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Cost of Goods and Services Sold (COGS)The total cost of manufacturing and delivering products and services. This includeslabor, material, service and delivery expenses; this number can influence MSPpricing strategies, and provides helpful insight as to what it actually costs to delivergoods. This can be difficult to estimate in a services business, so make sure you’retracking your technicians’ time closely so you can be more accurate in your COGScalculations.Calculation:Labor Costs + Material Costs + Service & Delivery CostsGross ProfitabilityAn essential metric for any business, gross profit reveals how effectively anorganization is balancing production and labor costs with pricing and servicedelivery.Calculation:Total Revenue – Cost of Goods SoldClient Contribution (CC)A great figure for MSPs, client contribution is an important metric in understandingthe value that each of your customers generates, and helps in determining how youcan grow your business. It can also help you find some clients that are unprofitable.It should reflect both the total number of dollars generated by each client as well asthe cost of providing services and offerings to those clients.Calculation:Revenue per Customer – Cost of Goods and Services Sold to ThatCustomer5.Review its effectivenessEstablishing a system to measure and monitor the effectiveness of your strategicplanning can greatly enhance the impact of the process and lead to greater success.An effective measurement system enables management to address areas of non-
performance or underperformance by implementing corrective actions. Lessonslearnt can also be fed into future planning activities to achieve improved outcomes.The following provides more information about how to review the strategic plan.There are many ways to review strategic planning. These include:consulting with key stakeholdersdistributing questionnaires or feedback performance debriefing before developing new strategic plansconducting a review meetingbenchmarking with peers, departments or even competitorsrating overall outcomes against objectives to identify areas for improvement