Efficiency is a revenue metric that shows you how successful you are at pricing labor within an agreement. It measures the value of your labor revenue as compared to the value of the time your members are spending on an agreement each month. The value takes into account the work role and work type for each member. An Efficiency of 1.0 means your labor revenue is equal to the rate the members would be billing at their straight time rates. Below 1.0 identifies a less efficient agreement and above 1.0 identifies a more efficient agreement.

The Efficiency Components report takes you one step further than just focusing on revenue and what you would have billed (shadow billable). The report deconstructs these values by looking at 1. end points (nodes); 2. tickets; and 3. hours which are components that go into Efficiency.

The client graphs show how an individual client compares to the norm:

1. Am I charging too little?
2. Does the client have large complicated tickets?
3. Does the client have too many tickets?
4. Is the client using the most valuable resources?

The report will point you in the right direction to understand what needs to be fixed.

Efficiency is agreement labor revenue / shadow billable. If you deconstruct these components, an even better picture of efficiency can be developed:

What can this tell you? You can break it down and look at the components:

The efficiency components can include billable or non-billable time or both. The choice is important because you can look at the efficiency in one of two ways: looking a the total investment of time (billable and non-billable) or only the time you bill the client (billable only).  

You can also select the active type. There are two types of work --- reactive and proactive (or if the field is blank it is uncategorized). MSPCFO identifies the active type by looking at the Service Type of a ticket. Every ticket has a service type and a service subtype. The service type has a field for reactive or proactive.

If you do not want to use the active type from your ticket,  you can use a proactive/reactive setting in MSPCFO.

In Lookup > Options > Tickets the board name can be used for the active type. (Change: Use Boards for Active Type = Yes).  
Then go to Lookup > Boards and in MSPCFO you can define each board as being Reactive or Proactive.

The lower portion of the report looks at the efficiency components for all your clients for the past 30 days so you can rank them on any column to see if you have outliers.

To select the report, click on Efficiency Components under the Efficiencies tab.

(1) The report can be run for one client or all clients.  

(2) You can specify the Date Range you want to look at

(3) Specify the minimum invoiced labor revenue for each month. This should be greater than zero so clients without activity will not be included.

(4) Select billable time entries, non-billable time entries, or both.

(5) Look at only proactive time entries, reactive time entries, time entries without an active designation, or any combination.  

(6) (7) Only look at specific Agreement Category(ies) (6) or Client Types (7) The default for (6) and (7) is to select all.

(8) Only use the current Node count instead of the historical count

(9) Only use Active Clients

(10) Calculate the components by Node or by User (Affects the following graphs : Tickets per Node/User, Hours per Node/User, Revenue per Node/User)

You can download the report to a PDF file, to an Excel file or into a 'report basket' (+) to be downloaded at a future time (see highlighted area below).

The graphs show details over time of all the components of efficiency to give the MSP a more granular view of what analytics are effecting the efficiency. Are you spending too much time per ticket? Is the level of engineer to costly for the revenue being generated by the agreement? Are you spending too much time per end point?

For each chart there are four lines. The blue line is the value for the client or all clients, according to the filter. The bottom line is the bottom 20%; the top line is the top 20% and the line in the middle is the median. When you hover over a month on the blue line, you can see all of the values for that month. (see Hours Per Ticket below)

The table at the botom of the chart provides the same analytics as the graphs for all of your clients that meet the same criteria over the past 30 days. Each column can be sorted to indicate the outliers for this particular metric. An average for each column is provided at the end.