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Interview With August Shah
The Creative Agency Podcast is back! I’m thrilled to introduce August Shah from Partnered Management Group. Not only is August a commercial airline pilot but he also founded Partnered MG, a fractional project management agency that specializes in supporting creative agencies with project managers, resources, and know-how. Whether you need to augment your current team or outsource your entire project management office, Partnered MG offers flexible, effective options. My agency, Murmur Creative, hired Partnered MG, and the results have been transformative. Join us as we dive into the world of fractional project management and explore how it can benefit your agency.
Use this code CAP10
(And get 10% off 2 months with Partnered MG)
Visit Partnered MG online
Tools Mentioned: Shift, ClickUp, Slack
Transcript
00:10.52
Chris: All right. So I’m here with August Shaw, founder of Partnered MG. He’s also someone I know because my company, Murmur Creative, works with Partnered MG. They have a really interesting business model, so I thought it would be great to have him on the show. Welcome to the show, August.
00:36.36
August Shaw: Thanks for having me. It’s a pleasure to be here.
00:39.63
Chris: I want to get into your background and how you started your agency. But I feel like fractional project management probably brings some question marks for our listeners. Could you explain a little bit about what fractional project management is? Then we can dive into your background.
01:02.49
August Shaw: Yeah, of course. I’ll start at a higher level. Fractional services allow organizations, companies, and agencies to get resources exactly when they need them, usually at a more cost-effective rate because you’re not paying for benefits. They’re meant to scale up and down as the needs of the business grow and market conditions change. Specifically, fractional project management with Partnered MG allows our clients to get vetted, PMP-certified project managers exactly when they need them. Our onboarding time only takes 24 hours versus other agencies, and our program allows organizations to scale up or down based on market conditions and business needs.
02:09.89
Chris: So it’s kind of like having a freelancer, someone you call upon as needed. But you’re an organization that provides that service, supplying the people. You mentioned PMP-certified project managers. Is that the be-all and end-all of project management certification?
02:28.30
August Shaw: Yeah, PMP, which stands for Project Management Professional, is a certification offered by the PMI Institute. You take a course, pass a test, and then get PMP-certified. There are other certifications like PRINCE2 and Agile as well. One of the benefits of fractional services is that you’re not just getting access to one freelancer. You’re also getting access to an organization’s resources, including our whole project management office, our processes, our templates, and our senior leadership. We are very collaborative and believe in open communication, so our clients benefit from that as well.
05:48.93
Chris: It’s been really amazing working with you guys. It’s made a revolutionary difference in our web department, and now you’re also working in our design department because it’s been such a successful partnership. I want to hear more about your background and how Partnered MG came to be because you offer services to agencies, but you are also an agency. There are many ways to grow an agency and things to focus on. I’d love to hear your story of how you ended up with Partnered MG as your focus.
06:33.22
August Shaw: It’s been a wild and awesome journey. I’m a man of many talents. Partnered MG is my full-time job, but I’m also a professional pilot. Back in 2018, I started a company called Zero Two Design Studio, a web and application design and development agency. I was teaching myself how to code while going through college and flight school. The agency grew, and then COVID happened. I was out of a job on the flying side, so I focused on growing Zero Two Design Studio, doing software design and development. In 2021, we had an opportunity to get into technical project management for a client. We found there was a real need for project managers with a technical background. So we went all in on technical project management, and it was successful. In January 2023, we rebranded as Partnered Management Group, focusing on fractional project management while still doing design and development work selectively.
10:00.48
Chris: That’s awesome. I didn’t realize you were a commercial pilot. What kind of flying do you do?
10:09.10
August Shaw: I fly private jets, mostly for the 1%—fancy people.
10:15.30
Chris: Can you say who you’ve flown around, or is that hush-hush?
10:31.55
August Shaw: It’s all hush-hush. I can’t say.
10:34.22
Chris: Wow, you really do have a lot going on. That’s awesome. It makes sense to have those extra assets. Sometimes we need additional help, like a designer or a copywriter. Having those additional resources available is helpful, especially when we already have the relationship. Working with multiple agencies using different tools and services sounds challenging.
12:11.74
August Shaw: It is challenging and requires extreme organization. Technology helps a lot. We use an application called Shift, which allows us to create workspaces for each client and be logged into all the different software. We are also ClickUp power users. ClickUp is more than a project management tool; it’s the brain of our operation. Being meticulous with notes and status updates is crucial.
13:59.92
Chris: It definitely takes a certain kind of person. I’ve worn the project management hat out of necessity and I’m not the best at it. I love having you guys to help out because I am more of a creative, distractible agency leader. Adding in that you have to jump on a private jet makes it even more impressive.
15:13.36
Chris: Jeff is your director of operations, right?
15:08.13
August Shaw: Yes, he’s our number two.
15:13.36
Chris: Jeff operates within Murmur as the project management lead, bringing in resources when needed. Erica, who is certified with Monday.com, is running that for us, which is amazing because switching project management systems is a nightmare.
15:57.82
Chris: Switching project management systems is tough, but you guys made it smooth for us. It’s great to have access to your expertise. The fractional business model is becoming more popular. What was your exposure to the fractional concept, and has it been around for a long time?
17:13.76
August Shaw: It’s been around for a while but is becoming more popular, especially in the technical space. Businesses need to be mindful of expenses, and fractional services help with that. They can bring in the exact resources they need without the cost and time of recruiting and onboarding. It’s a very beneficial model.
18:58.73
Chris: We found you when we were struggling with project management in our web department. I posted in the Grow Your Agency group looking for help, and you reached out. You were flexible and helpful. It was a great connection.
22:16.86
August Shaw: You were skeptical at first, which is normal. Project management can be seen as just an expense, but it’s a cost saver in the long run. It’s a wonderful partnership, and I need to come see you guys sometime.
22:50.00
Chris: I keep inviting you. The room I’m podcasting from used to be an Airbnb, so you can stay there. You can even land your private jet out front.
23:19.20
August Shaw: I might take you up on that!
23:25.76
Chris: What is your sales process like? How do you acquire clients, especially since fractional project management might not be something people are actively searching for?
24:07.84
August Shaw: A lot of mistakes were made initially. Traditional marketing didn’t work well. Word of mouth and networking have been the most beneficial. Slack groups like the Grow Your Agency channel have been great for interacting directly with agency owners. The sales process involves educating people about fractional project management and changing their mindset.
25:57.35
Chris: What resonates with potential clients during sales conversations?
27:26.98
August Shaw: Cost is a big factor, as well as having someone there to improve processes. Clients like that they can use our project managers as they see fit within the project management space. We give suggestions but don’t dictate how they should use our services.
29:56.20
Chris: We often take on one too many projects, making it tough for one project manager to handle. Fractional project management is great for those in-between times when you don’t need a full-time project manager but have too much work for one person.
30:07.78
Chris: Do you work only with agencies, or do you offer project management to other types of organizations as well?
30:45.86
August Shaw: We primarily work with agencies but also with single-product or SaaS companies. We find we can affect greater change and value within the agency space due to its dynamic nature. Project management is crucial for agencies to handle the ebb and flow of work.
32:01.67
August Shaw: Project management is often undervalued in the agency space, but it’s essential for managing projects and ensuring profitability. Good project management prevents issues like scope creep and keeps projects on budget.
35:09.42
August Shaw: We’re not always part of the estimation process with our clients. We usually just manage the projects based on the hours. We’d like to be more involved in the estimation and budgeting process because project managers can significantly increase profit margins by managing resources effectively.
37:02.31
Chris: That makes sense. Good project management is crucial for profitability. Having a well-defined methodology and expertise in managing issues as they arise is invaluable. Some agencies may have great project managers on staff, but the fractional aspect is appealing, especially for smaller agencies with fluctuating workloads.
37:30.20
Chris: You mentioned Jeff and Erica earlier. What is the structure of your team?
37:39.50
August Shaw: Our structure includes full-time employees like myself and Jeff, who is our director of operations. The rest of our team consists of 1099 contractors on a part-time basis. This setup allows us to expand and contract as needed, reducing overhead while still providing top-notch service. We integrate our contractors fully into our processes and treat them like full-time team members in terms of collaboration and meetings.
38:50.42
Chris: That makes sense. Your business model reflects the flexibility you offer to your clients, which reduces risk for both you and the agencies you work with. Many agencies rely on contractors more now due to the uncertain economic environment.
39:01.77
August Shaw: Exactly. This setup helps us and our clients navigate economic uncertainties. It’s about being smart with resources and providing the best service without unnecessary risk. Layoffs are tough, and our model helps avoid that. We’ve seen a lot of talented people available due to recent layoffs, especially in the tech sector, which can be an opportunity for agencies to find great talent.
39:52.33
Chris: What lessons have you learned so far with Partnered MG? Any mistakes you’ve made that you’d like to share?
42:54.84
August Shaw: We’ve made plenty of mistakes, often expensive ones. Marketing was a big one—hiring the wrong company or strategy. Another mistake was not having more frequent leadership meetings and financial reviews. Now we do weekly leadership meetings and more frequent financial reviews. We also use the Profit First method, which, while not perfect for service-based businesses, is a good exercise. Another mistake was not having a defined recruitment and vetting process sooner. We’ve been burned by people leaving after onboarding. Now we have a multistage interview process focusing on technical skills and personality to ensure a good fit with our culture.
45:19.89
Chris: That’s interesting. With the flexibility of your business model, there’s always a risk that clients might reduce their needs suddenly. How do you manage that risk?
46:13.93
Chris: It must be challenging, but hopefully, with multiple clients, the demand balances out. Let’s talk about the future. How do you think fractional project management will change or grow?
46:23.20
August Shaw: Fractional project management is becoming more popular, especially in technical fields. Project management itself is evolving. While it remains a human-centric function, technology plays a bigger role. We use AI and data analytics to improve decision-making and efficiency. Our Work Smarter strategy leverages these tools to help project managers make data-driven decisions and work more effectively. Technology can handle mundane tasks, allowing project managers to focus on higher-level work.
49:41.71
Chris: I remember you inviting AI note-taking bots into meetings, which was new to us at the time. Now it seems more common, especially with Zoom integrating similar features. Are there any other tools you use that you couldn’t live without?
50:34.29
August Shaw: Yes, Shift and ClickUp are essential for us. ClickUp is more than a project management tool; it’s the brain of our operation. We also use Slack and Mattermost for communication. Mattermost is an open-source Slack used by NASA, which we self-host and sync with Slack for backup. Google Drive is another crucial tool, especially with its advanced API functionality, which has improved significantly. We use it extensively for data management and automation.
53:03.50
Chris: I’ve been getting into writing scripts to pull data into Google Sheets. It’s amazing what you can do. I integrated our time tracking tool, Harvest, to pull in live data for hours tracking and make custom reports. It was a fun project that opened my eyes to the possibilities.
53:38.84
Chris: It sounds like you’re using a lot of cutting-edge tools. Is there anything else you’d like to share with our listeners?
53:47.26
August Shaw: Just that it’s been a pleasure working with Murmur Creative and being on this podcast. If anyone is interested in learning more about fractional project management, they can reach out to us. We have a promo code, CAP10, for 10% off for two months. You can find us at partneredmg.com. And of course, CAP10 sounds like “captain,” which ties nicely into my flying background!
55:26.14
Chris: That’s perfect! It’s been awesome having you on the podcast, especially since it’s been a while since my last episode. For our listeners, if you’re not part of the Grow Your Agency group, join us at growyouragency.group. That’s where this podcast and other episodes live. Thank you so much, August. It was great having you on.
56:42.51
August Shaw: I appreciate it. Thanks for having me. It was a pleasure.
56:45.43
Chris: You bet.
