Service Leadership
Total Profit Solutions for IT Companies™
Service Leadership Index™
- Q/Q Revenue Change - BIC Profitability SPs: Q1-09 16.1% Q2-09 168.3% Q3-09 -75.7% Q4-09 6.3%
- Q/Q Revenue Change - Median Profitability SPs: Q1-09 -38.4% Q2-09 15.4% Q3-09 32.3% Q4-09-22.9%
- Q/Q Revenue Change - Bottom 1/4 Profitability SPs: Q1-09 1.9% Q2-09 16.5% Q3-09 -42.5% Q4-09 20.7%
- Product GM% - BIC Profitability SPs: Q1-09 23.4% Q2-09 24.3% Q3-09 25.1% Q4-09 23.5%
- Product GM% - Median Profitability SPs: Q1-09 17.2% Q2-09 23.8% Q3-09 18.6% Q4-09 19.3%
- Product GM% - Bottom 1/4 Profitability SPs: Q1-09 25.1% Q2-09 27.9% Q3-09 15.5% Q4-09 10.8%
- Services GM% - BIC Profitability SPs: Q1-09 53.6% Q2-09 50.5% Q3-09 54.9% Q4-09 53.5%
- Services GM% - Median Profitability SPs: Q1-09 47.5% Q2-09 31.9% Q3-09 46.3% Q4-09 44.9%
- Services GM% - Bottom 1/4 Profitability SPs: Q1-09 41.6% Q2-09 38.7% Q3-09 44.1% Q4-09 36%
- SG&A% - BIC Profitability SPs: Q1-09 29.1% Q2-09 38.1% Q3-09 26.4% Q4-09 29.8%
- SG&A% - Median Profitability SPs: Q1-09 35.3% Q2-09 35% Q3-09 29.9% Q4-09 32.1%
- SG&A% - Bottom 1/4 Profitability SPs: Q1-09 42.8% Q2-09 35.7% Q3-09 39% Q4-09 46.3%
- EBITDA% - BIC Profitability SPs: Q1-09 17.7% Q2-09 13.6% Q3-09 21.9% Q4-09 16.5%
- EBITDA% - Median Profitability SPs: Q1-09 4.0% Q2-09 -1.8% Q3-09 6.9% Q4-09 4.2%
- EBITDA% - Bottom 1/4 Profitability SPs: Q1-09 -9.7% Q2-09 -14% Q3-09 -2.6% Q4-09 -16.6%
- Q/Q Headcount Change - BIC Profitability SPs: Q1-09 15% Q2-09 164.2% Q3-09 -71.4% Q4-09 0.9%
- Q/Q Headcount Change - Median Profitability SPs: Q1-09 -32.5% Q2-09 57% Q3-09 -41.9% Q4-09 -23.5%
- Q/Q Headcount Change - Bottom 1/4 Profitability SPs: Q1-09 12.2% Q2-09 62.3% Q3-09 -48.6% Q4-09 7.6%
Quarterly Solution Provider Performance
The Solution Provider Profitability Survey™ Frequently Asked Questions
The Service Leadership Solution Provider Profitability Survey™ is the respected survey tool used by SPs nationwide to benchmark financial performance.
Will the data that I provide be kept confidential?
Service Leadership has earned the trust of Solution Providers worldwide since starting the Service Leadership Index™ in 2001. The Confidentiality Agreement at the start of the survey defines the commitment Service Leadership makes to maintain the confidentiality of your data. Your data remains within S-L's confidential and secure system at all times. Service Leadership may publish its analysis of financial and operational information provided by you and other survey participants, but only on an anonymous, aggregated basis. No information that could identify you or other participants will ever be disclosed.
How will Service Leadership use the information that I provide about my company?
Service Leadership aggregates and analyzes financial and operational information provided by participating Solution Providers (SPs) and uses it to produce and publish a variety of industry benchmark performance reports including The Annual SP Industry Profitability Series: Full Report™. These contain no individual company data. Should you choose to purchase the SP Profit Performance Package: Comprehensive™, your company's individual data will be used to produce for you only, a confidential report that compares your company's performance to the industry averages for best in class, mid-range and low performing Solution Providers.
What are the benefits of taking the survey?
Many participants report that simply completing the survey has provided valuable insight about how to organize their chart of accounts and about new ways for looking at critical metrics which enabled them to better manage their businesses.
What information do I need on-hand when I take the survey?
To streamline the completion of the survey form, we suggest that you have the following items on hand:
- Detailed income statement (P&L report) for 2007 and projected 2008, showing revenue and gross margin by major lines of business.
- A current organization chart.
Please note that the survey form must be completed all at once; for confidentiality purposes, the system does not allow you to save and retrieve partially completed surveys.
How long does it take to participate in the survey?
The Solution Provider Profitability Survey™ tool walks you through the key information needed to assess financial performance in just 60-90 minutes. The 60-90 minutes you invest in entering the data will yield significant dividends with financial performance information that will enable you to make the best decisions for your business. Gathering the information you need prior to your survey session is highly suggested to make the process as efficient as possible. Please note that the survey form must be completed all at once; for confidentiality purposes, the system does not allow you to save and retrieve partially completed surveys.
Why does it take so long to complete the survey? Do you really need that much detail?
The 60-90 minutes you invest in entering the data will yield significant dividends with financial performance information that will enable you to make the best decisions for your business. Great effort has been put into balancing the length of the questions against the value of the report you receive. Reducing the form further would result in a significantly less useful report. However, many companies report that just answering the questions has given them valuable insight into their businesses and new ways of looking at metrics.
Is there a limit to the number of times a company can take the survey?
Yes. Each company can take the survey only once per year.
What is the difference between the Annual SP Industry Profitability Series: Full Report™ and the SP Profit Performance Package: Comprehensive™?
Combined, these reports provide SP executives with powerful tools for assessing and improving the performance of their current business models while guiding strategic decisions for future success.
The Annual SP Industry Profitability Series: Full Report™ provides a detailed view of Solution Provider industry trends and performance factors, as well as insightful benchmark information that SP executives use to make better decisions that profitably grow their businesses. This report includes actionable industry information across the following categories: Basic Financial Health by Business Model and Geography ¥ Vertical Market & Customer Size Selection ¥Lead Generation ¥ Gross Margin Performance by Line of Business ¥ Labor Efficiency in Service and Sales, and more. The data you provide is aggregated into the analysis but is not visible at the individual company level.
In contrast, the SP Profit Performance Package: Comprehensive™ delivers a customized assessment of your company's current business model providing comparisons of your individual financial performance to that of SPs with similar business models. For example, if your primary line of business happens to be Managed Services, the Comprehensive Profit Performance Package report will assess your financial performance comparing it to the best-in-class (top quartile), median and bottom quartile SPs focused on the same business model. Your individual financial performance will also be compared across the best-in-class, median and bottom quartile SPs pursuing the same vertical and size of customer market segments as you. The exclusive SP Profit Performance Package: Comprehensive™ enables you to see exactly how you compare not just to the average Solution Provider, but the best in class of your specific business model. Another distinguishing factor of the SP Profit Performance Package: Comprehensive™ from Service Leadership is that it includes recommendations for optimizing your current business model.
Is survey participation required to purchase the related reports & services?
Participation is not required to purchase the SP Industry Profitability Series: Full Report™. However, participation is necessary to qualify for the SP Profit Performance Package: Comprehensive™ in order to deliver a customized assessment of your company's current business model.
How do I sign up for the survey?
To participate in the survey, purchase one of the Service Leadership Profit Performance resources. Once you've made the purchase, you will receive an e-mail confirmation of your order including instructions for taking the survey.