Grow or die. It's embedded in the capitalist psyche. But is there such a thing as "bad" growth? Or more to the point, "bad" profit?

Should you aim high or low when a client asks you to “guesstimate” the price of a project? Most of us know the answer to this question, and it’s thanks to the world of behavioral economics that we have insights into the principles of pricing psychology.

If you want the attention of an agency leader, manager, or department head, you’ll have to wait until they get a break in the action from the latest new business pitch. In agencies of all types and sizes, new business presentations are all-consuming.

In clinical trials of new drugs, pharmaceutical companies have learned some fascinating lessons in behavioral science. Not only is the placebo (essentially a sugar pill) perceived as effective by a surprisingly large percentage of patients, but the power of suggestion produces other intriguing effects.

Advertising agencies are facing competition from every dimension and direction. Upstream, they complete with marketing consultancies and brand strategy firms who seek to provide planning and strategy services to marketers. Downstream are production companies, independent freelancers, and even media companies who now aim to not just sell media but produce content.

Has your firm turned the corner on agency compensation? Many agency executives insist they have, pointing to the fact they have negotiated better hourly rates, better retainers, or better terms on cost-plus remuneration agreements. The problem, of course, is that they are simply getting better and better at doing the wrong thing.

When asked to provide an inventory of services provided by your firm, most agency leaders supply the type of list that begs the question, "Could anyone agency actually do all that?"

The gravest sin committed by marketing communications professionals is their tenacious tendency to sell services instead of solutions. A bullet point list of capabilities is hardly the most effective way to frame the value you create for your clients.

There is a cardinal belief in professional services that our inventory is not parts, but people. If that’s true, professional firms are facing unprecedented inventory shortages. Competition for the best people has always been fierce, but is now intensified by the economic impact of a global pandemic.

Imagine a work environment in which you are judged solely by your effectiveness. Not by how many emails you answered, how many online meetings you attended, or how many hours you logged on a timesheet.

By definition, “average” means the center of the bell curve — the place where most people and companies live. Average isn’t always a bad thing, such as average life expectancy. But in the realm of business strategy, average can be lethal.

While advertising agencies are famous for innovating on behalf of their clients, only rarely are they recognized for applying original thinking to their own business model.

Dutifully filling scopes of work for clients is "thin value." You're doing what's asked, meeting your deadlines, and staying within budget. But all of that is expected; it's what competent agencies do.

Take a close look at your standard pitch deck, the “about us” section of your website, or your new business materials. Highlight every instance of words like “leading,” “excellence,” and “innovative.”

Your firm’s ability to capture value is dependent on its ability to effectively communicate it. Most professionals devote boundless energy to developing a superior work product but invest precious little time learning how to showcase its true value. Brilliant work doesn’t always sell itself.

If you’re frustrated by your prospective client’s desire to do an apples-to-apples comparison of agencies, there is a simple solution: stop being an apple.

Who determined the price of the car you drive, the mobile phone you use, or the software systems you use? Which internal function inside these companies made the decision about what to charge for their products or services?

In business as in war, the surest way to lose a battle is to send your troops marching in multiple directions. Military leaders know that battles are won by concentrating their forces on a clear objective.

The agencies that stand out are those who innovate and create solutions outside the confines of a client brief. They deliver proactive thinking and serve up ideas without waiting to be asked. They develop their own intellectual property and product ideas.

Have you ever had the frustrating experience of trying to execute a “multi-pronged strategy?” It never goes well for the simple reason that a strategy with multiple prongs isn’t a strategy at all — it’s just a wish list.