We at TruMethods encourage all our members to track and measure the results of each service delivery area. While many TruMethods members understand what we’re asking for them to measure when it comes to the majority of service delivery areas, there’s typically a misunderstanding when it comes to evaluating vCIOs — but that stops today.
Before we begin, there’s a question you should consider for every service delivery area — even vCIO — and that’s: How much MRR should it manage? If you’ve studied MacroPicanomics thoroughly — which you should’ve — you’re more than likely familiar with the question. As you know, we at TruMethods give each service delivery area a Macro Picanomics target to hit. That target — as I mentioned earlier — is solely based on MRR.
We at TruMethods believe each vCIO should manage a minimum of at least $120,000 of MRR — so how did we come up with that figure? Well, we simply multiplied the number of accounts a vCIO should be able to manage by average MRR. Even though we preach a lot about MRR, it isn’t everything. There’s a lot more you should step back and consider.
For instance, take a look at what your vCIOs are generating in non-recurring services. If they’re engaged at a strategic level with your clients, they should be bringing in at least 30% of your MRR in non-recurring services. If your vCIOs aren’t producing enough in non-recurring services for your business, then it’s time for you as their boss to schedule some conversations with all your CIOs to figure out why they’ve been under-performing.
Another indicator for you to consider is customer retention. Are your vCIOs doing their best to reduce the number of customer defections? If you’re unsure of how to answer that, think about the following questions before re-evaluating your approach with vCIOs:
- How many strategy meetings do your vCIOs need to attend with customers?
- How often should your vCIOs be contacting customers between strategy meetings (we at TruMethods call this “check-in strategy” unique touches)?
Now, there’s more. At TruMethods, we believe there are some critical indicators of
success for you as an MSP owner to consider when you’re evaluating your vCIOs. The
answers to the questions below will give you a better indication of how well your vCIOs are evaluating the impact of technical misalignments for your customers and prospects:
- Are your vCIOs meeting with real decision makers at your accounts? (I’m talking
about the people driving the strategies and controlling the budgets.) This is absolutely
critical to assessing the performance of not just the vCIO but the vCIO process.
- How much do your vCIOs know about your customers’ business strategies? Do your vCIOs understand revenues, sales goals, average customer sizes and market positions?
- Do your vCIOs understand customer revenue streams and can determine which
revenue streams are the most profitable?
Evaluating your vCIOs isn’t hard. Don’t be discouraged. Review and implement the suggestions above, and you’ll be tracking and measuring your vCIOs effectively shortly.