“Service Leadership Index benchmark numbers are excellent. It helps me understand what gross margin I should be making on managed services.”
“The insights from Service Leadership Index benchmarking have been crucial in aligning our team on key metrics like gross margin and SG&A expenses. The quarterly OML assessments using SLIQ have been a game-changer for our internal consistency and strategic planning.”
Based in New York, Cornerstone.IT is a managed service provider (MSP) specializing in IT services for the legal industry. Founded 22 years ago by brothers Jim and Tommy Moreo, the company initially focused on project-based IT services but transitioned to managed services about a decade ago.
From Project-Based Beginnings to Managed Services
Initially, Cornerstone.IT required high-level engineering skills for project work, which involved specialized, short-term tasks. However, managed services demand a different skill set focused on ongoing monitoring, maintenance, and customer support. This shift meant retraining existing staff and hiring new employees with the appropriate skills for managed services. Balancing the expertise required for complex project implementations with the routine, yet critical, tasks of managed services created a significant challenge in finding and developing the right talent.
“To navigate these challenges, we reached out to Service Leadership and started leveraging their tools - Service Leadership Index and SLIQ to help us navigate the transition to managed services,” said Jim Moreo.
Putting Data and Best Practices to Work
Cornerstone.IT took several key actions to address their challenges:
- Quarterly Benchmarking: Each quarter, Cornerstone.IT benchmarked using the Service Leadership Index. The reports provided insights into their financial performance compared to their own progress and best-in-class benchmarks in areas such as gross margin, administrative, and sales and marketing expenses. This real-time data helped identify what was working, areas for improvement, and where to invest and save money.
- Customer Action Plan in SLIQ: Based on diagnostics, they created a detailed, prioritized progression plan tailored to their firm’s needs based on the Operational Maturity Level™ (OML™) score. Actions were assigned to team members, and progress was monitored through regular OML reassessments. The team remained accountable and on track to reach their goals.
- Implementation of Best Practices: They adopted prescriptive best practices provided by SLIQ, which included tools, videos, white papers, and templates. These resources helped guide their team through the necessary steps to achieve higher performance and profitability.
- Ongoing Support and Training: They participated in ongoing live webinars and utilized other support resources to continuously improve their processes and stay updated with best practices.
The tools helped Cornerstone.IT navigate the transition to managed services more effectively, balancing the need for high-level engineering skills with the demands of ongoing monitoring and customer support.
Leveraging Service Leadership for Strategic Guidance and Operational Standardization
Timing is everything. With the passing of Jim’s brother Tommy, “there was a dramatic change – both personally and professionally. It was no longer Jim and Tommy bouncing ideas off each other.” This underscored the need for external guidance, leading Jim Moreo to rely more heavily on Service Leadership as his “ideas partner.”
“Service Leadership has been instrumental in helping us focus on the right size, vertical, and market. Defining our target customer profile has been invaluable in concentrating our efforts on the right market segments,” said Moreo.
An example is Cornerstone.IT needed to standardize and solidify their technology stack. Service Leadership helped them identify the services to offer, including pricing, and the steps needed to standardize their technology stack.
“We are our own biggest competitor. We have to take control and take advantage of tools like Service Leadership Index and SLIQ. Both have provided us with valuable benchmarking data and best practices that have significantly improved our business.”
Long-Term Commitment to Continuous Improvement with Service Leadership
Jim Moreo emphasized that the process of integrating Service Leadership’s tools is ongoing and requires a long-term commitment to fully realize its benefits. This commitment involves regular OML reassessments and continuous improvement to align with industry benchmarks. The strategic insights gained have been crucial in refining their service offerings and enhancing overall business performance.
Overall, the partnership with Service Leadership has been instrumental in Cornerstone.IT’s evolution and success in the managed services space.
