Studio Palms / Assembly Digital
The transition from a design consultancy to a retainer-led agency model
Date
2018-06-20
Read time
2 min
Read with...
- 01Founded Assembly as a user-centred design consultancy
- 02Scaled the team from 4 to 12 in three years, shifting toward retainers
- 03Delivered 12% year-over-year revenue growth during the transition to Palms
Ownership and scope
Assembly started as a user-centred design consultancy. I founded it to build digital products with a small team and a high bar for craft.
Over the next three years, the work became the foundation for what later grew into Palms, including a shift toward more retainer clients and a larger delivery team.
One project that shows the approach is Earnest Ice Cream.
Operating problem: brittle agency economics
Early agency work can look busy while staying brittle. Project revenue is lumpy, quality is inconsistent, and hiring runs ahead or behind demand.
The job was to build a system that protected delivery quality while we scaled.
Operating loop: client fit and repeatability
In this case, the loop drove focus (client fit), execution (repeatable discovery and delivery standards), and growth (retainers and repeat engagements).
What I built: discovery and delivery standards
- A consulting-led discovery process that anchored delivery in user needs and clear scope.
- A co-creation delivery model, supported by full-time staff and contract specialists.
- A shift toward more retainer relationships and a clearer client-fit bar.
- Team capacity planning and delivery standards that let us scale from 4 to 12 without quality drift.
The tradeoff was short-term margin. We invested ahead in team capacity, delivery standards, and client fit, which reduced near-term flexibility and improved long-term growth quality.
What changed: We moved from project-by-project delivery to a clearer client-fit bar and a more retainer-led model that protected quality as the team scaled.
Results: retainer growth and team scale
These outcomes come from company operating reviews and client delivery records from this period. This page is the primary published record of this work.
- Revenue increased by 12% year-over-year during the Assembly to Palms transition.
- The team scaled from 4 to 12 in three years.
- The client base expanded, with many engagements moving into retainer relationships.
Decision support
FAQ: Fast answers, no filler
The objective, outcomes, and next best path in under a minute.
01What is Studio Palms / Assembly Digital?
A case study on transitioning from a design consultancy to a more retainer-led agency model without letting quality drift.
02What did Michael Preuss do in this case?
Founded Assembly, built a delivery system with repeatable discovery and standards, shifted toward retainers, and scaled the team while protecting craft.
03What changed in the operating model?
We moved from project-by-project delivery to a clearer client-fit bar and a more retainer-led model that protected quality as the team scaled.
04What results are documented?
Revenue increased 12% year over year during the Assembly to Palms transition. The team scaled from 4 to 12 in three years.
05Where can I go deeper?
Start with LOJEL. Then Loden Hotel. Then Earnest Ice Cream.