A service level agreement (SLA), which is an important aspect of business consulting, is used often between a firm’s internal operations as well as its customers. It outlines how each party can achieve its goals. It also provides a reporting mechanism to track progress and resolve any issues.
SLAs provide protection for both the service user and provider by setting standards, targets, and consequences when these expectations are not met. They http://royston-consulting.com also allow the creation key performance indicators which can help a company identify areas of its business that are not on course to meet their strategic objectives.
The SLA should include all services included in the contract, including details on turnaround time and any exclusions. The contract should include a list that specifies the metrics used to measure service provider performance.
Metrics should be selected to reflect only factors that are within the service provider’s reasonable control and be easy to collect. They should also be set to a reasonable baseline, so that they can be refined over time.
A key performance indicator (KPI) is a metric used to measure how well a company is performing in relation to its primary goals. It can help a business determine if they are veering from their course, which is an issue that is common for small businesses.