Simply creating a SLA (Service Level Agreement) does not constitute the whole SLM (Service Level Agreement) process; it is only a part of it. Many companies think that creating a SLA is good enough, and does not want to spend much time on the SLM process. But SLM is an ongoing process, and it also includes measuring, reporting, reviewing and taking corrective action; in nutshell SLM continues even after the SLAs & OLAs are signed and locked. Yes, creating the whole process is tedious and time consuming but the end result will be worth the while.
The SLM Process Includes: Defining the Process (Planning & Implementation), Executing the Process (Negotiate, Define Agreement, Monitor, Report & Review), Controlling the Process (Verification
& Actions)
The Approach To Implement SLM Process
As mentioned earlier--SLM is the process of planning, coordinating, drafting, agreeing, monitoring and reporting on SLAs, and the ongoing reviewing of service achievements to ensure the required and cost justifiable service quality is maintained or where necessary improved. To ensure success, the following is a recommended approach (by Pink Elephant):
1. Promote and entrench a business, quality and service culture
2. Identify services and customers
3. Identify current contracts and agreements
4. Define current IT capabilities (People, Processes & Technology)
5. Produce a Service Catalog
6. Define and Document Process
7. Prepare SLAs/OLAs and include all details (like Description of service, Service hours & Service availability, Support levels, Performance & Functionality, Charges, Contingency& Backup and Recovery, Growth& Restrictions, Training, Report Distribution, Amendments & Supplements, Expiry Date, Signatories, Date of next review; Date of previous amendments)
8. Implement Pilot SLA, OLA
9. Establish and formalize roles
10. Publicize the existence of SLAs, OLAs
11. Rollout remaining SLAs, OLAs
12. Analyze, Report, Review
Necessary Documents For Success of SLM (courtesy Pink Elephant)
Service Catalog
A document that describes the services provided and/or brokered to customers by the IS/IT Division. This catalog forms the basis for an understanding of all services offered, their form, fit, functionality, features, components, charges, etc.
Underpinning Contracts (UCs)
A formal signed agreement(s) which defines external support requirements between the IT support organization and external vendors and channel partners. UCs are required to ensure both OLA and SLA targets can be achieved.
Service Level Requirements (SLRs)
A document that describes the service demands and specifications gathered from direct consultation with the customer which when defined and delivered meets the customer’s business process productivity needs.
Operational Level Agreements (OLAs)
A formal signed agreement(s) which defines internal support requirements between the IT support organization sub-groups. OLAs are required to ensure that SLA and UC (Underpinning Contracts) targets can be achieved. The objective of the OLA is to present a clear, concise and measurable description of the service provider's internal support relationships. OLA(s) are not a substitute for an SLA. The purpose of the OLA is to help ensure that the underpinning activities that are performed by a number of support team components are clearly aligned to provide the intended SLA.
Service Level Agreements (SLAs)
A formal signed agreement between a customer and a service provider (IT) in which service provision (responsibilities) is described and achievable targets are stipulated and bounded. Any SLA management strategy considers two well-differentiated phases: the negotiation of the contract and the monitoring of its fulfillment in run-time. Thus, SLA Management encompasses the SLA contract definition, SLA negotiation, SLA monitoring, and SLA enforcement, according to defined policies.
The SLA records a common understanding about services, priorities, responsibilities, guarantees, and warranties. Each area of service scope should have the "level of service" defined. The SLA may specify the levels of availability, serviceability, performance, operation, or other attributes of the service, such as billing. The "level of service" can also be specified as "target" and "minimum," which allows customers to be informed what to expect (the minimum), whilst providing a measurable (average) target value that shows the level of organization performance.
Types of SLAs used in the IT world: Application Support SLA, Network Performance SLA, Help Desk, System Availability & Site Availability.
SLAs ensures a smooth relationship between the customer and the provider. A major benefit of SLA is that it enables the quality of service to be benchmarked with that agreed to across multiple locations or between different business units. This internal benchmarking can also be used to market test and provide a value comparison between an in-house department and an external service provider.
Examples of SLA Metrics
Service-level agreements can contain numerous service performance metrics with corresponding service level objectives. Some of metrics, mainly for Helpdesk Metrics, are:
· ABA (Abandonment Rate): Percentage of calls abandoned while waiting to be answered.
· ASA (Average Speed to Answer): Average time (usually in seconds) it takes for a call to be answered by the service desk.
· TSF (Time Service Factor): Percentage of calls answered within a definite timeframe, e.g., 80% in 20 seconds.
· FCR (First Call Resolution): Percentage of incoming calls that can be resolved without the use of a callback or without having the caller call back the helpdesk to finish resolving the case.
· TAT (Turn Around Time): Time taken to complete a certain task.
