Enterprises use service level agreements (SLAs) to monitor service desk performance. They are used to set the right expectations between the IT service desk and its users. For IT service providers, having SLAs is an excellent practice for delivering exceptional service and getting incredible insights into business performance.
SLAs ensure that service providers deliver the desired service on time. With SLAs gradually becoming the main criterion to evaluate performance, driving enterprise value by finding out the best way to understand structure, metrics, and reports on SLA becomes essential. Nearly 77% of service desk users have taken on SLAs to ensure optimum performance.
However, not all enterprises understand service level agreements rightly, so adopting some best practices for SLAs can help you get a leg up over others. In addition, incorporating best practices to improve SLAs add tremendous value to the organization by keeping internal needs in line with the service provider.
Let’s get into what SLAs are and how to improve them.
What is Service Level Agreement (SLA)?
As per the ITIL 4 definition, a service level agreement (SLA) is “A documented agreement between a service provider and a customer that identifies both services required and the expected level of service.”
SLA is a contract between the IT service provider and the internal/external customer. It defines the service, the time needed to provide it, performance measurement, and escalations when service is not achieved in time.
An SLA can be used in any service relationship, but it is most commonly used in IT services, where it can help ensure that critical systems are always up and running.
Benefits of improving your SLAs:
By improving your Service Level Agreements (SLAs), you can provide better customer service and improve your bottom line. Here are some benefits of improving your SLAs:
Improved user satisfaction: When your SLAs are clear and achievable, users will be happier with the service they receive. With SLAs involved, the overall time taken to resolve an incident reduces drastically, which leads to improved user satisfaction, higher productivity, and loyalty. Moreover, clear priorities and expectations help your service desk technicians deliver exceptional service.
Increased revenue & decreased costs: If you can consistently meet or exceed the expectations set in your SLAs, you can increase prices or win new business. By improving efficiency and reducing waste, you can also lower service costs and free up resources to improve other business areas.
Improved employee morale: When employees know their jobs and have the resources they need to meet those expectations, they will be more motivated and productive. This eventually leads to increased job satisfaction and retention rates.
Best Practices to Improve SLAs:
For improving Service Level Agreements (SLAs), it is crucial to understand what factors contribute to a successful SLA. Below are some best practices for improving your SLAs:
Define Your Service Levels
The first step in improving your SLAs is clearly defining the service levels you expect from your providers. This includes specifying the types of services to be covered, the acceptable response times, and the uptime percentage you expect. In addition, you can more easily measure and track performance against service levels by clearly defining service levels.
Set Measurable Goals
Once you have defined your desired service levels, you need to set measurable goals for each. This will help you track progress and identify areas where improvements need to be made. In addition, with measurable goals, it can be easier to tell if your SLAs are being met. Therefore, it makes sense to set realistic expectations for all levels of tickets.
Monitor Performance Regularly
It is essential to monitor your SLAs’ performance regularly to ensure they are being met. You can monitor SLAs through reports or dashboards that track response times and uptime percentages. By monitoring performance regularly, you can quickly identify any issues that need to be addressed.
Make Different SLAs for Each Service
IT enterprises offer a varied level of services to different users, so there’s no universal solution available when it comes to service delivery. Instead, you’ll need to create different SLAs that you wish to measure and provide for different services using a multi-level SLA approach. Make sure you coordinate the SLAs with the business goals from the start.
Do Not Stash SLAs
As they say, too much is never enough – the same applies to SLAs! There should not be too many SLAs because that leads to irrelevant breaches. Having so many SLAs waters down the impact of each, and service desk technicians may feel confused about which SLAs to prioritize and manage first.
How to Implement SLA Changes?
Before you change the terms of your SLA, make sure you consult all the parties involved. This includes customers, management, and staff. Once you have a consensus from these groups, you can begin implementing the changes.
Check out below a few steps you should take when making changes to your SLA:
Draft the new agreement: Be sure to include all necessary changes and get approval from all parties involved.
Communicate the changes: Make sure everyone affected by the changes understands what is happening and why.
Update your systems: Ensure that your internal systems are updated to reflect the changes in the agreement.
Train your staff: Provide training to your staff on the new agreement so they can properly implement it.
Monitor compliance: Regularly check in with all parties involved to ensure that they comply with the new terms of the agreement.
To Conclude,
It’s pretty evident that SLAs are an essential part of any business relationship and brings in a lot of benefits. However, managing them can be a little complicated as well as overwhelming.
Adopting the best practices outlined in this post can enhance your SLAs and make them work for your business. With a little effort, you can create SLAs that are fair to both parties involved and that help to improve the quality of your service.