Optimizing Agency Capacity: Strategies, Tools, and Benefits

A healthy agency is always busy. On the other hand, an agency that’s overwhelmingly busy can spell disaster for both clients and employees. In fact, 51% of those in marketing fear burnout. As much as you’d like to provide everything for your clients, there’s only so much that can be done in a day with the resources on hand.

Agency capacity is the measure by which an agency can strike the right balance and not reach beyond its grasp. There are many different types of capacity planning to consider, and many tools and strategies that can help optimize the entire process. This article will look at all these and help you find the best strategy for your agency.

What are ad agency capabilities?

Simply put, capacity is how much an agency can deliver. Less simply, it’s the maximum level of output that an agency can realistically supply with the manpower, tools, and resources currently at its disposal. That said, there’s a lot that goes into defining what an agency can handle.

Types of ad agency capabilities

Capacity can be broken down into three distinct sub-categories:

• Human resources
• Technology and tools
• Workflow and process efficiency

1. Total capacity – This is an agency’s capabilities when firing on all cylinders. It factors in all resources, employees, and working hours without any holidays, leave, or other sudden interruptions. It’s the impossible ideal that exists only on paper, but definitely one that an agency should always strive towards.
2. Available capacity – This is capacity in context, with all the nitty gritty of life thrown at it. Other projects come in, team members get sick, and turnover leaves gaps. Available capacity takes account of these factors. Being highly dependent on context, this type of capacity can change from moment to moment, and should constantly be evaluated and referred to.
3. Billable capacity – The hours that team members work can’t always be billed. Brainstorming sessions and meetings don’t often result in tangible project work in themselves, although they certainly lead to it. Even though all employee hours worked should be tracked, when invoicing clients, each member’s billable capacity should be taken into consideration. There can be exceptions to this rule which ignore billable hours, e.g. value-based billing.

What influences ad agency capabilities?

Many factors directly and indirectly affect an agency’s current available capacity:

• Staff skill levels and availability
• Technology resources and software tools
• Project complexity and deadlines
• Client demands and communication
• Workflow efficiencies and bottlenecks

• Human resources – An agency relies on its employees. The number of team members, their experience, skills, health, and wellbeing will all affect how many projects can be handled. Talent should be cared for and retained.
• Infrastructure and technology – An agency’s office, equipment, and the level of its technology all affect how well it can deliver on projects in a timely and efficient manner. It’s vital to keep these up-to-date.
• Other projects – Hopefully an agency should have a few projects on the go simultaneously. All need to be prioritized and effectively managed to improve capacity.
• Efficiency – Projects that are well managed and coordinated will lead to faster turnarounds and more capacity. Goals and milestones should be clearly defined before a project to prevent bottlenecks and delays.
• Client relationships – A good working relationship with a client can vastly improve the working speed of an agency. Alignment with client vision can ensure less reverts and subsequent delays.
• Finances – Project budgets, overheads, and salaries all influence how much can get done and how quickly. In the longer term, stronger finances can also help an agency expand its capacity.
• The unexpected – Life happens. Disasters, financial downturns, and other factors may influence an agency’s capacity. While they can’t be prevented, they can be planned for.

How to manage ad agency capabilities efficiently

Manage time and resources effectively to ensure business success. Bonsai’s powerful capabilities help you allocate work to your team and balance workload. Additionally, you can track your budget, tasks, and hours to gain insights on your business profitability. You will have a clear picture of your team's performance and project progress.

Here’s how Bonsai can streamline your workflow:

• Plan your team's capacity‍

Bonsai helps you plan your team's capacity efficiently. This enables task and project distribution based on real capacity, avoiding overload. By integrating time tracking with resource planning, Bonsai provides insights into resource allocation and utilization.

• Track utilization & efficiency

‍Using Bonsai for time tracking allows you to get an overview of time spent by your team on different tasks and projects. It enables the pinpointing of less performing areas and the adjusting of time spent that is being utilized effectively.

• Generate detailed reports

‍It is easy to produce detailed capacity reports as one of the features of Bonsai. These reports provide an in-depth look at your team's workload, project progress, and resource utilization, enabling you to make informed decisions about project timelines and resource allocation.

Watch this short demo to see how to set a team member capacity and see utilization reports:

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What is ad agency capacity planning?

In managing an agency's bandwidth, maxing out capacity can often be problematic. An effective solution is leveraging capacity planning software, which can ensure efficient time and resource allocation. This approach helps maintaining sustainable growth and preventing overcommitment.

An agency needs to know what it can handle and deliver, both now and in the future. This is where capacity planning comes in. Capacity planning is the formal process where an agency sits down and determines not only its current ability to handle projects, but also anticipates how it’ll need to change to meet demand.

Capacity planning is a careful balancing act between the present and anticipated future. Projects need attention now, but will incoming projects require redeployment of members and a reallocation of resources? There are no easy or universal answers. A good strategic understanding of the agency and trends in the marketplace is essential for proper planning.

Agency resources need to be managed effectively to close gaps. Workers spend only 27% of their day on skill-based tasks. Effective timekeeping should also be used to cut down on wasted time and underutilized team members.

There’s a lot that goes into effective capacity planning. If done correctly though, it means more productivity, higher profits, and happier clients.

Ad agency capacity planning vs. resource planning

Some often get confused between capacity and resource planning. This leads the two terms getting used interchangeably. They are, however, quite distinct. Capacity planning comes first in the decision process and looks at the agency’s ability to deliver within a time-frame.

Resource planning, on the other hand, is more concrete and looks at the resources needed to get a project done once accepted.

Types of ad agency capacity planning

Every agency is different and its makeup may necessitate different methods of capacity planning. There isn’t one catch-all solution, but there are well-established ways of gauging capacity and planning for the future.

Here are five methods of capacity planning:

• Method 1
• Method 2
• Method 3
• Method 4
• Method 5

• Workforce-based – An agency’s employees are its beating heart, but all come with their own skills and talents. The number of members, their availability, and level of expertise should all be considered. From a billing standpoint, their billable hours and rates should be factored into any capacity plan.
• Time-based – An agency’s year will be filled with bursts and lulls in activity. Specific times of the year, like the festive season, may require special planning compared to the quieter periods that follow. Flexibility and short-term planning are key with this method. Past experiences and thorough analysis of demand can help prepare for these changes.
• Resource-based – What resources are needed to make a project happen? How many of them are currently available? Agencies are limited by their resources, so should make the most efficient use of them. Resources such as technology, certain skillsets and other tangible materials should be properly tracked and efficiently allocated to maximize productivity. What’s more, they should be balanced between current need and predicted demand.
• Client-based – As much as you may like them, not all clients are equal when it comes to project planning. In larger agencies, long-term or high value clients may account for a large portion of income and need to be prioritized accordingly. In addition, some client’s projects may always be more resource and time intensive than others. Factor this in.
• Growth-based – What are the long-term capacity goals for an agency? How does it plan to meet them? This planning method should be closely tied to an agency’s overall vision, and its growth objectives. Planning for this future may involve hiring new talent, operational restructuring, and investment in new technology.

How to plan ad agency capacity right

A capacity plan should never be an afterthought. The more you put in, the more robust the plan will be, and the better the outcomes. There are some key areas where particular focus is vital.

Employees

Inefficient capacity planning leads to poor use of team members’ skills and time. Some team members may become overburdened with the work of two or three people, or be forced to work overtime to meet impossible deadlines. Others may not be properly factored in to a project’s plan, and spend hours waiting for more work.

Capacity planning should do its best to nullify stress, underutilization, and the high staff turnover that may result from these. Project managers or seniors should constantly consult employees, understand their roles and responsibilities, and help them set attainable goals. Utilization should ideally not exceed 80% for account management and 90% for production level staff.

Project managers need to carefully allocate staff resources before any project begins, and consider the skills and number of the team chosen to execute it. This needs to be carried out throughout projects too, and any gaps that appear may need to be filled with team members from other projects or hired freelancers.

Communication and transparency

People feel more comfortable with plans if they’re constantly included in its planning and informed during its process. Capacity planning is no different. The agency or project manager should be open with team members about the goals of any undertaking.

This communication should also include regular capacity reviews with an agency’s project managers, traffic managers, financial department, and management. On the ground, regular team member feedback can also be invaluable and help avoid issues like scope creep. Constant planning, reviews, and resource allocation can identify problems as they arise, mitigate the unexpected, and improve overall efficiency.

Clients also like to be kept in the loop. Providing them with regular reports and holding meetings about the process can help maintain a healthy relationship. An agency also needs to be honest and accurate in its reports and billing to maintain trust. Timekeeping reports are one way in which this can be achieved.

Plan for the unexpected

Good capacity planning always factors in the unexpected. Solid strategy can help identify and mitigate major risks with any undertaking that may impact available capacity. Prior challenges with similar jobs and a thorough understanding of the agency are also important. Effective communication with team members of all levels can produce insights and potential challenges that senior management may miss.

Despite the most stringent planning and deepest insight, there’ll always be something that nobody saw coming. The best way to mitigate unforeseen risk, is to factor it into every plan and project. Project managers should ensure that plans are robust, yet flexible enough to accommodate the unforeseen. Emergency funds should be kept in reserve and potential staff leave accommodated for accordingly.

In short, the total capacity should never be the benchmark that a plan or project is set to.

Why good ad agency capacity planning reaps rewards

Capacity planning may sound like a lot of unnecessarily complicated work for little reward, but the benefits will become apparent over time.

• Better resource utilization – Staff and materials are well-balanced and utilized across all projects. Bottlenecks are avoided and wastage is reduced.
• More productivity – With demand and resources correctly balanced, projects can be run efficiently and work delivered on time. Agencies avoid overworking staff or overservicing clients.
• Better decisions – Knowing the landscape and the best course of action beforehand enables project managers to make informed decisions when a project begins. Risks can be anticipated and resources allocated accordingly.
• Client alignment – Knowing the needs and demands of a client means that projects have the right resources allocated and can be completed on time to brief specifications.
• Flexibility – Factoring risk mitigation into a capacity plan allows for a rapid response to changing parameters and unforeseen problems as they arise.
• Better finances – The better the clients’ briefs are met, the better the chances for more business. The right planning can also save money during the process, by cutting down unnecessary expenses and better allocating resources.

The invaluable role of technology in ad agency capabilities

Capacity planning relies not only on up-to-date information about the resources of an agency, but relies on past projects (with their successes and failures) to better prepare for the demand to come. The daily ins and outs of an agency are complex enough on their own without needing to reach into the past.

Many agencies have come to rely on automation for streamlined and efficient capacity planning. Spreadsheets and software have long been favored as ways to keep track of the many moving parts of a project. Indeed, 92% of businesses that utilize project management software successfully meet their objectives.

With the rise of cloud-based computing though, apps have been developed that allow for greater connectivity, and the frequent communication and collaboration that such detailed planning so often needs.

The best app offerings are those that don’t stop at project management or timekeeping, but offer multiple powerful features all rolled into one.

Bonsai is one such versatile example. Besides its robust project management and timekeeping features, it also offers detailed invoicing capabilities and seamless integration with other software. With Bonsai, you can easily track employee hours on past and present jobs, seamlessly compile these into reports for clients, and accurately monitor all projects and their progress.

Bonsai places all information into user-friendly interfaces and automates a wide variety of tasks. All data and information are centralized and easily shareable with team members too. It’s an app that will make your capacity planning that much easier.

How to plan ad agency capabilities strategically

Your agency's capacity can affect various aspects of your business, including client relationships and project deliverability. Crucial to this factor is formulating a well-thought-out pricing strategy that supports your agency's growth. Understanding how to balance your capacity and pricing is key to running a successful agency.

The best capacity planning requires a sound strategy to be effective. There are many well-known planning strategies to suit every agency’s needs. All have their own benefits and drawbacks, so the right choice will ultimately depend on your agency’s needs and composition.

What is lead strategy in ad agency capabilities?

This is a preemptive strategy that anticipates future increases in demand and prepares accordingly. The agency is then structured and resources allocated to meet this increased demand before it arrives. Predicting the future is a naturally risky strategy. Workers and resources pulled from current projects can remain unused and idle, should the expected demand not arrive.

As such, planners should have a thorough knowledge of the agency, its internal dynamics, and past jobs. They must also conduct a rigorous analysis of market and industry trends to make the most informed decision possible.

What is lag strategy in ad agency capabilities?

In direct contrast to the lead strategy, this lag strategy is reactive. This conservative approach focusses resources on the current tasks at hand and adjusts to demand if and when it arrives. While this may yield the best possible result for short-term goals, any sudden changes may leave the agency scrambling to find freelancers and squeeze funds.

The lag strategy is more immediately cost-effective and is ideal for agencies expecting little change in the status quo.

What is match strategy in ad agency capabilities?

The match strategy works to meet demand as it arises, hence the name. It acts as a middle ground between the previous two strategies, but is anything but simple. A quick and effective response to demand is easier said than done, and match strategies require an exhaustive amount of research and insight into the markets and industry.

It also requires that agencies be flexible and able to adapt to rapid change. Available capacity must be constantly monitored for maximum efficiency. Employees and resources need to be allocated quickly so that supply never exceeds demand.

What are hybrid strategies in ad agency capabilities?

As every situation is different, planning capacity strategies are often changed to meet them. An agency may utilize a mix of all three strategies for different departments or projects. Some may switch to a lead strategy during times of growth, while falling back to a match strategy when the rush dies down.

How to apply ad agency capacity planning in action

Capacity planning is constant in name only. There are a variety of ways that it can be executed, depending on internal and external factors. Here are some of the major steps that an agency might follow to successfully implement their capacity plan:

1. Examine the current situation – An agency will consider their current available capacity, and all resources, employees, and their hours at their disposal.
2. Forecasting – The agency investigates anticipated demand based on past experiences and current trends, and decides on the best course of action.
3. Consider the client – The agency then examines the brief and the expectations of the client. What is the current relationship and is the job of high priority?
4. Plan for risk – The agency considers possible scenarios and identifies potential issues that may arise, based on thorough analysis of past and present information.
5. Clear goals – Manageable goals should be set with clear objectives along the way to achieve them. What is the agency hoping to achieve? Do they have the capacity to do so?
6. Allocation – With the groundwork laid, the agency and project manager allocate the resources and team members they deem necessary to complete the project.
7. Collaborate – During the project, all departments should be in regular contact to ensure strategic alignment and to tackle problems.
8. Keep clients informed – Regular transparency with clients and constant reporting will ensure greater efficiency and maintain a strong relationship.
9. Analysis and feedback – 55% of executives cite poor communication as the biggest threat to project success. Throughout the entire process and especially afterwards, the agency should constantly monitor, review, and receive input and feedback from all involved, including the client. This will help to monitor the overall strategy and enable adjustments to be made if necessary.

How to work smart and plan smart for ad agency capabilities

Capacity planning isn’t an easy process and may need constant attention in order to maintain maximum effectiveness. The results are undeniable though. Find the plans that work for your agency and don’t be afraid to keep improving on them. Plan extensively, communicate openly, and use the right tools to get the job done.

The results of careful planning may not be visible right away, but your agency’s future will be all the brighter for it.

When and how to use an agency capabilities presentation effectively

Identify the right timing for your capabilities presentation

Use your agency capabilities presentation early in the client engagement process, ideally during initial meetings or pitches. This timing helps set clear expectations about your services and strengths before detailed project discussions begin. Presenting too late can make clients unsure about what you offer, while too early might overwhelm them with unnecessary details.

For example, if you are responding to a request for proposal (RFP) in 2024, include your capabilities presentation as part of your initial submission or follow-up call. This approach ensures decision-makers understand your unique skills and how you can solve their specific marketing challenges.

To maximize impact, align your presentation timing with key decision points, such as budget planning or campaign strategy sessions. This strategic use helps clients visualize your role in their success, increasing your chances of winning the contract.

Customize your presentation to address client needs

Effective agency capabilities presentations are tailored to the client's industry, goals, and pain points. Avoid generic decks by researching the client’s market and recent campaigns before your meeting. This customization shows professionalism and relevance, making your agency stand out.

For instance, if you are pitching to a small e-commerce business, highlight your experience with digital advertising platforms like:

• Google Ads
• Facebook Ads

Include case studies demonstrating measurable ROI. Use clear examples and data to back up your claims, such as a 20% increase in sales for a similar client in 2023.

To customize efficiently, create modular slides that can be swapped in or out depending on the client. This method saves time and ensures each presentation feels personal and focused on the client’s specific challenges and opportunities.

Engage your audience with clear, concise content

Keep your agency capabilities presentation concise and visually engaging to maintain client attention. Use simple language and avoid jargon, focusing on how your services solve problems rather than listing features. Aim for 10-15 slides that cover your agency’s strengths, process, and key results.

In 2024, tools like Canva and PowerPoint offer customizable templates that help create professional presentations quickly. Incorporate visuals such as charts, client logos, and short video clips to illustrate your impact. For example, a slide showing a 30% increase in brand awareness for a past client can be more persuasive than text alone.

End your presentation with a clear call to action, such as scheduling a follow-up meeting or starting a pilot project. This approach guides clients toward the next step and keeps the conversation moving forward.

Follow up strategically after the presentation

After delivering your agency capabilities presentation, follow up promptly with a personalized email summarizing key points and next steps. This reinforces your professionalism and keeps your agency top of mind. Include a digital copy of the presentation for their reference.

Use tools like HelloBonsai or HubSpot CRM to track client engagement and schedule reminders for follow-ups. For example, if a client showed interest in social media management, send additional case studies or a tailored proposal within a week to maintain momentum.

Consistent, thoughtful follow-up increases your chances of converting prospects into clients. Always ask for feedback or questions to address any concerns and demonstrate your commitment to their success.

Components of an agency capabilities deck

Defining your agency’s core services

Start your capabilities deck by clearly defining the core services your agency offers. This sets the foundation for potential clients to understand what you specialize in.

These services include:

• Digital marketing
• Creative design
• Media buying
• Social strategy

Be specific about each service and explain how it benefits clients in measurable ways.

For example, instead of simply stating "social media management," describe it as "creating targeted social campaigns that increase engagement by up to 30% within three months." Use data or case studies to back up these claims when possible. Tools like Canva or PowerPoint can help you create clean, visually appealing slides that highlight these services effectively.

By clearly outlining your core services, you help clients quickly grasp your agency’s strengths. This clarity also makes it easier to tailor your pitch to the client’s needs, increasing your chances of winning new business.

Showcasing past work and results

Including examples of past work and measurable results is essential in an agency capabilities deck. This section builds trust by demonstrating your ability to deliver successful campaigns. Use specific case studies that highlight the problem, your approach, and the outcome with concrete numbers, such as "increased website traffic by 45% in six months" or "boosted conversion rates by 20% through targeted ads."

Visuals like before-and-after screenshots, campaign videos, or client testimonials add credibility and make your deck more engaging. Platforms like Behance or Vimeo are great for hosting these assets, which you can then embed or link within your presentation. Remember to keep client confidentiality in mind and get permission before sharing sensitive information.

Presenting clear, data-driven results helps potential clients see the value you bring. It also differentiates your agency from competitors who may only offer vague promises without proof.

Highlighting your team and unique approach

Clients want to know who they’ll be working with and what makes your agency unique. Dedicate a section of your deck to introduce your key team members, their roles, and relevant expertise. Including brief bios with photos humanizes your agency and builds rapport.

Additionally, explain your agency’s unique approach or methodology. Whether you use data-driven insights, creative brainstorming sessions, or agile project management, describe how your process leads to better outcomes. For example, mentioning your use of tools like HubSpot for marketing automation or Asana for project tracking shows professionalism and efficiency.

By highlighting your team and approach, you reassure clients that your agency is well-equipped and organized to handle their projects, making them more confident in choosing your services.

Including clear next steps and contact information

End your capabilities deck with a clear call to action and contact details. Outline the next steps clients should take if they want to move forward, such as scheduling a discovery call or requesting a proposal. This removes uncertainty and guides them toward engagement.

Make your contact information easy to find and include multiple options like email, phone number, and social media profiles. Adding a link to an online calendar tool like Calendly can streamline the booking process, increasing the likelihood of prompt responses.

Providing clear next steps and accessible contact info ensures your deck not only informs but also drives action, turning interested prospects into clients.