Every technical support organization should have service level guidelines as a basis for determining how to prioritize cases and allocate resources and for managing consistent expectations with customers. Introducing service level agreements with committed performance levels is only required when customers demand them, or it is necessary for competitive differentiation.
SLA Types
There are three primary types of service level agreements used within the technology industry. The primary elements of the agreements include the committed or targeted level of performance, the conditions and definitions for how performance will be measured, and the provisions by which performance commitments will be enforced. Typical technology service level agreement types include:
Agreements
Agreements state a committed level of service and the terms by which this service will be provided. Service level agreements are typically enforced by some form of penalty when promised performance levels are not met.
Level of Performance: Performance commitments.
Conditions: Stringent definitions and conditions for determining SLA non-compliance.
Enforcement: Typically a penalty in the form of a rebate of service fees.
Firm Targets
Service level targets express a target level of performance for a particular service. Targets are expressed in specific terms however there is no commitment or guarantee of performance or penalty imposed if not met.
Level of Performance: Specific performance targets.
Conditions: May vary by customer type, support program level or issue severity.
Enforcement: None.
Soft Targets
Service level targets may also be expressed in soft terms where a level of performance is suggested for some but not all situations. When soft service level targets are missed there are no penalties.
Level of Performance: Performance ranges.
Conditions: May vary by customer type, support program level or issue severity.
Enforcement: None.
Why Use SLAs
Service level statements are used for a variety of reasons, most notably to establish differentiation from direct competitors or within a service offering to distinguish between program levels and tiers. In some instances, customers will demand service level agreements as a prerequisite for doing business. In all cases SLAs are effective for setting and managing customer expectations. Well defined performance SLAs can prescribe how quickly to respond to issues, which issues to work on first, and who to get involved with issue resolution.
- Set Customer Expectations
- Competitive Differentiation
- Service Tier Differentiation (within a Portfolio)
- Prioritization and Resource Allocation
Do You Need SLAs?
Every technical support organization should have service level guidelines as a basis for determining how to prioritize cases and allocate resources and for managing consistent expectations with customers. Introducing service level agreements with committed performance levels is only required when customers demand them or it is necessary for competitive differentiation.
- Do your customers expect them?
- Do your competitors provide them?
If the response to either question is “yes” then you should be offering SLAs.
