SLA compliance and SLA measurement is a standard topic of conversation in most shared services organisations. We all know that SLAs are important, that SLA metrics are important, and that SLA management is important – we also all know that some how the process of reporting on SLAs in shared services environment is fraught with difficulty. These are not armed length transactions. The consequence of non-compliance to SLAs is never clear. Some organisations choose to call them Operating Level Agreements. I understand why but I dont think this really addresses the underlying issue abouto managing SLAs in Shared Services Centres.
Some Shared Services centres simply say there is no room for service metrics as it is detrimental to the overall organisation to treat internal functions as third parties. I dont agree with this approach in any way – but I do admire the honesty! The trouble for me is that if you want to set up a shared service and then not measure it I am not sure you get the intended discipines from having a shared service.
I think to get real value from SLA management and maeasurement it is important to understand that it is one piece of the overall service and relationship management in shared services. A very vital piece – but just one – the mistake people sometime mistakes is assuming that SLA compliance or non-compliance is somehow a measure of whether the client is satisfied. Client satisfaction often needs to measured separately – if you have a good SLA management tool - it will. The important thing is that you follow an effective service management process which uses the SLA information as a key input. Change SLA metrics at will - as long as their is agreement on both sides. Service Levels and Service Metrics are movable feasts- as long as there is agreement on both sides!
