Small Internal Efficiencies with Big Impacts on Your MSP Business

Be Different. Deliver Excellence.

Aggregation_of_Marginal_Gains_Model.png

Mar 21, 2017

“Success is a few simple disciplines, practiced every day; while failure is simply a few errors in judgment, repeated every day.” – Jim Rohn

With all organizations, internal efficiencies are a key element to both employee satisfaction and profitability. It is even more critical in a reactive environment when you are responding to your customer needs, such as a Managed Service Provider (MSP). With all the complexities in IT, it is very difficult to focus on just one process or metric to be successful. So, where do you begin to improve certain aspects and internal efficiencies of your business?

For long-term success, there is a concept of the aggregation of marginal gains. This is a series of small improvements, such as a 1 percent improvement, that leads to no difference at first but as time goes one, the small improvements compound and can create a gap from your existing benchmarks or competitors.

Let’s use an example of wanting to improve the average number of tickets a technician is able to resolve in a day and set small efficiency gains in the following areas:

  • 1% decrease in average speed to answer phone
  • 1% decrease in resolution time of incident
  • 1% decrease in time to document into PSA system

These improvements don’t seem like much at first, but they can compound to create big efficiency gains with thousands of incidents and if every technician on the team is able to achieve these benchmarks.

For team goals or efficiencies, other elements crucial for success would be measuring the progress and making the results visible to all team members even if it is simple as updating on a whiteboard daily or weekly.Without the continuous monitoring, it is easy to fall back to the norm, or take a step back.



Category: Business Practices

About The Author

Corey Kerns

Corey Kerns, Director of Finance and Operations, is responsible for developing and monitoring key performance indicators, as well as assisting in the evaluation of profitability, efficiency and automation strategies. Prior to joining Collabrance in 2015, Corey started at GreatAmerica in January 2011 and served as the Senior Business Unit Analyst for the Communication & Data Group. As the Business Unit Analyst, Corey led all activities with respect to financial controls and evaluating the financial implications of the business unit’s operating strategy. Corey received his B.A. in Business Administration from Wartburg College and an M.B.A. from the University of Iowa.