An effective strategy is built by carefully considering five distinct questions. The answers to each represent choices a partner will make. Taken together, they support a cohesive strategy.   

It starts with What is the main mission driving the business? What is your overarching goal for becoming an MSP? Are you planning to win and outperform other businesses in whatever portion of the market you decide to compete in? Or are you willing to be one of many partners offering the same services and solutions? I always recommend that partners choose the first option. It will resonate with customers, it will help you set high goals for your solutions portfolio and customer service, and it will motivate employees.  

Next up is “What is your ideal target market and customers?” You probably won’t succeed if your first inclination is to pursue very large or multiple customer markets. It is better to focus on geographies or customer verticals that mesh well with your company’s skill sets and then grow from there. Make decisions based on customer research and data. This does not have to be expensive or time-consuming. For example, I worked with a partner in Wales. After some discussion, they realized that their core group of customers were all non-profits and so they created a successful MSP practice with a tight focus on that customer base. In another example, I worked with a company specializing in the SMB market. They created a narrowly focused but successful business model providing services and solutions that are easily understood by small- and medium-sized businesses with limited IT staff or experience, and price their offerings to appeal to those customers.  

Once you’ve established the “what” and the “where,” the next decision is deciding “How to make your company a customer’s first choice.” What services will you provide that will appeal most to the broadest set of your target customers? How will you differentiate those services from your competitors? Put yourself in your customers’ situation and try to honestly assess why they would select you over competitive offerings. How will your services help your customers achieve their goals? And how will you manage the customer across the full lifecycle to cement their loyalty and open the door for references and new opportunities?

Related to winning is knowing “What capabilities are needed?” List the skills and processes needed to deliver services, and how you can use automation for at least some of them. What people do you need to successfully execute service delivery, and how will you recruit and retain them? What will a successful sales organization look like, and what skills will your sales reps need to find customers and close deals? Also, don’t forget to plan for the commercial processes that will handle billing and other transactional activities.

Finally, a successful MSP strategy requires a solid Governance System, including management processes and regular reviews of how well the prior four strategic steps are working. Within an MSP this will typically contain all or most of the following:

• Cloud strategy ownership is defined within the CCoE, with executive sponsorship where relevant
• An approved set of key performance indicators to measure progress, such as customer satisfaction, pipeline growth, and gross margin
• A set of strategic initiatives such as design and commission of a CMP (Cloud Management Platform)
• A RACI matrix defining who is responsible, accountable, needs to be consulted, and needs to be informed
• A schedule of governance reviews
• A backlog or work breakdown of strategic initiatives
• A list of the specific systems needed to govern the strategy implementation