Why 90% of MSP Strategies Fail
We talk about strategy every day, however the aim for MSPs should be how you turn your strategy into reality. This is the “hard bit”. Did you know that many organisations don’t actually have formal systems to help them execute their strategy? The reality is that only 10% of businesses actually succeed in executing their strategy. In a survey, only “40% of organisations linked their budgets to their strategy, and only 30% linked incentive compensation to the strategy”.
An example of this, was to see an MSP that wanted to introduce a new selling system to grow their market share, but remuneration was still directly linked to the old selling system KPIs. The result: staff continued to do the old selling plan because that was how they got paid, the strategy only began to be implemented once they were aligned. In the great majority of companies, fewer than 10% of employees reported that they understood their company’s strategy. It is often too complex, not written in easy to understand language, too long, not focused, or never referred to. Your strategy needs to be clearly communicated and visible to your team so that they understand their part in it. Clearly, employees who do not understand the strategy cannot link their daily activities to its successful execution.
Why most strategies fail
Unsurprisingly, even though you may have the best strategy in the world, it is absolutely meaningless without proper execution. As many as 90% of strategies fail due to poor execution. This is also partly because 85% of executive teams spend less than one hour month discussing strategy. So you might have invested a significant portion of your time and resources into getting the strategy right, but at the point of execution it fails, making your efforts of setting the direction worthless. Too many MSPs are used to the annual planning meeting; some good discussions, having some fun, making some decisions and returning to work to fall straight back into the whirl-wind of business as usual. Consequently, staff become increasingly cynical about the need for planning, because nothing is never done.
Why do MSPs find themselves in this conundrum? Because “business as usual” gets in the way. How can you as a leader ensure this doesn’t happen? Your role as the leader is to disrupt that reality, so that day-to-day distractions do not get in the way of strategy execution.
The five keys to strategic success
The five keys to success (whatever that might look like for your MSP) are what we call the five pillars of business strategy execution. These are the main parts of our strategy management framework – and it’s what we help MSPs with on a day-to-day basis.
In order to accomplish anything, we need to ask the right questions. In our work with MSPs every day, we ask 25 essential questions. We want to establish whether MSPs are doing certain things in their business, which then determines their success rate. Most MSPs understand the concepts but don’t actually implement them, so many Owners/CEO’s actually answer no to all of them. You don’t want to be one if those MSPs.
Get clear on the following five questions
- What is the vision of your company?
- What is the strategy for reaching that vision?
- What gives your people accountability to deliver?
- What is your cadence or rhythm to maintain progress?
- Do you have effective leadership in your business that engages and inspires your people?
The Xcellerate Way webinar series powers the MSP transformation journey
The Xcellerate Way is a unique program that combines one on one coaching, workshops and live webinars that help elevate you to become a Next Generation MSP. The Xcellerate Way is built on the four building blocks and habits of MSP success – culture, strategy, leadership and execution and covers 25 fundamentals which are the functional underpinnings of MSP growth and scale.
“The single most important thing I did to propel my MSP forward was putting in place a business framework like this.” – Tommy Wald, Xcellerate CEO
To facilitate your journey an experienced business coach will help to guide, develop and execute your strategy. Not only do we have your back but The Xcellerate Member Community will also have your back as we provide unique opportunities to collaborate and workshop with other non-competitive MSP’s. In addition – ongoing thought Leadership is provided through a series of live webinars and workshops available only to Xcellerate members.