How TSPs Can Progress Through the 6 Stages of Operational Maturity (and Avoid Getting Stuck)
As a Technology Solutions Partner (TSP), the concept of your business’s operational maturity can feel subjective. You may feel like you can intuitively gauge it, but without a structured framework, it can be difficult to pinpoint exactly where you stand on the maturity scale.
Until now, there haven’t been widely recognised standards to guide TSPs through this journey. That’s why The TSP Advisory has developed a comprehensive framework outlining the six stages of operational maturity for technology businesses. This system can provide you with a roadmap to assess your current standing, measure progress, identify gaps and figure out why you may be getting stuck along the way.
Let’s start by diving into the six stages of operational maturity and explore how you can advance through them. Through objective measures, this framework can guide you with practices you can start undertaking now and what progress looks like as you grow up the maturity scale.
What Are The 6 Stages of Operational Maturity?
Let’s break down each stage, from 0 to 5, to explore what progression looks like.
Stage 0: Just Starting
This stage refers to TSPs getting off the ground and finding their feet. Processes and data-driven decision making are yet to be implemented. It often looks like reinventing the wheel or starting from scratch every time you take on a new task because business practices are still in the early stages of development.
Stage 1: Forming
As TSPs begin to progress, Stage 1 represents a time where informal practices are beginning to emerge. Team members rely on individual knowledge and experience to make decisions and accomplish tasks; however, there’s no consistent, repeatable methodology to guide them. Often too, owners are required to use personal knowledge to make micro-decisions on a regular basis.
Stage 2: Developing
At this stage of operational maturity, TSPs are developing their practices. That is, going from using individual knowledge to keeping records. This can look like:
- documenting workflows
- creating SOPs (Standard Operating Procedures)
- making processes repeatable
- implementing metrics.
Metrics, though, at this stage may be simple, binary pass/fail measures. (For example, was the task achieved? Yes/No.) These measures are not detailed yet and owners are still responsible for the bulk of decision making.
Stage 3: Solidifying
Eventually, some TSPs start to progress and solidify with documented practices. While these practices may not be perfect, leadership teams are driving progress by owning different areas of the business and running through processes with their teams.
In Stage 3, metrics are enhanced, and surrounding processes and practices are becoming more detailed. Roles and responsibilities start to emerge and become more important, as owners are no longer required to make every decision. Leaders are taking on more decision-making responsibilities to provide team members with clarity.
Stage 4. Embedding
Next, progressing to Stage 4, TSPs may begin to embed their practices in the following ways:
- end-to end processes become more measurable
- KPIs are established throughout the business, all the way to the frontline
- leadership teams are using data-driven decisions, supported by strong practices.
Stage 5. Living It
In Stage 5, people within the business are living practices each day. TSPs at this point have adopted a culture of continuous improvement – as the right business foundations are now in place. People know and own their responsibilities, and established measurements ensure they’re accountable. Leaders in the business are driving initiatives to improve efficiencies and productivity.
While this may look like the typical journey of operational maturity for TSPs, the reality is there are a swathe of businesses that struggle to progress past stage 2. Why does this happen, and what can be done to fix it?
Why Do TSPs Typically Get Stuck?
For TSPs, standing still on the maturity scale can come down to lacking a clear picture about what “good” looks like. Consider this all-to-familiar example: a business has organically from the ground up, learned from community and industry events along the way, and cobbled together a relatively stable business with some documentation in place. In these cases, however, owners are still responsible for the majority of decision making. The business itself is held back by:
- not transitioning to deeper, more detailed metrics
- not outlining and delegating responsibilities with clarity
- not driving continuous improvement.
Here lies the advantage of our operational maturity framework. While applying it involves some nuance, The TSP Advisory supports businesses to utilise it across all functional areas, including sales, service delivery, projects, HR, finance, procurement and beyond.
How Can You Start Making Real Progress, and How Long Does It Take?
Applying this maturity model across operational functionality enables you to measure maturity in all areas. This can help you focus on what initiatives need to be improved in what areas, and what areas need the most attention to mature. (This can mean letting go of doing things the traditional way, “as that’s always how it’s been done”.)
Think: where do the fires most commonly occur, what causes the most complaints, where are the biggest growing pains, what areas are the most reactive?
From here, you can begin to plan your transformation programme over years to improve practices.
The important word to note in this case is: years.
In our experience, it takes most businesses three to five years to progress from one stage to the next, even if you’re an established business taking deliberate direction. As an owner starting a technology services business, you typically have to learn, while implementing. As such, it takes time to develop the right “cultural DNA”.
While lasting change can’t typically be fast-tracked, the only exception could be if, as an owner, you’ve done it before.
For TSPs with a highly-experienced leadership teams, it’s possible to move from Stage 0 (Starting) to Stages 2 or 3 (Developing or Solidifying). Progressing through these stages is achievable if you have people within your culture already experienced at these levels. It’s unlikely though, you’ll be able to move from Stage 0 to 5. Why?
Let’s consider an example: account management.
You’re motivated to implement Quarterly Business Reviews and you know what “good” looks like as an industry standard. However, your teams haven’t started a regime of speaking with clients in the first place. In this case, trying to go from Stage 0 to 5 is unrealistic.
Is Reaching Stage 5 “Living It” a Reality?
There are many transformation steps that are needed to build:
- the body of knowledge in your business
- the right rhythms
- a strong culture
- operational experience at a maturity level.
This is why understanding your current position and determining next steps are far more important than focusing on “utopia”. Using the pragmatic, step-by-step operational maturity framework is what helps businesses progress. That is, continuous improvement and maturity is more important than trying to go from Stage 0 to 5.
There are so many moving pieces in your business, nuance and things to learn and appreciate. The maturation journey itself is critical to a business learning. Businesses need to get familiar with practices before embedding them within ourselves and cultural DNA.
Hopefully, this overview has given you a clear starting point to understand the six stages of operational maturity and where your business might currently stand. We’ll continue to share resources to break down each stage into practical, tangible insights you can apply to your own journey. This framework can help you identify where you are, where you want to go and how to navigate the path ahead.
Improve your ability to progress through the stages of operational maturity. Talk to the TSP Advisory.