GM created a tiered agency structure. A "foundational" agency handles high-volume, operational production work (the "60%"). This frees up smaller, specialized creative agencies for each brand to focus solely on distinctive, compelling creative without getting buried in executional tasks.

The traditional agency model of being paid for strategy and ideas is obsolete. To provide real value, modern agencies must function as production companies that create tangible output—videos, content, and live events. Clients should not pay for thinking alone; they should pay for making.

AI is transforming knowledge work into a manufacturing process. Agencies must shift from bespoke creative services to a factory model focused on efficient workflows, standardized work instructions, and rigorous quality control processes to mass-produce high-quality output. Resisting this operational shift risks obsolescence.

Agencies are optimized for efficiency, stifling the creative experimentation needed for platforms like Meta. Top-performing brands employ an in-house strategist whose sole job is generating a high volume of diverse, "wacky" ad concepts—a function that can't be effectively outsourced.

Don't blame the agency for underperforming creative. The root cause is often internal: outdated processes and organizational issues that "roll downhill." The creative is merely the most visible scapegoat for a deeper, strategic or operational failure.

Paying an agency just to brainstorm ideas in slide decks is inefficient and disconnected from modern marketing needs. To be effective, agencies must integrate creative ideation with in-house production capabilities to execute at the volume and speed required by digital channels.

Transform a creative department from a production house into a strategic partner by changing how you brief them. Instead of giving prescriptive directives, present the business problem that needs to be solved. This empowers creative minds to contribute to strategy and deliver more impactful solutions, not just executions.

As a creative business scales, its operational needs and existing structure can start dictating strategy, stifling the original vision. Founders must actively resist this inertia to avoid simply servicing the machine they've built.

In today's fast-paced environment, paying an agency to simply generate ideas and presentations is inefficient. Brands must move to an integrated production model where ideas and creation happen simultaneously and at scale.