KPIs and Best Practices for Measuring Managed Services

KPIs and Best Practices for Measuring Managed Services

The managed services landscape is booming. As more organizations outsource IT and other critical business functions to managed service providers (MSPs), practical tools to measure success in this domain become paramount. However, ‌traditional metrics—centered around cost reduction and service levels—no longer suffice in a world increasingly driven by outcomes. Are you capturing the total value that managed service providers deliver?

This is where this research journey begins with the goal of developing a comprehensive framework for assessing the success of managed services. The stakes are high, as the current lack of such a framework can lead you to make suboptimal decisions about your managed services investments, risking significant resources and potential benefits.

In this research journey, you will delve into the high risks associated with inadequate performance measurements, such as the need to fully realize the intended value of managed services and the inability to optimize service engagements to achieve desired outcomes. 

Through interviews and analyses, you will uncover new key performance indicators (KPIs) that align more closely with the evolving goals of managed service providers and their clients. This isn’t just about better measurement; it’s about forging paths that lead to better decision-making and enhanced service delivery.

Are you ready to see beyond the numbers and explore the real impact of Managed Services? Join the conversation shaping the future of managed services metrics. Your insight, experience, and challenges matter as we craft a new standard together.

Define the Problem: Why Measuring Managed Services Is a Challenge

In managed services, defining and measuring success poses a significant challenge. As the managed services industry continues to grow and evolve, so does the complexity of assessing the effectiveness and value of these services. The heart of the problem? There needs to be a comprehensive framework that adequately reflects the nuanced and outcome-focused objectives that modern managed service providers and their clients aim for.

Traditionally, the success of managed services has been evaluated using metrics like cost efficiency and service level adherence. However, these measures must be revised in today’s outcome-based business environment. They must capture the full spectrum of value managed service providers provide, from operational excellence to strategic alignment with business goals.

This measurement gap is significant because it affects decision-makers at the highest levels of organizations who rely on these metrics to shape strategy and make informed investment decisions. With the right KPIs, these leaders may navigate in the dark, risking the potential and performance of their managed services.

This problem touches everyone leading and managing managed service providers. Whether you are a C-level executive, a VP of managed services, or an IT director, the inability to measure what truly matters in your service delivery can hinder your ability to drive business success and sustain competitive advantages.

How Did This Problem Come About?

The issue has emerged over time as the nature of managed services has shifted from traditional, fixed-scope offerings to dynamic, outcome-oriented solutions. As services have become more tailored and aligned with strategic business outcomes, the old metrics have evolved at a different pace, leaving a gap in measurement that today’s leaders need help filling.

Why Does It Need Solving?

Addressing this measurement disconnect is critical. With a robust framework for evaluating managed services, you can make suboptimal decisions that could lead to inefficiencies, missed opportunities, and financial losses. The ability to accurately measure and understand the impact of managed service providers is crucial for optimizing service engagements and ensuring they deliver on their promises to their clients.

The risks of not solving this problem are substantial:

  • Strategic Misalignment: Organizations may continue to invest in services that do not align with their broader business goals.
  • Resource Waste: Financial and human resources may be allocated based on accurate or complete data, leading to effective service deployment.
  • Opportunity Costs: With the right metrics, companies can leverage managed services that could be pivotal in driving their business forward.

As part of this research journey, you will dive deep into these challenges to unearth new KPIs that resonate more effectively with today’s managed service providers’ goals and client expectations. By joining this research journey, you can be at the forefront of defining and implementing these new standards and creating a future where managed services’ success is measured and optimized.

The Research Approach for Measuring Managed Services

A robust, mixed-method research approach will tap into the industry’s insights to redefine how success is measured in managed services. The goal is not just to gather data but to foster a comprehensive understanding that aligns with the modern complexities of managed services. Joining our research journey can offer invaluable insights and tools to enhance your organization’s effectiveness and efficiency.

The journey begins with a preliminary poll. This initial step will work to capture a snapshot of current practices across various organizations to measure their managed services’ success. What KPIs are you tracking? What outcomes are you prioritizing? This poll sets the stage for deeper exploration.

Following the poll, a detailed survey will be designed to gather rich data from managed services organizations about their experiences and success metrics. This survey will help us understand the nuances and challenges these organizations face at a granular level.

This research will also include case studies of organizations that have excelled in measuring managed services success. These case studies will provide real-world insights into practical strategies and outcomes. To further enrich your understanding, we will interview industry experts, drawing on their experiences and insights to shape a more rounded view of the landscape.

Midway through the journey, we will introduce a framework paper detailing the “five pillars” of managed services. This framework will guide you and allow you to view your operations holistically.

By participating in this research journey, you will gain access to cutting-edge research, including:

  • Latest KPIs and Best Practices: Discover the most relevant and impactful KPIs that modern managed services should measure.
  • Expert Insights: Learn directly from the experiences and advice of top industry experts whose interviews illuminate successful strategies.
  • Case Studies and Real-World Examples: See what works in practice, not just in theory, through detailed analyses of organizations leading in measurement success.
  • Comprehensive Framework: At the end of this journey, we will provide a detailed framework encapsulating the five key areas crucial for understanding and optimizing managed services. This framework hasn’t been available in the market, addressing a critical gap that many organizations face.

The ultimate aim is to empower your organization with a holistic understanding of your managed services’ performance. This understanding will enable you to make informed decisions, optimize your investments, and enhance your margins and profitability through tailored, effective KPIs.

The journey toward better measurement is not just about numbers; it’s about shaping a strategy that aligns closely with your organizational goals and the changing landscape of managed services. Together, let’s redefine success in managed services and ensure your investments pay off.

Transform Managed Services Measurement: Join the Research Journey Today!

The managed services landscape is evolving, and so should the way we measure success. Join this Research Journey to develop a comprehensive framework for assessing the real impact of managed service providers. Sign into the TSIA portal to stay updated on groundbreaking KPIs, industry best practices, and expert insights that go beyond traditional metrics. Enhance your decision-making and service delivery by aligning your measurements with modern business outcomes. Don't miss out—join us today and redefine success in the world of managed services!

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