The Service Leadership Index ® (S-L Index™) shows that from 2008 through 2015, MSPs in the top quartile of EBITDA % profitability for the business model (after owner fair market compensation) consistently have about 2.6 times higher EBITDA % than median-performing MSPs, regardless of the size, age or market of the MSP.
MSPs driving this Best-In-Class financial performance earn materially higher stock value and greater investment attractiveness.
They obtain these outcomes by focusing on key underlying practices which produce multiple efficiencies, competitive advantages, and win/win outcomes for their customers and themselves. We say they are at a higher Operational Maturity Level © (OML), and benchmark them objectively on this dimension.
Foundational to most of these underlying best practices, is that the MSP has first designed and deployed a single infrastructure design – which we’ll refer to as a “Reference Architecture” – for their clients and themselves.
They then enforce the use of their Reference Architecture across the majority of their clients; the highest performing firms do so across virtually all their clients. This is evident regardless of whether they choose to pursue the small and midsize-businesses (SMB), mid-market or enterprise Managed Services market segment, and regardless of geography.