Tag: TSP

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.

The technology industry is evolving – fast. Client expectations are shifting, traditional business models are under pressure, and the terminology used by technology partners is no longer keeping pace.  

For years, Managed Service Providers (MSPs), Systems Integrators (SIs), and Value-Added Resellers (VARs) have each played important roles in the industry. But as technology services become more commoditised and standardised, these labels are no longer enough. Many businesses are realising that their current positioning isn’t well-equipped for the future.  

Let’s examine key challenges causing these industry shifts, how the concept of a Technology Solutions Partner can make a meaningful difference, and the business models that can act as a guiding light for building more resilient, future-ready businesses. 

 

Why Traditional Technology Business Models Are No Longer Future-Proof 

One of the most common concerns we hear from technology businesses is that the industry is transforming rapidly and traditional models are falling behind. Factors accelerating these changes range from shrinking margins and shifting client demands, to vendor consolidation and lack of differentiation.  

Of course, traditional business models still exist. Just imagine your local break-fix IT companies and old computer shops. But are they growing, or turning a profit? Most often, no. They’re simply surviving.  

For starters, let’s consider the term Managed Service Provider (MSP). It has many connotations and hasn’t been used to its best advantage in the industry. While many people understand MSPs are focused on end user support, with IT infrastructure management at its core, clients don’t typically connect with this terminology. Vendors and distributors alike consider it a ubiquitous term. The business model itself limits how these business can operate, grow and engage clients.  

Other business models are in the same boat, such as Systems Integrators (SIs), which focus on a technology speciality, driven by professional-services. As well as Value-Added Resellers (VARs), product-driven businesses, that may also sell services. Neither of these are MSPs. But the industry has been using this term for so long, many think they need to become an MSP to keep pace – even though the reality of delivering these services isn’t in line with their goals. They may gain some traction in the MSP space, but it’s short-term fix.  

So, what is the goal? Most often, it’s securing regular, guaranteed, recurring income from ongoing services.  

Achieving this is possible. But it starts with broadening your mindset.  

 

How Can We Create Meaningful Change?

The turning point isn’t coming – it’s already here. So, for technology businesses to be successful, it’s worthwhile to make the shift from being reactive to being proactive.   

Enter: The Technology Solutions Partner, and fundamental mindset shift for making an effective pivot. What does this terminology mean, and how does it make a difference? Let’s break it down in more detail.  

Technology  

Technology is a holistic term that captures cyber and IT, as well as communication tools. All businesses have technology needs, and they need partners to help them through their journey.  

Solutions  

Solutions go beyond transactional services. Instead of commoditised, standardised delivery, it requires you to have a true understanding of your clients need. This enables you to: 

• provide solutions to real business problems 
• create opportunities for them to become more efficient and grow  
• help them understand and mitigate risks  
• leverage technology to support them in scaling their business.  

(“Services” just doesn’t cut it!)

Partnership 

Partners do more than transactional providers. Providers deliver and bill, without developing relationships with customers or offering additional value. Partners, on the other hand, offer a white-glove service. This is particularly valuable in the SMB space, where many technology businesses value client relationships and offering value-add services.  

Since clients value partnerships, why not embrace this mentality? This could mean developing traditional partnerships, or elevating your services to become a strategic business partner. This can also look like partner-to-partner relationships – for instance, owning relationships with small business clients, then leveraging other technology specialists to provide delivery in their specific capability area.  

Needless to say, there’s nuance to being a Technology Solutions Partner. It isn’t a one-size-fits all approach. While you may opt for a different term, it’s a concept that can act as a guiding light. It can fundamentally reshape your purpose and direction for the better.  

 

Key business models for Technology Solutions Partners 

We’ve covered the concept, but what does it look like in practice? Here are a few TSP models that may spark your interest.   

The Technology Broker 

Technology brokers engage with clients needing a procurement partner. This goes beyond procuring straight hardware as traditional VARs do, with additional services. It can involve procuring hardware, but also SaaS, cloud solutions, communications tools, services from other partners, and more. This type of partner acts as a conduit, similar to an insurance broker, providing avenues to a variety of options and specialists, without managing 100% of delivery.  

The greatest benefit for the client is that they simply maintain a strong relationship with their broker, who provides them with best-of-breed solutions that are relevant and advantageous for them, as well as proactive guidance and direction.   

The Boutique TSP  

This type of TSP an advisory-led organisation. Grounded in business consulting and advisory-level engagements, they provide clients with governance, compliance support, and implementation assistance for different technologies that suit clients’ needs. Boutique partners offer highly-personal relationships, led by a deep business understanding.  

The Specialist TSP  

Specialist TSPs have deep expertise within a technology category. They offer high-level resources, ongoing services, and are capable of delivering project work.  

How is this different to a traditional SI? The Specialist builds a channel model – using partner-to-partner play to amplify their efforts. They may not be primary relationship holders, but they play a foundational role in delivering technology solutions for different businesses.   

The Scaled TSP  

Similar to large MSPs, scaled TSPs are focused on consolidations, acquisitions and market expansion. They deliver generic, standardised solutions that can be delivered at a cost-effective rate through things like:  

• automation 
• offshoring 
• other cost-effective offerings.  

Why is this effective? Not all clients need or want white-glove service. Many simply require specific solutions delivered to them – solutions they can afford, and scale.  

As traditional offerings continue to become commoditised and delivery becomes cheaper, scaled TSPs may find themselves obtaining greater market share. Clients may opt for cheaper offerings with service providers that don’t need to provide extra value.  

  

There’s No One-Size-Fits-All

For certain clients, you may experience some overlap between these areas. So it’s important to note, you don’t necessarily have to fit into a singular category. You may progress in one area, then find yourself branching into another. The business models above, however, are a great starting point to determine:  

• what you’re aiming for 
• how to design and structure your business model  
• your core financial drivers 
• the type of partners you need in your ecosystem to be successful.  

Whether your call yourself a technology solutions provider, a technology partner, a procurement partner, an ITC partner, or something else entirely – it’s no matter. Simply harness the Technology Solutions Partner concept as a roadmap for your transformation journey.  

The important thing is to determine your ideal clients, identify what matters to them, and speak their language.

 

Final thoughts  

For technology businesses, it’s clear standing still isn’t an option. Hopefully, with these ideas for embracing a new approach – becoming a Technology Solutions Partner – the future is looking a little brighter.  

Take a moment to stop and reflect on where you are now, compared to where you’d like to be in the future. Be deliberate about whether your goal is to exit in the short-term, or transform for the future.  

If you’re ready to transform, it’s time to create a new identity for your company. Identify what you’re trying to achieve, what your current capabilities are, and what you need to develop for the future.  

The path ahead may be challenging, but the TSP framework is a great way to move forward with greater confidence.  

Motivated to learn more about TSP models? Learn more.