Rob Wilburn25:26
Thanks Kevin. Okay, great. Well, first of all, great to see everyone, especially after last night. There are a couple folks that rolled in this morning that we all gave a big sigh of relief that they were here and wearing different clothes and ready to go. So as Kevin talked about, we've got product success, you talked about account success, and then this third piece of the triangle is business success. Really, the mission of the business success group and our initiative here is to help you grow your company. It's to help you build enterprise value. It's to help you change the trajectory of your growth. So we're going to talk about a couple of these programs. Over the last year, myself and Chris Massey, and by the way, how many people know Chris Massey? Does anybody? Yeah, a lot of hands. If you know them, you know them. Chris is a great guy. He's a former MSP, was part of a group that grew from about 30 people to 300. Brings a tremendous amount of expertise. Great guy. So he's kind of a partner in crime with this. So over the last year, we've done deep dives with more than 150 MSPs where we've really gone deep into their business, and two things jumped out from those meetings. Number one, the top MSPs are playing a different game. What we mean by that is they're not just incrementally better than the average. The way they're running their companies, like maybe it's somebody who's really good at growth, they're really good at operations. It's almost like they're playing a completely different game than everyone else. So that's one thing. The second thing is most MSPs we found are undergoing some type of business transformation challenge. What I mean by that is there's probably a lot of groups here that might be between, let's say, 10 to 25 employees, and you've built your business by doing managed service for what's called sub-75 seat companies. I see some people nodding their heads. So you get to this point in your 15, 20 people, and you're starting to think, well, what do I need to do to go to 30 people or to go to 40? And can I get there doing the same things that I've done before? Many of you are probably familiar with the Marshall Goldsmith quote or question: 'What got you here won't get you there.' So we hear these companies asking themselves the question, well, can I double in size doing the same thing I've been doing? Sometimes the answer is yes, usually the answer is no. And it's not just companies like that. We'll talk to another cluster of companies that are maybe the four or five million in revenue, and they're thinking how do I go from four to five million to 10 million? And again, they're asking themselves, okay, I've built my business doing a certain type of service offering to a certain type of customer, a certain type of operational setup. Can I get to 10 million doing the same thing? Again, a lot of times the answer is no. Maybe you go upmarket. We were talking yesterday about co-manage. Maybe it's going upmarket or changing operations. So if we go to the next slide here, what we launched earlier this year is a set of what we call business transformation programs. We launched them back in February. There's some people in the room here that were part of that group. In fact, if you were at one of the eight or nine programs this year, can you just raise your hand? We should have about 40 or 50 people. Okay, so good number of people. There's about a hundred people that have gone through it. I think we've got about 40 or 50 here in North America that are here. So here's what we do. We bring up to 30 people, so we usually max at about 30, into a room together for two days. There's no program cost, so you pay your travel. Once you're there, the meals and everything is on us. And we typically ask companies to send two people, so either the owner, the CEO, if you're part of a larger company the head of the MSP group, and then somebody doing service delivery or operation. So this is not a technical discussion, it's a business discussion. And we have a variety of topics. So we have one program around operational efficiency, and we look at how do you go from here on your net profit to best in class. It's not a readout, it's what we call expert-led, peer-informed. So we bring in folks, practitioners in the industry, to facilitate the conversation. There's a lot of healthy debate that goes on. It's good that everybody's friends afterwards, but there can be some heated discussion, which is great. Many of you know Dave Wilkinson. He's one of the practitioners. I don't know if he's in the room here, but he leads the operational efficiency. We had some of the guys from Fortress that spoke yesterday that came down and helped on the security program we did. So actually, if we go to the next one here, the feedback has been tremendous. One of the things I'm really proud of is we have every single person that comes through the program, as part of the program before they leave, they fill out a 30-question survey. I know by the way you all are trying to get that with your customers, right, with CSAT, and we're going to talk about the benchmark in a second. And you know, we have a sense of how you guys are trying to get more CSAT from your engagement with your clients. So we have 100% of the people fill out a survey. Performance one of the things we're really proud of is of the nine programs we've run this year, every single program has scored higher than a 4.9 out of five. And you think about that, that's really tough to get. Like most of us are kind of critical people, right? So you're going to put a four here and there, but they've all averaged over 4.9. And it's been great at this program to see somebody say it's kind of like a fraternity to see all these business owners seeing each other. We spin out peer groups from them, etc. But even more than the score, what I'm really excited about is the actual transformation that's happening in people's businesses. So I'm gonna share a story, and I asked these guys the other night if I could share it. So at the drinks on, I guess it was Monday night, the Analytics guys, are you guys here in the room? I forget. Yeah, yeah, there we are. So I asked Brian and Chris if I could tell this story. They by the way are one of the largest groups in this room, so they're about 300 employees. So you would think if anybody's got everything figured out, it's these guys. And by the way, these guys have a lot figured out. I'm really impressed. These guys have got an incredible business. But they came down in April, May to this two-day program around co-managed growth. And one of the things Chris Massey talks about is we look at five different areas where we see MSPs leveraging co-manage to grow their business. So one of the areas we talk about is patches of service, which a lot of people overlook. And so at drinks the other night, Brian and Chris told me, hey, guess what? And by the way, remember this is only four months ago that they went to this. We've launched this new patches of service offering, and we've gotten our first customer from it. That's awesome, right? Think about that in four months. You've got to package it, you got to get your sales team trained up. And in fact, if anybody's interested, you can look up Chris. After you told me about the press release, I looked it up. If you just search 'Analytics patches of service,' you'll see a bunch of press releases that they did around it. So anyway, and then there's just a whole bunch of other owners here that have talked about things they've put in place and things they've changed about their business since the programs. So if we go to the next slide, I want to close my section here. So those are the on-site programs, and I'm going to talk in a second about how you can get involved. Something I'm really excited about is this benchmark we launched. We wanted to launch what we thought was an innovative new way of benchmarking against your peers. So it's in Tableau online. There's no cost. There's a number of people here that have come on this year. We personally onboard every company because one of the things that's important is to normalize the data. Some of you pay yourself as salaries, some of you pay yourself through owner distribution, so we have to normalize stuff like this. And what we do is tie together. So first of all, you don't see a single point average, you see a distribution. Because the single point average you don't know what the story is. The distribution lets you see where you fit in the context of your peers. And what's really exciting is how it helps you think about your business. So if we think about net profit, we know depending on what benchmark you use, we know the median in the industry. So the median's about eight percent. So then you think, well, okay, so if I'm a company, let's say eight percent, and I want to get to best in class doing 20 or something north of that, how do I get there? Well, what we do with the benchmark in these programs is we then peel the onion. So the number one thing driving people's net profit is their labor loaded gross margin. And Dave Wilkinson talks a lot about this in the programs. So in other words, it's the profitability of your delivery of your services. Most MSPs don't actually have their books set up right to actually track it. So then you go to the labor loaded gross margin, and we know best-in-class companies are getting 60%, but most companies are in the 40s. And so that's hurting your bottom line. And you say, well, why am I in the 40s on my labor loaded gross margin? So then you dig in, you say, well, how does my service or my labor cost compare to my peers? And you say, oh, okay, well, so maybe I'm high on that. And then you look at well, how many devices per tech? I'm only doing 200 devices per tech, and we got other companies doing 400. So what are they doing different? And then you get into some of the operational. Of course, you won't be able to see here, but what percentage of tickets am I remediating through automation? Percentage of tickets with first touch resolution? And it just becomes a powerful conversation starter. So there's a couple ways to get involved with all of this. Number one, we've got some sessions today. So there's a session after lunch on the business transformation programs where you come on site. There's a session later on the benchmarking program. We've got a table in the expo hall. You can come by there. You can just grab me, grab Chris, just grab anybody from Enable and say 'benchmark business transformation.' So anyway, it's great to see everyone here, and I'll hand it back to you to talk about Market Builder.