‘ We are investing in modernizing our core services, including AI and application management,’ says Peter Melby, CEO of New Charter Technologies. ‘Our strategy involves both enhancing basic services to be more responsive and developing deep relationships with customers. This dual focus allows us to offer innovative solutions and better meet customer needs.’

As New Charter Technologies continues to evolve, CEO Peter Melby said the company’s strategic foresight and customer-centric innovation aims to position itself as a leading force in the IT services industry.

After being tapped CEO of the Denver-based solutions provider about six months ago, Melby reflected on the crucial lessons learned and how he is not only adapting to current market trends but also anticipating future changes coming down the line.

“ We are investing in modernizing our core services, including AI and application management,” he said of the firm, which grabbed a spot on the Elite 150 on CRN’s 2024 MSP 500 list. “Our strategy involves both enhancing basic services to be more responsive and developing deep relationships with customers. This dual focus allows us to offer innovative solutions and better meet customer needs.”

He said the necessity of evolving strategy is crucial, even when the company is performing well. “It’s easy to rest on our laurels when things are going smoothly,” he said. “But the reality is, by the time results start to decline, it’s often too late to start reinvention. The challenge is to recognize the need for change while things are still going well and execute it delicately.”

The biggest opportunity going forward, though, is capitalizing on technological advancements.

“The biggest change we’re anticipating is that businesses will increasingly require their IT teams not just to solve tech problems but to address broader business issues with technology,” he said. “This shift involves moving beyond traditional IT services to offering solutions that align more closely with business processes and needs.”

Founded in 2019, New Charter Technologies has rolled up more than 20 companies under its name and is a portfolio company of Palo Alto, California-based private equity firm Oval Partners.

Check out CRN’s interview with Melby as he delves further into opportunities and challenges, M&A and how he plans to grow the company below.

Since starting about six months ago, what is the biggest lesson you’ve learned in your new role as CEO?

The biggest lesson I’ve learned is the importance of not being afraid to change strategy, even when things are going well. It’s easy to get comfortable with positive results and think you’re on the right path. However, by the time you notice a decline in results, it’s often too late to pivot effectively. Successful leaders need to anticipate change and start reinventing strategies before the current ones show signs of wear.

How will New Charter be different in the next 18-24 months, particularly with the increased emphasis on technology?

The key change will be a shift from merely solving technology problems to addressing broader business challenges through technology. The IT landscape is evolving and businesses now need IT teams that can solve complex business issues, not just handle tech fixes. We see a significant opportunity in bridging the gap between traditional consulting firms and the technical needs of modern businesses.

When you took on the role as CEO, you talked about positioning New Charter as a disruptor in the space. How are you planning to achieve that?

Disruption often stems from common sense and focusing on what really matters. Our approach is to reorient our value proposition around the customer’s needs and future demands. We prioritize our value chain, ensuring that our customers and employees are central to our operations. This involves building a platform that supports both the client and employee experience, rather than just acquiring companies for the sake of growth.

Can you share any details about upcoming M&A deals or the types of companies New Charter is targeting?

We are actively pursuing M&A opportunities and have a strong pipeline with several companies under letter of intent. Our focus is on acquiring businesses that align with our strategic goals. Our M&A approach is designed to build value, whether or not we finalize a deal. We aim to integrate new companies in a way that enhances overall value and aligns with our long-term vision.

Unlike typical holding companies or fully integrated platforms, New Charter focuses on creating value through integration rather than just consolidation. Our approach emphasizes retaining employee and client relationships, which leads to lower attrition and stronger, more enduring connections. This focus on people and long-term value sets us apart in the M&A space.

In terms of challenges, you previously mentioned that not being able to say yes to everything was a concern. Has that changed, or is it still your biggest challenge?

It remains a significant challenge. However, we’ve learned that focusing on a few key initiatives can lead to greater success. By being methodical and prioritizing high-value projects, we’re achieving more with less. The challenge now is balancing numerous brilliant ideas and ensuring we prioritize effectively.

What is your biggest ask from vendors?

Our biggest request from vendors is to focus on our customers’ needs rather than just the MSP-vendor relationship. Vendors should strive to understand and anticipate customer requirements, even if it means stepping outside their comfort zones. By helping us meet evolving customer demands, vendors can drive meaningful impact.

Where are your customers spending the most on IT?

Customers are increasingly willing to invest in solutions that address specific business challenges rather than just traditional IT services. While there is still a focus on security and day-to-day operations, there’s a growing trend towards spending on solutions that drive digital transformation and modernization.