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The MSP KB
  • 🏡Home
  • MSP Foundations
    • Introduction to Managed Service Providers (MSPs)
      • What are MSPs?
      • Who Needs MSPs?
      • MSPs vs. In-House IT
    • Operational Maturity Levels (OMLs) in MSPs
      • What are OMLs?
      • Size vs. Maturity Level
      • Boosting Growth: Best Practices & Tools
      • Beyond OMLs: Holistic Success Factors for MSPs
    • MSP Business Models & Revenue Generation
      • Common Business Models
      • Revenue Streams
  • MSP Operations
    • MSP Tools: Functions & Use
      • RMMs & PSAs
      • Categories of tools
      • Choosing the right tools
    • Common Industry Challenges & Solutions
      • Industry Evolution & Requirements
      • Challenges Faced by MSPs
      • Strategies for Addressing Challenges
    • MSP Departments and Business Units
      • MSP Service Desk Styles and Operational Maturity Levels
      • Professional Services Department: Technical Expertise and Collaboration with the Service Desk
      • Sales, Account Management, and Marketing: Driving MSP Growth and Client Satisfaction
      • Industry Roles & Responsibilities
    • MSP Compliance & Regulations
      • Importance of Compliance for MSPs
      • Common Regulations Affecting MSPs
      • Compliance Challenges & Strategies for MSPs
      • Risk Management and Incident Response
      • Working with Clients on Compliance
  • MSP Relationships
    • Managing Strategic Relationships
      • A Guide to Co-selling and MDF Strategies
      • Requesting MDFs from Vendors: Best Practices
      • Exploring Vendor-Specific Programs for MSPs
      • Best Practices for Vendor Channel programs
    • Peer Groups and Accountability Groups
      • Peer Groups for MSPs Benefits and Potential Risks
      • Accountability Groups: Fostering Growth and Success for MSPs
  • 🧰Resources
    • Communities
      • Online Communities
      • Peer Groups
      • Social Media communities
    • Business Resources
      • Podcasts & Webinars
      • Blogs & Books
    • Technical Resources
      • Podcasts & Webinars
      • Blogs & Books
      • MSP Toolkit
        • Screen Capture
          • Greenshot
          • PSR
          • ShareX
        • USB Stick Essentials
          • User Profile Wizard
          • PortableApps
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  1. MSP Foundations
  2. Operational Maturity Levels (OMLs) in MSPs

What are OMLs?

The Service Leadership Operational Maturity Framework was designed to help MSPs evaluate and improve their operational efficiency, profitability, and client satisfaction. This framework consists of five levels of operational maturity, each tailored to the specific needs and challenges faced by MSPs at different stages of growth and development. By understanding and implementing the framework, MSPs can optimize their operations and achieve long-term success in the industry.

Level 1: Beginning

At Level 1, MSPs are characterized by low to negative financial performance and inconsistent service quality. Traits that support improvement at this level include:

  • Implementing basic time tracking and project management systems

  • Developing a basic understanding of pricing strategies and profit levers

  • Establishing a foundational level of service delivery and customer support

  • Creating a basic process for hiring, onboarding, and terminating employees

Level 2: Emerging

MSPs at Level 2 exhibit low to negative financial performance and inconsistent service quality but have started to understand the basics of profit levers. Traits that support improvement at this level include:

  • Implementing basic controls and operational processes

  • Improving pricing strategies and understanding their impact on profitability

  • Establishing forward planning and budgeting processes

  • Aligning incentive compensation with operational goals

Level 3: Scaling

Level 3 MSPs typically deliver median financial performance and service quality. Traits that support improvement at this level include:

  • Implementing more advanced controls and operational processes

  • Refining budget planning and attainment tracking processes

  • Ensuring that incentive compensation is directly tied to operational goals

  • Streamlining service delivery and enhancing customer support

Level 4: Optimizing

At Level 4, MSPs demonstrate high financial and service quality performance. Traits that support improvement at this level include:

  • Focusing on continuous improvement of operational processes and controls

  • Utilizing advanced budgeting and forecasting techniques

  • Leveraging incentive compensation plans tied to budget attainment

  • Implementing advanced service delivery methods and technologies

Level 5: Innovating

Level 5 MSPs are the highest performers in terms of financial performance and service quality. Traits that support improvement at this level include:

  • Continuously innovating and expanding service offerings

  • Developing strategic partnerships with vendors and other industry players

  • Fostering a culture of innovation and growth within the organization

  • Utilizing advanced data analytics and business intelligence to drive decision-making

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Last updated 2 years ago

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