2 min read
#34 - Don’t Be That Guy - The Utilization Lies We Tell Ourselves (Ryan Alter)
Josh Peterson
:
Nov 6, 2025 12:00:00 AM
In this Don’t Be That Guy episode, Josh Peterson and co-host Ryan Alter confront one of the most persistent blind spots in MSP operations: the gap between what leaders think billable utilization is and what it actually measures. Drawing on more than two decades of consulting and Ryan’s own experience as an MSP owner, they walk through why time entry has barely improved in 20 years, how bad data distorts every downstream decision, and why utilization must be treated as a company-wide operating discipline rather than a technician-only scorecard—especially for firms running on the BMK Vision operating system.
Josh and Ryan break down the correct utilization formula, the logic behind the 75% benchmark, and the crucial role dispatchers play in owning calendars, shaping the workday, and protecting both margins and morale. They show how modest bonuses tied to utilization and note quality can transform technician behavior, why overbuilt dashboards often confuse more than they clarify, and how simple, consistent tracking—sometimes just in Excel—can outperform complex tooling. For MSP owners and service leaders looking to tighten execution, this conversation offers a practical blueprint for pairing clean utilization data with a structured managed service provider consulting framework that turns numbers into confident, profitable decisions.
For MSPs navigating small-business growth and innovation, explore these related articles: how MSPs can use ConnectWise reporting to measure what matters, client engagement strategy for MSPs from onboarding to QBRs, and managed service provider consulting for MSP excellence.
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Episode Highlights
- 00:02:10 – Why time entry accuracy has barely improved in 20 years and how that erodes MSP profitability.
- 00:06:02 – The correct billable utilization formula: billable hours divided by paid hours in the period.
- 00:07:09 – How the 75% utilization benchmark is derived and why it balances profit with human capacity.
- 00:12:23 – Reframing utilization as a team metric shaped by sales, dispatch, service management, and techs.
- 00:18:17 – Using small monthly bonuses tied to utilization and note quality to shift technician behavior.
- 00:29:05 – Exploring the tension between maximizing utilization and protecting employee wellbeing.
- 00:36:24 – Why simple, Excel-based tracking of a few core KPIs can outperform complex dashboards.
About the Guest
Ryan Alter is the CEO of Silverstream Audio Visual, a technology and AV integration company based in Missoula, Montana, and a former MSP owner who scaled his service business from a solo operation to a 25-person team. Drawing on decades of experience in IT, AV, and service delivery, Ryan helps leaders understand how utilization, dispatch, and data discipline translate directly into agreement gross profit, effective hourly rate, and sustainable growth. As a recurring co-host of the Don’t Be That Guy series on the BMK Vision Podcast, he brings practical, numbers-first insight to MSP owners who want to run healthier, more profitable operations.
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About the Host
Josh Peterson is the CEO of Bering McKinley and host of the BMK Vision Podcast. Through the From the Trenches and Don’t Be That Guy series, Josh highlights MSP leaders and experts who bring real-world lessons on profitability, operations, leadership, and the metrics that matter most.
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