Standing at the Data Crossroads: Simplify, Organize and Act on What Matters

For MSP business owners, dealing with data is like standing at a busy intersection with traffic coming from all directions. You know managing and analyzing data is crucial but figuring out where to start—or even what matters—can feel overwhelming. If you’ve been asking yourself how to manage data pouring in from multiple systems, you’re not alone.

During a panel discussion at ChannelCon 2024, four channel leaders discussed their experiences in dealing with data, explaining how to organize data, make it work for you and steer clear of common pitfalls that commonly trip up the best of us.

How to Think About Data

The first step in data management is understanding its value, the biggest of which might be removing blind spots from decision-making. As Sean Lardo, ConnectWise evangelist put it, “CEOs lie. Every one of you owners lie, because you do it off the gut.” He said overwhelmed business owners understandably rely on instincts instead of hard data, which leads to missed opportunities. “You think you're better than you are, and that's why you don't realize what you're missing,” Lardo said.

Instead, referring to well-managed data can reveal gaps in your business and boost revenue. Data gives you a clear, unbiased view of where your business is underperforming and where adjustments can be made, leading to more efficient processes and immediate growth. Lard said he has seen even small data-driven tweaks spur a 10-15% revenue increase in just a few months.

How to Organize Data

Having data is one thing, but making sense of it requires organization. Data must be compartmentalized into a structured repository. Without a system in place, data becomes noise—hard to manage and even harder to act on.

Bob Buda, president of Buda Consulting, suggests breaking data into three categories: Past, present, and future.

“For tomorrow, we're looking at our leading indicators,” he said. “For today, we're looking at our trailing indicators. For yesterday, we have a three-year rolling window.” Such categorization helps provide insights from different time perspectives and identify trends that will shape future decisions.

Because information will be split in various ways across the typical tech stack, it’s also important to declare a system of record to ensure data consistency across different platforms, Buda said. “Declare one system that if there's ever a discrepancy, that one system is the one that wins.”

One pitfall to avoid is failing to understand how different tools integrate. Lardo highlighted the importance of evaluating how your vendors’ systems work together, cautioning against tools that don’t offer seamless integration.

“Make sure you have conversations with vendors and see how integration works. Ask for a demo on how their product works with your PSA or other tools,” he said. And if they won’t show you that before you sign on, walk away.

Deciding What Data Matters (and What Doesn’t)

Not all data is created equal, and MSPs often struggle to decide which data points deserve their attention. MJ Patent, chief marketing officer at Logically, advised “Think about what your goals are and what data matters to you at this moment in time. From there, start paying attention to, where can I tweak to make my business better?”

For example, profitability and revenue are essential metrics for most businesses, while email click-through rates may not be worth tracking in many cases, Patent said. The key is to identify the data that drives business impact. For instance, understanding where your leads are coming from or how much time you’re spending on each customer can be game-changing insights.

However, data isn't static. “You have to revisit your data regularly because the landscape is always changing,” Buda said. A three-year rolling window on performance can help you see evolving trends, but it's important to keep refining your approach as your business grows and changes.

Making Data Actionable

One of the biggest hurdles MSPs face is turning raw data into something actionable. Yet actionable data leads to better decision-making, especially when aligned with clear business processes.

“Playbooks are great,” Lardo said. “If you provide a process, write a playbook, get scripts, then you start to get the ability to put action items on data.” Whether it’s in sales, marketing, or service delivery, having clear processes allows you to pinpoint inefficiencies and make necessary adjustments.

Buda added that dashboards are key for translating raw data into insights. “It's much easier to look at charts and graphs than tables full of numbers,” he said. Dashboards allow you to visualize trends and act on real-time insights, turning complex data into simple, functional information.

Finally, added Patent, “Standardize how you name companies. It will save you so much time.”

Who Is Ready for Predictive Analytics?

While advanced tools like predictive analytics are gaining attention, not every organization is ready to leverage them. “I wouldn’t tell anyone to go into predictive analytics until you have a significant amount of data to harness,” Patent said. She added that may also require a dedicated team, as well as significant cost.

Panelists agreed MSPs should focus on mastering basic data reporting and analysis before jumping into other advanced tools like AI or machine learning. As Buda said, “You have to understand the right questions to ask before you use AI, or you’ll end up chasing the wrong problems faster.”

Identifying Stakeholders

One crucial aspect of data management is knowing who your stakeholders are and understanding how they use data. Lardo said that the stakeholders within an MSP often range from the CEO and CMO to sales reps and service desk managers. “Even the sales rep is a data administrator because they’re the ones providing the data,” Lardo said.

He added that it’s important to ensure that each department has clear visibility into the data relevant to their role. That way, stakeholders can make informed decisions and provide feedback on what's working or not.

A persona-based dashboard—one tailored to the specific needs of each role—can help ensure that everyone is focused on the right data points. Importantly, the people in those roles should be informing what data should be tracked. CEOs are too far from that work to try and dictate those details, Lardo said.

Start Soon But Small

For MSPs embarking on their data journey, start small. Panel moderator Lisa McGarvey, vice president, data, AI & IoT, solutions, verticals & alliances at TD SYNNEX, suggests testing the waters with a single project before diving into complex initiatives like automation or AI. “Start with a small understanding of those outcomes. You’re not going to take on everything at once,” she said.

How are your peers handling data?

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