ConnectWise Exec On Automation, Peer Groups And MSP Profitability
‘We’re committed to providing MSPs with a broader selection of solutions, even from competitors, to help them make more informed decisions,’ says ConnectWise’s Peter Kujawa.
“The first step is to benchmark your business and understand why profitability is struggling,” said Kujawa, executive vice president and general manager of service leadership and IT Nation at Tampa, Fla.-based ConnectWise. “Once you understand the root cause, make the tough decisions to fix it. The top MSPs are successful because they are willing to make decisions quickly and act on them.”
To help guide MSPs, ConnectWise launched a quarterly newsletter titled “Service Leadership” to offer practical advice for MSPs that they can apply directly to their business. The first edition, titled “How MSPs Saved The World ,” covered how MSPs helped businesses transition to remote work during the pandemic while also offering strategies for preparing for future disruptions.
“We’re committed to providing MSPs with a broader selection of solutions, even from competitors, to help them make more informed decisions,” Kujawa told CRN in an interview at ConnectWise IT Nation EMEA in London. “This is part of our open ecosystem approach, which prioritizes choice and flexibility for MSPs, allowing them to access a wide array of products and services.”
Future editions of the newsletter will delve into critical topics like cybersecurity, AI and automation. ConnectWise’s peer groups also provide a collaborative environment for MSPs to share challenges and solutions while benchmarking against industry leaders.
“The accountability and support from peer groups are invaluable,” he said. “Knowing you’ll report back on your progress every quarter fosters a strong sense of responsibility to drive change. It’s about learning, growing and succeeding together.”
CRN spoke to Kujawa about ConnectWise’s peer groups, MSP profitability and what MSPs should focus on to scale their business.
During your keynote you mentioned the impact of peer groups on MSP success. Could you elaborate on why these peer groups are so effective?
The Evolve peer groups offer a unique environment where members benchmark with best-in-class service leadership from day one. This benchmarking not only shows you where you stand but creates a culture of accountability within the group. When you know that you’re going to report back each quarter on your progress, there’s a powerful sense of responsibility to drive change in your business.
Beyond accountability, peer groups offer something invaluable—other business owners who are facing similar challenges. You can bounce ideas off each other, share best practices and ultimately build a recipe for success without having to reinvent the wheel. Plus, every quarter there’s fresh content to learn from, like leadership strategies or best practices for scaling. It’s a combination of benchmarking, education and community support that makes these groups so effective.
What’s your vision for expanding the IT Nation community, especially in Europe?
We’re focused on providing more support and resources for the IT Nation community in Europe. We’ve recently hired a new team member to manage the Evolve community in Europe and expanding the team and infrastructure behind the scenes is critical as we scale. We’re particularly keen on growing beyond the U.K. and reaching more partners in Ireland, mainland Europe and even in Belgium where we’ve established a new office. Our partnership with SkyKick and Axcient is crucial in extending our reach across Europe, and we believe the European MSP community is eager for the type of support and growth that IT Nation offers.
How important is ConnectWise’s open ecosystem approach for MSPs?
The open ecosystem approach really benefits MSPs because they know that when they attend our events, they’re exposed to more vendors than they would be at other industry events. It’s about offering choice and flexibility. Our goal is to give MSPs access to a wider range of products and solutions, even from competitors. This exposure allows them to make more informed, objective decisions for their business.
Ultimately, even if MSPs choose a product that isn’t ConnectWise, they’ll still be in a better position because they’ve learned from diverse voices and gained valuable insights. The MSP community is incredibly collaborative, and our open ecosystem really aligns with that collaborative spirit.
How does ConnectWise use MSP profitability data from surveys to improve its offerings?
Data is a core part of how we help MSPs improve their operations. Since we acquired Service Leadership [in 2021] we’ve been using the data to drive key decisions behind the scenes, particularly on product design and go-to-market strategies. For example, we’ve significantly reduced the price of Service Leadership offerings, making them far more accessible. So by providing benchmarking data to our partners, we enable them to make data-driven decisions that help them become more profitable. If MSPs are more successful, they grow faster and ultimately consume more products. It’s a win-win situation.
What advice would you give to any MSPs struggling to improve profitability?
The first step is to benchmark your business and understand why profitability is struggling. Is it your pricing, your staffing or maybe your marketing strategy? Often, MSPs overstaff in areas like Level Two and Three technicians while neglecting Level One support. Other times, it’s a matter of not having the right incentives in place to align employee performance with business outcomes. Once you understand the root cause, make the tough decisions to fix it. The top MSPs are successful because they are willing to make decisions quickly and act on them. Whether it’s changing pricing structures or adjusting your team composition, those tough decisions drive success.
With changing market conditions, what advice do you have for MSPs to stay competitive and profitable in the coming years?
First and foremost, embrace automation. It’s a key driver of efficiency and, over time, will improve your service gross margins. But you can’t expect to implement automation overnight. You need to be deliberate and dedicate the necessary time and resources to get it right. Second, with organic growth returning to more normal levels, MSPs need to focus on the fundamentals. Be detail-oriented in how you manage your business, from hiring to operational efficiency. And lastly, don’t skimp on sales and marketing. Our data shows that top MSPs invest about 14.5 percent of their gross margin in sales and marketing. This investment helps them grow and add new customers in an increasingly competitive market.
