How MSP Maturity Has Moved Beyond Revenue

Explore key insights on maturity in managed service providers.

Building a mature managed service provider (MSP) involves more than just growth. It's about developing robust processes, accountability, and resilience across your business operations. This week, Charles Weaver is joined by Rob Scott from Monjur and Andy Runyan from UKON to dissect what MSP maturity truly means and how it impacts every aspect of the business.

What Does MSP Maturity Mean?

Rob emphasizes that maturity extends beyond just operational excellence. It encompasses risk management and compliance, underscoring the importance of best practices that help secure business growth and value creation.

"Maturity is implementing the best practices that are designed to protect the business."

— Rob Scott

Andy adds another layer, pointing out that maturity isn’t simply tied to the size of the organization. In his experience, some smaller MSPs demonstrate more maturity through effective risk management strategies than larger ones that might be lagging behind.

"Maturity is not the MSP who has the most sales guys and the highest revenue."

— Andy Runyan

The Disconnect Between Size and Maturity

Charles probes deeper into the notion of maturity, challenging the common misconception that larger MSPs are inherently more mature. Rob shares his findings from reviewing contracts, revealing that many large MSPs lack the necessary legal protections, which can leave them vulnerable.

"Size is not the primary indicator of maturity. We've seen very large MSPs with low maturity scores."

— Rob Scott

This sentiment is echoed by Andy, who highlights that effective risk management can often be found in smaller firms that prioritize their insurance programs.

Evolving Risks and Responsibilities

As the conversation unfolds, they discuss how MSPs today are increasingly seen as risk management companies. With the changing landscape of regulations and the growing threat of cyber risks, the responsibilities of MSPs have expanded significantly.

"Your value is going to be determined on a risk-adjusted basis."

— Rob Scott

Andy notes that the risk profile has shifted dramatically. Cyber insurance applications have evolved from simple forms to complex questionnaires that demand thorough understanding and compliance from MSPs.

"The average ransomware event now runs $1.72 million."

— Andy Runyan

Conclusion: A Call to Action

The discussion culminates with a powerful reminder for MSPs: understanding and managing risk is not just a responsibility but also an opportunity. As the landscape continues to change, those who actively embrace risk management will not only survive but thrive.

This conversation is just a glimpse into the complexities of MSP maturity. For a deeper dive, listen to the full episode and explore how your organization can elevate its maturity level.