Business Performance Assessments for MSPs: Why It Matters and How to Improve It

Running a Managed Service Provider (MSP) business can feel like spinning plates—juggling client needs, managing a team, and keeping tech stacks up-to-date. But how do MSP owners know if their business is truly thriving and on course for long-term growth? The answer lies in business performance assessments.

Business performance assessments go beyond just revenue tracking. They provide a holistic view of an MSP’s operations, identifying strengths, uncovering weaknesses, and aligning strategic goals with day-to-day execution. This guide will break down everything MSP owners need to know about business performance assessments, from why they're essential to how you can improve your outcomes with strategic planning, tracking, and expert advice.

The Importance of Business Performance Assessments for MSPs

Simply put, you can’t improve what you don’t measure. Assessing your business performance not only ensures your MSP is running efficiently today but also helps you prepare for tomorrow. By conducting regular assessments, you can:

• Spot inefficiencies in your processes.
• Align your business goals with actionable targets.
• Drive profitability and steady growth.
• Create a roadmap for long-term success.

Whether you’re scaling your MSP or trying to stabilize it, a detailed performance assessment is your starting point.

Key Takeaway: Business performance assessments are critical for MSPs not only to identify inefficiencies but also to align business goals, drive growth, and create a roadmap for success. 

Strategic Planning to Enhance Organizational Performance

Great performance starts with a clear vision. Strategic planning is the backbone of any successful MSP. But what does that look like for performance assessments?

1. Set Clear Goals—Whether your goal is increasing client retention by 10% or expanding to a new market in the next year, clarity ensures focus.
2. Prioritize Profitability—Review your current service offerings and identify which ones drive the most profit. Should you double down on your managed services or explore cybersecurity packages?
3. Align Teams and Tools—Roles, tools, and workflows need to work in sync toward achieving shared goals, ensuring no one is rowing in the wrong direction.

By setting up an actionable strategic plan, your business performance assessments will have a stronger framework for comparison.

Key Takeaway: Strategic planning is essential for effective performance assessments. It involves setting clear and focused goals, prioritizing profitable services, and aligning teams towards the shared objectives.

From Strategy to Action: Turning Business Goals into Achievable Performance Targets

Setting goals is one thing; implementing them is another challenge entirely. Here’s how MSP owners can translate their big-picture strategy into measurable, actionable targets:

• Break Down Goals: For example, if you aim to grow revenue by 25% this year, break that down into quarterly or monthly targets.
• Assign Responsibility: Each department or team member should understand their role in achieving specific metrics—whether that’s boosting client onboarding speed or upselling premium services.
• Institute Accountability Systems: Hold regular check-ins to ensure initiatives stay on track and roadblocks are addressed early.

Execution isn’t just about actions—it’s about consistent management and ongoing refinement.

Key Takeaway: Translating business goals into performance targets involves breaking down goals into smaller, measurable targets, assigning responsibilities, and maintaining accountability through regular check-ins. 

Tracking Business Performance With Metrics

Performance metrics are the bread and butter of any business assessment. MSPs should focus on both operational KPIs and long-term growth indicators. Here are some key metrics to track:

• Revenue Growth—What percentage increase are you seeing monthly or quarterly?
• Customer Retention Rate—How satisfied are your existing customers, and how many are sticking around year after year?
• Cost of Client Acquisition (CAC)—Are your marketing dollars generating a worthwhile return in gaining new clients?
• Service Efficiency—Measure ticket resolution times, average technician productivity, and customer satisfaction (CSAT) scores.

Tools like ConnectWise, BrightGauge, and HubSpot can centralize these metrics, making it easier to evaluate performance and build informed strategies.

Key Takeaway: Key performance metrics including revenue growth, customer retention rate, and cost of client acquisition are vital in evaluating business performance and informing strategies. 

How to Define Business Performance for Your Organization: A Practical Guide

Defining "business performance" for your MSP means tailoring it to your operations and goals. Start by asking yourself:

• Are we achieving the profitability targets we set out at the start of the year?
• Are our employees meeting productivity benchmarks without burnout?
• Are our clients satisfied and engaged with our services?

Defining your success gives context to your performance assessments, ensuring your growth efforts align with what truly matters for your MSP.

Key Takeaway: Defining "business performance" involves considering various factors such as profitability targets, employee productivity, customer satisfaction, and must also account for elements like employee satisfaction and operational efficiency.

The Importance of Analyzing Company Performance in Strategic Planning and Sustained Growth

A well-executed business performance analysis doesn’t just provide a snapshot of where your MSP stands today—it helps you forecast the future. By committing to regular assessments, you can:

• Identify Market Trends: Spot opportunities for expanding offerings like cybersecurity or cloud backup services.
• Plan Resources Effectively: Allocate budgets, staff, and tools in alignment with growth.
• Adapt to Challenges: Whether competitors lower their prices or client needs shift, performance analysis lets you pivot with confidence.

Strategic growth is all about using your past and present data to chart a smarter future. Without regular assessments, you’re flying blind.

Key Takeaway: Company performance analysis is instrumental in identifying market trends, planning resources, and adapting to challenges. It provides insights into the present state of the MSP and forecasts future growth.

The Influence of Organizational Culture on Business Performance and Strategic Planning

Your team’s morale, collaboration, and goals directly impact business success. Organizational culture often gets overlooked in performance assessments but plays a vital role in execution. Here’s why it matters:

• Clear Communication Enhances Efficiency: Teams who understand shared goals drive faster and better outcomes.
• Employee Engagement Reduces Turnover: Happy employees work harder and stay longer—saving you money on hiring and training.
• Leadership Sets the Tone: Encouraging a performance-minded culture starts at the top. Consider adopting an open leadership style that fosters transparency and innovation.

Your internal culture isn't just "soft stuff"—it impacts the metrics that matter most.

Key Takeaway: Organizational culture directly impacts business performance. Clear communication, employee engagement, and leadership style are key elements of organizational culture that drive performance.

Start Your Journey to Better MSP Performance with Bering McKinley

Achieving stronger business performance takes more than good intentions—it takes expert guidance, consistent tracking, and actionable strategies.

At Bering McKinley, we specialize in empowering MSP owners with the tools, insights, and systems they need to see real results. Whether you’re struggling to hit growth targets, streamline operations, or define your company culture, our consultants will help you build a performance-driven business that thrives.