Automated design and optimization of agentic LLM-based systems leads to sophisticated systems that substantially improve result quality over off-the-shelf agentic patterns. However, studies of fielded agentic systems show that production systems focus much more on issues such as simplicity, controllability, and predictability of inference costs. In this paper we propose principled approaches to designing and optimizing practical agentic systems. We describe an agent framework that enables designers to enforce modularity in agentic systems, by defining "pseudo-tools" that call LLMs recursively on a restricted context. Using this framework we hand-engineer agents for a diverse set of tasks, and show that relative to dynamically-planned workflows, hand-constructed fixed workflows are generally cheaper and more accurate. We then propose novel learning methods for the agentic components required by this framework, namely pseudo-tools and fixed workflows. These learning methods generally outperform hand-engineered agents. We also exploit the modularity of the framework to apply multi-objective optimization methods to jointly optimize cost and response quality and blend the results of multiple learning systems.