TL;DR

• Our next opening for an agency consulting project is in late September. Please get in touch early if you're interested in a Revgen Review or a Custom Strategy Project.
• The AM/PM confusion has spread all the way to McCann as they restructure to replace their AMs with PMs.
• Unfortunately for them, AMs and PMs serve two different but complementary roles.
• AMs drive growth while PMs drive margin.
• The core purpose of an account manager is to oversee the client relationship.
• The core purpose of a project manager is to oversee individual projects.
• Consolidating both responsibilities under PM would quickly dilute both the strategic focus that AMs bring and the tactical benefits PMs unlock.
• ​I recently joined Dan on his podcast to chat through what's changing in the industry space.​

PMs Aren’t AMs and AMs Sure Aren't PMs

If you’ve been following this newsletter for a while now, you’ll know I write a lot about referrals and the role account managers play in driving agency growth.

If you’re new here, here’s the summary: Referrals, driven by account manager actions, are THE major growth driver for digital agencies. The data to back this up is in our How Digital Agencies Grow Report. When systematized, they can propel a shop well past the "50-ish FTE Great Filter" and provide an incredibly stable foundation to build a repeatable revgen function from.

So when I heard the report about McCann’s “brilliant” new strategy of essentially replacing account managers with project managers, I was surprised. Turns out Brett and others felt similarly, as his post about it got pretty popular.

There’s always been a decent amount of confusion in the industry about the exact roles and goals for AMs and PMs, but I was shocked to see this confusion make its way all the way up the agency food chain to an org. like McCann. It makes me wonder if they’re really not clear about these roles, or if this is just another line of restructuring BS being pushed out to garner some kind of relevance.

Don’t get me wrong, I’m not concerned for McCann. What bothers me is when PR stunts like this find their way into the agency teams I work with.

So today, we’re going to define these roles so clearly that anyone reading that AdWeek article would have a similar reaction.

AMs For Growth, PMs For Margin

Account managers and project managers fulfill complementary but distinctly different roles. The account manager serves as the client’s advocate and relationship lead, while the project manager is the delivery lead.

Think of AMs more like salespeople or bizdev professionals, and PMs as the execution drivers.

In a well-run digital agency, account managers and project managers operate as partners, each with a clear mission. The account manager exists to maintain and build client relationships, keep clients happy, and spot new opportunities. Good ones are shockingly important to agency growth. The project manager exists to ensure that the groups and components necessary to complete the project come together elegantly, on time, on budget, without burning the team to the ground to do it. Good PMs, on the other hand, are critical to earning good profit margins.

We see this division of labor far beyond the digital agency world as it aligns with best practices seen in consulting, accounting, law firms, and other professional services.

At smaller shops (<15FTEs) the AM/PM roles are typically combined into a single person, but as shops grow, these roles separate and specialize. Next, lets look at how these roles specialize as they diverge.

Managing Accounts

This is what an AM does.

The core purpose of an account manager is to oversee the client relationship. They have a strong strategic focus, and the good ones understand the client’s business at a deep level. They often serve as the main point of contact for clients and do everything from leading regular check-in meetings to negotiating scope for new projects.

Common AM responsibilities include:

• Building and nurturing client relationships
• Leading client meetings
• Developing account strategy
• Preparing proposals, SOWs, estimates (in collaboration with PM)
• Monitor client satisfaction
• Monitor shifts in the client industry and at the client organization
• Upsell/cross-sell

Managing Projects

PMs live here.

The core purpose of a project manager is to oversee individual projects. They’ll have a highly tactical focus where they monitor and direct all the core pieces necessary for a project to be successful.

Common PM responsibilities include:

• Project planning
• Resource allocation
• Facilitating team collaboration
• Timeline and budget management
• Quality control
• Status reporting
• Problem solving related to delivery challenges

It's Has to Be Both

Replacing account managers with project managers in digital agencies undermines the strategic client relationship management crucial for long-term growth.

Best practices from successful agencies and professional services firms show that a clear separation between the strategic client-facing role (account manager) and operational execution role (project manager) is optimal. This allows each role to specialize in its strengths, thereby avoiding quality issues and strained client interactions. Consolidating both responsibilities under project management would quickly dilute both the strategic focus that AMs bring and the tactical benefits PMs unlock, undermining the agency’s margin and growth prospects.

Keep them separate and let them specialize.

Until next time!

-Nick

Our Agency Consulting Capacity

We're full for the summer, but here are our next openings:

​Revgen Review: Evaluate your agency's revgen strategy & tactics against best practices within a single two-week sprint.

• 1x Late September
• 2x October

​Custom Strategy Creation: Redefine your agency's growth trajectory with a new custom growth strategy.

• 1x October

If you're interested in learning more, please reach out early, as they tend to book up quickly.

New Podcast Episode

​

In this deep-dive episode, we break down the real-world data behind what’s changing in the agency landscape, including:

• The truth about AI’s actual impact (vs. the hype)
• How contractors are redefining staffing strategies
• What real specialization looks like, and how to find yours
• The mindset shifts required to thrive through economic uncertainty