SLAs for Dummies

 

Service Level Agreements (SLAs) should not be taken lightly. The commitments and penalties associated with them can make and break companies. In addition, because SLAs can be highly complex, it takes a lot of practice to get really good at structuring them. Nonetheless, a little common sense goes a long way as you approach your first SLA negotiation. Here are some "SLAs for Dummies" tips to get you started.

Focus on the Underlying Objective
Fundamentally, an SLA is exactly what it sounds like--an agreement between companies or divisions that answers basic questions about the delivery of a service:

• What is an acceptable level of service?
• What metrics and reporting will we use to determine whether that level is being achieved?
• What will happen if the standard is not met?

As you begin to structure the agreement, keep sight of the underlying objective. Behind all the fancy contract language is the mutual need for the service provider and the service recipient (customer) to work together smoothly and effectively. After all, the customer has already determined that receiving the service will help it meet its goals--and the provider has concluded that delivering the service will help it meet its own goals.

So, avoid the temptation to become adversarial. Remember that you will want to work smoothly with the folks on the other side of the negotiating table…

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