It will come as no surprise to MSP owners that as your sales, strategy, service, compensation, and financial operations mature, the more profitable you will become.
That’s a truth reiterated by Peter Kujawa, Vice President of ConnectWise’s Service Leadership program in his webinar with our own Larry Cobrin as his guest of our second M&A Perspectives series webinar. He explained how his firm’s Operational Maturity Level (OML) calculation helps MSPs and TSPs reach maturity to boost profits and, if it’s part of owners’ exit strategies, to position their companies as attractive acquisition targets.
OML grades service providers on these five criteria, and Peter consistently finds that those with composite scores below 3.0 struggle to turn profits each quarter. That’s not all bad news, however, as by taking an unfiltered assessment of their situations, they can use OML to guide their improvement focus. Peter says that by concentrating on just a few areas each quarter, MSPs can significantly improve their OML ratings and their profits.
Peter explains that MSPs can start elevating their OMLs in as little as two or three quarters, during which time they line up their charts of accounts and gain a better understanding of what the data is telling them and what resources they can mobilize to effect change.
OML shows where to devote your time and attention to lay a solid foundation. Once those primary sticking points are flowing freely, OML identifies the next most impactful areas. Solve a couple of issues a quarter, Improve on a few things each quarter, and a year later, and you will see significantly higher profits within a year.
Learn more about how you can improve your profitability, operations, and client relations with these insights
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