Part 4 - Measuring Success: The KPIs Every MSP Should Track

Introduction

Data is the backbone of effective service management, but not all metrics are created equal. Many MSPs track too many KPIs, or the wrong ones, or measure things that don’t actually drive improvement.

This article outlines the KPIs that truly matter and how MSPs can use them to measure success, improve performance, and demonstrate value to clients.

The KPIs That Actually Matter for MSPs

1. Mean Time to Resolve (MTTR)

MTTR reflects efficiency and service quality. It helps identify bottlenecks, training needs, and operational issues.

But beware, lowering MTTR shouldn’t mean rushing tickets. It should mean fixing issues correctly the first time.

2. First Contact Resolution (FCR)

A high FCR rate reflects:

• good documentation

• knowledgeable technicians

• correctly categorized tickets

• fewer needless escalations

Clients love quick resolutions and this KPI directly impacts satisfaction.

3. SLA / SLO Performance

Instead of “SLA met vs. missed,” monitor:

• SLAs by category

• SLAs by engineer

• SLAs by time of day

• SLAs by ticket source

This reveals patterns, not just failures.

4. Change Success Rate

Changes that cause outages create client frustration and hurt trust. Track:

• % of failed changes

• change-related incidents

• emergency vs planned changes

This KPI is essential for cloud and security operations.

5. Ticket Backlog & Ageing

A growing backlog signals operational strain. Older tickets are often tied to:

• unclear ownership

• poorly defined services

• process gaps

• low visibility

• technical debt

Monitoring backlog helps MSPs stay ahead rather than fall behind.

6. Customer Satisfaction (CSAT) or XLAs

Ticket metrics don’t mean much if clients are unhappy. Use short, simple surveys to capture sentiment, ideally immediately after resolution.

Experience is the ultimate KPI.

How MSPs Should Use KPIs in Practice

1. Focus on trends, not one-time snapshots

Data tells a story over time, not in a single monthly report.

2. Tie KPIs to continuous improvement

If MTTR rises, investigate. If change failures increase, review governance. If backlog grows, adjust staffing or workflows.

3. Use KPIs in QBRs to demonstrate value

Don’t show clients ticket volume. Show them improvements:

• reduced recurring incidents

• improved SLA performance

• reduced outages

• increased user satisfaction

KPIs should tell a performance story that clients understand.

Conclusion

The right KPIs create clarity, improve decision-making, and strengthen customer relationships. When MSPs measure what matters and act on it, service management becomes more predictable, efficient, and value-focused.