Many agency performance issues aren’t driven by external market pressures — they originate inside the business. When an agency lacks a focused strategy or operates within an outdated operating model, everything suffers: win rates, culture, speed, margins, and morale. This article breaks down the two core internal causes of underperformance and outlines the five interconnected components leaders must strengthen to restore alignment, clarity, and momentum. If you’ve felt your agency plateauing, the path forward likely begins with rethinking how your strategy and operating model work together.

When an agency’s operating model stops supporting its strategy, performance problems quickly appear across financials, quality, culture, and client satisfaction. These issues aren’t random — they’re signals that the current model no longer meets the needs of your clients or your employees. By redesigning structure, leadership behaviors, and ways of working, agencies can turn aspirational tension into fuel for transformation. This post outlines how to recognize the symptoms and begin reshaping your operating model for healthier, more sustainable performance.