You're having a great day when one two of your key employees walk in and quit!

I've been in business for over 21 years and I have had more than a few key employee come and go.  It is part of what you signed up for when you became a business owner and entrepreneur.  Unfortunately, I walked in on Monday morning and had not one but two employees give their notice to quit.   Actually one quit and the other one retired.

Now What?

My two employees quitting had nothing to do with each other but you may find times when you have a mass exodus in your company and that's when the shit really gets serious.  But for the purposes of this podcast, let's just assume you are losing one key employee.   What should you do?

Take a second to Breathe

Speaking for myself (because that's the only one I can speak for),  my initial reaction when someone quits is to blow fire either into their face or through the phone line!  Over the last twenty-some years, I have learned its much better to just slow down and take a few deep breaths.

If the person is sitting across from you this might be hard to do and maybe you want to postpone the discussion for a few minutes if that will help you get your act together.   Your first reaction is to take it personally but most times it isn't.

Top performers or key employees don't just work hard on your business they work hard on themselves too, if you want to build a team of the best people you need to expect turnover especially if they have outgrown the role you have for them.    If you cannot provide them with advancement then you should expect them to go chasing after a new opportunity.   Before you speak to the key employee that is leaving, try to adopt a mindset of being grateful for what they have brought to your team.

Then open your mouth...

And have a warm, friendly conversation with your key employee that is moving on.   Try to get to the real reason they are leaving but don't judge or disagree.  Whether they believe it or not at this point is irrelevant.  They feel it.    Leave your ego at the door, most times we are the employee bear at least some of the blame as to why they are leaving.

Remember you have NOTHING to gain by making this adversarial.   You have everything to gain by acting with respect and warmth.  Think about that quick answer you might need a month from now, or that glassdoor review the employee might give you or the fact that if times changes there may come a time that you would want this employee back on your team.  I have hired back a few employees over the years.

Decide what you want

There may be times when you what to really fight to keep this key employee.   You will need to make a split decision on what you want to do.   Some people, usually when they are desperate, will make a counteroffer to the employee.   Unless they are truly a key employee then I would suggest you re-think this.   Making a counteroffer at this stage is often like when a couple has decided to divorce and then they decide to reconcile.  The damage is already done, there is a lot of healing that needs to occur.  Most times this is not worth it in business.

Set your Expectations

Make sure you review any employment agreements and your expectations for the future.   If there are references in your employee agreement about customers, other employees and intellectual property make sure you remind the employee that these exist and they are non-negotiabl.

A word about non-competes

We have them in all of our agreements but we don't always enforce them.  Most of the time when a good employee is leaving it is because either you cannot or will not give them what they need.    Why would you hold them to a non-compete?  Make sure they understand they are to have no contact with your employees or your clients but other than that set them free.

 

Building a Cyber Security Practice in your MSP

It takes more than great tools to build a new cyber security practice.  The tools are important but so is the right mindset.  Wrapping up my month of conferences, here are my takeaways from the Robin Robins cyber security bootcamp

She used to work for Tony Robbins,  did you know that... isn't that funny?

Last week I attended a Robin Robins Roadshow with a focus on cyber security.   She gives excellent value to IT service Providers and MSP's looking for marketing help but she also has some pretty good life and business advice.  Robin said,  "I really beleive that IT providers should make alot of money,  you take on alot of risk and your are agents of good in the world".  I never really thought of it that way and  I took away three big ideas that I need to implement in my business.   Three things that I think all MSP's suffer from at one time or another.

We need to understand who we are selling to and tailor our message

* Traits of the Buyer

* The Importance of a Persona

* Tell Stories that Resonate

We need to believe in the value our offering and not be afraid to charge more for it.

* We are agents of good in the world

* We assume tons of risk as entrepreneurs and that should be rewarded

* New Tools we are delivering and new threats our customers face are driving up all in seat prices (AISP)

* If you don't have reasonable customers willing to allow you  profits then dump them

We need to upsell and cross sell into our base

* We often neglect to sell into our best prospect base - our customers.

* We need to

* We need to segment our lists so that we can market directly to the exact people that are most likely to buy.

* We need to know exactly what our customer have bought and what they have yet to buy.

Some great new vendors to help build your Managed Cyber Security Business

At the Roadshow,  I rekindled some vendor relationships and built some new ones.   There were some great solutions to help you build your managed security practice.

Robin Robins Infusionsoft Offering

Robin Robins has an excellent offering if you are interested in investing in content management and marketing automation platform.  You can buy infusionsoft from them directly but buying directly from Technology Marketing Toolkit gives you some HUGE advantages.

* You’ll get SEVEN complete and interlocking cyber security campaigns. This will include a website opt-in sequence, a cyber security e-mail drip series, a webinar campaign, cross sell campaigns, a prospecting campaign for NEW clients,

* You’ll receive a marketing campaign flow chart that gives you an easy, visual blueprint of how every campaign works in Infusionsoft.

* Short, on-demand videos will show you how to use every key feature in Infusionsoft.

You also get support from Robins team and access to buy new campaigns as they are created.

If you are interested in this solution please contact Robin Robins' team at the Technology Marketing Toolkit and tell them that I sent you so I can earn a small commission.

WebRoot Active Endpoint Protection

WebRoot - We have used WebRoot for a couple of years now and really like the solution.   Switching from Vipre we have found a marked improvement in the efficacy of WebRoot.   It is a multi-vector endpoint protection product, meaning it protects your end users from much more than traditional AV or Malware products.

RapidFire Tools and the Detector SDS

RapidFire Tools has been making great assessment tools for quite some time.  They are a staple in the industry for doing pre-sales assessments or "f...

Conferencing

In this episode of the IT Provider Network, I am going to share with you some of my observations from conferences I have just attended and show you how you can get free marketing assistance from your partners.

ASCII Summit

ASCII www.ascii.com

I attended the 2017 ASCII summit for NY and NY a couple of weeks ago.   It was great to connect with the ASCII leadership team, the vendors and my peers in New Brunswick.   ASCII is the oldest and largest group of independent IT solution providers, integrators, and VARS in the world.  Founded in 1984 by a really interesting guy named Alan Weinberger.  They cater to IT professionals by providing the following benefits:

Purchasing Discounts

* Better pricing for Distribution -  2% to 15% additional discounts

* E&O Professional Liability Insurance - Group purchasing power equals more value for the money

Free Marketing Assistance

* Done for you eNewsletter - they design and deliver a monthly newsletter for you.

* Done for you social media service - postings to Facebook, Twitter, and Linked In on your behalf

Networking

* Large Membership since 1984

* Network of Peers for out of town clients

* One off purchasing without authorizations through other members with authorization

Knowledge

* ASCII Summit's

* 2017 Keynote Frank Abagnale - "Catch Me if You Can"

Industry Advocacy and Group Buys

* Work with Manufacturers and Distributors to resolve issues

* Initiate Group Buys for ASCII Members

XChange 2017

Hosted Conference by The Channel Company is different in that you are paired up with your peers in boardrooms.   12 MSP's or solution providers are pitched in 25-minute sessions by qualified vendors that are paying for the conference.  I was in the Mid Market 2 group with a great bunch of people.   From the board rooms and the keynotes, this was some of the most important take aways to help you build, grown and scale your business.

Observations and Offerings

Datto

* Free Marketing Assistance

* MarketNow offering - private label MindMatrix

* Done for You Webinars

* Datto Partner Portal

Intermedia

* Has the king fallen?

* VoIP Service and Free Phones

* MDF Funds

* Intermedia Partner Portal

AeroHive

* Cloud Managed Wireless

* 100% Channel Focused - Great Partner Program

* New Wall Plate Access Point and Switch

* WAAS offering through Synnex

* Partner Program Information

David Russell - Manage To Win

Certified LEADER Program  - Leadership Training

Gary Pica - TruMethods

Formula Won Program

What you should do right away

* If you are a Datto partner,  sign up for MarketNow and drive traffic to your business

* If you are not working with a coach, get one!  It's like having a non-voting board of directors

* Check out AeroHive and the viability of starting a "W...

Most MSP's and specifically MSP Owners suck at selling!   There I said it!  At one time I identified myself with the majority of the issues that this podcast addresses.  But not anymore and I am going to show you how you can improve at selling in your own MSP.   I am going to show you how to suck less!

The way I see it there are at least five things that cause MSP's to suck at selling:

* They are always chasing the shiny new object.

Vendors are always trying to get us to expand our portfolio,  tool vendors are always trying to convince us that a new tool will solve the problem.  Not always the case.

* They don't know how to conduct a proper sales call

What is your objective for the meeting?  Do you have an outcome in mind?

* They fail to plan for the sales event

Did you do your research?  Are you prepared to speak to the prospect?

* They have no formal sales training, process or metrics

I know you know all about patching but have you invested in learning sales techniques and methods

* They are doing too many one off sales events

Are you cold calling or worse patching computers?    Spend your time doing one to many activities

In this episode, we will talk about ways to improve these shortcomings along with how to sell at the top of the buying ladder.   I will also share with you some of the metrics I use to measure my sales team and what you can expect when you start measuring your efforts.

 

I forgot to mention a great book to help you build rapport in the first two minutes of your sales call.  It is How to Make People Like You in 90 Seconds or Less by Nicholas Boothman.  Let me know your thoughts on the podcast and the book.  I  would love to hear other ways you think we can suck less!

Ask your questions or share your feedback

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What gets measured gets improved – HelpDesk

In today's episode of the IT Provider Network we are going to discuss ways you can improve your service team and specifically your helpdesk by holding your team accountable to some metrics.

* Volume – How many tickets are you generating on a daily, weekly, monthly basis

* Response – How fast are you responding to and solving customer problems

* Noise – What are your ticket types and who are your noisy customers

* Production – Who on your team is getting it done and who is playing on their phone

Helpdesk Volume

How many customers, end points, reactive and proactive tickets are you servicing and how is this going to effect your helpdesk.

Number of customers

This is important because smaller customers are much harder to service that fewer larger customers.   You will find as you grow your business you might need to weed out some of the smaller older customers that you have because they will abuse you!

In general, we strive for a customer with 20 users or more and we like them to have 30 users or more.

Number of Locations

Same rules apply – more locations more places to roll trucks too, more internet connections to go down and more network devices to support. If you are supporting many multi-location customers make sure you include a built in adder in your pricing so that you can compensate for these extra costs.

Number of End Points

This might be your #1 determination in your monthly billing. Many MSP’s bill their clients by having their RMM tools report to the PSA the number of agents you have installed in the field and then this drives quantity counts to your agreements which in turn you use to bill your clients.    We use ConnectWise Automate (formally Labtech) and with Automate we have the ability to count and report through the Plugin,  server, workstation, printer, router, other device counts to Connectwise Manage for billing.  We have a mix of clients.  Older Ones that we bill by endpoint but our newer clients are all user based.  This alleviates any fear a client has over extra laptops, tablets or mobile phones.

We’ll take about pricing in an upcoming episode of the IT provider network but we have moved to user based pricing because it seems to align better with what our clients want to measure...headcount.

Reactive / Proactive Ticket Counts

These counts are very important to build and scale your service delivery team and running an effective helpdesk.  Knowing and monitoring your ticket counts is key to correct staffing.

At our company, we track everything in real-time with dashboards and our dispatch portal but we report via our daily huddles on yesterday’s metrics.  We use a combination of Connectwise's Report Writer along with a great third party tool called Brightgauge.

Brightguage integrates with many tools including Connectwise, Quickbooks, IT Glue, BMS by Kayesa, Datto, Continuum, Autotask and many others. Brightgauge allows you to securely import your data, organize and analyze it then create outstanding dashboards scorecards and reports.

Pricing starts at $229 a month and goes up to over a thousand a month, so it's not inexpensive but it is well worth the price.  You can find more information as well as the Brightgauge Podcast at www.brightgauge.com

Getting back to helpdesk ticket counts.   We report # of tickets opened,  # of tickets closed, #total open tickets for ticket volume.   This gives us two data points to make sure we are keeping up with the volume.   Are we closing more that we opened and is the total # of tickets moving down?

Helpdesk Response

How fast are you able to respond and resolve your customer's issues.

At the end of the day,

The Early Days

Back when my business partner and I started the company in 1995,  we were a couple of "snot nosed kids" as my mother used to call me when I was young.   We were really good at what we did which was installing and implementing ERP software for manufacturers.   We weren't however very good with finances.    We were fortunate in that the company started off with a bang.  We were traveling to some of the largest companies in the world and we were the Red Adair's of our eco-system.  Saving manufacturers for countless hours of downtime and really helping them get the most out of their software investment.

It wasn't long, about 15 days if I remember right when we needed to bring on our first team member.   and that's when our accountant introduced us to what is still called today in our company, the 2 Times (2x) rule.

In today'ss episode of the IT Provider Network, I am going to introduce you to the 2X rule and the concept of LER or Labor Efficiency Ratio as well as give you so actionable ways you can get more out of your days.

 

The 2 Times Rule

So the 2X rule was pretty simple,  our accountant told us for each employee we brought on we needed to have 2 times that amount in revenue. If we hired a 100k a year guy we needed to product 300k of revenue with that employee to stay solvent and make a profit.    That rule held fast for many years in our company, and it became a major part of our hiring decisions over the years.   We always did our what-if analysis on a spreadsheet that became known as the "Death of PICS" spreadsheet.     Back in the days of time and material billing a 100k resource that sat on the bench for a while could literally be the death of your company.

Fast forward to the last few years,  we have continued to grow and our business has continued to evolve.  Our managed service division is more than 50% recurring revenue and our enterprise software division is moving to SAAS and more recurring revenue too.

Because of the growth, we are no longer a flat organization, and our costs continue to go up.  We now have two buildings, double the amount of licenses and computers and of course, the whole world is moving to a recurring revenue model so our spend is becoming more of an operational expense (OPEX) than a capital expense (CAPEX)

Because we now have some managers that are not revenue producing so we needed to revisit the 2X rule and make some adjustments.

What we found is that the old 2X rule is really called LER or Labor Efficiency Ratio and LER was still a good measure of how efficient we are as a company, a division, for a customer or as an employee.

Direct LER = Gross Margin /  Direct Labor Costs

In simple terms, it's the 2x rule but now we shoot for a higher number closer to three. For 2017  The higher the number the more efficient you are being with your resource but there is a point where LER grows too high and you are really stressing out your staff.   You need to find out where that tipping point is for your team and anticipate the need to hire more staff before they start walking out on you.

If the LER is low then you may have uncovered some problems in your company,  either excess or poorly trained staff,  needy customers, wasteful practices, lack of procedures or problems in your procurement or service delivery.

Add LER or if you like the 2X rule to your arsenal of metrics for your company, but don't look at it in isolation.  It is only one metric that needs to be part of your planning and strategy.

Enough of that boring bean counter stuff , and my apologies to all you bean counters let's talk about some actionable ways you can get more done and increase your LER.

Make the first 90 days successful for you and your new employee

As soon as the offer is accepted.

 

* Get the Offer Letter Signed and start any pre-employment tasks

* Get a Voided Check for Direct Deposit

* If in the US get the w4 and i9 paperwork out of the way

* Order a pre-employee drug and background test

* Order any needed hardware and licenses for the new employee

* Have your plan together for where and what hours they will work

*

In the days before the start date

* Set the new Employee up on all your systems

* Assign a buddy to the new hire and have that buddy reach out with contact information as soon as possible

* Send out a "Welcome Aboard" email to the staff

* Arrange for a Friday Afternoon visit before the start date to meet the team

* Set up the outlook contact list with helpful aliases and phone numbers

* Add the new hire to any recurring huddles and meetings so that it is already on the calendar.

* Have any swag or uniforms ready

* Get any insurance or Company Vehicles lined up

* Schedule "onboarding" meetings with team members to spread the load and build relationships

* The Perfect Service Ticket

* The PTO Process

* VoiceMail Setup and Phone Training

* Org Chart Review and insider information on the company

* Print out helpful information for the new person

* Phone Lists

* Company Holidays

* Employee Manual

* Helpful URL's

* Company Acronyms

 

Tips:

Avoid "Radio Silence"  - keep in communication with your new hire.

First Impressions Count - get new equipment if you can

Add them to the "staff" or all hands email alias so they have your announcement email in their inbox on day 1

Program the welcome message into your digital signage or welcome sign

Try to get them working on any online coursework BEFORE their start date

 

 

On the First Day

* Make sure the workspace is ready to go and arrive early before the new hire.

* If possible by the team lunch and encourage a group lunch

* Put their name on the welcome board

* Walk them through the office and re-introduce them to everyone

* Have 80% of their day planned out and a goal for the 1st day or week

* Share Company Stories especially ones that highlight core values

* Have all passwords and accounts written down for them

 

Tips:

Smile

Slow Down - everything you know about your company and service doesn't need to come out on day one.

Listen - let them talk and really listen

If possible bring them into the office even if they are going to be a remote employee

Have them work with your "A" players first - first impressions count

Share something personal (not too personal) with them to start building rapport

 

First 90 days

 

 

What they should be able to do

*

By 30 days

* Learn the tools

* Become Familiar with the Culture

* Complete at least one small independent project or be working service tickets

* Achieve a small goal

*

By 60 Days

* Complete a bigger Project or be able to support the customer base.

* Take on some longer term responsibilities - measure with your metrics

* Become fully engaged in the company rhythms - huddles, meetings and metrics

*

By 90 Days

This is the 2nd part in a 3rd part series on hiring. See episode 9 for some tips on creating your job description and advertisement.  In this episode of the IT Provider Network I am discussing tools and techniques to move the candidate from the inbox to the offer letter.

Testing to weed out the noise.

All of our candidates go through some sort of testing,  and most go through quite a bit of testing to hedge our losses against a bad hire.

Start your Testing in the Job Advertisement - make the candidate to something extra when sending in their resume.   Make sure they read until the end.

Using Skype for initial interviews for non-english speaking audiences.  3:15

Using One Way Video Interviews on Sparkhire to separate the curious from the serious candidates 4:00

Two way Video Interviews

Cognitive, Personality, Motivation and Testing for Culture Fit

Wonderlic Testing

DISC assessments

Interviewing

Break the ice with some questions to build rapport.

Talk about Work Experiences in addition to Work Skills

Check their Social Media Profiles

Concentrate on Soft Skills

Don't forget to be quiet and listen.

Wrap Up

If you have doubts about the candidate, keep looking and remember a vacant position is better than a bad hire any day.

Ask your questions or share your feedback

•Comment on the shownotes below

•Email [email protected] (audio files welcome)

Get on the mailing list

Low Volume by it is THE PLACE TO BE for all of my insider information. If you're on the list, you'll be the first to know. Signup Here

Tell 'Em I Sent You

If you investigate or purchase any product or service that I have talked about, please remember to mention that I sent you. I may or may not get a small commission but more importantly I hope to spread the word about the IT Provider Network.

Please Subscribe

Please consider Subscribing to the Podcast it is the only measure of listenership I have.

Give me a Review

Your written iTunes reviews encourage me and they help other people find the podcast.

If you appreciate the information you are learning from the IT Provider Network then please do me a HUGE FAVOR and write a review on iTunes or on Stitcher!

Connect with Me

On the socials as @TerryRossi or @ITProviderNet

Help a Brother Out

* Sign up for Coinbase

* Buy something from Amazon with my Affiliate Link

I put these down here in case you are looking for anything from Amazon, I get a small commission if you click-thru from this site. You don't have to buy these items just click through from this page. Thanks in advance!

Transcript

Terry: Hi, and welcome to episode 10 of the IT provider network.

 

Female 1: Welcome to the IT provider network. Are you a manage service entrepreneur wanting to take your business to the next level? Do you excel in IT, but feel your business management could be better? Join Terry Russy,

You’re growing, you’re hiring, your making decisions on new team members.  If you’re like me it is one of the least favorite things you will have to do as an entrepreneur.   You post an ad, have some interviews and hire someone that you basically have known for one hour.

Then reality sets in. You basically only know a little bit about your new hire.  They may or may not be a great tech, or worse he may be a terrible fit for your culture and act like a cancer on your team.

Hiring and Finding the Best Talent

Today we’re going to talk about some great ways to improve your hiring process and get the right people in the right seats at your company.   In episode 9 of the IT provider network I am going to share with you the tools and processes I use to search for great candidates and in episode 10 we’ll talk about interviewing and testing and finally in episode 11 we will talk about some great employee onboarding tips to get your new hire settled in and feeling like part of the team.

Before I get to the content of the show I wanted to give a special shoutout to my team at PICS ITech.  We made the MSPMentor MSP 501 list for the 5th consecutive year in a row and that wouldn't have been possible without the team.

 

Job Descriptions

Finding a good hire starts with a good job description that you can tailor into a great job advertisement.   I would recommend that if you are hiring for an existing position that you analyze your existing job and see what the role, requirements, and qualifications are for that position.   Then we can roll that into a formal job description that your existing and new employees can use as a guideline for their job.

If you are starting from scratch and in the US, look at the US Department of Labor Career One Stop website.  They have an online job description creator that will give you a good editable start on your job description.    You put in a job title and a location and the tool will spit back a job description that you can edit online and save.

I use a supercharged version of a job description in our company.  We use Employee Strategic Plans or ESP’s to work with each of our employees so that all parties involved know what is expected of them and also that individual team members plans flow up to department plans, divisional plans and finally to our corporate plans.  The ESP’s include goals, responsibilities, and qualifications like a normal job description but add time allocation, career paths and expectations to the document.

 

Job Advertisements

Once you have a good job description it’s time to create a great job advertisement.  One of the sayings we have around the office is “someone’s always selling someone” and this is your first chance to sell your company and your position to the candidate.

A.I.D.A.

Before you start writing the job advertisement get your head on straight.   Unlike the job description which is written for a position the advertisement should be written for ONE person, the person you want to select your company and apply for your job.  If you think of this as any other ad you should strive to write using the AIDA method:

So what is AIDA, it is an acronym that stands for

* A = Attention

* I = Interest

* D = Desire

* A = Action

 

There are many articles on the AIDA method, so google it and you can do a deep dive but I will break it down quickly for you here.

A – Attention – you can’t get a good candidate if you cannot get them to click on your advertisement so you need to capture the candidate’s attention in the beginning of your ad.  This starts with the Job Title or the Posting Title.   Make sure it is written in such a way that you will get the most candidates to click on the ad and start to read.

ConnectWise - Quosal, LabTech and ConnectWise

ConnectWise - Sell, Automate and Manage

* In French Cooking it's Mirepoix

* In Italian Cooking it’s Soffreto

* In Cajun Cooking it's the Holy Trinity

* In IT Services it's ConnectWise

In this episode we are going to talk about the three tools that I use to run our managed services business.  Over the years we have standardized on tools that have been acquired by IT PSA vendor ConnectWise.

We'll talk about using a quoting tool and why you need it to be successful.  Remote Monitoring and Management and how you should be using it to save time on your helpdesk and why having a PSA or CRM tool like ConnectWise Manage is absolutely essential for a managed services business.

Why you might need ConnectWise

You might need ConnectWise Sell if you are:

* Creating quotes for hardware, software, services and recurring services

* Managing your sales processes like a real business -  tracking profit, sales activities, and oppurtunities.

* Constantly looking for the latest products and SKU's to sell to your customers.

You might need ConnectWise Automate if you:

* Monitor and Manage your customer computer

* Profit by being more efficient and doing less reactive work

* Need the ability to bill for your services based on knowing the number of machines a customer has.

any finally you might need ConnectWise Manage if you are:

* In the IT Business ...

Some other tools we talked about in this episode

Quotewerks by Aspire Software

We have used Quotewerks for over 10 years and really like some of the features that they bring to the table.   If you are evaluating quoting tools I strongly recommend you take a look at Quotewerks.  (side note... never name your product, something that is spelled wrong,  if your prospects can't find you they can't buy from you).

Nilear

Nilear is an awesome set of tools that integrate with your ConnectWise Manage and Automate systems to give you a wealth of features that are not available in the software.  In this episode we talk about the Delta Station function of the toolset that audits and allows for rollbacks in the ConnectWise Automate system,. but we use much more of this system to manage our service team.    Check out Nilear, I highly recommend it.

Ninite One

Ninite Pro or Ninite One  is the command line tool version of Ninite.   Ninite allows for installation and upgrades of many common desktop applications.

Ninite tries to behave exactly a seasoned tech that is installing applications on a users' desktop.   It does it so it...

* Say "No" to toolbars or other junk

* Always install the latest version of an app

* Install the right 32-bit or 64-bit version for a PC

Install apps in the PC's language

* Skip apps that are already up-to-date

* Upgrade an app if it's out of date

Here is a list of the applications supported by Ninite

Some other PSA and RMM tools to check out

Kaseya VSA - RMM Toolset

Kaseys BMS - PSA and Business Management

Ninja RMM -Ninja MSP