Agency Managing Directors Must Balance Client and Employee Needs

Managing director may be the most generic sounding of all agency titles. It doesn’t clearly define what the job entails, even though it's one of the most pivotal and influential roles at any agency. According to many job boards, the managing director is the highest ranking manager in the organization, often just below the CEO or president. The position oversees all the activities at the agency: operations, managing resources, instituting strategic goals, and helping grow the agency and its culture. It’s a position that must be both inward and outward facing, from nurturing trust and long-term client partnerships to fostering a fun and inclusive workplace that allows for professional growth. Adweek talked with a group of managing directors at agencies both big and small, and the title clearly means different things at each shop—but there is an overall focus on being the glue that holds the agency and its clientele together. T-Mobile Opens Up About Why It Chose Initiative in 2021 Media Agency Review “I see my role as a managing director as one that embraces the evolving culture of work and concurrently rallies the team around creating exceptional business results and focused work for our clients,” said Katie Marti, who was previously president at Audacious Studios overseeing influencer agency August United and is now a managing director at McKinney after a recent acquisition. The Evolving Roles of the Agency C-Suite • The Modern Agency CEO Must Lead With Empathy• The Modern CCO Must Lead Through Inspiration and Communication• The Modern Agency CMO Must Balance Brand-Building, Business and Culture• What Makes for an Effective Modern Chief Strategy Officer• The Modern ECD Must Be the Ultimate Multitasker What is the role of the managing director? The managing director ultimately needs to drive business results by motivating teams and creating conditions where employees can perform at their best, which involves listening to the team's ideas and adapting to ongoing changes in the industry and at the agency. The day-to-day operations involve constant problem solving and relationship building with employees and clients. Steven Panariello, managing director at BBDO New York, said managing directors need to be both in the present—managing collaborations and integration across departments and client teams—and in the future—charting the next evolution of the agency, pursuing new clients, shaping the next generation of leadership and being prepared to solve next challenge on the horizon. “A good, modern managing director should be obsessed with trends, and a maniac about how they can influence the work we are doing today and/or how they’ll impact our industry tomorrow,” Panariello told Adweek. Every Wednesday, BBDO brings in different partners and companies to speak to the agency and fuel innovation in its work and process, ranging from AI-enabled editing software to wearable NFT experts to emerging features across top social platforms, which Panariello said has had a direct impact on the work and the ideation process. Managing directors must also be in charge of operations, especially if there is no COO. “The goal is to establish processes that help maintain operational excellence, leading to strong, consistent results for clients,” said Alison Mayes, managing director at media agency Apollo Partners. Squarespace’s DIY Agency Aims to Cater to a New Wave of Creators What makes a good MD? Andrew Krensky, managing director at independent agency Omelet, said a modern managing director should always be proactive, which means cultivating a team culture of curiosity and continuous learning. “It also means being a Swiss army knife leader—someone with awareness and expertise in all facets of marketing and operations. You need to know about the latest innovations and how to deliver them with efficiency and effectiveness,” said Krensky. A good managing director must be able to operate at the agency leadership level, while also staying connected to the team and the work. “I need to know where the work stands, what our challenges are, and where our opportunities lie—at the same level of involvement that my own clients invest in their business. It’s not about being in the weeds, but about being very comfortable being on the ground,” Erica Riccobono, managing director of client services at Elephant, told Adweek. A good MD must also be able to communicate effectively, guided by strong emotional intelligence, flexibility and intuition. “They are deeply rooted in the agency’s culture—a mentor to the younger generation, strengthening relationships with partners and keeping their finger on the pulse,” said Whitney Milne, managing director at Virtue Worldwide. Challenges and opportunities The modern marketing industry and the technology it relies on moves at an extremely rapid pace, so it’s important for managing directors to understand that changing landscape, evaluate breakthrough advances and identify opportunities. “It’s imperative to introduce new technologies to the staff and help them see how it can be leveraged in a useful and relevant way. Technology is a tool we need to embrace, not a threat to our industry,” said Katherine Pereira, managing director of the West Coast office of Applied Design Works. Pereira has helped bring plenty of new technology to the agency, including finding ways to utilize AI tools like Midjourney and ChatGPT, as well as project management and accounting SaaS tools to better manage business processes. Aside from technology, managing directors have to create conditions that allow for innovation when delivering ideas for clients and employees. That means taking risks and being OK with failure so long as it leads to better outcomes. “Whatever worked 10 years ago probably isn’t going to work today, and definitely won’t work in the future. Throw away precedent behaviors and preexisting playbooks—approach each challenge as a new one," said Panariello. Panariello added that the industry veteran employees grew up in isn’t the same as the one rising talent experiences today. They expect their investment of time will bring a positive return, and the managing director must be conscious of that. TheSkimm Launches In-House Creative Agency, SKM Lab The modern managing director must make sure not to get overwhelmed by the responsibilities of the job, especially as they are asked to fulfill more roles at an agency, from HR to new business and account direction. “As getting stretched too thin becomes the norm instead of the exception, the key is to stay focused on quality over quantity of output,” said Mayes. Hybrid work is another relatively new challenge. With staff and client oversight a remit of the job, not being in front of those people can make it difficult to keep in touch with the pulse of an agency. But technology can help MDs stay in touch. “You need to be willing to experiment with new strategies and tactics in order to stay competitive and in-tune with what’s happening outside of your agency bubble. … Seeking continuous improvement is where value is created,” said Milne. Looking ahead with leadership and diversity All managing directors interviewed said they were in close contact with their CEOs, often working as extensions of them to make sure things run smoothly. “Our East and West Coast offices share resources and staff, so it’s critical that we remain in lock step with one another to ensure every project is appropriately staffed and managed,” added Pereira. Diversity is another thing everyone agreed needed to be addressed, for the health of the agencies and their clients. “Diversity can no longer be ignored. In fact, diversity now demands authenticity and a genuine approach by MDs and all leaders in this industry,” said Ana Bermudez, svp and managing director at alma. The modern managing director may have to be a lot of things to a lot of people at the agency and to the clients, but listening may hold the key to getting ahead. “You sit at the intersection of our clients, our people and the leadership team, so keeping it very real and actively listening to people from all levels to shape the next moves of the agency is incredibly important,” said Panariello. The Modern Executive Creative Director Must Be the Ultimate Multitasker He added that managing directors should make it their business to get to know the rising stars and remove any obstacles that may be in their way, because they will ultimately be the next leaders of the industry. Bermudez concluded that a good modern managing director is always checking and recalibrating, setting the blueprint and path for the agency that will enable growth. “Make no mistake, a good MD knows that balance is short lived—and that finding it is an always-on task to propel growth,” said Bermudez.