To: Brian Frank, COO

From: Eric Stavola, VP Managed Services

Date: 26 June 2025

Subject: Deeper Data-Cut—Where Efficiency Converts to Profit (and Where It Doesn’t)

To dig deeper, here’s the view I think we need next:

Revenue per hour by engineer role – To see where our labor is yielding the most value
Ticket type mix (high-value vs. low) – To identify service drag vs. revenue accelerators
Margin by service type (recurring, T&M, projects) – To understand what work is actually profitable

1 | Why Read This

Our last briefing proved the margin leak isn’t pricing or “tiny deals.”

This follow-up drills into three questions you asked for on the spot:

Question	What the Numbers Show
1. Revenue / Hr by Role	Field ≈ $198/hr → strong, but only 18 % of time is billable.Projects ≈ $202/hr → excellent, yet they’re billable just 32.5 % of the week.Systems Ops = $0–$150/hr on < 14 % of time—most work is non-billable alert watching.
2. Ticket-Mix (High vs. Low Value)	35.7 % of all 5,315 tickets are “high-value” (projects, implementations, cyber).64.3 % are low-value noise (monitoring alerts, order processing, basic service).
3. Margin by Service Type	Recurring MRR: 34 % GM (healthy)Time-and-Materials: 42 % GM (very profitable)Projects: 22 % GM (drag—interruption & backlog)

(Data sources: ConnectWise exports to 06-10-25; BrightGauge ticket dump 06-13-25; MS Margins workbook May-YTD.)

2 | Revenue per Hour – Where Labor Yields the Most

Role / Pool	Billable Hours (YTD)	Recognised Revenue	Revenue / Billable Hr	What to Fix
Field Engineers (~30 FTE)	43,875	$8.67 M	$197.84	Push 42 % admin work into NOC ⇢ +$3.7 M
Project Engineers (11 FTE)	7,429	$1.50 M	$201.8	Stop 48.8 interruptions/eng/week ⇢ +$7.1 M
Systems Ops (7 FTE)	1,625	≤ $0.25 M	∼$150 (when billable)	Give resolve authority + monetise NOC ⇢ +$1.3 M

Key Insight → Revenue-per-hour is strong where the work actually invoices.

The haemorrhage is simply: high-rate talent spends < ⅓ of its week on billable tasks.

Ticket Class (BrightGauge dump)	Count	Share	Typical Rate	Margin Outlook
High-Value (Projects, Implementations, PSE, Cyber, Migrations)	1,897	35.7 %	$175–$250	Accelerator
Low-Value Noise (Monitoring alerts, order processing, basic workstation)	3,418	64.3 %	$0–$65	Pure drag