Why Every MSP Should Regularly Perform Business Performance Assessments

With all the hassle of managing your MSP daily, it can be challenging to know exactly how your business is progressing without metrics to compare your past performances against. If you’re not regularly tracking your performances, you’ll be blind to understanding the actual health of your business.

To best track your progression, you should perform regular business performance assessments. By routinely assessing your business through a reliable structure, you can best identify how your business is operating and address its weakpoints.

Here’s how using BPAs will positively impact each part of your business.

1. Administrative Efficiency
2. Sales & Service
3. Tool Utilization
4. Customer Satisfaction

Administrative Efficiency

Utilizing Business Performance Assessments will allow you to meticulously analyze every aspect of your business, identifying areas where costs can be eliminated for greater efficiency. You can gain valuable insights into your operational performance by closely examining key metrics such as the Service Salaries to Revenue Ratio and assessing your overall Company Financial Health. 

Using these BPAs also gives you an opportunity to examine the accuracy of your operations. Taking a closer look at your books and overall functions allows you to discover mistakes you may have overlooked and minimizes the risks for your business.

Using BPAs enables you to track the improvements made based on previous assessments. This helps you understand how your business has evolved and where further enhancements can be implemented for sustained growth. This thorough evaluation process highlights potential savings and fosters a culture of continuous improvement within your organization.

Sales & Service

There’s not much point in closing sales if you aren’t bringing in the profits to keep your business open and thriving. After all, sales figures can look impressive on paper, but those numbers won't sustain your operations without advantageous profit margins. 

When doing your Business Performance Assessments, that’s why paying close attention to your Agreement Gross Profits is crucial. These represent the revenue generated from your services after accounting for direct costs. By regularly analyzing these figures, you can ensure that you’re making enough from your clients to effectively cover the expenses associated with your services, allowing you to invest back into your business for growth and improvement. Understanding this balance is key to long-term success and stability in any business venture.

Tool Utilization

The tools you use for your business are only as effective as the cost differential they bring to your bottom line. Simply investing in the latest software or equipment is not enough; you must also ensure that these tools genuinely contribute to your profitability. That’s why tracking key metrics in your Business Performance Assessments such as Tool Utilization and Tech Utilization is crucial. By monitoring these metrics, you can see your tools' effectiveness and whether they are delivering the expected return on investment. 

This approach allows you to make informed decisions about which tools to continue using, which to replace, and how to optimize your operations. Ultimately, focusing on these metrics will help ensure that you’re getting the most out of what you’re paying for, leading to significant improvements in your profits over time.

Customer Satisfaction

Business Performance Assessments reveal customer satisfaction metrics, such as Service Desk Health, which are crucial for ensuring your customers are genuinely happy with your service. These metrics give you information on  areas where your service excels and where improvements may be needed. 

However, it’s important to remember that while these numbers can be informative, they shouldn't be the sole focus of your assessment. If your customers provide direct positive feedback that isn't captured in the metrics, don’t overlook it. Personal interactions and qualitative feedback are invaluable and can reveal deeper truths about customer experiences and satisfaction. 

Ultimately, these metrics should be viewed as just a baseline, guiding you towards better service but not defining customer satisfaction in its entirety.