Practical Project Management for MSPs: An IT Service Manager's Guide to Success
Projects pose a significant challenge for MSPs, representing a major liability due to the substantial labor hours involved, significant Client investment, and high visibility within the organization. When not properly managed, projects can lead to financial losses and erode Client relationships. However, successfully delivered projects can transform Clients into "raving fans" and reduce churn, highlighting their potential as an opportunity. The following will provide insight into how to make projects successful:
The Service Manager's Role in Project Management
Service Managers working for an MSP often find themselves managing a considerable number of projects, typically between 5 and 20, before the company decides to hire dedicated full- or part-time Project Managers. Unlike Project Management Professionals (PMPs), who operate with total control over a project, Service Managers carry a multitude of other responsibilities, many of which are considered higher priority than the projects themselves. This inherent conflict in focus, skill, and priorities makes achieving 100% project focus challenging for a Service Manager.
The Project Management Institute (PMI) is recognized globally for setting project management standards, with its Project Management Body of Knowledge (PMBOK) being the established guide. However, the extensive methodologies of PMBOK are often too comprehensive for the practical realities of MSPs, which require a "lighter" approach to project management.
Within an MSP, the role of a Project Manager often leans more towards that of a PMI Project Coordinator. Their key responsibilities include:
Ensuring all necessary information for project delivery is available and gathered.
Taking ownership of the project to allow the salesperson to move on to new opportunities.
Keeping the Client consistently updated on all project facets, especially start and end dates, and any anticipated disruptions.
Facilitating the handoff between the project team and the support team at project closure.
It's important to note that the project plan and the actual execution of tasks within it are typically the responsibilities of the lead Tech, not the Project Manager.
Projects as "King" vs. Economic Engine
While projects are considered "king" in IT, largely due to their lucrative markups, it is crucial to remember that Managed Service Agreements are the economic engine of an MSP. Resource Planning Analysts play a vital role in balancing project work with the continuous support of Managed Service Agreements, ensuring that projects do not overwhelm or disrupt the core business.
Effectively Managing Projects for Non-Project Managers
Here is a practical framework for Service or Project Managers to effectively manage projects, even without a dedicated project management background:
I. Project Governance (Key #1):
Everyone involved must clearly understand, weigh in on, follow, and agree upon:
What defines a project.
How projects will be managed.
Where projects fit within the overall IT service delivery portfolio.
II. Triple Constraint:
Projects are governed by three interdependent factors: Time, Scope, and Cost. You can effectively control any two of these, but it is typically not possible to control all three simultaneously without compromise.
III. Five Phases of a Project (PMBOK):
Projects generally follow five distinct phases:
Initiation
Planning
Execution
Controlling
Closure
IV. Planning Components:
Effective project planning should encompass:
Scope of Work
Task Schedule
Duration (including contingencies)
Budget (including contingencies)
Resources (Engineers)
Communication Plan
Risks Assessment
Mitigation Solutions
Procurement
V. Responsibility Assignment Matrix (RACI):
360-degree communication involving everyone touched by the project is critical. A RACI chart formalizes communication by identifying key people and their roles:
Responsible: Who performs the task.
Accountable: Who is ultimately answerable for the task's completion.
Consulted: Those whose input is sought.
Informed: Those who need to be kept up-to-date.
A Project or Service Manager managing a project should continuously assess communications to ensure all necessary parties are informed.
VI. Delivering What is Expected (12-Step Program for Non-Project Managers):
This structure focuses on ensuring successful project delivery:
Deadline
Priority
Capacity
Criticality
Requirements
Stakeholders
Document
Communication
Commitment
Inform
Deliver
Closure
Summary
MSPs face significant challenges with projects, which are high-visibility liabilities but also opportunities to build Client loyalty. Often managed by Service Managers who juggle other priorities, projects require a "lighter" approach than the extensive PMBOK methodologies. It's crucial to remember that Managed Service Agreements, not projects, are the MSP's economic engine, requiring careful resource balancing. A practical framework for non-Project Managers, covering essential aspects like project governance, the triple constraint (Time, Scope, Cost), key planning components, formalizing communication with RACI, and a structured 12-step delivery program to ensure successful project outcomes.