How to Best Leverage Your Managed Service Provider
Warren Whitney’s Fractional CIO, David Nelms, works closely with mid-sized companies to select appropriate systems and partners or to assist them with managing existing partnerships. He works with companies and their partners to define strategic technology plans and key projects. Organizations need guidance for many reasons:
- They aren’t comfortable with current spending levels or services.
- They are growing and expect to have additional needs.
- They simply don’t feel they have the appropriate background and knowledge to make key decisions.
Based on a variety of factors, it is often complicated for organizations to know how to select and/or manage their MSPs. Here are the 6 key questions we ask when assessing our clients’ MSP relationships or when we evaluate new ones:
1) Do the MSP’s technical skills and the technologies they support align with the needs of the organization?
Some hardware, software, and networking technologies are better suited for the complex needs of large enterprise organizations, while others may be a better fit for small to mid-sized companies. Some MSPs may focus on selling and supporting technologies from a limited number of vendor organizations, while others may consider themselves technology and vendor agnostic. In some cases, this creates a tradeoff between depth of knowledge and scope of what the MSP can effectively support. Companies need to have a general understanding of the type and complexity of their technological needs, so they can assess the potential fit.
2) Is the partner/potential partner a good cultural fit, and is it easy to communicate with key people in the organization?
We often find people think their MSP partners are “probably technically sound,” but they feel challenged when they try to communicate with management or the teams that work on projects or provide day-to-day support. The technical jargon used can often differ between the teams so it feels like they are speaking different languages. While sometimes difficult to do up front, it is very important to have a sense of how well the organization and the MSP will be able to work together and communicate.
3) Does the provider have well defined processes in place to make sure issues are quickly resolved and that evolving trends are proactively identified?
One of the realities in the MSP world is that most support providers either use the same tools to provide support and monitoring for systems, or they use ones that are very similar in their capabilities. The key difference is:
- How well the provider configures these tools,
- How frequently and thoroughly they look at the information the tools produce,
- How quickly they respond to any issues that arise, and
- How effectively they analyze data to differentiate root causes from symptoms. These are definitely some of the main areas to explore with any potential MSP partner.
4) Does the MSP have knowledge of any industry specific requirements and an appropriate focus on security?
Different organizations may have a variety of industry specific requirements that their technologies have to adhere to (e.g. HIPAA, PCI, etc.). All organizations need to make sure their servers, networks, PCs, and software are appropriately equipped and configured to protect against a constantly evolving set of security threats. It is absolutely critical to understand whether any potential MSP partner is equipped to both address current needs and continue to stay ahead of the game in these key areas.
5) Does the MSP contractually commit to service levels that meet the needs of the organization, and are all agreements constructed in a mutually beneficial manner?
To make sure expectations are clear for everyone involved, it is critical to have defined service levels for all key areas and to understand what the service levels mean. As an example, many people are surprised when they find that a service level stating that “systems will be available 99.9% of the time” could actually mean that the specified systems can be down for well over 8 hours over the course of a year and still be considered within the defined availability level. What if this down time was all to occur during the day on a busy day? Would this be acceptable? Companies should make sure appropriate service levels are defined and know exactly what they mean.
6) Is the relationship actively managed and trust based?
All too often, companies tell us that they are frustrated with their existing relationships, but we then find that they don’t meet regularly with the vendor partner and they feel they don’t understand what they do or how to ask them the “right questions”. As with any partnership, both parties need to be committed to set clear expectations as much as possible, communicate effectively, and actively manage the relationship. There will invariably be issues related to technology and technology support, but the key question relates to how effectively any issues get resolved. As soon as trust in a partner erodes significantly, this is usually an indication of a larger issue.
While some of these questions may seem basic, the challenging part is asking the questions correctly and assessing the information provided, especially for organizations that don’t have experienced technology leadership. Defining and managing relationships with technology partners is especially challenging for complex organizations, especially ones that are growing rapidly, undergoing a wide variety of changes, or heavily dependent on internal process efficiency.
Helping define and manage technology partners is just one of the many Fractional and Advisory services provided by Warren Whitney’s Technology and Operations team. David Nelms serves as a member of Warren Whitney’s management team of for-profit and not-for-profit clients. He works with firms in the areas of technology and operations, where he provides services ranging from strategic planning to ongoing management of teams and key initiatives. Learn more about David Nelms.
Editor’s note: Warren Whitney is a trusted Sponsor of VA Council of CEOs. This article was originally posted to warrenwhitney.com.
Effective Sales Organization Structures
In nearly every industry and particularly those in B2B markets, the sales organization is the lifeblood of a company’s growth. While these teams are universally tasked with the same goal, namely creating revenue from new accounts and driving incremental sales from existing accounts, we have seen sales organizations structured in many ways, with varying results. Often, these teams are overly reliant on a handful of superstar salespeople and lack the leadership, organization, tools, and accountability necessary to grow to the next level.
Sales organizations that are truly effective grow and evolve over time, often through four phases of evolution:
- Hunter Founder
- One-Man Bands
- Specialists
- Market Teams
Hunter Founder
In the early stages of a company’s development, sales organizations are often composed of the company’s founder or a single sales leader driving the company’s growth. Given the dual role, sales processes and tools are limited or nonexistent. Sales efforts rely on the personal connections and outreach of the founder or single sales leader. Inbound efforts and account management may be performed as part of the service and support organization’s responsibilities, and concerted sales efforts are often a secondary concern at this point.
One-Man Bands
In the next stage of a company’s development, sales organizations comprise a collection of one-man bands, typically reporting to a VP of Sales. Each of these salespeople are responsible for prospecting, qualifying, and closing new business. They are often assigned a specific geographic territory and given quotas as annual sales goals. A variety of activities, including new customer calls, meetings, proposals, and closings, are measured and tracked against targets as each salesperson drives towards their individual quotas.
While this structure can be effective for a period, the One-Man Band model, which relies on individuals to perform the full spectrum of sales tasks, lacks the scalability and efficiency necessary to drive significant long-term growth.
Specialists
Phase 3 sales organizations morph from a collection of individual utility players to a system of specialists focused on one of the four fundamental aspects of the sales conversion process.
- Sales Development – Outbound: These sales reps are the hunters that focus on prospecting and qualifying new leads, which are then handed off to the Account Executives. Often termed Outside Sales, these professionals are in the field, networking and uncovering new potential opportunities.
- Sales Development – Inbound: A second group of sales reps handle inbound, warm leads that come from the company’s advertising, marketing, and other lead generation efforts, including webinars, word of mouth, and online SEO. All inbound leads are routed to this team, and then qualified leads are passed to Account Executives.
- Closing the Deal: Account Executives receive qualified leads from the sales development team and focus their time and energy on closing the sale. Typically, these are the company’s more senior and experienced sales professionals.
- Ongoing Account Management: Newly converted customers are transitioned to a customer success account manager, who serves as an ongoing point of contact, handles documentation and any other onboarding, and is responsible for ongoing customer success and mining follow-on opportunities.
Market Teams
The fourth phase of sales organizational structure builds on the specialist framework, creating multiple teams focused on particular target market segments, product lines, or geographies. Each of these teams comprises a combination of specialists, so that the full spectrum of the sales conversion process occurs within each group. The composition of the four types of specialists within each team may vary depending on the nature of the sales process within a given market. As an example, one team may have an extra Inbound Sales Development Rep to handle higher volumes of incoming prospects, while another may have an extra Account Executive if their closing process is more time-intensive.
Leadership and Process Discipline
No matter which sales organization structure your company implements, effective sales leadership is critical. The best sales leaders create a culture of discipline, accountability, and transparency that permeates the sales team and focuses on key activities known to support the company’s strategic growth initiatives. Activity tracking, weekly sales team calls, rigorous pipeline reporting, and targeted compensation are key tools effective sales leaders use to manage their teams and report out to the company’s executives.
About the Author
Jonathan Brabrand is a Managing Director at Fahrenheit Advisors. His passionate about helping businesses prosper and maximize value to their employees, customers, communities, and owners. Instilled with a spirit of entrepreneurism from a young age, Jonathan draws on his experience as a business owner, trusted strategic advisor, and investment banker to identify and overcome the challenges clients face. Learn more about Jonathan Brabrand.
Editor’s note: Fahrenheit Advisors is a trusted Sponsor of VA Council of CEOs. This article was originally posted to FahrehenheitAdvisors.com.
Keys to Improving Employee Relationships and Productivity
Lifelong friendships are often developed within a confidential peer roundtable setting, and it’s no wonder why. When certain principles of trust and candor are followed, and experiences are shared as part of a “no advice” protocol, nothing is off limits. It’s not uncommon to hear, “I’m closer to this group than I am my best friends.”
“So, initially, that really warmed my heart,” he told the VACEOs Quarterly Luncheon audience on January 24. “But then it started bothering me, because the reason we have these roundtables is not so that we would have better relationships than we have in the rest of your life. It’s so that the roundtables can help you be a better person in the rest of your life.”
Fathelbab is often called in to train and coach VACEOs Roundtable members on how to get the most out of their roundtable experience. In fact, his book Forum: The Secret Advantage of Successful Leaders is required reading for all new members.
“Having friends at work has profound impact on productivity, happiness and company culture,” says Fathelbab. At the luncheon event, Mo introduced his new book, The Friendship Advantage: 7 Keys to Building Relationships that Transform Corporate Culture and Drive Productivity. The content features guiding principles to help you be a better person and leader, and viable ways to help you strengthen employee bonds in your organization.
SUSPEND JUDGEMENT, HAVE SOME FUN, BE VULNERABLE …
For business owners, The Friendship Advantage promises to help them strengthen the bonds that improve employee productivity, happiness and well-being, as well as boost bottom lines through higher retention rates and a richer company culture.
But it’s not easy work being vulnerable and free of judgment, as we learned during Mo’s highly interactive presentation. After one exercise, attendees declared it felt “cathartic” and “fulfilling” to open themselves up so completely to an unknown person at their table. They felt “human” and “real.”
Now, imagine the possibilities.
- Judgment Free
- Mischievous Fun
- Vulnerability
- Reliability
- Shared Purpose and Values
- Sharing and Generosity
- Kind Truth
*Source: Mo Fathelbab Presentation, “The Friendship Advantage;” January 24, 2019; VACEOs Quarterly Luncheon.
Related articles:
- 7 Benefits of Joining a CEO Peer-to-Peer Roundtable
- VACEOs CEO Roundtable Experience: 5 Frequently Asked Questions
- Guided by the Gestalt Protocol, Peer Groups Offer VACEOs Members a Safe Haven
Your Business Just Got a Negative Review. Now What?
We live in an age where it’s possible for companies to thrive or die based on customer reviews. “Reviews are important for almost any small to mid-sized business,” says Chris Leone, president of WebStrategies, Inc. “These days, it’s hard to be a new customer and not see an online review at some point in your buying journey.”
And like it or not, your buyers’ journeys often begin on Google. According to Leone, prospects who search for a type of service in the search engine (e.g., “staffing company VA”) are more likely to choose companies that have strong reviews associated with them.
If a customer doesn’t know your web address and chooses to search using your business name (e.g., “ACME Supply”), they’ll quickly discover reviews of your business along with your website. A search result page littered with low-star reviews doesn’t make a great first impression. Another not-so-great look? Poor ratings on Glassdoor – a well-known site where employees can rate their employers.
To sum: Less-than-stellar reviews can impact your brand image, your bottom line and the likelihood that a star employee will come calling.
ONLINE REVIEWS: A CONCERN FOR B2C AND B2B BUSINESSES ALIKE
Think only B2C business owners should be concerned with customer reviews? Think again. There are myriad review websites that closely examine the services and products B2B companies provide, too – from Amazon Customer Reviews to Which? to TrustPilot. If you own a business, it’s also important to monitor your online presence on sites like FinancesOnline, G2Crowd and bbb.org (Better Business Bureau).
If you’re a small to mid-size business owner with limited resources and time, where do you begin? Leone stresses that any website visible to your prospects should be on your radar. “You can find these by doing a Google search and scanning the search results page,” he explains. “Google will show different review sites for different industries, depending on what’s out there and the intent or mindset of the person doing the search. In short, act like a prospect would and take note of what you see. Then work to improve it.”
YOU GOT A NEGATIVE REVIEW. NOW WHAT?
Halloran is diligent about asking for customer feedback; in fact, he uses a local service to contact customers who’ve used his service in the last 30 days. It’s a great source for garnering positive reviews. His (thankfully) limited experience with negative reviews has taught him that folks are often quick to pull the social media trigger rather than contact a business owner directly with a concern or complaint.
Essential Steps for Handling Negative Reviews*
- Be professional and avoid getting personal
- Thank your reviewers and customize your responses
- Take the time to upload an image with your response
- Indicate you’ve taken the necessary action
*Source: Small Business Association: https://www.sba.gov/blogs/how-handle-negative-reviews
“Typically, what we find is that [a negative review] stems from not necessarily the contact you’ve been doing business with directly, but someone else in the organization that just has a beef, and rather than reaching out to us as an entity, they just go straight to social media,” says Halloran.
Halloran’s approach to reacting to less-positive reviews is based on a key core value of his business: transparency. A typical response includes an immediate acknowledgment of the concern and a thank-you for the feedback; for example, “We’ve researched the situation and found the following… Thank you for bringing this to our attention.”
Most importantly: Be diligent and vigilant, and respond quickly should an issue arise.
Leone agrees that it’s important to respond. “Do so empathetically. Your response is a great opportunity to show your human side and that you’re trying to get better. No business is perfect, and people get that. That being said, if there are recurring trends in the negative reviews people leave, you should worry less about the reviews and more about fixing the systemic problem within your business that’s causing the bad reviews.”
Symbols and Artifacts by Scot McRoberts
“One of the few things I brought home with me was his college ring. Class of 1958, University of Texas, with a huge longhorn on the side and his fraternity letters on the stone.”
Earlier this month, I travelled to Texas to help my sister sort through my dad’s stuff. He passed away in April, having lived a long and fruitful life. As we sorted through pictures and letters, I envisioned the arc of his long and interesting life. I marveled at how much of him was in me.
One of the powerful influences he (and mom) had on me was a love of learning. Doing well in school and going to college was never a stated expectation. It just was. Mom and Dad supported me and my siblings through college, paying the way and cheering us on.
Back to Dad’s stuff. One of the few things I brought home with me was his college ring. Class of 1958, University of Texas, with a huge longhorn on the side and his fraternity letters on the stone. I really cannot remember him not having it on his right hand. I do remember the stories of his college days that I associate with that ring.
What are the things in our businesses and lives that speak to our employees, customers and community? What do these things say to people?
For years, we have given engraved baseball bats to speakers and key volunteers to recognize their contributions. I see them in photos from events, and in the offices of the recipients. I hope they communicate appreciation, that the person “hit a home run” for us, and that we regard them as a heavy hitter.
You probably have symbols and artifacts in your business. These objects can be a powerful part of your culture and how you communicate it. A reminder to stay the course, if you will.
I’ve chosen to wear my father’s class ring now. In a way, the large, heavy piece of jewelry with the chipped stone conjures up the spirit of the man who shaped me. I’m a better leader because of him.
Take a minute to think about the objects in your business and your life that offer direction and meaning. I bet you will come up with some good ones. Please share them in the comments!
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