Business Consulting and SLA
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 provides the information that each party needs to achieve their goals.
SLAs protect both the end user and the service provider by establishing standards, targets and consequences for meeting or not meeting those expectations. SLAs also allow businesses to create key performance metrics that can be used to identify areas that do not meet their strategic goals.
The SLA must include all services covered by a contract and provide details about turnaround times, as well as any exclusions. The contract should also include a list of metrics to be used in measuring the service provider’s performance.
Metrics must be easy to collect and reflect only those factors that the service provider can reasonably control. They should be set at a reasonable baseline so that they can be improved 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 the company determine if it is going off course, a problem common to small businesses.