1. [Work](/work) 2. / 3. Studio Palms / Assembly Digital Deep dives 1. [LOJEL](/work/studio-palms-assembly-digital/lojel) 2. [Loden Hotel](/work/studio-palms-assembly-digital/loden-hotel) 3. [TurF](/work/studio-palms-assembly-digital/turf) 4. [Earnest Ice Cream](/work/studio-palms-assembly-digital/earnest-ice-cream) ![Studio Palms / Assembly Digital logo](/_next/image?url=%2Fimages%2Fwriting%2Fstudio-palms-assembly-digital%2F01-58b825c5.jpg&w=3840&q=75) # Studio Palms / Assembly Digital The transition from a design consultancy to a retainer-led agency model Date 2018-06-20 Read time 2 min Scroll to read Read with... Pick an agent - [ChatGPT](https://chatgpt.com/?q=Read%20this%20case%20study%3A%20Studio%20Palms%20%2F%20Assembly%20Digital%0AURL%3A%20https%3A%2F%2Fwww.assemblydigital.com%2Fwork%2Fstudio-palms-assembly-digital%0A%0APage%20context%3A%0ASummary%3A%20The%20transition%20from%20a%20design%20consultancy%20to%20a%20retainer-led%20agency%20model%0A-%20Highlights%3A%20Founded%20Assembly%20as%20a%20user-centred%20design%20consultancy%20%7C%20Scaled%20the%20team%20from%204%20to%2012%20in%20three%20years%2C%20shifting%20toward%20retainers%20%7C%20Delivered%2012%25%20year-over-year%20revenue%20growth%20during%20the%20transition%20to%20Palms%0A%0AReturn%3A%0A1\)%20The%20business%20problem%20in%20one%20sentence.%0A2\)%20The%20operating%20moves%20that%20mattered.%0A3\)%20Reusable%20lessons%20for%20a%20similar%20team.%0A4\)%20One%20question%20to%20ask%20before%20applying%20this%20pattern.%0A%0AUse%20the%20page%20as%20the%20source%20of%20truth.%20Keep%20it%20concise%20and%20specific.) - [Claude](https://claude.ai/new?q=Read%20this%20case%20study%3A%20Studio%20Palms%20%2F%20Assembly%20Digital%0AURL%3A%20https%3A%2F%2Fwww.assemblydigital.com%2Fwork%2Fstudio-palms-assembly-digital%0A%0APage%20context%3A%0ASummary%3A%20The%20transition%20from%20a%20design%20consultancy%20to%20a%20retainer-led%20agency%20model%0A-%20Highlights%3A%20Founded%20Assembly%20as%20a%20user-centred%20design%20consultancy%20%7C%20Scaled%20the%20team%20from%204%20to%2012%20in%20three%20years%2C%20shifting%20toward%20retainers%20%7C%20Delivered%2012%25%20year-over-year%20revenue%20growth%20during%20the%20transition%20to%20Palms%0A%0AReturn%3A%0A1\)%20The%20business%20problem%20in%20one%20sentence.%0A2\)%20The%20operating%20moves%20that%20mattered.%0A3\)%20Reusable%20lessons%20for%20a%20similar%20team.%0A4\)%20One%20question%20to%20ask%20before%20applying%20this%20pattern.%0A%0AUse%20the%20page%20as%20the%20source%20of%20truth.%20Keep%20it%20concise%20and%20specific.) - [Perplexity](https://www.perplexity.ai/search/new?q=Read%20this%20case%20study%3A%20Studio%20Palms%20%2F%20Assembly%20Digital%0AURL%3A%20https%3A%2F%2Fwww.assemblydigital.com%2Fwork%2Fstudio-palms-assembly-digital%0A%0APage%20context%3A%0ASummary%3A%20The%20transition%20from%20a%20design%20consultancy%20to%20a%20retainer-led%20agency%20model%0A-%20Highlights%3A%20Founded%20Assembly%20as%20a%20user-centred%20design%20consultancy%20%7C%20Scaled%20the%20team%20from%204%20to%2012%20in%20three%20years%2C%20shifting%20toward%20retainers%20%7C%20Delivered%2012%25%20year-over-year%20revenue%20growth%20during%20the%20transition%20to%20Palms%0A%0AReturn%3A%0A1\)%20The%20business%20problem%20in%20one%20sentence.%0A2\)%20The%20operating%20moves%20that%20mattered.%0A3\)%20Reusable%20lessons%20for%20a%20similar%20team.%0A4\)%20One%20question%20to%20ask%20before%20applying%20this%20pattern.%0A%0AUse%20the%20page%20as%20the%20source%20of%20truth.%20Keep%20it%20concise%20and%20specific.) - [Your Claw](https://openclaw.ai) - [Gemini](https://gemini.google.com/app) Gemini and Your Claw use copy and paste. - 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](#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](/work/studio-palms-assembly-digital/earnest-ice-cream). * * * ## [Operating problem: brittle agency economics](#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](#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](#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](#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. Deep dives [01LOJEL2018-02-24 · 1 min→](/work/studio-palms-assembly-digital/lojel)[02Loden Hotel2017-11-25 · 2 min→](/work/studio-palms-assembly-digital/loden-hotel)[03TurF2017-08-15 · 1 min→](/work/studio-palms-assembly-digital/turf) 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](/work/studio-palms-assembly-digital/lojel). Then [Loden Hotel](/work/studio-palms-assembly-digital/loden-hotel). Then [Earnest Ice Cream](/work/studio-palms-assembly-digital/earnest-ice-cream).