The Inefficient Clients pathway helps you:

1. Identify clients that are consuming disproportionate resources
2. Understand the root causes
3. Quantify potential time savings by bringing them back to your average efficiency levels

The report includes filters that allow you to:

Focus the Analysis

1. Date Range - Analyze specific time periods
2. Agreement Type - Focus on particular business segments

Adjust Analysis Criteria

Three percentile filters - The client has to meet all three criteria to be considered in the report. In general, MSPCFO is looking for large clients with low contribution/hour and low efficiency over the time period.

These are preset, but can be modified for the percentile settings::
    3.  Contribution/Hour Percentile - Defaults to 20%  (Client must be in the lowest 20% of contribution/hour. )
    4. Hours Total Percentile - Defaults to 50%  (Only looks at clients that have the top 50% of total hours.)
    5. Efficiency Percentile - Defaults to 30% (Client must be in the lowest 30% of efficiency.)

The top portion of the report presents a list of clients identified as inefficient based on your data. Each client entry includes:

• Client name (clickable to view detailed analysis)
• Identified causes of inefficiency
• Calculated time or revenue opportunity

Inefficiency Causes

The report identifies four possible causes of client inefficiency:

1. Too Much Work - Hours per node/user significantly above median
2. Tickets Take Too Long - Hours per ticket significantly above median
3. Too Many Tickets - Tickets per node/user significantly above median
4. Pricing Inaccuracy - Revenue per node/user significantly below median

Opportunity Calculation

For each inefficiency, the report calculates the potential time or revenue savings if that client were brought back to your company's median values.

Example:

A client submits 1.15 tickets per user, while your median is 0.65 tickets per user. Given this client's number of users and your average time per ticket, bringing them to the median would save approximately 12 hours per month.

This helps you prioritize which inefficiencies to address based on potential impact.

The report transparently shows each analytical step used to generate the summary. This allows you to understand the methodology and criteria applied.

Step 1: Identifying Over Served Clients

In this initial step, the Pathway examines the Client Segments report to find clients matching these criteria:

• Bottom 20% of Contribution/hour
• Bottom 30% of Efficiency
• Top 50% of Hours

These parameters identify clients that consume significant labor hours but deliver lower-than-average financial returns.

Note: You can adjust these percentage thresholds using the report filters.

Step 2: Finding Issues for Each Overs Served Client

For clients identified in Step 1, the Pathway analyzes the Efficiency Components report to compare them against your entire client base on four key metrics:

• Hours per Ticket
• Tickets per Node/User
• Hours per Node/User
• Revenue per Node/User

Step 3: Calculating the Opportunity for Each Issue

For each inefficiency identified in Step 2, the report quantifies potential savings by:

1. Comparing the client's metrics to your median client
2. Converting the difference into hours or revenue opportunity

Example Calculation - "Tickets Take Too Long" issue - Client 1104 below):

Time Frame: Trailing 12 months

Client Hours/Ticket = 1.12

Median Hours/Ticket = 0.58

Client Ticket Count (12 months) = 306

Hours Opportunity per month = (1.12 - 0.58) × 306÷ 12 = 13.6 hours

Step 4: Identifying Problematic Ticket Types

For clients with "Tickets Take Too Long" or "Too Many Tickets" issues, the Pathway performs a deeper analysis to identify specific Ticket Type/Subtype/Item combinations that may be underperforming. These details are added to the summary for targeted improvement efforts.

After reviewing the Pathway: Inefficient Clients report, consider these next steps:

1. Schedule account reviews with identified clients
2. Analyze problematic ticket types for process improvements
3. Review service agreements for pricing adjustments
4. Implement client-specific efficiency initiatives

By addressing these inefficiencies, you can improve profitability while maintaining or enhancing service quality.