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 outlines how each party can achieve its goals. It also provides a reporting mechanism to track progress and resolve any issues.
SLAs are designed to protect both the service provider and the end user by establishing expectations, standards and consequences for either meeting or not exceeding them. They allow the creation of key indicators that can assist a business in identifying areas that aren’t on track to achieve its strategic goals.
The SLA is a document that defines all the services that will be included in a given contract. It should also include information on turnaround times and exclusions. The contract should also include a list of metrics to be used in measuring the service provider’s performance.
Metrics should only reflect factors under the control of a service provider and be easily collected. They should also be set up with a reasonable base, so they can be refined as time goes on.
KPIs are metrics that measure how well an organization is important link performing with respect to its primary goals. It can be used to determine if the business is off-course, which is a common problem for small businesses.