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vCIO Acronyms and Best Practices

Updated over a week ago

Top things every MSP should know about vCIO Mastery.

Key Acronyms

  • MSP: Managed Service Providers package technology solutions into a predictable monthly amount.

  • vCIO: Virtual Chief Information Officers are people who align technology strategy to the goals of the business.

  • QBR: Quarterly Business Reviews is a process done quarterly or yearly to review client risks and create a strategy.

  • TSM: Technology Strategy Meeting is Strategy Overview's term for the structured client review process that replaces the traditional QBR.

  • OML: Operational Maturity Level is a framework for measuring how mature a client's IT environment is.

vCIO Best Practices

How many TSMs a year?

A good baseline is to meet with clients based on how many thousands they pay per month:

  • $1,000+/month: meet 1 time a year

  • $2,000+/month: meet 2 times a year

  • $4,000+/month: meet 4 times a year

  • $12,000+/month: meet 12 times a year (and maybe a weekly standing status call)

It's not a hard rule, just a guideline for setting yearly meeting targets. Major deviation from these guidelines has proven to be an indication of client relationship or technology risk increases.

One vCIO should handle roughly 100k in Managed IT Agreements

  • One vCIO should be able to handle 80-120k in managed revenue.

  • "Managed IT Agreements" does not include 3rd party cloud product resale (Office 365, hosting, Azure, Datto, etc.). Only what you bill for managed users/computers.

Have a vCIO board and bill toward agreement

  • You should have a dedicated service board for your vCIO.

  • The burden cost of the vCIO and the board should be hitting your Managed Agreement profitability. It is a service you provide. Do not treat it as a function of sales.

Invest in your vCIOs

  • The vCIO is one of the most powerful and impactful team roles in your MSP.

  • Teach your vCIOs about business. Level them up.

  • Send them to conferences.

  • Give them whatever tools they need for success.

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