Service Level Agreements (SLAs)

What Does It Mean?

Service Level Agreement KPIs track how your organization is performing relative to the baseline services established in your company’s SLA. The term can include a variety of smaller metrics that tie into an organization’s SLA commitments.

A ServiceNow Weekly Analysis Dashboard

Why Does it Matter?

Your SLA Service Level Agreement will define the terms and standards of the service you’re providing, both to internal stakeholders and external clients. This includes the actual services you’ll provide, as well as the responsiveness to be expected, and how your performance relative to the SLA will be measured. Internally, measuring your KPIs for SLA means that you have a baseline to meet every month, making it easier to track and define success. On the other hand, your SLA KPI dashboard provides greater transparency into how well your service operates, and what exactly your customers are paying for every month.

How Do you Measure the KPI?

Unlike more specific KPIs and indicators, your SLA is an umbrella for a variety of different metrics. Therefore, the easiest way to measure them is to include a specific tab on your IT dashboard that can easily monitor all of them at once. Depending on your SLA IT terms, you’ll have to cover a wide variety of tools. However, you can create a broader measure of your SLA KPI success by measuring how many SLA terms you consistently meet every month (keep in mind that, when it comes to SLAs, you either succeed or fail, so measuring is quite easy).

What Data Sources Would You Use to Measure the KPI?

This will vary depending on your SLAs and existing metrics, but generally, it will include largely performance related KPIs. You should track KPIs related to your server performance (such as downtime, average availability, and more), as well as repair and responsiveness-related data such as mean time to repair and mean time to detect.

Give me an example…

Imagine you run an IT outsourcing firm, and you have clients that work in time-critical and highly sensitive industries. This means that your services must be always-on and fast to avoid any service outages. Establishing the right SLAs at first will help you and your clients define the conditions for success. More importantly, they’ll create a baseline for you to build your KPIs and dashboards. Tracking your SLAs this way means you have clear goals in mind, and you can easily monitor how well you’re meeting them.

What Benchmarks/Indicators Should I Use?

- Mean Time to Resolution
- Server Downtime
- Server Availability
- Mean Time to Respond

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