MSP Evolution: How to Transform an MSP’s Service Delivery Operation Part 2
“It is impossible to improve any process until it is standardized. If the process is shifting from here to there, then any improvement will just be one more variation that is occasionally used and mostly ignored. One must standardize, and thus stabilize the process, before continuous improvement can be made.”
I love that quote. Try as I might to come up with a better way of saying it, Masaaki Imai wins. I learned that the hard way back when I worked at a large MSP with lots of incidents, service requests, and projects to work and Techs were tripping all over themselves. The enemy literally had a name: Chaos (always spoken with a capital C).
That experience was so much fun (not) that I spent a lot of time and effort developing the standard operating processes to show Chaos the door and get everything scheduled so Clients were happy (SLAs met & on time, on-budget project delivery), Techs were happy (knowing what to work on next and actually getting lunch breaks), Salespeople were happy (happy Clients, on-time projects, fat commission checks), and the brass was happy (better profits, more time to focus on growth). I learned a LOT about Autotask during those years.
At some point, I became aware that the rest of the MSP industry was in just as big of a mess as my MSP had been (and usually worse), so I decided to share my Autotask talents and my systems to those MSPs, ultimately growing to the point where my little consulting company grew to become Advanced Global MSP coaching with a bunch of people dedicated to helping the industry. I call the use of Autotask to maximize your MSP operations and Service Delivery PSAutomation.
And that’s where we are today. Hi, I’m, Steve. And I’m here to help. Welcome Autotask Gladiators.
Managed Service Providers (MSPs) face a common challenge: delivering high-quality IT services, while optimizing profitability and efficiency, and providing a great Client Experience.
Transforming an MSP’s service delivery operation requires addressing inefficiencies that hinder performance, profitability, and customer satisfaction. Many MSPs struggle with inconsistent intake processes, disorganized client request management, and inefficient resource allocation. Without structured workflows, requests can be lost, miscategorized, or improperly prioritized, leading to delayed resolutions and frustrated clients. Additionally, a lack of automation increases manual workloads, slowing down response times and reducing productivity.
To optimize service delivery, MSPs need streamlined processes, automated workflows, and clear role definitions. By leveraging tired and proven Standard Operating Procedures, PSAutomation tools, and dashboard visibility, MSPs can maximize operational efficiency, provide a superior Client experiences, and ensure all Clint service requests are handled accurately and promptly, ultimately boosting both service quality and profitability.
Transforming an MSPs Service Delivery Operation from Chaos to Zen requires 11 Steps:
Intaking of Client Requests
Categorization Client Requests
Triaging Client Requests
Tech Allocation for Future Client Requests
Prioritization of Client Requests
Automated Mechanisms
Organizing Client Request Visibility
Evaluations of Team Performance
Tech Engagement/Disengagement Processes
Service Coordinator level AT System Administrator
LEAN Process Profitability Reporting
We covered Intake through Automated last week. This week we pick up where we left off with an overview of these 5 steps:
Organizing Client Request Visibility
Evaluations of Team Performance
Tech Engagement/Disengagement Processes
Service Coordinator level AT System Administrator
LEAN Process Profitability Reporting
p.s. As Julie Andrews might sing, these are a few of my favorite things.
Organizing Client Request Visibility
Nothing is more frustrating than not knowing what to work on next! This is true in life in general. Studies have shown that we get stressed out when we are overwhelmed with things to do, and not sure what to do next.
This is so true for Techs, Service Coordinators, Service Managers, and really everyone that works for an MSP. (Note: if you are stressed out, feelinx anxious, scared, worried about your marriage, and think the light at the end of the tunnel is an oncoming train, then you need help. NOW! Your body is warning you! Read my blog article on MSP mental health here and check out other resources at the end)
What’s even worse is we do not know or want to do anything about it. All we know is our queue/my tasks & tickets/worklist views, or how to create dashboards with numbers that either do not mean anything or you need to go somewhere else (click on the number) to see the information you need. None of this helps you to be aware of all your responsibilities and to know the Right Next Ticket to work on for Techs, Service Coordinators, or Service Managers.
A Dynamic, proactive dashboards with widgets that provide information, not just a #s, provides real-time visibility into client requests, technician workload, and service performance. BTW: eliminates Chaos (remember him? He was in my story, and I bet he’s in yours).
Evaluations of Team Performance
BTW: there are 10 Black Holes where Tickets go to die or at least see their 1st birthday. Rooting out these black holes takes evaluating Open Ticket Management dashboards and Advanced Live Reports.
Regular performance evaluations are essential for maintaining high service standards. MSPs should implement structured KPIs to measure technician efficiency, ticket resolution times, and customer satisfaction. A combination of leading indicators (such as # of tickets in Triage, Waiting, On-Hold, SLA overdue, etc.) and lagging indicators (such as CSAT) drives continuous improvement in the LEAN Process Profitability KPIs (Resource Utilization, SLA Performance, Mean Time To Resolve, and Reactive Hours per Endpoint per Month), and provides a holistic view of team performance. Monthly or quarterly performance reviews, combined with training programs, can help technicians continuously improve their skills. Incentive programs that reward high performers can further boost motivation and overall service quality.
Tech Engagement/Disengagement Processes
At the end of the day, it all comes down to the Techs. All the work we do in Intake, Triage, Tech Allocation, Automation, etc. comes down to setting the Tech’s plate to work stress free, efficiently, and for them to provide a great Client Experience.
A standardized engagement and disengagement process ensures smooth transitions for both clients and technicians. Before engaging on a ticket, technicians should review the prepped ticket information, reach out to the Client for Business Context, and let them know they are engaging (granted 90% of the time it is VMail). They should then be able to clear their mind and desk and get to work. During disengagement, technicians should document all actions taken, update the client, and provide accurate time entries. Automated follow-up surveys can be used to measure client satisfaction and identify areas for improvement. Implementing these standardized procedures enhances service consistency, which is more important to the Client than technical knowhow, and it improves the overall client experience. Now, I know you read that and are wondering what fantasy land I am living in or what I am smoking. I assure you that this can happen and DOES happen in many MSPs.
Service Coordinator Level PSA System Administrator
A dedicated service coordinator plays a crucial role in bridging the gap between clients, technicians, and management. The service coordinator should be well-versed in operational PSA System Administrative work and be responsible to see that service workflows are optimized, SLAs are properly configured, and automation rules are maintained.
Therefore, A Service Coordinator should be one of the three PSA System Administrators, as they are deeply involved in service delivery operations. Service Coordinators are key to implementing and managing operational procedures, ensuring smooth ticket and workflow processing. Empowering Service Coordinators with PSA admin rights helps them optimize software settings for efficiency. And if it were me, I would train them in writing PSA Live Reports, enabling them to extract meaningful insights from operational data.
LEAN Process Profitability Reporting
Finally, we get to the most important Operational Topic! You see without profitability, an MSP cannot, pay its people, continue providing and improving Superior Client Services, or be a great community member.
Implementing LEAN principles in MSP service delivery can significantly improve profitability. A LEAN approach focuses on eliminating waste, optimizing resource utilization, and continuously improving processes. Profitability reporting should track key metrics such as billable vs. non-billable hours, time to completion both with wait and without wait states, and tech efficiency. Advanced reporting tools integrated with PSA software can provide real-time insights into financial performance. By leveraging data analytics, MSPs can identify inefficiencies, optimize pricing models, and enhance overall profitability.
Summary: Transforming an MSP’s Service Delivery Operation
We have learned that Managed Service Providers (MSPs) often struggle with balancing high-quality IT service delivery with operational efficiency and profitability. Without structured processes, service operations become chaotic, leading to inefficiencies, missed SLAs, and dissatisfied customers. Implementing automation, clear workflows, and defined responsibilities helps MSPs streamline their operations, improve response times, and enhance customer satisfaction.
Key areas of transformation include:
Intaking Client Requests: managing multiple intake processes using PSA tools ensures streamlined intake with automation, reducing workload and response times.
Categorization & Triaging: Requests should be classified based on predefined service request types, ensuring proper routing, prioritization, and adherence to SLAs.
Tech Allocation & Prioritization: Workloads should be distributed based on technician expertise and availability, while taking into consideration the Client request demand across all Client request workflows.
Automation & Visibility: Automating manual repeatable processes drives efficiency, and leveraging dashboards, provides awareness of all responsibilities and knows what to work on next.
Performance Evaluations & Engagement: Regular KPI assessments help monitor technician efficiency, resolution rates, and customer satisfaction, while structured engagement processes drive operational efficiency and ensure consistency.
Service Coordination & LEAN Reporting: A service coordinator using PSA tools optimizes workflows, while LEAN principles eliminate inefficiencies and maximize profitability.
By focusing on these areas, MSPs can create a more structured, efficient, and profitable service delivery operation while enhancing customer satisfaction and long-term business growth.
Steve & Company
Resources:
“Building a Non-Anxious Life,” by Dr. John Deloney. This is NOT your average self-help book, and it was recommended by an MSP Ops Manager.
Unshackled e-book: https://www.agmspcoaching.com/unshackled Apply the 6 keys to MSP Service Delivery Optimization)
Richard Tubb: “Mental Health Resources for MSP Business Owners”
Our most recent blog post on MSP Mental Health
Our YouTube channel
Service Delivery Gladiator’s Community: Home - The Service Delivery Gladiators (agmspcoaching.com)
The Compound Effect: Learn to manage your life instead of it managing you.