A service-level arrangement (SLA), an important part in business consulting, is often used as a link between a company’s operations and customers. It defines what each party needs to reach its goals and provides a mechanism for reporting on those goals and any issues that arise.
SLAs protect both the end user and the service provider by establishing standards, targets and consequences for meeting or not meeting those expectations. They also allow the creation key performance indicators which can help a company identify areas of its business that are http://royston-consulting.com not on course to meet their strategic objectives.
The SLA must include all services covered by a contract and provide details about turnaround times, as well as any exclusions. A list of metrics that will be used to measure the service provider’s performance should also be specified in the contract.
Metrics that are easy to collect should be chosen to reflect factors that are under the reasonable control of the service provider. They should be set at a reasonable baseline so that they can be improved over time.
KPIs, or key performance indicators, are metrics that measure the success of a business in terms its primary goals. It can help determine whether the business is veering away from its course, a common problem with small businesses.
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