Articles

May 16 2024

How HUGE transformed to productized billing

Under the leadership of Mat Baxter, Huge, a global digital agency owned by the Interpublic Group (IPG), undertook a significant transformation from a traditional man-hour billing model to a productized offering. This shift was a strategic move aimed at adapting to the evolving demands of the market and providing more value-driven services to clients.

The traditional model of man-hour billing, which ties the cost of services directly to the amount of time spent by agency employees, had long been the industry standard. However, this model posed several challenges. It often led to inefficiencies, as agencies were incentivized to maximize billable hours rather than focus on delivering results. Clients, on the other hand, faced unpredictable costs and sometimes questioned the transparency and fairness of the billing process.

Recognizing these issues, Mat Baxter initiated a bold shift towards a productized service model. This model is characterized by offering predefined packages or solutions at fixed prices, much like a product. The goal was to create a more transparent, efficient, and client-focused approach to digital services.

The transition began with a thorough reevaluation of Huge’s service offerings. Baxter and his team identified key areas where they could standardize and streamline processes without compromising on quality or creativity. They focused on developing modular solutions that could be easily customized to meet the unique needs of each client. These solutions ranged from digital strategy and user experience design to technology implementation and data analytics.

One of the significant advantages of the productized model is its ability to provide clients with clear expectations regarding deliverables, timelines, and costs. By offering fixed-price packages, Huge was able to eliminate the uncertainty associated with hourly billing. This not only enhanced client trust but also allowed for better budget management and planning on both sides.

Furthermore, the productized model fostered innovation within Huge. With a focus on predefined solutions, the agency was able to invest in developing proprietary tools and technologies that could be reused across multiple projects. This not only improved efficiency but also allowed Huge to offer cutting-edge solutions that set them apart from competitors.

Another critical aspect of the transformation was the emphasis on outcomes rather than inputs. Instead of measuring success by the number of hours worked, Huge began to focus on the results achieved for clients. This outcome-oriented approach aligned the agency’s goals with those of their clients, creating a more collaborative and effective partnership.

Internally, the shift required a cultural change within Huge. Employees had to adapt to new workflows and embrace a mindset focused on efficiency and innovation. Baxter played a crucial role in leading this change, fostering a culture of continuous improvement and encouraging teams to think creatively about how to deliver the best results within the constraints of the productized offerings.

The transformation of Huge under Mat Baxter’s leadership is a testament to the agency’s ability to adapt and innovate in response to market demands. By moving from a man-hour billing model to a productized offering, Huge not only enhanced its value proposition to clients but also positioned itself as a forward-thinking leader in the digital agency space. This shift has allowed Huge to build stronger client relationships, deliver more predictable and efficient services, and maintain a competitive edge in an ever-evolving industry.