Key Performance Indicators (KPIs) are an important and well-trodden method of managing a business; making sure those elements of your business which drive performance are consistently tracked will inevitably result in improved outcomes. A well-structured set of KPIs will give a very clear sense of where and how your MSP is offering value to its customers - effectively answering the seemingly basic question we always start by asking our clients: “what does the business actually do?”
In a world of endless performance indicators, below we set out the critical KPIs that prove out four key areas: the defensibility of your revenue streams via Visibility; the benefits and capability of the business to grow rapidly in Scalability; the right of the business to thrive (and command a premium valuation) in Differentiation; and ultimately the goal for all businesses in the space: cash generation in Return.
These metrics should become part of your monthly operations meetings and board meetings, and should evolve over time. If you succeed in doing this, it will go a long way to helping you find the best possible home and achieve the best possible value for your MSP.