An ALS is also a tool for measuring performance, but it is different from a KPI. This is an agreement between an internal or external service provider and the entity that is the end user of that service. AN ALS should clearly define, in plain language, what the client receives and should expect from the service provider. The KPIs were designed to reduce the complexity of evaluating previous decisions, and the effects and consequences that result. KPIs provide a manageable and holistic overview of business performance from different angles and allow decision makers to adapt strategies to achieve optimal results. It is therefore important to identify, monitor, report and evaluate the most effective measures that indicate the actual performance of the corresponding business component. The following guidelines can be adopted when determining the correct KPI measures: When an ALS is available, the client regularly evaluates, communicates and adapts measures to comply with the agreement. While an ALS may be part of a legal contract, a contract is not necessarily an ALS, as contracts can be concluded without drawing the level of performance. It depends on your SLAs and existing metrics, but in general, this includes performance-related KPIs. You should follow KPIs in relation to your server`s performance (for example. B downtime, average availability and more) as well as repair and reaction data such as average repair time and average detection time. Imagine running an IT outsourcing company and 400 clients working in critical and highly sensitive industries.
This means that your services should always be activated and fast to avoid service outages. Creating the SLAs first helps you and your customers define the conditions for success. Most importantly, they create a basic template to create your KPIs and dashboards. If you follow your SLAs this way, you have clear goals in mind and you can easily monitor how you achieve them. ALS should be seen as a process to improve service quality that affects business performance. In the age of cloud computing, ALS metrics and contractual obligations should be seen as a process to improve service quality and meet evolving business requirements when companies are proactively evolving at market conditions. The following principles can help companies develop and seek optimal ALS conditions for their professional needs: This article examines the terms SLA and KPIs and contains the necessary guidelines to improve service levels and business performance: The survey results show that more than a third of supplier-client relationships do not have formal performance measurement agreements. About 22% of respondents were unsure of KPIs or SLAs. If none of the KPIs are aware of this, one could find a strong argument that they are not being used effectively. This means that only 40% of metrics actively used the measures to either set expectations through service level agreements or to measure current and past performance from key figures.
Make sure you set meaningful metrics that you want to follow. Avoid ”metric vanity,” whose sole purpose is to display the amount of data you have. These only lead to information overload. This is why KPS is called key performance indicators. As the name suggests, you should provide important information about your performance and, ideally, give an overview of the improvement in that performance. It is important to understand that key performance indicators (KPIs) and service level agreements (SLAs) are not the same, although there are some overlaps.