The project management (formerly traffic manager) role is critical in most agencies today. But…how do you justify the expense? Easy. They should be 90% billable!
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Hey everybody. Drew McLellan here from Agency Management Institute
this week actually coming to you from home in Denver, Colorado.
You know, we've been with several peer groups
over the last couple weeks,
and one of the recurring topics has been about project managers.
When do we need one?
Are they billable?
Are they not billable?
So I just wanna clear up a little bit about that role.
So, project managers, which back in my day were called
a traffic manager or a production manager.
Those are the folks who are really making sure
that every project for every client
is delivered on time and on budget.
They are the person who's looking at the 30,000 foot level,
and they're looking at all of the moving parts and pieces
of the work that you're trying to get through the agency,
and they're seeing where there are delays,
where a client might have moved a deadline
and they're shuffling people and roles
as they need to inside and sometimes
outside of the agency with freelancers
to try and make sure that you deliver everything
on time and on budget for clients.
A project manager is not an entry level person,
shouldn't be a stepping stone to another role.
This is a very important role
and the person that you put in that role should aspire
to be just a better and better project manager over time.
They're absolutely billable.
Everything they do is touching a client, project or an issue
and so the way to do that, the way to handle that
would be to simply make sure that you're putting some time
on every job for that project manager
when you open the job.
So, many agencies will have a sliding scale
if a project is going to be from zero to let's say $3,000,
we might put an hour of the project manager's time.
If the project is $3000 to $7,000, we might put two hours and so on.
You'll know what's right for your agency,
but every job is going to be touched by that project manager,
and the easiest way to track that time
is not for the project manager to keep daily time sheets
because they may be touching hundreds of jobs
in any one given day.
But it is just putting their time against every job
on the day that it gets opened.
But super billable, super important.
If you are 10 people or less,
it might be a little bit of a luxury,
but if you are more than 10 or 12 or 15 people,
it's an absolute necessity today.
All right, I'll see you next week.