Establishing & Managing Your Key Performance Indicators presented by Rex Frank of Sea-Level Operations

Your Captains Through This Journey

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Hosted  By:  Eric  Dosal  BrightGauge  So7ware  Co-­‐Founder  &  SMarke@ng  

Presented  By:  Rex  Frank  Sea-­‐Level  Opera@ons  Founder  &  President  

BrightGauge Resources: Webinar Download

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http://info.brightgauge.com/service-management-excellence

BrightGauge Resources: White Paper

Internal Metrics That Matter for MSPs

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http://info.brightgauge.com/internal-metrics-that-matter-for-msps

Peter Drucker Quotes

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“What  gets  measured,  gets  managed”    

“Efficiency  is  doing  things  right;  effec9veness  is  doing  the  right  things”    

Agenda

•  Type of Indicators –  Leading vs Lagging –  Indicators vs KEY Indicators

•  Sales KPIs •  Finance KPIs •  P&L Based KPIs •  Service KPIs

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Type of Indicators

•  Leading Indicator –  Looking through the Windshield

•  Opportunities to close this month

•  Lagging Indicator –  Looking through the Rear View Mirror

•  P&L Report

•  Performance Indicator – Engineer Utilization

•  Key Performance Indicator – Engineer Margin

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Sales KPIs

•  All In Seat Price - Pica •  Number of opportunities with: No $ Value, Past due, No

Campaign, No Type, No Member – Should all be ZERO

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Sales KPIs Continued

•  Number of Marketing Email Sent (Weekly Goal 75) (excluding Newsletters)

•  Number of Sales Emails (Weekly Goal 20) (tracked in activities)

•  Sales Dials (Weekly Goal 50) (tracked in activities) •  MSP Appointments Set (Weekly Goal 2) (tracked in

activities) •  MSP Appointments Met (Weekly Goal 2) (tracked in

activities) •  MSP Presentations (Weekly Goal 2) (tracked in activities)

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{NEW} BrightGauge Standard Sales KPIs

Sales Team Productivity •  Looking Back…

–  Total Sales Activities Completed

–  Sales Activities By Sales Rep

•  Looking Ahead… –  Currently Open Sales

Activities –  Sales Activities Scheduled

Next 7 Days

Revenue Production •  Looking Back…

–  Number of Opportunities Closed

–  Total Revenue Closed –  Revenue Closed By Sales

Rep

•  Looking Ahead… –  Open Opps By Rep –  Open Opps By Type –  Pipeline By Type

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Finance KPIs

•  A/R Days •  A/P Days •  Invoicing Days •  Number of Credit Memos •  Cash Flow Ratio •  Over/Under Budgets •  EBITDA

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P&L Based KPIs

•  Services Labor Loaded Gross Margin % –  (Service Revenue – Service CoGS)/Service Revenue –  Goal > 65%

•  Service Direct Labor as a % of Raw Gross Margin –  Service Direct Labor / (Service Revenue – Service Hard Cogs) –  Goal < 33%

•  Labor Loaded GM$ Produced Per Engineer –  (Service GM$ / # of Engineers)

•  Ratio of Managed Services Billing to (Non Product CoGS + All Expenses) –  Goal > 1.0

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Must Manage to the Financial Metrics

•  You Must Believe 3X is Real and Achievable.

•  Use the BIC-O-Meter To Figure Out How To Get the Net Profit You Want

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Service KPIs

•  Service Level Agreement (SLAs) •  Tickets Per Endpoint

– Total number of tickets per month / number of managed end points

•  Survey Results

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Service KPIs (cont’d)

•  Billed Hours vs Scheduled Hours •  Client Satisfaction Trend •  Billable Internal Hours •  Shady Time (Payroll Wrap) •  Pre-sales Hours %

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Service KPIs (cont’d)

•  Dispatch KPIs – Tickets With No Agreement – Tickets Requiring Attention

•  No Resource, Past Due, Last Update Timestamp – Tickets Not Acknowledged – Cherry Picking (Working Tickets Out of Order)

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How can BrightGauge help you achieve your business goals? visit www.brightgauge.com to learn more or drop an email to edosal@brightgauge.com