We Hate Our MSP, What Should We Do? – Part 1: What’s Your Problem?

In contingent workforce (CW) management, there is a spectrum of love and hate in the relationship between client-side owners of CW programs and the Managed Service Providers (MSP) that manage the day-to-day CW lifecycle and processes on behalf of their clients. Some programs genuinely love their MSP and it’s an awesome partnership. The clients are happy with the performance and feel their partner adequately meets their needs. It’s the status that all MSP firms dream of; the type of client that becomes a marketable whitepaper.

I’ve written in the past of why clients may not like their MSP, and yes, we know every relationship isn’t perfect. Things can always be improved. That’s part of the partnership. That’s part of working together; figuring out how to live in harmony and ensuring both parties are getting what they need.

But what happens when there is more negativity than positivity? What do you do then? How do you right the ship, and what steps do you take? How do you know when it’s bad enough to abandon ship? In this article series I’ll aim to address what you can do when dissatisfaction with your MSP reaches a tipping point.

What’s Your Problem?

Where there’s a problem, you probably need to do some analysis. Here are the first 3 steps to take:

1. What are the problems? – When it comes to understanding what to do with a struggling MSP partner, it’s really important to find out what the problems truly are. Are you hearing negativity from the managers on the process? Are you seeing the breakdown firsthand? Is your leadership getting escalations brought to their attention? All of this needs to be investigated.
2. Are the problems true? – ?Validate if these alleged problems actually exist. Perhaps managers are exaggerating their claims. Maybe leadership is taking secondhand news and blowing it out of proportion. Possibly everything is true. You need to make this discovery and corroborate the stories to determine the extent of the problem. If you’re going to address the problems, eventually you need evidence it exists.
3. Who or what is causing the problems? – Look to the source of the problem. Is it the people, the process, the tools, the operations? Look to gain insights on the root cause so that you can effectively speak to the problems and get them sorted out.

People Who Live in Glass Houses Shouldn't Throw Stones

One thing to consider here as you’re looking at the problems of your MSP: Are you (the client) the problem? Once you’ve established problems with your MSP, look inside your organization and how you support them. Are you setting them up for success? Is there a disconnect in how you run your program that inhibits your MSP from providing the best service you need from them?

In the same vein as the old phrase, "People who live in glass houses shouldn't throw stones,” is your own house and organization in order? MSPs can only be as successful as you allow them to be. Before you point the finger at tour MSP, it’s a good idea to reflect on how you partner with them. Personally, I believe some failures of an MSP can be prevented by better support from the client organization. Though, this will vary from company to company.

Now that’s not an excuse to forgive MSPs of their own shortcomings, and as an outsider coming into service your company, they should be able to step up and advise on the proper things to do as experts in the industry – again there are limitations on this based on the organization they are servicing.

For sake of this article, let’s assume your company is doing alright and you’re not prohibiting success of your MSP, now what?

Having “the Talk”

Before taking any drastic steps, it’s essential to have an open dialog with your MSP. Hopefully, you have a strong enough relationship and there has been conversation already with your MSP on some of the problems. It’s better to address them as they come up, but if not, now is the time to start. Here are some things to consider as you approach those conversations:

• Who are you speaking with from your MSP? – The Account Manager, Director, Program Manager? Depending on who you are speaking with can vary the perspective, reception, and reaction of what you’re going to tell them. It can also vary their ability to make changes and corrections.
• Are they aware of the problem? – At this point, they should certainly (hopefully!) be aware of some of the problems, but likely not all. They may be lacking the depth of context of the problem. Being able to provide them with tangible evidence and feedback is going to be a critical piece for both parties. While providing the evidence, do so in a tactful way, without pointing fingers, simply providing what you’ve found.
• Hear them out – What is their point of view? After providing feedback and evidence to make them aware of the extent of the problems, let them give their perspective. Were they aware? Do they agree with the feedback? Take note of how they handle this. If they go on the defensive, do they have evidence to refute your claims? Do they actively listen and empathize? Is there shock and surprise? This is a pivotal point in the conversation.
• MSP Funding Structure – This bullet point requires its own article, but I’ll call it out here: based on the funding structure of the MSP, they may be running lean – whether that’s resource quantity or quality, thus leading to program inefficiencies. Supplier funded models can create feast or famine if spend through the program isn’t where expected. Again, this is a much larger topic, but something to be considered and goes back to earlier points of how the MSP is supported.
• Are they set up for success? – During this conversation, try to get an initial feel on what they need from you. Perhaps it is the pricing model and how they are resourced based on that model. It often takes two to tango, so get a sense if there are areas where you can be supporting better. This can help them understand that you want to see their success and want to be a good partner to them. Take their feedback seriously.

This isn’t the last conversation - Likely, they will need to go back to their team, and this will lead to a larger conversation, pulling in some of their leadership.

The Next Step

Remember, you have your MSP for a reason, it’s worth giving them a chance to make a fix. Being a good partner and encouraging their success is a must have as problems arise. Give them the benefit of the doubt. In Part 2, we’ll cover off on where to take things from here, including action plans, measurements, timelines, and exploring what the agreement with your MSP says.

One other thing to remember, you don’t have to go this alone. I’m here to help when things get difficult with your MSP, and you just don’t know what to do. CWM Strategies is your neutral consultant and go to for innovative solutions to elevate your contingent workforce program.