Service Leadership
Total Profit Solutions for IT Companies®
Service Leadership Index®
- Product GM% - BIC Profit SPs: Q2-11 25.3% Q3-11 26.6% Q4-11 27.2% Q1-12 26.9%
- Product GM% - Median Profitability SPs: Q2-11 20.5% Q3-11 19.2% Q4-11 19.7% Q1-12 22.3%
- Product GM% - Bottom 1/4 Profitability SPs: Q2-11 20.5% Q3-11 18.5% Q4-11 14.8% Q1-12 18.8%
- Services GM% - BIC Profitability SPs: Q2-11 54.9% Q3-11 52.2% Q4-11 52.8% Q1-12 53.7%
- Services GM% - Median Profitability SPs: Q2-11 50.1% Q3-11 48.1% Q4-11 46.4% Q1-12 46.8%
- Services GM% - Bottom 1/4 Profitability SPs: Q2-11 41.0% Q3-11 42.9% Q4-11 38.8% Q1-12 39.5%
- SG&A% - BIC Profitability SPs: Q2-11 26.2% Q3-11 26.1% Q4-11 27.6% Q1-12 27.8%
- SG&A% - Median Profitability SPs: Q2-11 31.9% Q3-11 30.3% Q4-11 29.8% Q1-12 30.0%
- SG&A% - Bottom 1/4 Profitability SPs: Q2-11 34.6% Q3-11 36.9% Q4-11 35.4% Q1-12 33.2%
- EBITDA% - BIC Profitability SPs: Q2-11 19.2% Q3-11 17.8% Q4-11 17.7% Q1-12 18.3%
- EBITDA% - Median Profitability SPs: Q2-11 7.3% Q3-11 6.8% Q4-11 5.9% Q1-12 7.5%
- EBITDA% - Bottom 1/4 Profitability SPs: Q2-11 −1.1% Q3-11 −2.7% Q4-11 −5.6% Q1-12 −1.0%
Quarterly Solution Provider Performance
Service Leadership’s 2011/12 Annual Solution Provider Compensation Survey is Now Open!
A sampling of 2010 results and announcement of 2011/12 survey – participate now and we’ll waive the $399.00 fee! To qualify, you must complete your data entry by November 30.
- What is “market pay” for more than 50 Solution Provider positions?
- What is the staff-to-management ratio of top profitability Solution Providers, by business model?
- How much is allocated to incentive pay, for each position and seniority level?
- What do owners make, by specific business model and company size?
- And more…
The results are broken down by region and by Tier 1, Tier 2 and Tier 3 cities, and by Predominant Business Models©, Service Leadership’s exclusive method of ensuring applicability to your specific business needs.
Some ways Solution Providers used last year’s edition:
- A $45.4mm Solution Provider needing to trim costs, determined their staff compensation was at market but their management compensation ranged from 6% to 18% high compared to market, enabling them to better compare performance relative to pay and decide on headcount cuts and pay increases.
- A $3.8mm MSP seeking higher margins, was able to identify that top-performing MSPs paid their technical staff 17% less than they did, compelling them to examine how they could reduce the skill levels needed to serve customers well. This led to a campaign to standardize clients’ technology stack, which improved automation and reduced skill needs, resulting in lowering their average technical pay by 9%.
- The owner of a $4.2mm Solution Provider, seeking to replace himself with a hired CEO so he could pursue other interests, learned what market pay was for a CEO of sufficient talent to do his job. As a result, he was able to put into action, plans to drive performance to a level that allowed him to afford the hired CEO while still putting enough to the bottom line to enjoy suitable distributions.
If you enter your data after November 30, the report costs $399.00, but it’s no charge to those who enter their data before then. You’ll receive the confidential, 100+ page report in early January, 2012.
Here are more examples of the actionable, specific analysis you’ll get (taken from last year’s report):
Sample of the data for one of 50 Solution Provider positions:
Sample of a management position, in this case, Sales Managers:
Sample of owner compensation by Predominant Business Model© and profitability:
Sample of manager compensation by size of firm and profitability:
The 2011 report will contain:
- More than 50 pages of position-specific data,
- More than 12 pages of geography-specific breakdowns,
- More than 15 pages of guidance and analysis for management decision-makers in all departments.
The S-L Index™ 2011/12 Annual Solution Provider Compensation Report is normally $399.00, but if you complete your data entry by November 30, you’ll receive it at no cost. After November 30, you can still buy the report for $399.00.
Don’t delay: click here to enter your data now!