What is the Service Leadership Index?

The Service Leadership Index is the largest scale, longest running and most accurate benchmark of Solution Provider financial performance, operational maturity and value creation, worldwide. Developed by 30+ year veterans of the industry, the Service Leadership Index includes private diagnostic benchmarks for individual Solution Providers and their business coaches and consultants.

The word "Index" is used deliberately—it is the Solution Provider industry's first detailed, normalized, ongoing measure of revenue, profit and value creation performance.

Why the Service Leadership Index?

The driving passion of Service Leadership is to enable Solution Provider (SP) owners to receive fair (high) value for their risk and the high value they deliver to vendors and end customers.

The top quartile SPs in each business model and in all geographies, earn about 2.5x the bottom line profit percent (EBITDA %) of their median peers, regardless of their size, age, owner compensation, client profile or vendor selections. That is 2.5x the cash flow and 2.5x the stock value, doing essentially the same things for the same client profiles, in every geography. All SP owners should and can perform at this level.

While benchmarking necessarily looks at past performance, past performance is the best predictor of future performance and the only effective way to diagnose management skill and prescribe improvements. Financial benchmarking is the foundation for all likely, sustained improvements in financial performance of SPs. Without an objective comparison of financial performance, the likelihood of improving that performance is compromised.

Without the Service Leadership Index, strategy and tactics to improve profits and growth are materially without foundation.

Aggregate Industry Benchmark Reports

Annual IT Solution Provider Industry Profitability Report

300+ pages

Recognized worldwide as the “solution provider industry's encyclopedia of performance,” this report provides unequalled depth of insight and analysis to companies seeking to maximize growth, profitability, and stock value. You will find a wealth of information about the health and viability of solution providers within each specific Predominant Business Model™ in the industry such as MSP and VAR.

New in the report: Impact of hyperautomation on the solution provider industry, and correlation between customer satisfaction and profitability.

Annual IT Solution Provider Compensation Report

400+ pages

In this compensation report, you'll find a wealth of information about compensation of billable sales and management positions common to IT solution providers. Includes a breakdown of 50+ SP/MSP job roles in sales, service, administrative, management and owners.

You will find insights into variable incentive compensation, average bill rates, and the degree of need and degree of difficulty finding qualified candidates. This information is broken down by region, city tier, and Predominant Business Model.

Individual, Confidential Benchmark Reports & Web App

Service Leadership Index Fundamentals Diagnostic Report

Individual, Confidential Benchmark

A one-time, individual, private benchmark to help you identify strengths and weaknesses, and plan and validate your course of action. Compares your company individually to the top quartile in your specific business model and to median firms across all SP/MSP/CSPs by examining 17 critical profitability metrics including gross margin by line of business; sales; marketing; general and administrative costs; and adjusted for fair market owner compensation. Report includes a basic Operational Maturity Level assessment and recommendations.

Service Leadership Index Web App

Access individual, confidential quarterly benchmark data in a secure and easy-to-use web app
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The confidential Service Leadership Index benchmarking web app provides instant access to 80+ key metrics along with multiple charts and reports for deep dive analysis and action.

Each quarter, you are benchmarked against:

  • Your own previous quarters and year/year
  • Industry average (across all IT solution provider business models)
  • Best-in-class (those in the top quartile of profitability in your specific IT solution provider business model)

See at a glance how your company is financially performing, and how you compare to the top performers in your business model each quarter to determine where improvements need to be made.

Also included in your membership is a basic Operational Maturity Level assessment, Annual Stock Value Creation Performance Chart delivered each January, and access to exclusive quarterly Financial Fireside Chat webinars with S-L experts.

Exclusively in the Service Leadership Index: The Service Leadership Index® Budgeting Proforma Tool helps you set upcoming financial goals, and guides you step-by-step in creating a detailed revenue, COGS, and operating expense budget.

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