3 Steps to Execute A Managed IT Services Model

It’s not enough to says you’re an MSP. You need to set, track and reinforce KPIs.

Channel Partners

April 13, 2015

4 Min Read
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By Ray Vrabel

In last month’s blog, I focused on how to measure company benchmarks now that you’ve made the switch to managed IT services, as well as how to avoid falling into a “cookie-cutter” way of thinking when it comes to metric measurements. This month, I’d like to talk about how to track and reinforce those benchmarks for technical, sales/marketing and help desk staff.

Below are a few steps you can follow to start effectively measuring new benchmarks, as well as some tactics to obtain a solid analysis.

1. Identify strategies to track key performance indicators (KPIs): Having moved to managed IT services, hopefully you have also realigned your staff with bigger business objectives. With a sales/marketing strategy in place, employees should now be reaching out to new (as well as existing) clients to let them know about your new business strategy — explaining that you’re now focused on bringing the entire company ecosystem together. Now is the time to do the work required to execute on making these changes. If you choose to ignore the inevitable, and don’t shift your way of thinking and selling, then all these plans are just “words on paper.” That won’t generate recurring revenue.

Aside from sales and marketing, track how technical and help-desk staffers are performing under the new managed IT services model. For example, are your techs raising the stakes when it comes to average revenue per user (ARPU), and are they reinforcing the services model when working with clients? For the help desk, ensure they are exceeding goals on the two most important elements: critical time to response and first-call resolution.

As an MSP, it’s on you to ensure the correct tactics and strategies are in place to do this — and even more so to ensure that staff are properly implementing these tactics and strategies. You can have all the latest and greatest tricks up your sleeve, but if people aren’t utilizing them, then your new model will never get off the ground.

2. Check-ins and feedback: Once you’ve identified and implanted your KPI tools, set yourself up for regular feedback. How will you monitor these tools and also check in with your staff and clients? Don’t get so caught up in numbers and data that you lose focus on your business; instead, set specific times for check-ins. Meet once a quarter or every few months to review KPIs with all of your departments, specifically sales/marketing, technical and help desk staff. Obtain feedback from clients as well. Some questions to ask:

  • Is the feedback mostly positive or negative? Why or why not?

  • Are you meeting long- and short-term goals?

  • If the customer is unhappy with my current services, what can I do to change this?

  • Where do I stand today vs. where I want to be in six or 12 months?

  • Are employees meeting the individual department goals set for them, and are these goals forwarding new business objectives?

Once you have addressed these points, figure out your baseline to measure success. This may be difficult if you’re new to managed services. However, some tactics to deploy include networking via peer groups, industry forums and discussions. Ask your peers how they have tracked these benchmarks in the past, and what tools they have used to establish a baseline for tracking.

3. Follow through: This can be a challenge — it’s easy to fall back into comfortable old habits. For example, many of your salespeople have done fine selling straight hardware, such as printers and phones. Ensure their mindset and goals are aligned with the new business model. Of course, this won’t happen overnight; it will take time for them to understand and get accustomed to this new value proposition. However, there is no time like the present to push for change. The longer you wait, the longer it will take to see that continued, recurring ROI. It’s all about a mindset with these new practices and getting your teams to change their thought process and behaviors.

But be forewarned: Some will rise to the occasion, while others will continue to adhere to the old-school “break/fix” way of thinking. One way to better focus their efforts is to assure them that they can still sell hardware, but they need to also attach services to that hardware, which will help the company build recurring revenue. Breaking it down in those terms will yield faster, more positive results.

With your new managed IT services model, always strive to have an operationally efficient staff that will focus on your success, as well as that of your customers. You might have to be a bit more lenient than usual in the beginning; however, be sure to get all of the KPIs in place to help begin the measurement process and to see where your numbers are. Remember, to be successful with this new model, you have to start with change.

Raymond Vrabel is Continuum‘s director of Technical Account Management and participates in product and service growth initiatives. He manages Continuum’s Technical Account Management team which supports over 3,500 partners worldwide. Vrabel has more than 15 years of experience in the IT industry, specializing in managed IT services, disaster recovery and cloud solutions. Follow him on Twitter @rayvrabel.

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