The Four Archetypes of the Agency Value Compass™

The Agency Value Compass™ identifies four common archetypes in how agencies create and capture value.

Each archetype reflects a distinct set of strengths and risks—providing leaders with a clear lens to see where their firm stands today, and what it will take to move forward.

🔴 Busy by Design™

(Starting Point for Most Firms)

Agencies in this stage are built on effort, not outcomes.

They’re often broad and capability-driven, positioning themselves as “full service” or “integrated,” but without a sharp focus or defensible niche.

Revenue is tied to hours, roles, and utilization rates. Growth depends on adding people, creating constant margin pressure and burnout risk.

Every engagement feels custom. New business is reactive.

AI is used mostly to improve internal efficiency, not as a source of market-facing differentiation.

The Busy by Design mindset: “We can do it all.”

Main risk: Work scales, but profit doesn’t.

🟡 Scaling with Strain™

(Evolving Firms)

These agencies are beginning to move away from billable hours—but remain weighed down by legacy ways of working.

Their positioning is still broad and framed around capabilities rather than outcomes. Some fixed fees and retainers are in place, but pricing remains tied to deliverables and time.

Solutions and frameworks exist, yet they’re often designed for efficiency, not differentiation—built to make delivery faster rather than to drive higher revenue or larger deals. Systems for repeatable success lack consistency, and results are uneven.

Revenue growth still comes from taking on more work instead of creating more value. Clients continue to push on price, and procurement pressure remains high.

Meanwhile, delivery teams carry the weight of evolution, creating operational strain and burnout risk.

The Scaling with Strain mindset: “We’re changing, but it’s exhausting.”

Main risk: Teams evolve faster than the business model does.

🟡 Expertly Undervalued™

(Evolving Firms)

Agencies in this archetype are respected for their expertise—but struggle to fully capture the value they create.

They’ve sharpened their positioning, often around a niche, category, or service specialization where they hold real credibility. But pricing still defaults to time or effort, limiting profit and leverage.

Revenue depends heavily on senior talent and custom scopes. Their reputation opens doors—but the model still drains leadership capacity.

AI enhances their expertise, but hasn’t yet been monetized as differentiated IP.

The Expertly Undervalued mindset: “We’re known for our thinking—but not paid for it.”

Main risk: Strong reputation, weak pricing discipline.

🟢 Distinctly Scalable™

(Evolved Firms — the Goal to Aim For)

These firms have transformed how they create and capture value. They’ve built a business around scaling expertise and outcomes—not effort.

Their positioning is clear, outcome-focused, and anchored in solving high-value client problems.

Solutions are productized and repeatable, with pricing models tied to business impact—through fixed fees, subscriptions, retainers, or licensing.

Revenue scales without adding headcount, often achieving 2–3x AGI per FTE and 35–65%+ gross margins. They maintain strong recurring revenue and grow 2–3x faster than traditional peers.

AI and IP are embedded directly into their offerings, creating true competitive defensibility.

The Distincly Scalable mindset: “We scale our expertise and value, not hours.”

Main reward: Profitable, defensible growth that compounds.

These four archetypes of the Value Compass aren’t rankings—they’re roadmaps. Every firm passes through these stages as they evolve their model.

The goal isn’t perfection; it’s progress. And knowing where you are today is what makes progress possible.