Implementing a Service Level Agreement can provide efficiency benefits for your organisation. Keep these tips in mind to make sure you get the most out of it.
Providing the basis for managing relationships between the IT service organisation and its customers, service level management deals with how user service requirements are understood and managed. Service level management covers a variety of activities related to planning, monitoring, and reporting. In this article, I describe the minimum set of data and measurements required for effective service level management. Then, I'll list factors critical to the success of data gathering and measurement. With the ongoing monitoring and evaluation of key indicators and metrics, the IT service organisation is in a better position to ensure the required quality of service is provided in cost-effective ways.
Benefits of service level management
Many benefits can be realised from a well-implemented service level management discipline:
Harmony between the user and the IT organisation - The most important benefit is that the IT organisation gets an accurate picture of what the users need. This may sound trivial, but the lack of well-implemented service level management disciplines causes most of the rifts between IT and users. A Service Level Agreement (SLA) is a give-and-take relationship between IT and users; users articulate what they need, and IT gains support in getting the resources needed to provide it. Both parties must realise that any requested service may be provided, but none come free.
Efficiency of IT operations - Another advantage of having a SLA is that IT can allocate just enough resources towards what the users really need. The SLA reminds IT of what really matters to the business, so it does not waste resources providing services that are no longer needed, or are too complex and advanced for users. I have seen many IT organisations spend a fortune on technology products that users don't need, simply to create the illusion that IT is on the cutting edge. However, any admiration from users is short-lived if they do not gain any business advantage from those advanced products or services.
Improved user satisfaction - A user of any computing resource will be satisfied if his perceived satisfaction level is exceeded. With a SLA, IT has an opportunity to set this expectation level realistically. IT now has a better chance to satisfy its users, since satisfaction is no longer arbitrary or subjective.
Data and measurement requirements
In this section, I describe the minimum set of data and measurements required for effective Service Level Management. Then, I list factors critical to the success of data gathering and measurement.
System configuration data - This is made up of the hardware, software, and other system components installed; the system connection diagram; and information on how the separate components interact with one another. This information is essential for understanding the costs of achieving target service levels.
Cost of system operation - This includes the operational costs of running the system, such as:
- Staff requirements
- Recurring costs of hardware, software, and supplies
- Vendor support requirements (e.g., maintenance contracts)
- Power, air conditioning, and other environmental costs
Service level measures - The measurements related to the service level targets specified in the SLA:
- Industry benchmarks - Performance targets accepted in the industry as practical and achievable
- Problem history data - Information to aid in analysis and reevaluation of the SLA
I recommend the following measures with respect to the performance of service level management:
- End-user satisfaction rating - A measurement derived from periodic surveys asking users how satisfied they are with the service provided by the IT organisation.
- Attainment of service level targets - A measurement of how often the IT organisation was able to achieve the service level targets documented in the SLA.
