A service level agreement is an excellent tool for helping two parties improve communications, manage expectations, clarify responsibilities and build the foundation for a win-win relationship.
However, establishing an agreement is neither a quick nor a simple process. Having worked with numerous organizations internationally on establishing SLAs, I recommend paying particular attention to the following key steps:
Gather background information Both the customer and the service provider need to start by gathering information so that each has a solid basis from which to negotiate. Before eliciting commitments from their service provider, customers should carefully review and clarify their service needs and priorities. And before making any commitments to customers, service providers should examine their service history and determine the level of service they can realistically provide. In addition, service providers should assess customer satisfaction so as to clearly understand customer concerns and establish a baseline for assessing service improvements.
Ensure agreement about the agreement The two parties to an agreement often have different views about the role of the SLA and what it can realistically accomplish. Both sets of views may be valid, yet sufficiently different as to cause a breakdown in SLA negotiations. Before any SLA development work is done, it is advisable for the two parties to hold an open discussion to ensure that they have a basic level of agreement about the agreement. If they don't – and until they do – any further SLA effort may prove futile.
Establish ground rules for working together In this critical, but often overlooked, step the SLA developers (those assigned to negotiate the SLA) focus not on the agreement, but on the process by which they will work together to create the agreement. Issues to be discussed include the division of responsibility for development tasks, scheduling issues and constraints, and concerns regarding potential impediments. In addition, the developers can benefit greatly by discussing their communication styles and preferences. By identifying similarities and differences right up front, they will be in an excellent position to minimize conflict.
Develop the agreement This is but one step in the process of establishing an SLA; it's not the entire process. In this step, the two parties create a structure for the SLA document and then discuss, debate, negotiate and, over time, reach agreement about the contents of the agreement. In doing so, they may each solicit assistance, input or feedback from others in their own organization. The duration of this step typically varies from several weeks to several months, depending on the developers' previous experience with SLAs, their familiarity with the key elements of an SLA, the demands of their other responsibilities, and the state of the relationship between the two organizations.
Generate buy-in The result of Step 4 is a draft of an agreement, not a completed agreement. Before implementing an SLA, all members of both parties who have a stake in, or responsibility for, the success of the agreement should have an opportunity to review the draft, raise questions, and offer suggestions. Using this feedback, the developers can conduct further negotiations, gain the necessary approvals, and finalize the document. In addition to generating buy-in, this step improves the quality of the final document.
Complete pre-implementation tasks This step entails the identification and completion of tasks that must precede SLA implementation. Such tasks might include, for example, developing tracking mechanisms, establishing reporting processes, developing procedures for carrying out stated responsibilities, communicating expectations to staff, providing pertinent training.
Implement and manage the agreement An agreement that is not managed dies upon implementation. Management responsibilities include providing a point of contact for problems related to the agreement, maintaining ongoing contact with the other party, conducting service reviews, coordinating and implementing modifications to the SLA, and assessing and reporting on how the two parties can further enhance their working relationship.
Naomi Karten has always been fascinated by human behavior. Her background includes a B.A. and M.A. in psychology and extensive corporate experience in technical, customer support and management positions.
Since forming her own business in 1984, she has presented seminars and keynotes to more than 100,000 people internationally. Her services, books and newsletters have helped organizations and groups
Manage customer expectations,
Enhance their communications and consulting skills,
Provide superior customer service, and
Establish successful service level agreements.
She is the author of several books including:
Communication Gaps and How to Close Them, which provides strategies and guidelines for improved communication in such contexts as building strong relationships, delivering superior service, fostering effective teamwork, and managing change
Managing Expectations: Working With People Who Want More, Better, Faster, Sooner, NOW!, which offers a serious, lighthearted look (yes, both!) at policies and practices for successfully managing expectations in the workplace
How to Establish Service Level Agreements, a handbook based on more than a decade of experience providing SLA consulting and seminars internationally and which is designed to help you avoid the flaws and failures she encounters so often
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A service level agreement is an excellent tool for helping two parties improve communications, manage expectations, clarify responsibilities and build the foundation for a win-win relationship. 