Nobody Said Transitioning to Service Would Be Easy
It would have been hard to find a better firm to profile than Edmonton-based Genesis Integration. It’s relatable. It was like most integration firms in its pursuit of project-based profit.
It worked … for a while. But president and co-founder Kelly McCarthy long saw the writing on the wall. He knew the project-based profit model has a shelf life.
When we interviewed folks at Genesis it was in the midst of transitioning to a more service-based model — something most of the industry was at least talking about trying to do — and was beginning to see the fruits of a profitable cloud video managed service offering that not only has diversified its cash flow but has strengthened its relationships with its customers.
Turning that corner hasn’t been easy for a number of reasons, says national sales manager Kevin McKay. “It’s like turning a giant freight ship around. It’s going to take a while.”
You can’t make a decision, snap your fingers and watch the recurring service revenue roll in, says McKay. “It’s going to take a while. We’re about a year into a three-year plan to be where we want to be, which is [with] a significant percentage of revenue coming from those service contracts.”
It goes without saying that there is a cultural shift involved and Genesis has invested in that shift. “It’s a whole bunch of new hires,” McKay says.
It was important to bring new skills to both the sales and project management teams. Genesis’ project managers need a whole new customer service skill set now that it’s in the managed services business, McKay notes.
“You can’t have one foot in the old world and one in the new world and expect to last very long,” McKay says. “Without jumping in with both feet I don’t think you can make the transition.”
McCarthy will be the first to tell you that if a traditional firm like Genesis can make the transition to a more service-focused revenue model, the rest of you have a fighting chance.
Lesson: Instead of talking about service revenue, commit to the cultural change.
Read Genesis Integration’s entire CI Profile here.
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