The 4 Pillars of Managed Services

July 7, 2009 · Filed Under Business, Change, Culture, MPS 

403889109_16c55a5209 Have output assessments (we’re talking printing and copying boys and girls) become a buzz word or phrase being cheapened by so many looking to hock gear to a client? Are numbers being maneuvered ever so carefully to present a certain dour outlook on client output?

Yes.

Are output studies and assessments being used to illuminate a client’s non-management of a significant chunk of their overhead? Are output assessments helping to generate a win-win partnership of common understanding between provider and client?

Yes.

The business of assessments is a business unto itself these days. There are those selling you “how to run a proper assessment” kits. There are those selling clients on “objective assessments” to prevent any skewing of facts or figures (as if non-bias is even possible when dealing with a quantitative and qualitative study). There are even those simply giving the assessment away for a chance to present their facts and findings to the executive board.

All have their place, but all have their objectives as well. Ideally, the end result is to benefit both the client and the provider –which they often are. However, one might view the “assessment” as generally in the providers best interest.

While this is not entirely an unpredictable thought-track, managed services at their core have a “win-win” strategy at heart; both the provider and client must share in the success while both understand that they must also sacrifice some in order to maximally benefit from the relationship. The overall hope would be that the client can gain the efficiencies of the managed service provider (MSP) while also increasing focus on its core competencies (which is not optimizing output fleets – or they would’ve done it already).

So as a provider, let’s spill the beans and clear the air. Most want to know:

  1. How do I place more units?
  2. How do I sell more aftermarket?
  3. How do I gain market share?
  4. How do I anticipate demand and market trends?

… and as clients – you WANT your provider to be interested in these things so they can be around tomorrow to deliver great service and support to your organization. Say it with me… SYMBIOTIC RELATIONSHIP.

So in response to these queries, I’ve identified four pillar-concepts of a managed services engagement:

1) Used car sales tactics don’t work and there is only one Wal-Mart in the world.

In other words, customers don’t buy from sleaze balls and you can only go so low on your price before you can’t compete with the “Wal-Mart” of your industry anymore. So, unless you are the Wal-Mart of your industry – don’t even try to go there (see K-Mart).

However, customers will buy from those they trust (trust = sales accelerator) and they will buy what they need. It is important to note that they will also buy what they think they need, but if they find out they don’t need it they will be angry at somebody and generally this is you (the sales person or provider).

You place more units by understanding your clients needs. Thus ON-GOING assessments are necessary – better known as Account Management – but think not only quantitatively (data) but qualitatively (supply meets demand).

2) Gillette doesn’t make money on the razors. It makes money on the refill blades.

Inevitably there is margin in aftermarket. Why else would we make devices that consume toner, ink, etc? Think of a world where the provider now has insight into everything their customers are printing (friendly and foe)! So, think past assessments and get into the operation and management of a fleet.

The four objectives of management of the fleet are:

  1. Continually fill the sales pipeline (account management / supply meets demand).
  2. Meter collection (billing – and quantitative data).
  3. Service call automation (increased customer retention & decreased service costs).
  4. Supply order automation (implementation of Just-In-Time inventory = reduced inventory costs).

Think “Keep your friends close but your enemies closer.”

3) Now, you have the trust of your clients…

(also read: “reference accounts”), and price becomes less of a factor (but still important). You help manage your clients’ fleets, and naturally this begins to grow – with concerted sales efforts – translating into increased market share. Through trust, the client comes to you for every output related question. You become their trusted advisor.

  • “Should I buy…”
  • “Should I install…”
  • “What do you think of…”

4) Anticipation of  the outcome is derived  from understanding the reaction to your influence.

By having on-going reviews with your clients, and given the trusted relationship, you can now cash these points with your clients to ask for their input on new and exciting offerings “the company” is planning. And get this, they now feel important and are part of the process helping you sell to them – and their industry colleagues.

Gee, let me see. Would I rather have consumers standing in front of a wall of computers to choose from, or would I rather them call from the comfort of their own home and ask me what they should buy? If I told my circle of influence to buy a certain type of computer system (and I do), because of reasons X, Y, and Z wouldn’t they listen to their adviser? (And they do.)

It’s a powerful place to be – but you can’t mass produce it… you can build a program around it though! You can build a program that incents the proper behavior to influence the desired result.

Image courtesy of spoon.

Ken Stewart’s website, ChangeForge, focuses on the collision between the constantly changing worlds of business and technology in an information-centric world. Ken is also the founder of Seeking the Son. He is always interested in connecting; To discover the many ways you may connect with him, visit him at DandyID.

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    Comments

    • I remember reading about Gillete's replacement blade success a few years ago. Thank you for mentioning it here, it's an important point to share for any business.
    • LOL!!!! Ken -

      Great Job!

      "Used car sales tactics don’t work and there is only one Wal-Mart in the world."

      U R Kilnn ME!

      very good view, keep it up
    • steve332
      Managed Services are very important. Why not try Managed Services from Kaseya? They provide management of network-based services and applictaions and more.
      Look at there Blog Post about Managed Services
    • Steve, with respects, this is not a sales forum. This is a discussion forum. In the future, and as a heads-up, this content would do much better and appear much less spammy if you actually provided the fact that you work for Kaseya - at least according to your reply e-mail...

      Respectfully Submitted,
      Ken
    • great post! thanks for sharing this! you really had a great points of view..
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