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 defines what each party needs to reach http://royston-consulting.com/tips-on-choosing-an-outsourcing-consulting-service its goals and provides a mechanism for reporting on those goals and any issues that arise.
SLAs provide protection for both the service user and provider by setting standards, targets, and consequences when these expectations are not met. They also allow for the creation of key performance indicators that can help a business identify areas that are not on track to meet its strategic objectives.
The SLA should include all services included in the contract, including details on turnaround time and any exclusions. The contract should also include a list of metrics to be used in measuring the service provider’s performance.
Metrics that are easy to collect should be chosen to reflect factors that are under the reasonable control of the service provider. 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 determine whether the business is veering away from its course, a common problem with small businesses.