By George Liberopoulos (Co-Founder and CEO, Impactology)
This is the first of six, monthly blogs crafted for CEOs and senior executives of MSPs/MSSPs navigating the leadership challenges of rapid growth. Together, we’ll explore strategies to preserve your company culture as you scale and aligning employee development with your business growth ambitions.
At its core, sustainable growth in the MSP world is about setting the right foundation, a theme we’ll explore in this blog as we define what it truly means for your business. We know, a solid foundation in your actions and mindset is essential for resilience in life, building sustainable growth in your MSP also requires establishing a strong, well-planned foundations, balancing ambitious growth with team well-being.
I love supporting the growth and development of employees in the MSP/MSSP space – it’s a dynamic, fast-paced, and exciting industry to be involved with. In a market where services can often feel homogenous, the real opportunity to stand out lies in creating a brand that not only delivers unique solutions but also prioritises exceptional client value. Building strong, lasting relationships with clients becomes your most powerful competitive advantage, setting you apart in a crowded field. Prioritising employee growth is essential for any fast-growing MSP/MSSP; employees need to develop in step with the business to ensure their personal growth aligns with the company’s vision and aspirations.
In the world of Managed Service Providers (MSPs) and Managed Security Service Providers (MSSPs), growth can be both a driving force and a delicate balancing act. While rapid expansion may look good on paper, unchecked growth often strains the very teams responsible for making it happen. Today’s most successful MSPs understand that sustainable growth is a better long-term strategy. Sustainable growth prioritises a balance between scaling up and supporting the people behind that growth, creating a work environment where high performance, employee development and team well-being go together.
What Does Sustainable Growth Mean for MSPs?
For MSP leaders, sustainable growth means pacing expansion to match the company’s capabilities, resources, and the well-being of their teams. The goal is to grow in a way that is both financially viable and human-centered, ensuring your company is set up for continued success. According to research from Harvard Business Review, sustainable growth is linked to two key pillars: a clear, inspiring mission and a culture of ongoing personal development. When these elements are in place, teams perform better, and the growth they achieve is more resilient and lasting.
In practical terms, sustainable growth is about balancing ambitious business objectives with a realistic approach to scaling teams and operations. It’s about creating an environment where employees feel engaged and supported, even as demands increase. Balancing this tension is no small feat. A degree of inertia can set in when Monthly Recurring Revenue (MRR) grows steadily with each new client, tempting senior leaders to overlook or identify inefficiencies in their business model. Yet in the MSP space, where competition is fierce and margins can easily erode, finding a way to expand profitably while maintaining a strong, committed team is crucial.
Checkpoint: Here are two reflection questions to stress-test your thinking:
- Is your current growth strategy balanced with the resources and well-being of your team, ensuring long-term success?
- How are you fostering a clear mission and a culture of personal development to drive resilient, sustainable growth?
“In practical terms, sustainable growth is about balancing ambitious business objectives with a realistic approach to scaling teams and operations. It’s about creating an environment where employees feel engaged and supported, even as demands increase. Balancing this tension is no small feat.”
Balancing Expansion with Team Development
A common pitfall in high-growth MSPs is an overemphasis on scaling without the structure to support it. As companies grow, many end up stretching their teams too thin, expecting them to deliver more without giving them the necessary resources. This approach risks burnout, high turnover, and a diluted company culture.
Sustainable growth, however, requires a strategic approach that keeps team development front and centre. Consider structuring growth to include continuous learning and career development opportunities. For instance, rather than promoting employees and simply increasing their responsibilities, MSP leaders can create development plans that include mentorship, skill-specific training, and clear progression paths. These initiatives empower employees to grow alongside the company, making it less likely for them to feel overwhelmed or unsupported as the business expands.
Studies have shown that companies that prioritise ongoing employee development see higher levels of engagement and productivity. According to Gallup, organisations with strong employee development programs see 21% higher profitability. This is because engaged employees are more likely to go the extra mile, delivering the level of service that sets an MSP apart in a crowded market.
Sustainable growth in a fast-paced, service-driven sector like MSPs requires a deliberate focus on aligning employee learning and development with business objectives. This involves creating a system that integrates employee development with performance management, and employee engagement to build a skilled, motivated workforce. The goal is to ensure that employees grow alongside the business, contributing to its success without compromising company culture.
For MSPs, this approach emphasises continuous development, cross-functional collaboration, and agility – qualities essential for staying competitive. By fostering a sense of ownership and connecting individual growth to organisational goals, companies can scale effectively while maintaining a cohesive team. Operationally, this means setting clear KPIs, providing fit for purpose employee development programs, and encouraging collaboration across departments. When these principles are embedded into daily workflows, they sustain growth, empower employees to deliver exceptional value, and strengthen the organization’s ability to adapt and thrive.
Checkpoint: Here are two reflection questions to stress-test your thinking:
- How are you ensuring your team’s development keeps pace with company growth to prevent burnout and turnover?
- What strategies are in place to align employee growth with business objectives, ensuring sustainable success without compromising culture?
“The goal is to ensure that employees grow alongside the business, contributing to its success without compromising company culture.”
Aligning Personal and Team Goals with the Company Vision
One of the keys to sustainable growth is creating a line of sight for employees between their daily work and the larger company mission. MSPs can accomplish this by setting clear, measurable goals at every level: individual, team, and department, that tie back to the company’s overarching objectives. This alignment fosters a sense of ownership and purpose, showing employees that their work isn’t just about completing tasks but about contributing to something bigger.
Transparent communication also plays a big role here. Regular all-hands meetings, open discussions about company goals, service desk statistics, and clear explanations of how each department is evolving and growing to fit into the overall vision can make employees feel more engaged and valued. The clearer the connection between an individual’s role and the company’s direction, the more likely employees are to feel invested in the company’s success.
Checkpoint: Here are two reflection questions to stress-test your thinking:
- Can employees see how their work aligns with company goals? How can we improve this connection?
- How transparent is our communication about company goals? What can we do to engage employees more?
“The clearer the connection between an individual’s role and the company’s direction, the more likely employees are to feel invested in the company’s success.”
Cross-Functional Collaboration as a Growth Lever
Another essential component of sustainable growth is cross-functional collaboration and embracing the ethos of ‘business partnering’. In my book ‘EVOLVE, The Business Partnering Playbook’ (2021), business partnering “historically, it refers to the role of internal consultants or advisors, in enabling function (for example. Finance, IT, HR, Procurement to name a few), in an organisational operating model. Simply put, they support a business to succeed.”
Today, business partnering is no longer limited by job titles or departments. It’s an attitude – one that fosters collaboration, trust, and a deep passion, a love, for the business you work for. It’s about gaining a clear understanding of your work, your company’s business model and how it directly impacts clients. In many MSPs, where flat organisational structures are common, employees across various roles – including service/support desk, sales, account management, project management, and service delivery – frequently interact with clients. The need to collaborate and understand more about each other’s roles and responsibilities is critical.
When teams work in silos, information gaps and inefficiencies often arise. Assumptions are made and effective problem-solving and innovation is stunted. However, by encouraging cross-department collaboration, MSP leaders can build a more agile and cohesive organisation.
This can mean setting up regular interdepartmental meetings, peer-recognition programs, encouraging team members to share insights across functions, or even creating cross-functional teams to tackle specific projects together.
I’ve lost count of how many times I’ve kick-started a Program with employees from the same organisation and they are meeting each other for the first time. I typically kick things off with an ice-breaker question: ‘Does everyone know each other in the room? If not, please introduce yourselves before we begin.’ There’s an immediate energy shift in the room – nervous energy gives way to a sense of relief. The truth is: the barriers to organizational collaboration in MSPs are often more perceived than real. The key lies in empowering individuals to take responsibility and proactively reach out to colleagues when solving client challenges. I once reported to an inspiring CEO who would often say, ‘George, there’s no excuse for not knowing everyone’s name in a small organisation. In larger organisations, you should at least know the names of everyone on your floor.’ How times have changed!
In MSPs, cross-functional collaboration often leads to better customer service, streamlined processes, and stronger innovation. Teams that work together can adapt more readily to changing demands and client needs, positioning the company as a leader in responsiveness and flexibility. And for the employees involved, working in a collaborative environment can lead to new skill development and a sense of shared accomplishment.
There’s a powerful quote from Marcus Aurelius in his book Meditations that reads, “The impediment to action advances action. What stands in the way becomes the way.”
This speaks to the idea that obstacles, when approached with higher intention, can form the very foundation of growth. For MSPs, the challenges of rapid expansion, like balancing team development and resources, can become the story of success that leaders share in years to come, but only if they are handled with honesty and openness.
Checkpoint: Here are two reflection questions to stress-test your thinking:
- How can we better foster cross-functional collaboration to eliminate silos and drive deeper connectivity across departments?
- What specific actions can we take to encourage employees to take ownership of collaboration and proactively solve client challenges across teams?
“The truth is, the barriers to organisational collaboration in MSPs are often more perceived than real. The key is empowering individuals to take responsibility and proactively reach out to colleagues when solving client challenges.”
Fostering a Growth Mindset for Long-Term Success
Ultimately, sustainable growth in MSPs comes down to nurturing a growth mindset across the organisation and setting the foundation for future success with intention. By championing continuous improvement, adaptability, and support for personal growth, MSP leaders create a culture where employees are not only empowered to meet today’s challenges but prepared for tomorrow’s opportunities.
As your MSP scales, consider each growth initiative as an opportunity to develop your team’s potential, not just as a metric to hit. Sustainable growth isn’t just about meeting immediate goals: it’s about laying the foundation for long-term success, one step at a time. With the right approach, MSP leaders can build high-performing teams who are as committed to their own development as they are to the company’s mission.
In the pursuit of growth, it’s crucial to remember – though it may sound cliché – that it’s not just about the destination, but how we approach the journey. The idea that leaders create growth is a myth. Instead, leaders create the right conditions for growth by fostering continuous learning, collaboration, and clear objectives, empowering their teams to thrive amid challenges. This approach lays the foundation for success, both today and in the future.
If you’re ready to explore how building high-performing teams can transform your MSP and help navigate growth challenges, I’d love to connect. Feel free to reach out for a chat…
Contact details:
George Liberopoulos
Co-Founder and CEO, Impactology
Email: george@impactology.com.au
Mobile: +61 404 459 507
