The demise of the managed services business is very damaging.
And it is caused first and foremost by an inadequate platform.
It can be a slow but deadly killer.
Essentially, a platform is a way for your team to support your customers and activate their offers.
The platform is how your team supports your customers, and must be the core of your “”intellectual property”” / “”differentiation”” offering, and the differentiation you bring to the market.
Furthermore, it will determine more than anything else how profitable you will be.
In many cases, these are platforms that were developed more than a decade ago, but they are the single biggest problem that managed businesses have, and the biggest problem for businesses.
These platforms are a hindrance to custom-made deals and new offers, which makes it impossible to put out new offers. Also, the cost of running, maintaining, updating and upgrading them is excessive.
However, as your business grows, you won’t be able to replace it with new ones, and you won’t be able to stay competitive.
If you’re in a position to develop a new managed platform for your business, that’s a very good thing.
And you will be able to get rid of the biggest risk to your managed business.
Usually, most people who try to do that either fail or are doomed to failure.
You risk your own managed business becoming terminally mediocre at making only the most important decisions and executing projects.
There is no easy guide to doing it right.
However, there are countless things you can do to increase your chances of success.
Certainly, it’s important to have a lead architect with experience in building management platforms.
In the unlikely event that you don’t have anyone, then you should immediately stop doing so and
Find the best architect you can.
The foundation of the platform is built on off-the-shelf tools.
The most important thing to do to activate the platform is to code and integrate the parts of the platform, called “”glueware””.
The key to making it so is coding and integration across each part of the platform, called “”glueware””.
And it requires a platform architect leader to explain how the parts fit together to become a highly functional engine for the business.
You can also compensate based on the annual contract value (ACV).
However, one-year and two-year contracts are very exceptional.
The one-year contract is a very exceptional case.
Depending on your overall sales goals, a
Three years of credit may be too much for you.
It may be best to get one or two years of credit up front.
Managers never want their staff to meet their revenue goals by overselling managed services.
Therefore, negotiation is necessary. Overall, from a front-line sales force compensation perspective, three things are key
1) Earning credits.
2) Getting that booking credit to count toward quota achievement.
3) That booking credit should lead to earning rewards as well as the core product.
The process and determination of how to reward the front line sales force is a critical success factor for any managed services organization.
Therefore, if it is not done correctly, it will not succeed.
How you compensate your front line sales force is an important guideline for how well you support them.
In one of our business cases, we had growing pains in terms of customer satisfaction prior to this.
Their core client satisfaction at this point was good.
The fact that we were able to implement the system on schedule turned out to be a very good thing.
This not only helped with customer satisfaction but also with revenue recognition.
As a business you learn that the first 3 to 6 months are very important for customer satisfaction and relationship.
The overall rating is 1060 out of 1200. That is a grade that can fly right away.
This is a business that is doing well in most areas, has a foundation for growth, and has high customer satisfaction.
However, the costs and benefits of this business have prevented it from achieving optimal status, and SG&A expenses have fallen short of target by an alarming margin.
The focus here is on the scalability of the delivery infrastructure.
There are two main measures that can be taken.
The first is to solve the productivity problems we were having in certain technology areas.
The second is to control the cost of the platform.
This can be optimal for this business, but it can also be quite painful.
We have had to scale back our platform requirements and control the number of people on the platform team.
Solving the problem of scalability in one of the technology areas has allowed us to make the necessary profits as we continue to grow.
The indicators relate to customer-specific SLAs, usually for large customers.
These SLAs are often subject to financial penalties in case of non-compliance, so of course they need to be closely monitored.
95% of all customer-specific SLAs is the bar I use, and anything below 90% is a red herring.
Anything above this level is fine, but 100% in any given period is the goal and expectation.
The above operational metrics have been found to be great indicators of customer satisfaction.
The overall satisfaction of the client, or the overall “”temperature”” of the client, is an indication of the overall satisfaction of the client. Of course, there are many things that can affect the satisfaction level of a particular client.
You need a process and a means to measure customer satisfaction.
We need to measure customer satisfaction and develop a plan to improve any dissatisfaction.
We don’t like to do elaborate customer satisfaction surveys in managed services, but we do want to get an A-F rating or a numerical rating of 1-5 from our customer’s decision makers.
And the goal is a B or B+; anything in the C range or below is a red state from an overall perspective.
So the goal is to have a complete picture of customer satisfaction and to get an overall rating of B or better.
This overall rating is the metric that should be tracked in this section.
Client management is the daily interface between key client situations and the daily interface between key client issues and opportunities that need to be identified and addressed. These efforts need to be reflected in the ratings each client gives you and in your overall cumulative rating.
One thing to consider is to have a bonus plan for people outside of the business development team for items that would have a financial impact on them.
In this case, the person in charge of customer management also falls into that category.
The project manager should
Project managers who are responsible for timely and efficient implementations also fall into this category because they accelerate revenue with strong performance. This is because they are able to accelerate revenue through their performance.
A bonus plan could be formulated within the person’s regular bonus plan, but in many companies this is not possible.
So, allocate small bonuses of about $1 to $5,000 for up-selling customers, meeting revenue retention goals, achieving profitability goals, meeting deadlines, etc.
That way, assigning a small bonus of $1 to $5,000, for example, for meeting input targets, can have a real positive effect.
When you measure and track these outcomes, a little recognition and money can have an impact on the top and bottom lines.
On the high customer retention rates associated with managed services contracts.
how it can impact the financials of your managed services business.
Here’s how it affects the financials of a managed services business.
One of the true hallmarks of a strong managed services business is tenacity.
When you take over the day-to-day operations of a customer
By running part of your IT infrastructure on a daily basis, we become part of your team.
And as time goes by, we become more and more dependent on you as a vendor.
A lot of opportunities should arise, and for IT vendors, this is one of the major advantages of having a managed services business.
Having a managed services business is one of the major advantages for IT vendors. And with the move to the cloud and the opex model, it’s only going to get more important.
What has worked well for me in medium-sized accounts is
time to have both a delivery interface and a business interface.
First, there needs to be a point of contact for customers to call with questions/concerns about the service.
For this role, you need to be proactive in communicating how the infrastructure you are managing is working.
For this purpose, you may want to appoint a senior level 3 engineer to this role.
You can also assign another delivery manager to the account. Since they usually have a lot of accounts
They can be the point of contact for the customer.
Let’s say a client’s delivery manager has 15 to 20 accounts. Then 5 to 15 would be ideal.
Of course, depending on the level of activity required for each account, a delivery manager would be better suited for this role than a level 3 engineer.
However, either is fine.
In addition, each of the medium-sized accounts will need their own business interface to facilitate up-selling.
This customer management role is essentially similar to that of a farmer.
Each rep will have 5 to 15 accounts, depending on the size and activity of the customer.
Geographical proximity also plays a role in determining each person’s level of responsibility.
How much support will be needed to maintain the accounts, and
how much support is needed to maintain the account, and how many sales opportunities exist in the existing medium-sized account.
How much support is needed to maintain the account?
For these accounts, you may have too little or too much resources, and you should not have too little or too much.
So the most important thing is to think about your support model in terms of effectiveness and cost.
Choosing the right model for your business is definitely the key to success.