Advice For Service Level Agreement

A good ALS (such as a good OLA and a good maintenance contract) does not only involve one of the parties. In the case of ALS, we should consider the obligations that apply to customers and users of the service. ALS describes what the client receives and expects from their service provider. However, it contains measures to assess the performance of the service provider, where there may be overlap between KPS and SLAs. A service-level agreement defines the KPIs to measure the service. This means that the metrics provided by ALS eventually become KPIs that the company will monitor and declare as a measure of success. Define carefully. A supplier can optimize ALS definitions to ensure they are met. For example, the Incident Response Time measure is designed to ensure that the provider corrects an incident within a minimum of minutes. However, some providers can complete ALS 100% by providing an automated response to an incident report. Customers should clearly define ALS so that they represent the intent of the level of service. A compensation clause is an important provision in which the service provider agrees to exempt the client company from possible violations of its guarantees.

The exemption means that the supplier must pay the customer all third-party procedural costs resulting from the breach of the guarantees. If you use a standard ALS provided by the service provider, it is likely that this provision does not exist. Ask your in-house advisor to design a simple provision to include it, although the service provider may wish for further negotiations on this issue. Structuring alS is an important, multi-step process involving both the client and the client. In order to achieve business objectives, ALS best practices require the vendor and customer to work together to conduct a detailed assessment of the customer`s existing application suite, new IT initiatives, internal processes and current basic service levels. One of the main mistakes made by companies in the creation of ALS is not to involve professionals (customers and consumers of IT services) sufficiently. It could be a number of stakeholders, from the people who pay the bills to the people who depend on IT services on a daily basis. I`ve already written to focus on the right things to drive the right behavior. One way to follow this is to consider adding XLAs (or agreements at the customer eXperience level). The stricter the objectives, the higher the amount of funds required, of course. The stakeholders who fund the service need to think carefully about what they are paying comfortably.

In short, service level management allows an organization to move from a responsive support model to a proactive support model, where network availability and performance levels are determined by business requirements and not by the latest issues. The process helps create an environment conducive to continuous improvement in service levels and increased business competitiveness.