By Verne Harnish
When Greg Mikkelsen bought into Securecom, a managed service provider (MSP) based in Auckland, New Zealand, in 2016, it had about $NZ5-6 million in annual revenue. Finding ways to overcome the interruptions and labor shortages that COVID brought, he has grown the scaleup to $NZ30 million in annual revenue as managing director. The company, which has operated in New Zealand for over 20 years, has achieved a satisfaction rate over 97% among the primarily midsized B2B clients it serves. It offers IT and cybersecurity support, infrastructure installations and related services. Mikkelsen, the company’s former sales and marketing manager, used the Scaling Up platform to accelerate the company’s growth and improve its profitability, under the guidance of Scaling Up Certified Coach Rob Morris, director of RGM Consulting. He and Chairman Chris New had worked with Morris at Spark NZ, an internet and telecom provider; Mikkelsen had been a general manager there. “We felt that it is valuable to have an outside perspective, a business coach who can play things back to us to give us the perspective it’s hard to have when you’re busy with your head down in the business,” says Mikkelsen. “We knew and trusted Rob, and we liked his mix of global and local experience.”Mikkelsen and his leadership team also liked the idea of using the Scaling Up platform to bring consistency to their operations as they scaled. “We knew the benefit of having a consistent framework,” says Mikkelsen.Prioritizing peopleTo support its growth, Securecom focused heavily on recruiting, looking for people who embodied its five core values: straightforward, committed, reliable, innovative, and caring. One strategy that has helped attract talent is to offer a $200 bonus to team members who recommend someone who is hired. “Good people know good people,” says Mikkelsen.With many employees seeking flexible work arrangements, they also focused on building a culture where team members want to stay. After some experimentation, they organized the company so that team members work in the office three days a week—with Mondays and Wednesdays mandatory—and from home two days. “That means that there are always days at the office when everyone gets to know everyone,” says Mikkelsen.Giving strategy a frameworkWorking with Morris, Mikkelsen and his leadership team developed an annual, three-year and 10-year strategy, aimed at building the company to $NZ100 million in annual revenue by 2033. Some of this growth will come through acquisition. SecureIT has purchased two other MSPs, most recently Prophecy Networks. Another key part of its strategy was enhancing the quality of its services, which allowed it to raise prices by 10% and improve profitability.The leadership team broke down the annual strategy into quarterly rocks, or goals, and made sure managers could communicate the company’s plans clearly to the entire team, for better execution. “We spent some time really distilling those down into manageable chunks for our people,” says Mikkelsen.Delivering stand-out service To make sure the company executes its goals consistently, there are weekly huddles and monthly team meetings. Mikkelsen also has a weekly half-hour meeting with every individual who is in charge of meeting one of its rocks to keep progress on track.Securecom has set goals for profitability, cash flow and efficiency but, says Mikkelsen, executing on each of these goals starts with achieving customer satisfaction. “If we handle things quickly and get them right the first time, it’s better for the customer.” And when the team isn’t tied up cleaning up messes, he says, “the benefit goes right through the organization.” To differentiate Securecom, Mikkelsen and his leadership team set clear key performance indicators (KPIs) around service, measuring every interaction with customers. “We are very, very service-driven,” says Mikkelsen. Securecom also uses the SmileBack customer satisfaction survey, based on simple smiley faces and frowns. Mikkelsen finds this allows the team to respond quickly if someone isn’t happy. “We contact the customer and talk through whatever the issue might have been,” he says. Maintaining optimal cash flowSecurecom aims to bring in 75% of its income on a recurring monthly basis. To keep cash flow on track, the company’s CFO stays on top of forecasting, in terms of what revenue is coming in and what expenses will consume cash. Meanwhile, the sales team is focused on attracting more of the customers who value the high level of service Securecom provides—and are willing to pay a premium for it. The company has attracted corporate customers in healthcare and retail and is looking to work with more firms in these sectors. Ultimately, Mikkelsen finds the Scaling Up platform keeps the company tightly focused on its goals. “We can spend 120% of our time being busy but not achieving a lot,” he says. “Scaling Up helps us put priorities and structure around our strategy and turn strategy into execution.”
