Bering McKinley Blog

#86 – Stop Hiring People — Start Designing Roles

Written by Josh Peterson | Mar 2, 2026 6:00:00 AM

Every MSP owner has said it at least once: "I found an amazing person — let's figure out where to put them." It feels like progress. It feels like momentum. But in practice, it's one of the most expensive decisions an MSP leader can make — because it reverses the sequence that actually works. The discipline of designing critical roles like dispatchers before filling them is what separates MSPs that scale from those that churn through people. When the seat isn't built — when outcomes aren't defined, authority isn't scoped, and success isn't measurable — even the best hire becomes a liability. The pattern repeats in service management, in sales, and in every operational layer where urgency overrides design. And the owners who've learned this lesson the hard way, including the team at Bering McKinley, will tell you the cost isn't theoretical. It's six figures, minimum. If you've already made the hiring mistakes most MSP owners don't see coming, this is where the correction starts — not with better candidates, but with better architecture.

Role design is not an HR exercise. It's a leadership discipline that determines whether a new hire compounds value or compounds chaos. The question isn't "who should I hire?" — it's "what does this seat owe the business?" When an MSP owner can define the outcome a role is responsible for, the authority it carries, the boundaries it respects, and what measurable success looks like at ninety days, the hiring process transforms from a gamble into a system. Without that clarity, every new team member absorbs the owner's ambiguity and reflects it back as underperformance. The owner blames the person. The person blames the lack of direction. And the business pays for both. The real cost of a bad hire in a fifteen-to-twenty-five person MSP isn't the salary — it's the disruption to clients, the erosion of team morale, and the twelve-to-eighteen months of scar tissue that delays the next attempt. Designing the seat before filling it isn't cautious — it's the only version of hiring that actually protects your margin, your culture, and your ability to scale.

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The Unicorn Trap: Why Finding the Person First Guarantees Failure

There's a seductive logic to opportunistic hiring. A talented person appears — through a referral, a networking event, an internal recommendation — and the owner's instinct says move fast before they're gone. The problem isn't the instinct. The problem is that the business has no container for this person. There's no defined outcome, no scoped authority, no measurable success criteria. The owner is hiring a human being into a feeling, not a function. And feelings don't produce gross profit.

  • When an owner says "I found a great person," the follow-up question should always be: "For what seat?" If the answer requires improvisation, the business isn't ready to hire.
  • Opportunistic hiring reverses the only sequence that works — define the outcome, scope the role, build the onboarding, then find the person. Skipping steps doesn't save time. It multiplies cost.
  • The "unicorn" framing is itself a warning sign. If the candidate feels too good to pass up, that emotional pressure is exactly what clouds the structural judgment the decision requires.

The Service Manager Fallacy: Familiarity Is Not Qualification

Promoting the longest-tenured technician into a service manager role is one of the most common structural errors in MSP operations. The logic feels airtight — they know the systems, the clients trust them, and the team respects their technical depth. But the service manager role isn't a technical role. It's a financial role. The job, reduced to its essential output, is one number: fifty-five percent service department gross profit. Can this person convert labor costs into margin? That's the entire mandate. Everything else — client satisfaction, team retention, escalation management — serves that number or it doesn't belong in the job description.

  • Technicians promoted into management without role redesign become lead techs with a new title. They continue solving technical problems instead of managing profitability, and the owner wonders why margins haven't moved.
  • The respect problem cuts both ways. A non-technical service manager gets dismissed by the team. A technical one gets pulled into the work instead of managing it. Neither scenario produces the financial outcome the role exists to deliver.
  • The fix isn't finding a better candidate. The fix is defining the role so clearly that the right candidate self-selects — and the wrong one voluntarily opts out before either party wastes six months discovering the mismatch.

Clarity as a Leadership Weapon — Not an HR Exercise

Most MSP owners believe they're communicating clearly. Their teams disagree. The evidence is in the phrases that echo through every under-designed organization: "I don't even know what's going on here. Everything's changing all the time." That gap between the owner's perception and the team's experience is where role failures originate. It's not that the hire was bad. It's that the hire walked into an environment where nobody — including the owner — had articulated what success looks like for the business, let alone for a single seat within it.

  • Evangelizing a vision isn't a perpetual campaign. It's a finite exercise — three deliberate passes where the leader states where the company is going, why, and asks the team to commit or self-select out. Not four. Not seven. Three.
  • Without that organizational clarity, every new role looks like "just one more change" to the existing team. The hire absorbs the skepticism, and the owner interprets the friction as a people problem instead of a design problem.
  • The hardest moment in this process is the admission: we are not clear around here. We are ambiguous. We send mixed messages. That acknowledgment is where the real work starts — and most owners will do anything to avoid it.

The Planning Gap That Forces Reactive Hiring

MSPs between one and three million in revenue share a structural vulnerability: they haven't planned their year in enough detail to anticipate their hiring needs. Growth arrives — sometimes through good sales execution, sometimes through inbound momentum — and the owner is suddenly scrambling to support revenue they didn't prepare the organization to deliver. The hire becomes urgent. Urgency eliminates design. And the cycle begins again: wrong person, wrong seat, six months of disruption, twelve months of scar tissue before the next attempt. Bering McKinley learned this internally. A talented person was brought on without a fully designed seat. When the original role didn't materialize as expected, they were moved into a dispatch function that also hadn't been architected. Two undefined seats, one good person, and a outcome that cost both sides. The rough math on that sequence — salary, disruption, client impact, morale damage, management distraction, and the delayed timeline to try again — landed at approximately six hundred thousand dollars. Not theory. Not a case study from someone else's business. A direct, traceable cost from skipping the design work.

  • A weekend spent mapping growth scenarios, identifying the roles those scenarios require, and defining what each role owes the business eliminates the conditions that produce reactive hiring. The planning doesn't have to be perfect. It has to exist.
  • The fight is won outside the ring. The fifty to seventy hours of preparation that go into designing a role, building an onboarding plan, and defining success criteria are where the real hiring work happens — not in the interview.
  • When a great candidate shows up unexpectedly, the owner with a plan can check that person against the architecture and make a rational decision. The owner without a plan makes an emotional one — and pays for it in disruption, turnover, and lost margin.

Frequently Asked Questions

What does it mean to design a role before hiring?

It means defining the outcomes the role is responsible for, the authority the person carries, the boundaries of what the role does and does not include, what measurable success looks like at thirty, sixty, and ninety days, and who manages the person and how — all before writing a job posting or interviewing a single candidate.

Why is "hit the ground running" a red flag in MSP hiring?

Because it usually signals three things: the owner is in pain and wants immediate relief, there's no onboarding plan, and the role hasn't been clearly defined. The owner is hoping the new hire will figure out the job on their own — which means the hire will impose their own structure, which may not match what the business actually needs.

Why shouldn't I promote my best technician to service manager?

Because the service manager role is a financial role, not a technical one. The job is to deliver fifty-five percent service department gross profit by converting labor costs into margin. Most technicians, no matter how skilled, have never managed to a financial outcome — and the skills that made them great at resolving tickets don't transfer to managing profitability.

How much does a bad hire actually cost an MSP?

Far more than salary. In a fifteen-to-twenty-five person MSP, a misaligned hire creates client disruption, team morale erosion, management distraction, and opportunity cost. The compounding effect — including the scar tissue that delays the next hiring attempt — can reach six figures. In Bering McKinley's own experience, one sequence of misaligned hires represented roughly six hundred thousand dollars in total impact.

What's the difference between delegating and abdicating when making a new hire?

Delegation means transferring responsibility with clear expectations, defined outcomes, and ongoing management. Abdication means handing off work with relief and disappearing. Most MSP owners who hire to "get something off their plate" are abdicating — and the new hire, without guidance or structure, is set up to fail from day one.

How do I know if I'm falling into the reactive hiring trap?

Check for these indicators: your sales manager also carries a personal sales quota, your dispatcher is handling first-level support calls, your service manager carries more than one hour a week of billable work, or you have a business partner collecting equity who isn't contributing operationally. Any of these signals a role that was filled reactively rather than designed intentionally.

Episode Highlights

  • 00:00 — Why admitting a lack of clarity is the hardest and most important step an MSP owner can take
  • 00:58 — The pattern of finding people before designing roles — and why it shows up three times in two weeks
  • 02:38 — How even owners with strategic clarity still fall into the opportunistic hiring trap
  • 03:48 — Why the most common MSP promotion — best tech to service manager — almost always fails
  • 06:34 — The single financial metric that defines the service manager role: 55% gross profit
  • 09:25 — Vision evangelism as a finite leadership exercise — three passes, not a permanent campaign
  • 12:46 — The cost of ambiguity and why "clarity sucks" is the t-shirt every MSP owner needs
  • 18:30 — The sales hire trap — enthusiasm without foundation and the two-year scar tissue cycle
  • 19:11 — The fight is won outside the ring — why 50 to 70 hours of prep is where hiring actually happens
  • 25:16 — A $600,000 lesson from inside Bering McKinley on what happens when the seat isn't built
  • 26:13 — Self-diagnostic: the indicators that reveal whether your roles were designed or improvised

About the Co-Host: Gary Boyle

Gary Boyle is a Partner for Strategy & Business Development at Bering McKinley. With a background spanning network engineering, entrepreneurship, and strategic consulting, Gary brings real-world operator experience to helping MSP owners build stronger, more profitable businesses. He has navigated hiring failures and role design challenges firsthand — and brings that perspective directly to every conversation about building teams that actually scale.

Connect with Gary Boyle on LinkedIn →

About the Host: Josh Peterson

Josh Peterson is the CEO of Bering McKinley and host of The BMK Vision Podcast. Since 2004, Josh has worked with hundreds of MSP owners to build operationally sound, profitable businesses through consulting, peer teams, and direct coaching.

Connect with Josh Peterson on LinkedIn →

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If your hiring process starts with excitement instead of architecture, it's time to build the system that makes every seat intentional. The BMK Vision Operating System gives MSP owners the structure to design roles, define outcomes, and scale with clarity — not chaos.