A service-level agreement (SLA) is an important part of business consulting and is often used between a company’s internal operations and 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 protect end users and service providers by establishing targets, standards and consequences if they 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 must also specify the metrics that will measure the performance of the service provider.
Metrics should be selected to reflect only factors that are within the service provider’s reasonable control and be easy to collect. They should be set at a reasonable baseline so that they can be improved over time.
A key performance indicator, or KPI, is a metric that measures how well a business is performing in terms of 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.