This past week one of my partners and I were discussing how much they spend on their Remote Monitoring (RMM) tools. The number came out to around $60,000 annually. I said that is the cost of an employee and they agreed. I asked my partner if he felt he was getting a 60k/year return on this investment. The answer was no. I had to ask why he wasn’t using his tools more effectively. He thought about it for a bit and said, “Stu you are right we should be.”
Here are the questions that I am asking of all the MSPs out there who are reading my blog. Are you getting the most out of your toolsets? Can you do more with less people by increasing the amount of automation or possibly through outsourcing?
I believe that you can do more with less, but you need to understand what the toolsets are for. Back when I was running my MSP, Kaseya would say that with their tools you needed 1 tech for 1000 endpoints. For the time that was close, but in today’s climate I would say it’s nowhere near close enough. Now you should have about 1 tech for 250 – 300 endpoints. Remember, these are tools to help you be more efficient in daily tasks. Let’s take a typical RMM tool for example. Monitoring, scripting of tasks, remote access to the computers or servers are some of the typical functions. Scripting…hmmm, how much can be done through scripting of tasks? I would propose that about 90% of the monthly maintenance of the PC and Servers can be automated.
One thing that cannot be automated is customer service. As I discussed in my last blog, we are all in the business of customer service. But, how do you determine when you need more staff to service your customers properly? This is a question I hear and discuss with MSPs all the time. The answer is by measuring the average utilization rate. This means you need to measure the ratio of time spent working with clients vs the amount of time the technician is on the clock. If you aren’t actively measuring your staff’s utilization you will start failing your clients.
I do believe that MSPs can do more with less if they just take a step back and build processes for their tasks. Each task a company does should have a process; this includes supporting their clients, marketing, sales, and service deliverables, as well as hiring and firing employees. When you develop your processes and start watching your staff’s utilization, your company will be more profitable and you can measure and plan for your long term growth.
All the best in success,