Agency Productivity Crisis: Remote Work's Impact on Creative Industry Economics
By
Tom May
Slow-proofed and worth the wait. Worth its weight in flour.
Summary
The article discusses a hidden productivity crisis in creative agencies post-2020, based on insights from Joy Nazzari, founder of DNCO. She reveals that despite maintaining the same turnover during the pandemic, her agency had no profit because they needed more people to deliver the same amount of work due to decreased productivity while working from home. The article explores the fundamental economic challenges agencies face, questioning whether remote work has led to systemic productivity declines that aren't being openly discussed in the industry.
Key quotes
· 3 pulledWe had the same turnover throughout the pandemic. But we had no profit. And the reason is, we needed more people to be able to deliver the same amount of work... because we were working from home and productivity just tanked
It wasn't about burnout, mental health or the usual suspects of creative industry discourse. It was about something more fundamental, more uncomfortable. The basic economics of running an agency since 2020.
Why does it take more people to complete a project than it used to?
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