Beyond Reactive: Strategic Project Management for MSPs with PMBOK Insights
MSPs consistently grapple with a significant challenge: the perception that projects are the primary cause of disruptions in IT Service Delivery, directly leading to lost profits. Nothing could be further from the Truth! The real root cause of lost profits is the chaos, lack of process, and not fully leveraging the Autotask software. Projects merely expose how chaotic and inefficient the Service Delivery Team is Operating.
While MSPs skillfully handle reactive work and recurring services, Managed Service Delivery and Project Management do not inherently "play well together," risking failure if managed similarly. Often called "the gorilla in the mix," projects divert an MSP's focus from its "economic engine" – recurring revenue. This critical issue stems from the lack of definition and proper management for the overall operation, Service Delivery, and Projects. Addressing this requires strategically adjusting best practice guidelines – and turning to PMI's PMBOK is not the right answer, as it is not the proper it for an MSP's unique operational needs.
Managed Service Delivery and Project Management not playing well together is due to the lack of Operational Processes, and not fully leveraging the Autotask software on both sides of the Client Request continuum - and everything in between (Moves/Adds/Changes).
If all we did were Incident response and remediation, life would be easy. Well... we don’t! We also manage Service Requests, Network Administration Visits, and Projects. It dawned on us quite recently that we start out focusing on Incident Remediation. We do quite well handling the reactive work, adding some small then larger Service Requests; and even can handle recurring visits without causing too much trouble.
So, where do we turn for help? Project Management Institute (PMI)? Why should a MSP care about PMI? Who are they? What do they do? And how do they help you run your MSP business, improve Service Delivery, or (in general) make your life easier? The following sections will help you answer these questions:
What Should Your MSP Know About PMI?
PMBOK vs. MSP Reality
PMBOK vs. MSP Reality
What Should Your MSP Know About PMI?
Project Management Institute (PMI) is recognized as setting the standard for Project Management. Their Project Management Book of Knowledge (PMBOK) is the gold standard on how to manage a project.
Here’s what your MSP should know about PMI:
They have been around since 1969, with PMBOK since 1996.
They focus solely on Project Management and have developed the ultimate best practice guidelines (PMBOK) for managing projects.
They provide a base language which we can use to communicate internally, in Peer Groups, and with Clients.
PMBOK is a guide, not a set of standards or rules. This means that while we cannot change or use ANSI’s standards differently, we can adjust what PMBOK says to meet our MSP needs and best practices.
PMBOK vs. MSP Reality
PMBOK High-level Definitions:
Project:
PMBOK: "A temporary endeavor undertaken to create a unique product, service, or result".
MSP: A project is a request that requires significant labor, risk, complexity, and cannot be completed using Incident remediation workflows. Saying “a temporary endeavor” is not enough. A single PC install is a temporary endeavor and does not need Project Management methodology. From Advanced Global's experience, the threshold for a project is 16 hours**. Any engagement over 16 hours needs "a signed proposal, SoW, BoM, planning time, Client Communications strategy, and an internal and external closeout meeting".
** Note: this threshold comes from the Labor Liability that is reasonable for an MSP to risk never being paid without a signed agreement ($2.6K). In addition to a signed agreement that the Client will pay the project bill, an MSP also needs to protect themselves from Scope Creep and poor Procurement processes. Therefore, every signed “Project” agreement should also include a Scope of Work and Build of Materials. These three items will protect the MSP’s Profits and assure both the Client and the MSP that the Project will be completed On-Time and On-Budget.
Program:
PMBOK: "Related projects, subsidiary programs, and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually".
MSP: A series of projects done for a single Client to bring their Network up to the current Standard Build or for some other purpose.
Portfolio:
PMBOK: "Projects, programs, and operations managed as a group to achieve strategic objectives".
MSP: The Portfolio’s strategic objective is to make more money for the company without disrupting the economic engine – therefore, it refers to all the open projects being managed at any one moment.
Conclusion
MSPs consistently face a critical dilemma:
Service Delivery is very Chaotic due to the lack of Processes and PSAutomations
Projects not managed properly make the problem worse
MSPs are unable to manage projects properly until the Service Delivery Team is well organized and fully leveraging the Autotask PSAutomation software
In 2025 - due to Windows 10 EoL, Exchange 2016 EoL, additional Security is needed, and Ingram Breech - MSPs are underwater getting Projects done.
What is the solution?
A fully Done For You Operational Improvement Program from Advanced Global – email Info@AGMSPCoaching.com for more information.