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Service Leadership with new risk data and financial status

Yesterday, Paul Dippell at Service Leadership presented new market data on managed service provider financials.   On a webinar hosted by Channel E2E, here’s some data that jumped out at me.

SLI has launched a new Risk And Progress Matrix.  This balances a providers financial strength against their trajectory.     In Q3, 17.5% of providers are both in a “least safe” position financially and not making progress.  A mirror – 17.7% are both in a strong position and making great progress.     In broader views, about 32% of providers are not making progress financially, regardless of cash position.

Here’s the other detail.   There’s a K shaped recovery happening for providers.  The best in class are pulling ahead, and the bottom quartile are falling behind.  

Why do we care?

Long time listeners know I will be sprinkling this data like seasoning across my thinking, so look for more to come.   

Pre pandemic, Forrester said 25% of providers were break even or losing money.   Now, 32% just not making progress financially, and the bottom getting worse.   My observation – and Paul’s too – -was that this recession is not behaving like previous.     Be deliberate     Understand your market: industry, geography, and customer base – and build your plan.