A Standard Way of Measuring Financial Performance

The first step to comparing your results with Best-in-Class performers is using a uniform, detailed structure for measuring revenue, cost and profitability.

To do this, Service Leadership developed the Normalized Solution Provider Chart of Accounts©, which provides SP/MSP executives excellent day-to-day, practical visibility into the true financial and operational drivers of their business, and all stakeholders a common method of measuring true SP/MSP profitability and growth. Then Service Leadership built a unique benchmarking system around it to provide you with exclusive, actionable insights.

A Standard Way to Identify SP Business Models

Step two is realizing not all Solution Providers are the same. Terms such as VAR, reseller, integrator, and ISV describe the SP's role within the channel ecology, but are not detailed enough to allow creation of suitable and actionable best practices and comparisons of performance. A key reason is that the Solution Provider community is made up of differing business models—10 to be exact. Each has unique characteristics which govern how relevant and how usable a given best practice might be.

The Service Leadership Predominant Business Model© (PBM©) construct defines these 10 business models into which all Solution Providers can be categorized. While no Solution Provider fits any model exactly, this approach sufficiently recognizes the operating realities which drive Solution Provider business intention, capability, execution and results in the ways particular to each Predominant Business Model.

Once the Solution Provider's Predominant Business Model is identified, it is considerably easier to define best practices which are more applicable, engaging and straightforward for them to implement. The What and Why of Operational Maturity Levels© explains how operational maturity relates to profit and building shareholder value. And, why improving operational maturity starts with identifying your Predominant Business Model© to ensure accurate comparisons of financial performance and selection of suitable best practices to maximize profit performance through operational excellence.

Predominant Business Model© Flash Finder

The Predominant Business Model© construct objectively categorizes each Solution Provider into one of 10 business model definitions.

Quickly determine your Predominant Business Model© and start making accurate comparisons to drive financial performance and best practices.

Give this free tool a test drive!

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