Service Level Agreements (SLA)

Introduction

This course highlights the importance of Service Level Agreements to meet the needs of companies that are dependent on long-term partnership arrangements with external suppliers of services in achieving strategic goals. Those managing such corporate relationships need to know how such a partnership will function and be able to deal with any problems.
The SLA establishes the measurement methodology that should drive the quality of service performance created as a legal contract between supplier and customer, or as a formal agreement between one internal supplier department, that provides corporate services to its internal client. It is imperative that everyone engaged in service providers understands the issues and processes involved in a service contract scenario.

Course Objectives

• Understand Basic Outsourcing Considerations.
• Learn the Features, Functions, and Benefits of Lean Contracts.
• Understand the Different Contract Types and When / How to apply them.
• Understand the Basics of SLAs.
• Learn How to Define Service Levels.
• Understand How to Monitor the Contractor's Performance and Relate the Performance to Penalties and Rewards.
• Learn How to Develop and Negotiate a Contract – The Contracting Cycle.
• Understand Negotiating Tips & Tricks.
• Learn How to Manage SLAs during the Contracting Period.

Course Outlines 

Day 1: Principles and Functions of Service-Level Agreements

• The Need to Measure Quality of Performance.
• Why, When, and How Can SLAs Help to Achieve Quality?
• Key Objectives.
• SLAs: Contracts or Contract Substitutes?
• Introducing SLAs for Services Bought From Contractors.

Day 2: Key Elements of a Service Level Agreement

• What Services are Being Measured?
• Typical Quality Measures.
• SLA Governance Frameworks: Managing, Measuring, and Reporting Service Performance.
• Risk Sharing and SLAs: Managing Problems.
• Termination of the Agreement.

Day 3: Drafting Your Service Level Agreement

• Drafting Principles.
• A Model Structure for the SLA.
• Essential Elements of a Quality SLA.
• Using Appropriate Measurement Language.
• SLA Checklists.

Day 4: Managing the In-Life SLA      

• Review Processes.
• Using Escalation to Manage Quality Performance.
• Keeping the SLA Relevant: Managing Changes.
• Negotiation Techniques to Manage the Variation.
• Customer Intervention Options with an Under-Performing Contractor.

Day 5: Using a Scorecard Approach to SLA Management

• Origins of the Scorecard Approach.
• Aligning the SLA with the Corporate Strategy.
• Balancing the Needs of Stakeholders.
• Planning and Constructing an SLA Scorecard.
• Business Process Quality Improvement.