2. Managing to the Key Performance Indicators
Ken Sponsler
Partner, Sea-Level Operations
Copyright © 2017 Sea-Level Operations, LLC

3. Agenda Types of Indicators Sales KPIs Finance KPIs Service KPIs
Leading vs Lagging
Indicators vs KEY Indicators
Sales KPIs
Finance KPIs
Service KPIs
P&L Based KPIs
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4. Types of Indicators Leading Indicator Lagging Indicator
Looking through the Windshield
Opportunities to close this month
Lagging Indicator
Looking through the Rear View Mirror
P&L Report
Performance Indicator
Engineer Utilization
Key Performance Indicator
Engineer Margin
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5. Sales KPIs All In Seat Price - Pica
Number of opportunities with: No $ Value, Past due, No Campaign, No Type, No Member – Should all be ZERO
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6. Sales KPIs Continued
Number of Marketing Sent (Weekly Goal 75) (excluding Newsletters)
Number of Sales s (Weekly Goal 20) (tracked in activities)
Sales Dials (Weekly Goal 50) (tracked in activities)
MSP Appointments Set (Weekly Goal 2) (tracked in activities)
MSP Appointments Met (Weekly Goal 2) (tracked in activities)
MSP Presentations (Weekly Goal 2) (tracked in activities)
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7. Finance KPIs A/R Days A/P Days Invoicing Days Number of Credit Memos
Cash Flow Ratio
Over/Under Budgets
EBITDA
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8. Service KPIs Service Level Agreement Tickets Per Endpoint
Average Response Time
Average Resolution Plan Time
Average Resolution Time
Tickets Per Endpoint
Total number of tickets per month / number of managed end points
Survey Results
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9. Service KPIs Continued
Billed Hours vs Scheduled Hours
Client Satisfaction Trend
Billable Internal Hours
Shady Time (Payroll Wrap)
Pre-sales Hours %
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10. Service KPIs Continued
Dispatch KPIs
Tickets With No Agreement
Tickets Requiring Attention
No Resource, Past Due, No Budget Hours, Last Update Timestamp
Tickets Not Acknowledged
Cherry Picking (Working Tickets Out of Order)
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11. P&L Based KPIs BASED on MSP Model Services Labor Loaded Gross Margin %
(Service Revenue – Service CoGS)/Service Revenue
Goal > 65%
Service Direct Labor as a % of Raw Gross Margin
Service Direct Labor / (Service Revenue – Service Hard Cogs)
Goal < 33%
Labor Loaded GM$ Produced Per Engineer
(Service GM$ / # of Engineers)
Ratio of Managed Services Billing to (Non Product CoGS + All Expenses)
Goal > 1.0
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12. Questions?
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