Managing a Managed Service Provider (MSP) is no small feat. Between juggling client satisfaction, keeping up with technology trends, and maintaining profitability, MSP owners have a lot on their plate. To stay ahead, smart business owners focus on two powerful tools: strategic planning and performance assessment.
But what exactly do these terms mean, and how can you use them to elevate your MSP operations? Is it just more business buzz, or are they the keys to unlocking growth and efficiency? This blog will answer these questions by exploring the roles of both processes, their differences, and how combining them can give your MSP a competitive edge.
Whether you're an established MSP or just getting started, this guide is your roadmap to success. Let's break it down.
Strategic planning is like mapping out the long road ahead. It’s the process of setting goals, figuring out the best routes, and preparing for inevitable bumps along the way. For MSPs, this means taking control of long-term success by understanding where your business is now, where you want it to go, and how to get there.
Strategic planning in an MSP setting typically involves the following steps:
A well-crafted strategic plan keeps your MSP on track, ensuring that you’re working toward meaningful objectives rather than reacting to day-to-day challenges. Done correctly, strategic planning boosts resilience, adaptability, and profitability. Think of it as your roadmap for navigating the next five years with confidence.
If strategic planning is the roadmap, performance assessment is the rearview mirror and speedometer. Are you staying on course? Are you hitting your KPIs? This process measures how well your MSP is performing at a functional level, identifying what’s working and what isn’t.
Performance assessment typically involves reviewing your operations against specific benchmarks. Key areas to monitor include:
By tracking specific metrics, performance assessment identifies areas where your MSP might be lagging. You gain actionable insights that allow you to enhance productivity, optimize workflows, and improve client satisfaction.
For example, if your team frequently misses response times stated in SLAs, you can adjust staffing levels or workflows. If client churn is high, it might signal a need to revisit pricing models or customer service strategies.
Here’s where the magic happens. Alone, both strategic planning and performance assessment have distinct benefits. Together, they create a loop of continuous improvement that drives your business forward. Strategic planning sets your goals; performance assessment ensures you’re hitting them.
A strong plan gives you a framework to measure performance. Without clear benchmarks—established during the strategic planning process—you wouldn’t know whether you’re hitting or missing your targets.
Conversely, regular assessments reveal whether your strategies are bearing fruit or need course correction. The result is a feedback loop that ensures your business remains agile and ready to evolve in a competitive landscape.
Though they work best together, these two approaches serve different purposes that MSP owners need to understand.
Aspect |
Strategic Planning |
Performance Assessment |
Focus |
Long-term goals and direction |
Day-to-day and periodic operational performance |
Time Frame |
Future-oriented (e.g., 1–5 years) |
Present/past-oriented |
Objective |
Growth, market positioning, and sustainability |
Identifying strengths, weaknesses, and process gaps |
Decision Influence |
Guides significant, high-level decisions |
Helps refine ongoing operations |
Essentially, while strategic planning sets the vision, performance assessment ensures you’re on track to achieve it.
The most successful MSPs don’t treat strategic planning and performance assessment as separate functions—they integrate them into a unified business management strategy. Here’s how you can do the same.
By merging forward-thinking strategies with rigorous performance tracking, you’ll create a sustainable roadmap for success while ensuring every step forward offers measurable value.
Strategic planning and performance assessment are not opposing forces. Together, they serve as the foundation for business growth and operational excellence.
At Bering McKinley, we specialize in helping MSPs like yours achieve measurable success through tailored strategies and expert consultations. If you're ready to refine your approach and streamline your operations, get in touch with our team today. Your MSP’s next big step is just one call away.