Optimizing Project Management for MSPs: Bridging the PMI Gap with Autotask and Practical Strategies
For Managed Service Providers (MSPs), effective project management presents a significant and often discussed challenge. The foundational PMI approach often does not align with MSPs' unique operational realities and culture. MSPs face distinct issues: Service Managers' focus is divided, and they lack total project control. Highly skilled project resources are volatile, often pulled for urgent VIP issues. Moreover, the very definition of a "Project" is ambiguous, lacking clear labor thresholds. This is critical: despite projects being "King" for lucrative markups, poorly managed projects lead to significant financial losses and damaged Client relationships, undermining the MSP's core economic engine. Optimize your Project Management strategy by exploring the following sections:
How to Boost Service Project Management with Autotask
MSP vs. PMI for Managing Projects
Confusing Definitions of "Projects" for MSPs
The PSA for Managing Projects
How to handle Portfolio Management
How to Boost Service Project Management with Autotask
Managing Projects presents a significant challenge for MSPs. It's a complex topic that often comes up in peer group discussions, highlighting its critical nature for many organizations.
If you search for 'Project Management', you'll often be guided to PMI (Project Management Institute). The Project Management Book of Knowledge (PMBOK) is considered the bible for Project Managers. However, PMBOK-with its rigid set standards or rules-is not adjustable to fit an MSP's specific needs and best practices.
There are many factors that keep PMBOK from being applicable. For example, MSPs utilize the Project Coordinator skillsets, but typically do not empower them to function as Project Managers. Project Integration, Risk Assessment, Mitigation, RACI, Cost Management and Quality Management processes are foreign to an MSP and are not necessary for profitability. Processes like Scope of Work, Scheduling, Resource Planning, Communication, Procurement, and Stakeholder management are necessary to be profitable, but are not used in most MSPs.
MSP vs. PMI for Managing Projects
Project Management for MSPs is a very different world compared to PMI's approach. Here are just a few of the many reasons:
Service Managers are often tasked with managing both Service Delivery and Projects, which creates a conflict of focus.
Unlike traditional Project Managers**, Service Managers do not have total control over Projects; instead, Lead Techs typically hold this responsibility for project plans and execution.
Project Resources, especially highly skilled ones, can be pulled at any moment for urgent issues, such as a hot issue with a VIP Client, addressing an issue where they possess unique skills, or due to a lack of proper resource planning.
PMP (Project Management Professional) training and certification, while valuable for traditional Project Mmanagement, is often not provided or may even conflict with the unique culture of an MSP.
While Projects are considered "King" due to their lucrative markups and high visibility, Managed Service Agreements (MSAs) remain the economic engine of a MSP. Poorly managed Projects can lead to financial losses and damaged Client relationships.
**Note: This is the #1 reason that while an MSP may give out the title of Project Manager, the role and responsibilities align more with a PMI Project Coordinator.
Confusing Definitions of "Projects" for MSPs
Adding to the confusion, the term "Projects" can mean two different things to an MSP: a Client Request Type (as opposed to a Break/Fix request), or a Vehicle to Capture Time (as opposed to a Ticket). For example, a single-phase PC install executed by Techs with the same skill set (like Level I Network Engineers) might be handled via a Ticket to capture time.
A key distinction in the MSP world is defining what constitutes a Project. It's recommended to establish an estimated labor threshold to differentiate a Service Request from a Project. This threshold is typically 16 hours, though some MSPs use ranges from 8 to 32 hours. However, Autotask best practice suggests using the Project module if it's indeed defined as a project, but Advanced Global has found in a real-world application, this is not true. What we have found to be true is that if a request exceeds the 16-hour threshold, it should require a signed proposal, Statement of Work (SoW), Bill of Materials (BoM), dedicated planning time, a Client communications strategy, and both internal and external closeout meetings. If it doesn't warrant all these extra steps, it's more accurately classified as an Install-not a Project.
The PSA for Managing Projects
Autotask is an awesome tool for MSPs. In one database, it provides a comprehensive suite of modules:
CRM module
Sales Pipeline module
Contract module
IMS module
Reporting module
Procurement module
Inventory module
Time Keeping module
Contractor Access module
Project Management module
While Autotask may not be the best stand-alone CRM, Contract manager, Ticketing system, Report writer, or Project Management software, it does provide almost everything your MSP needs at an affordable price. Replacing each module with enterprise-integrated substitutes would cost as much as the entire Autotask SaaS price. Ultimately, managing Projects within Autotask is considered the right decision for an MSP. It is "seriously possible" to fully leverage Autotask, especially with its robust Live Reports for historical and trend analysis.
How to handle Portfolio Management
The Autotask Project Management module does not provide Project Portfolio Management – meaning it doesn't help manage multiple Projects in a single view. For this, a simple Excel Spreadsheet works effectively. This offline resource tracking report can show weeks across the top, resources down the side, and the Client whose Project they are working on in the middle.
This view becomes highly beneficial when a new Project Opportunity arises, especially one that is in the company's best interest to be completed by the Client's desired date. In one view, you can easily see:
What Projects need to be reassigned or delayed to fit in the new Project Opportunity.
Where fast-tracking or creative scheduling is needed to avoid breaking a Client promise or disappointing a Client.
Resource availability for future Project Scheduling, which can be communicated to sales to help close deals.
The actual schedule remains in Autotask and is visible in the Dispatcher's Workshop.
Conclusion
Effective Project Management presents a significant challenge for MSPs. Unlike traditional PMI approaches, MSPs face unique operational realities: Service Managers' focus is divided, lacking total project control, and highly skilled resources are volatile. Project Management Professional training often conflicts with MSP culture. The very definition of a "Project" is ambiguous, often requiring a clear labor threshold (e.g., 16 hours) to distinguish it from Service Requests. Despite Projects being "King" for their lucrative markups, poorly managed ones lead to significant financial losses and damaged Client relationships. Autotask is a comprehensive and affordable tool for managing Projects within an MSP, though portfolio management may require external solutions like Excel.