Service-level agreements (SLAs) are an important component of business consulting. They are often used by a company to communicate with its customers. It outlines what each party will need to achieve its goals, and provides a way for both parties to report on these goals and any issues that may arise.
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 also allow for key performance indicators to be created that can help an organization identify areas where it is not on track with its strategic objectives.
The SLA should include all services included in the contract, including details on turnaround time and any exclusions. http://royston-consulting.com/tips-on-choosing-an-outsourcing-consulting-service The contract should also specify a list metrics that will be used by the service provider to measure their 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 up with a reasonable base, so they can be refined as time goes on.
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 the business determine whether it is veering off course, which is a problem that is common with small businesses.