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. However, KPIs tend to be quite specific to each organization. Of course, there are metrics at a higher level that are common. A common example are the opportunities for business development as a KPI at different levels of a marketing-focused organization. Although generally the KPIs that monitor are unique, or at least not banal. Often, KPIs are very different for employees in the same trade negotiation. Regular and rapid feedback not only plays an important role in the pursuit of KPIs, but also helps to clearly express what the organization expects from its employees. In most cases, an organization has only 1-2 KPIs to determine that other metrics that may be more important to its goals are ignored.
When an ALS is in place, the service provider 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. Any meaningful contract without associated ALS (verified by legal advisors) is open to deliberate or involuntary interpretations. AlS protects both parties in the agreement. Service level agreements are expectations that are defined between a customer and a customer. As a general rule, these are indicated in the original statement. These are essentially agreements on the level of performance that can be expected to be provided. For example, if you hire someone who works on your home, you have certain expectations about the quality of the work, the schedule and the estimated costs. Depending on the nature of the contract you have, these agreements may or may not be binding.