves to. In this conference they will see five different possibilities and the related challenges along the way. I hope they leave inspired.
Myself, I hope to learn more about each firm’s unique challenges—what lessons they learned and how they managed to move forward.
Cohen will facilitate and frame the conversation on creative models for creative businesses at SMART/MODELS on SATURDAY 17 MAY. Event info and registration available here.