The BrightGauge Blog

3 Keys to Operational Efficiency in Managed Services

Written by Amanda McCluney | July 27, 2017

Have you been in managed services long enough to realize just how critical it is to revamp your operational strategies in order meet your snowballing list of obligations? If so, then you’ve probably also noticed that a willingness to adapt is critical in order to sustain that growth.


Luckily, there are a few key areas that any MSP can focus on to improve their operational efficiency. First, remote management and the rise of cloud solutions provide a critical tool for the future of forward-thinking MSPs. Additionally, being able to boil down your services into concrete, defined service offerings opens the doors to processes that help to improve your ability to deliver.

Let’s take a look at the key areas that you should be focusing on to improve operational efficiency:

Maximizing Remote Management & Automation

For many years MSPs primarily worked on a break/fix model. Something in the tech chain broke, and MSPs were there to fix the problem. However, the rise in popularity of remote management and cloud-based services have changed the way that MSPs interact with clients. It has opened the doors to low-hanging opportunities for operational efficiency improvements.

Remotely managing a large volume of a customer's infrastructure compels the use of automation. Once you identify the processes that can be automated and implement the right tools, you will free up man hours and improve your services at a big-picture level. That means less time in the trenches, more time focusing on delivering value.

In fact, MSPs should be excited to find new ways to automate their services. Because while other business models rely on billable break/fix hours to drive revenue, MSPs are able to earn more while doing less by maximizing remote management and the automation of business processes.

Processes and Uniformity

The idea that every customer is unique and needs a unique solution is a popular marketing statement among MSPs. It’s true, too. Every client will come with their own unique quirks that will have to be accounted for. What that marketing messaging doesn’t say is that for most clients, the core of your services won’t look any different from one client to another.

In a recent conversation with Ray Orsini, Owner of Orsini IT, we discussed the important role that standardization plays in his business. Because they offer every client the same service at the same price, with very little wiggle room for customization, they have eliminated the need to spend their time rewriting contracts each time they bring a new account on board. By standardizing their SLA across the board and setting very clear expectations up front, the Orsini team can keep their focus on the services they provide. Of course, staying focused on their services yields a very efficient operation.

Eliminating gray areas allows MSPs to make focused hirings, keeping their teams small and their response times low. Spelling out every service in your SLAs gives you the opportunity to move forward with new clients confidently. Of course, there is a caveat to this. Not all customers are going to be receptive to a standardized service.

In our conversation, Ray went on to explain that in order to commit to standardization, you must be willing to tell certain prospects that you aren’t a good fit for their needs. When they start making requests and trying to alter your core offering to fit their needs, it may be time to move on. This may feel like leaving money on the table, but ultimately it makes your operations scalable.

“Managed services is like a marriage — we have to respect each other,” Ray said.

Dashboards, Analytics, & Managing By Exception

Have you heard of Inbox Zero - the practice of getting your inbox down to zero unread messages? At BrightGauge, we encourage a similar approach in business.



We advocate for all of our MSP customers to practice “managing by exception,” which is an extremely effective practice when paired with standardized services. Using your BrightGauge dashboard to manage by exception involves two basic rules:

 

  • No red. Using the BrightGauge color and threshold features, you can assign colors to certain benchmarks. In the above example, there is one new ticket open. This is an issue because you never want a ticket to go unanswered. Using the color and threshold features, it is easy to identify problems and keep on top of the most pressing matters.

 

  • Get to zero. Whittle down your numbers throughout the day with the goal of getting to zero in all relevant categories. Do you notice how the “Open Billing” section in the image above is green? That’s because there are no open billing matters to attend to, turning the number green. Ideally, you want the entire top row to show green by the end of each day.

Dashboards Maximize Efficiency 

For MSP owners, your ability to standardize your services, automate your processes, and quickly track and address changes in key metrics play a huge role in your long-term growth potential. By focusing on these key areas, you can improve hiring practices and reduce response times for each and every client.

 

Want to learn more about operating efficiently? Download our free whitepaper on Dashboard Best Practices: