The State of the vCIO in 2020

Every year Managed Services Platform publishes a report about the state of the vCIO. We summarize the experiences of the largest vCIO community in the world. We’re not just interested in the major trends in the technology space, but how those impacted the vCIO role and responsibilities.

STRUCTURE, MANAGE AND AUTOMATE YOUR ACCOUNT MANAGEMENT AND VCIO PROCESESS

Name and focus

The use of a vCIO or Virtual CIO job title is not as common as we would think. The title has been overused for glorified account management for many low maturity MSPs in the past. Therefore the progressive “real vCIOs” wanted to differentiate themselves. This effort led to many different names of the job such as (Technical) Account Manager, IT Consultant, IT Advisor, and even more recently, the title of Digital Transformation Advisor.

Not only the name seemed to be shift from the ‘technology” narrative, but the role itself expanded with more business functions. Planning, budgeting and architecture have been in the job description for a while, however recently we see more organizational, execution, project portfolio management, application management and business intelligence components are coming to the surface.

As COVID-19 has pushed Digital Transformation initiatives, the IT manager role had to adopt to focus on more business outcomes rather than focusing only the technology deliverables.

Responsibilities

In order to avoid misunderstandings, we have summarized client engagement responsibilities in the following quadrants. Because the title doesn’t hold great significance, we are classifying members according to their business-strategic responsibilities. As such, a vCIO’s communication strategy and long term directions should be with client executives through regular Strategy Business Overviews, Technical Landscapes and Strategy Scoreboards.

Another important characteristic of a vCIO job should be as a full-time dedicated professional, who can supply a regular strategic-business communication channel with clients. Without regular communication this strategic focus can be lost, along with the real business goals, which are to increase a tactical line for advancements in technology.

Challenges for small MSPs

Many times the efforts of small MSPs with less than 15-20 employees are in vain because the owner(s), who attend this job, are often neither able to delegate the vCIO role nor do they have enough time to fulfill that role themselves. In our experience, large companies with more than 25-30 employees are able to build a team of several full-time, dedicated professional vCIOs, which can be a human guarantee for the earlier mentioned regular strategic-business communication.

Consequently, the lack of success generates a continuous migration of vCIOs, especially between MSPs with less than 20-25 employees who cannot assign enough resources for building professional vCIO services through proper hiring, continual training and process development methods.

Skills of the job

Commenting on a human guarantee for delivering successful vCIO success services, it is important to note that however the majority of vCIOs (79%) have more than 10 years experience in the managed IT services market, they typically have been in their current positions for less than 5 years. These numbers show two things:

On one side, a significant part of them came from the technical side, which means that they previously held an engineering or support operation position. That’s why they usually designate Information Technology and Engineering as a primary function, Business Development and Sales as a secondary function, followed by Operations and Project Management, and finally, Consultation functions.

However, as a practical matter, these priorities should be in reverse. These numbers reveal why a lot of vCIOs cannot prevail as a business-trusted advisor, as they should be. Such vCIOs can be viewed as simple technical account managers, who are absent of adequate business skills/abilities and who continue their old technical lines of communication in IT infrastructure, network system backups, DRPs, and support ticket reviews.

Learn more about the 12 mistakes vCIOs make

Interesting findings

It’s strange that although we are a software development company we emphasize the human and process factors of successful delivery of vCIO services. This is because we realize that these two factors are at least as important as the right utilization of the right tool. Furthermore, there are prerequisites for any tool utilization fulfillment. This understanding ignited the collaboration with Humanize IT and Digital Maturity Group and the development of new tactical assessments that IT needs with MSP clients, such as remote meeting security risks, cybersecurity, public cloud adoption and application integration.

These three factors: human factors, processes factors, tool factors, are a key component of the profitable vCIO services.

Growth of the community

When we asked our clients about their MRR growth, only 30 percent have expressed experiences with an average growth greater than 20 percent over the years when they used our platform and another 24 percent have expressed experiences with an average MRR growth that ranges between 1 to 10 percent. The gap between these two groups shows that the world economy, including managed services, were increasing before the COVID era and MSPs were able to show a solid growth with low effort.

But the world has got everything upside down with COVID and the aforementioned regular strategic-business communication has become overrated. Due to the current trends, businesses are cutting expenditures, and if an MSP cannot verify and project their real business service values, they will surely lose a significant edge by not being able to adapt to the changing trends.

See previous reports:

• Managed Services Platform vCIO Report 2019
• Reporting vCIOs in the United States of America - 2015
• Reporting vCIOs in Canada - 2015
• Reporting vCIOs in Australia - 2015
• Reporting vCIOs in New Zealand - 2015

If you currently do not have vCIO services, but still intend to implement them in the future, we will be able to support your efforts with an exclusive coaching package and our client meeting report tool as well. 

vCIO: The Ultimate Guide

The vCIO or Virtual CIO (virtual chief information officer) term was popularized in the managed services industry to initially differentiate one MSP from another by adding higher-level management practices to their services.

The term has been overused and without a lack of an accepted definition, certification or agreement across the industry the term has lost its original meaning. As any MSP could claim to provide vCIO services it is no longer the main differentiator. Meanwhile, the service provided by vCIOs has become more relevant than ever.

That is why most MSPs have their own terminology for the vCIO role such as digital advisor, digital consultant, business technology advisor, and so on. 

Managed Services Platform vCIO Report 2019

Managed Services Platform's vCIO community has been growing year by year since 2014. In fact, we are most likely now the largest active vCIO community in the world with more than 600 members. With this news, we have decided to create a short report regarding how we typically see our vCIO members across the globe.

This community’s largest attribute is the language composition where more than 98% of our vCIOs are from any of the English-speaking countries around the world: 58% are from the United States, 10% are from Australia, and 8% are from Canada, while the rest are from the UK, New Zealand, and South Africa. 

DEVELOP AND OPERATE A SCALABLE AND STRUCTURED

ACCOUNT MANAGEMENT AND VCIO OPERATIONS

The most active vCIO movement is in the Eastern coast of the U.S. These numbers extend from New York, North Carolina, Ohio and Tennessee; however, there are two other states, Texas and Washington State, where the movement is growing most rapidly.

Other typical attributes from our community members are their unabashed professional and academic experiences. It has been confirmed that the vast majority of our vCIOs have university degrees and have each amassed more than 10 years of experience. More than 80% of them share these attributes.

The single largest essential trait for a vCIO is their IT prowess (50%). However, sales, IT consultancy, process and business development planning are also significant skills of their expertise. Interestingly, 8% of these vCIOs themselves are MSP entrepreneurs in their off-duty time.

Their offerings come from the fact that most of them are entrepreneurs in their own right, with most of their active companies coming from small businesses with 1-5 employees (This equates to about 15% of them) and 5-25 employees (48%). Many times their efforts, unfortunately, are in vain because the owner(s) are neither often able to delegate the vCIO role nor do they have enough time to fulfill that role themselves.

The other typical problem is that they try to implement the vCIO service quickly without any previous development training. They then continue a technical conversation with their clients without any business and strategic purposes. If a vCIO cannot deliver an engaging and recurring business consultancy in a determinate time, they will lose the profitability of these vCIO services. Ultimately, clients will keep looking at them as an IT technician and not as an executive-level business advisor.

Middle-sized MSPs with 25-50 employees already have dedicated vCIOs and can deliver profitable vCIO services while providing a valuable business consultancy. But based on our experience, the most successful MSPs with vCIO services are large-sized companies with more than 50 employees. These organizations can dedicate enough resources to scale their vCIO program and establish their own service definition, processes and best practices.

Most of our MSP members in the community with vCIOs typically have client sizes with 25-200 employees and offer between 10 and 20  services, most of which are related to the core IT infrastructure.

What this means is that although the core IT Infrastructure services and project revenues decrease constantly, cloud-centric and advanced security service revenues grow in their place. It should be noted that smaller MSPs usually deliver these services through outsourcing or assistance from an MSSP or CCSP partner. In order to develop these transformations internally for MSPs, we have launched our “Build a Better MSP” expert guide program with a wide range of building business solutions for the SMB space.  New services, like cybersecurity, identity management, EOS, cloud-centric solutions, are now all integrated, providing easy access for MSPs to learn and develop.

So who is a typical and successful vCIO based on what we see? vCIOs are dedicated professionals in a mid-sized MSP. They always have strong technology and consultative backgrounds as technical account managers. They tend to be systematic and process-oriented thinkers. They feel comfortable talking with small to medium size business executives. And last but not least, they understand how to put technological solutions into a business solutions context.

See previous parts:

• vCIOs in United States
• vCIOs in Canada
• vCIOs in Australia
• vCIOs in New Zealand

If you currently do not have vCIO services, but still intend to implement them in the future, we will be able to support your efforts with an exclusive coaching package and our client meeting report tool as well. 

Why your QBRs are costing you, customers

For those of us who have been in technology for a while, we have seen some pretty crazy setups from well-meaning people. Largely this is because we have very smart capable people trying to work in environments with limited knowledge.  Most were trying their hardest but just didn’t know any better.  

Some of the crazy things I saw back in the day were “vlans” that were actually just subnets, firewalls with giant holes in the ruleset, and unrestricted VPNs that were completely insecure. These mistakes were not made by lazy admins, they were made by well-intentioned technicians that didn’t know they were doing anything wrong. All they knew was that things were working smoothly.

But how do we know when we are doing something incorrectly?

This is how it works in the technical industry,  new items come out so often that we do our best to learn what we can.  Most of us will reach out when something isn't working. Google is always there. We can also hire a consultant who specializes to review our work and can show us the ropes. But how do we know when we are doing something incorrectly? After all ‘Any-Any’ firewall rules will get the job done right?

The same problem exists within vCIO programs and QBR delivery.  How would you know if you are doing them wrong? Are you assuming things are going well just because your client is present and getting details?  If this is the case then it is very much like putting an Any-Any firewall rule in place. Sure it will work, but what happens when your client experiences the right way?

There is definitely a ‘right’ way to deliver a vCIO program and definitely a ‘right’ way to deliver business-focused QBRs.  We have many stories of MSPs who lose customers when the customer sees a better way and realizes what they have been missing.

The best way I can think to help you identify whether or not you are running quality QBRs is to compare and contrast a tactical vs a business-focused QBR. Tactical QBRs are very useful when talking to technical professionals, business QBRs are best suited for talking to...yes you guessed it...business professionals.  Let's take a look at a QBR delivery by a vCIO. The first situation will focus on a tactical delivery and the other will focus on the business. 

Tactical QBR:

MSP R Us comes in to deliver a review of their activities for the quarter. They do a fantastic job of showing the customer how many tickets were processed and give them progress reports on the firewall upgrade. There is even a review of the new features the firewall offers. The customer is happy with the progress on the upgrade and they can see that tickets are being handled in an appropriate amount of time.

Business-focused QBR

MSP R Us comes in to deliver their review of activities for the quarter.  However, they do not talk about tickets or the firewall upgrade. Instead, they talk through how the business is doing and review major business objectives from the previous quarter.  It is brought up that last quarter the training team was having issues sharing videos with clients and hosting webcasts so a firewall project was started to stabilize the connection. The conversation centers around how things are going with the training team and if they are meeting their goals now. It turns out the upgrade has helped significantly. 

They have noticed though that while the streaming has stabilized, they are not getting high resolution and would like to know if someone could help them out. The vCIO notes the request for the coming quarter as a project and will open a ticket.  

The conversation continues with any other areas of business that need to be addressed in the next quarter. The client states that they have an big product release coming up and are feeling anxious.  The vCIO also notes this and creates a change freeze during that time to ensure that disruptions to workflow are minimal. 

Review

In either situation, nothing was done “wrong” persay but you can see the business-focused QBR was much more fluid and quite a bit more information was gathered about how to help the client.

Most MSPs will run tactical QBRs because it is familiar and sticks to their wheelhouse. However, they are missing out on a big piece of customer experience. They are also missing out on valuable insights as to upcoming projects and whether or not project delivery is meeting business goals.  

The question is,  how do you get your QBRs to be less tactical and more business-focused? The good news is, with focus and hard work you can build this. The bad news is that just like learning appropriate firewall design it is a bit of a process.  You need a few pieces:

• An annual framework for delivery where you have created a relationship with your client.
• A continuous feedback loop for business objectives.
• Give your staff the confidence to lead non-technical conversations.

You can create this process with hard work, or you can also hire a consulting/coaching agency to come in and develop the process and employees.

The one thing we know is that if you do not start delivering business-focused QBRs someone else will. So the real question you need to ask is:

Do you want to be the MSP clients switch FROM, 

or do you want to be the MSP clients switch TO?

Why vCIO Programs Fail

The industry is changing, you need to evolve or be left behind by your clients. The next step to MSPs is vCIO, but how do we get there?

I have spent the last few years coaching MSPs on how to create successful vCIO programs. There is a consistent message across every single MSP:

“We want a vCIO program but have not been able to get it going”

BE A BUSINESS PARTNER, NOT JUST AN MSP

I want to dive into why this is happening and what you can do about it. But first some history:

Technology has been around since before the wheel, helping us do things easier. When computers first came around they were used to help process data more efficiently. Businesses used these devices to solve problems and disrupt industry. When we first started out you could make a killing doing PC support because everyone was trying to use this technology they didn’t understand.

Then as more professionals entered the marketplace and technology needs evolved we shifted focus to mostly server and network support with PC support still being a staple because labor for that is now very cheap. Then things started moving off premises as business applications moved to the cloud. What this means is there is less infrastructure to maintain on site and it is more and more common to see larger companies outsource IT support.

So what we have seen is support move from PCs to Servers to the Cloud. Now what?

While technology used to be something that companies used to differentiate themselves or create unique opportunities, it now plays a critical role in their business. Things that are critical to organizations, are managed strategically, at the executive level. Your clients are making strategic IT decisions today, the problem is often times they don’t have the right people utilizing the right information to make those decisions. Strategic MSPs deliver services that allow them to take a seat at the table to help manage technology to meet the needs of the business. In other words you need to bring strategy to the table. This is what the vCIO does. But you already knew this, otherwise why are you reading this blog? What you want to know is “How do I get there?”

Here is the problem I keep coming across: MSPs think that strategy is desiging out a product life cycle.

While this is a great best practice, you will end up losing customers if you focus on it.

Your customers don’t care that you have a plan for upgrading firewalls on a schedule, nor do they care about your plans to deliver next gen products. What they care about is the same thing you do: Making Money.

In order to do this you have to do something that most IT professionals avoid like the plague. “Business Strategy” You know, all those boring business classes that you make fun of and meetings with random people that go nowhere, you need to learn it and apply it to technology. You get to become a manager. This means regularly scheduled meetings that focus on business talk.

I often refer to myself as a business consultant with a technology focus. The reason for this is because I need to present what I do to business leaders. They understand the business consultant, they are someone who helps a business solve problems. I just do it from a technology standpoint.

By setting the table like this I am able to get them to focus on strategic sessions that do not talk about technology but rather what problems are facing the business as a whole. I do this through 2 main items:

• Project Discovery: SWOT strategy sessions but any business strategy framework will do. You just need to learn about the client’s problems and opportunities facing their business.
• Audit: The next thing you do is learn their technology and business. Some standard audit will do, just as long as it is consistent. I recommend a technology stack audit and Porter’s 5 forces analysis for the business audit.

Once these are done put this all together and pitch your technology solutions and explain the SPECIFIC business problem it addresses. If you ever say “Because it is getting old” you are losing your client. If you mention firewalls or servers...you are going to lose your client. What you need to say is “We will allow sales staff to process more clients by implementing technology to increase their access to the salesforce platform” THEN you can mention the technology that will do this. Maybe it is a virtual workspace, or maybe you are implementing a more robust WAN, it doesn’t matter at that point because you have already won the customer over.

Technology is a business augmentor

This is the core message you need to get to your clients. You want to frame everything you do in this light. By understanding their business and technology, you will be able to pitch solutions that will deliver a service that makes a difference. Your clients will brag about how you helped them disrupt their industry, develop a world class classroom or break through the glass ceiling.

In the end, stop talking about technology’s gadgets and gizmos. Start talking about business strategy and how to make your clients money!

Virtual C engages clients to increase the success of their IT delivery. Want to learn more? 

BE A BUSINESS PARTNER, NOT JUST AN MSP

6 Best Practices of Top Performing vCIOs

If you think technology strategy involves talking to your client about firewalls and server patching levels you are doing it wrong!

Technology is becoming a commodity. Just a few years ago you needed an engineer just to install wireless. Now anybody with a cheque book can order turnkey solutions from amazon and manage their entire technology stack from the cloud. Businesses need partners to help them compete, they don’t need to be more educated on the greatest next generation firewall.

Becoming a Strategic Partner with vCIO Projects

In this industry technology providers need to step up their game and offer strategy to their clients that takes technology to the next level.

To solve this problem Virtual C and Managed Services Platform partnered to create a vCIO solution set that contains all the tools necessary to take your MSP to the next level.

It isn’t complicated, it doesn’t require a MBA to implement, and you can start doing it today! This solution set provides the training material, services, marketing video, and automated report to engage on a whole new level. In less than an hour you will be equipped and have the confidence to deliver a product that will generate new services and projects for your company.

Become a strategic forerunner, implement strategic processes with your clients today!

Start vCIO with Quick Productized Projects

Starting vCIO services can be a struggle not just for you and your people, but for the clients too. There are some established expectations of vCIO services, which sets a hurdle right at their kickoff of these services. There is, however, a natural way of solving this problem: use easy to sell and easy to deliver productized vCIO projects.

Of course, developing such effective and elegant solutions does take time, so we’ve set up a shortcut to start, and let you build up vCIO Project products instead. Don’t worry - this isn’t taking on new work - just solve problems you’re expected to already, but start getting paid for all you do.

Let's see seven examples of typical vCIO products:

1. IT Development Roadmap ($1500 - $4500) to build up a general IT roadmap, focusing on infrastructure while addressing typical business problems and recommending applications, security or compliance themes as well.
2. IT Budget ($500 - $2500) to develop an IT Budget in detail. If the scope is limited to the infrastructure services/investments, SaaS subscriptions and software licenses, it’s a cookie-cutter and helps you sell additional services like regular budget checks.
3. Application Selection ($500 - $1500) to select a typical SaaS based application they can buy online without any sales reps involved, such as a CRM, Project Management or any other light line of business application package. You help them set up the requirements, pre-select the candidates and facilitate the selection process.
4. SaaS Audit ($500 - $1500) to audit all SaaS subscriptions they have and check whether they have the optimal package, exhibit alternatives and integrations available. They do the heavy lifting and you coordinate the process.
5. Risk Assessment ($1500 - $5000) can be boring, to be blunt, but there is no better way to kick-off some IT security initiatives, open the discussion on compliance, or just assess IT risks beyond the scope of just their infrastructure.
6. Productivity Workshops ($1500 - $3000) aren’t only useful to office workers, but anyone using to-do apps, project management tools, Office 365, note-taking apps, chat and email apps on various devices. Put together a curriculum you can go through onsite or online with the managers/power users to help them leverage technology better.
7. Virtual IT Department Evaluation ($500 - $1500) deals with the many vendor, software and SaaS providers who constitute your clients’ virtual IT department. You can safely assume nobody is leading that herd. Evaluating the different parties involved, set responsibilities and required service levels and manage them accordingly to assure they get the most out of their vendors and services.

These are just quick tips, but how do you make them productized?

1. Write down the target customer and the scope of the project.
2. Write down the project deliverables as task lists and tasks to be able to establish the price.
3. Put together a one-pager on the problems it solves and the benefits it delivers and print out 20-30 pieces, as well as a promotional email.
4. Start promoting it with a discount to batch more projects into a given month so you can be more efficient.
5. Wait and watch while these initial projects start to push you towards a stand-alone vCIO service.

20% rule of vCIO pricing

Here’s a mystery you all know all too well - pricing your stand-alone vCIO services so you’re not robbing your clients nor yourself...that trepidation when you’re putting together the proposal, or trying to ballpark a figure in a meeting. It’s always been a gamble. There’s a way to find the proper middle ground, following a simple process to help you to close more deals without risking a critical over or underestimation, of your client’s expectation or your services. Here is the formula...

We just call it a 20% rule....

The formula is quite simple. We take the client’s current expenses in managed services calculate 20% of it. This will be our baseline for a starter stand-alone vCIO package. Use this as the main rule of thumb, and we’ll take a look at some cases where we have to turn from this calculation.

Example. You’re talking with a 40 person firm eligible for a $125-per-user managed services program. That’s a $5000 MRR for the managed services. With your 20% stand-alone rate the virtual CIO program will end up at $1000 MRR.

Structure, manage and automate

your account management and vCIO procesess

Client point of view

Most often you’re selling the vCIO services as an extension of your managed services, and you’ve seen eyes spinning at the mention of the cost. But you know about the pricing effect: if the add-on service is too small, like 10%, they can feel it’s not worth mentioning, and why isn’t it in the package anyway? If it’s too much, like 40-50%, then it’ll come with the price of a totally different service category. We must keep an eye on our psychological influences.

• 20 % is an easier upsell to an existing company
• 20% is what you can give as a month of free trial
• 20% is what they’ll readily risk for a 3 month trial period

So from a buying perspective, it’s not disruptive, complex, nor risky. It’s the predictably happy medium.

Your point of view

We need to check the viability of this service from your end too. As we design a vCIO offering we must list out the diverse activities which are part of the package, check how frequently we do those activities, and calculate an annual workload, for an honest basis for the price. Usually we use $200 per hour to calculate a monthly service fee. With the 40 person client as an example with $1000 MRR, we’ll see 60 hours budgeted for a year, or 5 hours monthly. That’s a reasonable amount of work for that size of client.

We’ve developed four different vCIO Packages:

• vCIO Light - typically a teaser service at a cost of $250/month to perform, and great for triggering stand-alone services. It’s also good for small companies (check later).
• vCIO Basic - $1000 - $1500 MRR, suited to 30-40 person companies or bigger companies with less maturity. This is the typical bare minimum with no weekly cycles.
• vCIO Professional - $2500 - $3000 MRR, for the 40-70 strong SMEs where you can start to develop seriously and begin to integrate with the management team.
• vCIO Enterprise - $5000 - $6000MRR - when you’re going to nearly substitute a full-time CIO/ IT manager. This is only viable for 70+ situations.

If you’re interested in these packages, make a quick call and we’ll show you the processes, marketing, sales materials, workspaces and all the associated reports and tools we provide for a complete, professional execution.

Remark 1: Projects

Projects are never included with a stand-alone vCIO program, just annual planning, budgeting, some project scoping, some application selection, quarterly planning sessions, monthly reviews and so on. Every project is a separate item. If their IT strategy is to choose and implement a cloud based CRM solution and integrate it with Zapier to their accounting system, that’s a separate project. We can manage it as part of the service portfolio if someone else manages the project. If, however, we’re responsible for the implementation, that again is a separate line item.

Remark 2: Small Companies

As you can see, if you have no budget for at least 30-40 hours of work annually, even at $150/hour (which will end up at around $400 - $500 MRR) you cannot really accomplish anything as a vCIO. The $400 - $500 MRR with the 20% rule will give you the $2,000 MRR MSP service. Even if they have a $100/user rate it will work with a 20 person company. This clearly defines the boundary, that below 20 people there is no viable, profitable vCIO service possible. You can’t generate enough revenue, and the client will have no budget to execute projects. You might quote a $200 - $300 upcharge for "Client Advisory" services to perform the basic Account Management activities like QBR/Annual Planning and some consultation every quarter. Though extremely limited, this is their call. If they don’t want to pay for it, you still can’t do it for free.

Conclusion:

Don’t complicate. If the client asks about vCIO, just say: "Our rule of thumb is around 20% of what you pay for the managed infrastructure services."  If they’re not interested to the service with this estimate, there’s no way you can deliver your services viably with a lower price point.

3 previously posted Managed Services Platform blogs about vCIO sales:  

• How to Become a Trusted Advisor With Strategic Client Meetings
• Managed Services Platform vCIO Report 2019
• Managed Services Platform Account Management Report 2019

3 previously posted Managed Services Platform research about vCIOs

• vCIOs in United States
• vCIOs in New Zealand
• vCIOs in Australia
• vCIOs in Canada

Five principles behind an engaging Quarterly Business Review process

 In our design of the new Quarterly Business Review tool we wanted to ensure that MSPs can find business opportunities with existing clients, enhance the quality of their engagement, become a business partner and demonstrate the value they provide all at once. Achieving those multiple goals in the midst of commoditization of traditional infrastructure management services requires finding a balance among five different strategies. Let's check those success factors to make sure you deliver timely and engaging QBRs.

UPSELL YOUR CLIENTS WITH STRATEGIC QBRS AND IT STRATEGY MEETINGS

We’ve identified several common mistakes managed services providers are making during the QBR
process, leading to less and lower quality client engagement, over complicated processes and too much work. We wanted to create a tool that’s straightforward, easy to use, and guides the service provider to optimal client engagement.

1. 360 Degree view of IT

Most MSPs’ QBR is all about the explanation of their services, performance and ‘speeds and feeds’ of the infrastructure, and the motivation is to show they work hard for the money. This is hardly engaging.

Being engaging of course requires the ability to ask questions from the client’s leadership regarding their business priorities, problems they’re facing or opportunities they see or think they could find. It gives you the chance to put your services in their business context. You also need to be able to ask questions of front-line people - struggles they have with applications, processes or any user-related opportunity. This all gives the service provider the ingress to solve real problems and start scoping projects you can deliver. If you can’t focus on 360 degrees of their business with technology, you can’t have a sustainable client engagement process, so we designed the tool to gather variegated input from several distinct sources in preparation for the QBR, where you’ll have a more comprehensive, holistic view through the meeting.

2. Balance the business and technology

MSPs are often the victims of their own aptitude. When they start working with a client, that client is usually dealing with a suite of frustrations and confusion...nothing seems to be working. We can’t let them set the conversation in this miserable frame. It has to elevate from the technology issues to finding solutions to business problems in order to deliver visible business value.

It’s always a good idea to keep your target audience entertained, and for us that’s the various opportunities they can leverage with their technology. When you stay relevant you’ll generate visible value persistently. To this end we designed a specific thought-provoking mini questionnaire for the leadership team that you can run prior to the meeting, giving you the opportunity to understand their business related issues, problems and goals. Once they feel understood, your suggestions and advice will be more on target, more easily adopted and more valued by your customer. Just focus on their goals rather than your agenda and you’ll sell them new projects.

3. Nurture maturity

Many MSP client has just started their journey with you and many are your clients for years. Many client of yours have pretty big complex business models many of them has very small and simple operations. That diversity creates a wide range of IT maturity which need to be managed.

Our philosophy is this maturity needs to be nurtured all the time. If your client has a super low maturity you need a tool not to overwhelm them, however if they have a pretty mature IT you still should nurture it further. We designed the QBR tool to be modular. If there is a super small client you do not cover everything. You might just focus on the IT metrics first then quarter by quarter introduce new aspects such as the business goals or applications. However, if their maturity is high enough you can involve more people to the conversation, focus on different line of business applications or offer additional vCIO services with more IT strategy and execution.

4. Cadence of Accountability

Many MSPs do Quarterly Business Reviews once or twice a year, either because they cannot allocate the time or believe there’s no need for quarterly interactions. There is no real cadence to communication, just occasional meetings.

We believe that having a strict quarterly rhythm of the process is crucial. We even designed the report in a way that incentives regular completion - it feels awkward if a Quarter is missing. We wanted to make sure the process becomes an easy routine for the team, not a one-off. Some items in the QBR report relate to only the current quarter, while others display their progress across them. For example the latter shows the trend of fixing business problems better than just a snapshot of current issues, while for technical details we need to work on current issues with a narrower focus.

5. The right level of details

One popular strategy among managed services providers is creating standards to which all clients must comply. While this is a great initiative to simplify processes, it can create too much work and misalignment with clients at the same time.

We’ve designed service standards with enough flexibility for you to evaluate and implement alongside your processes and best practices, to increase your efficiency. It doesn’t make sense to create detailed standards nobody feels are relevant, or have the time to follow. We let you define standards for each infrastructure or application category so you aren’t bombarding clients with detailed standards they don’t even comprehend. We give you a 1-100 scale to evaluate their performance against a standard, so you can best approach the balance of compliance and effectiveness. For example one level of performance can get a lower score for a more mature or bigger organization than a small simple one. Maybe focusing on that area doesn’t deliver tangible value to a small organization, but for a mature corporation it’s a necessity. You’re able to stay relevant to your clients while implementing your skillfully crafted standards that deliver value to them and you.

Conclusion

Implementing a professional, relevant and engaging Quarterly Business Review process is a must theses days. The success of this process can literally make or break your relationship with your clients. Let's learn from other MSPs and improve your chances to stay relevant to clients in years to come!

Packaging and Delivering Scalable vCIO Services

 Carrie Simpson, Founder and CEO of Managed Sales Pros talked with Denes Purnhauser, CEO of ReframeYourClients, and shared the most common mistakes IT managed services providers make when it comes to building their vCIO offerings, and how you can increase your MRR with the correct approach.

The topics in this webinar were:

• Why vCIO services are critical to keep clients engaged in the long run
• The five biggest mistakes managed services providers are making with their vCIO services
• Why service productization is the reliable way to scale a Managed Service Organization
• How to make vCIO services scalable with service productization
• Process of service productization
• The right pricing model for MSP and vCIO services

Read More about Managed Sales Pros and cold calling best practices.

Delivering Business Focused QBRs

ADAM WALTER AT VIRTUAL C

You would like to be a high-value business partner in your client’s eyes rather than a basic technology service provider. Your Quarterly Business Review process is a critical part of influencing their engagement up to a higher level. Watch this recorded webinar with our virtual CIO expert guide, Adam Walter, who has shared his 5 step process to make any technical QBR into a business-focused one.

6 Best Practices of Top Performing vCIOs

ADAM WALTER AT VIRTUAL C

Watch this interview with our virtual CIO expert guide, Adam Walter, to learn how to be more engaged with clients by finding best practices for becoming a trusted business advisor in 6 single steps.