A service-level agreement (SLA) is an important part of business consulting and is often used between a company’s internal operations and its customers. It outlines how each party can achieve its goals. It also provides a reporting mechanism to track progress and resolve any issues.
SLAs protect end users and service providers by establishing targets, standards and consequences if they are not met. SLAs also allow businesses to create key performance metrics that can be used to identify areas that do not meet their strategic goals.
The SLA must include all services covered by a contract and provide details about turnaround times, as well as any exclusions. A list of metrics that will be used to measure the service provider’s performance should also be specified in the contract using data room software to synergize your business.
Metrics that are easy to collect should be chosen to reflect factors that are under the reasonable control of the service provider. They should also be set up with a reasonable base, so they can be refined as time goes on.
A key performance indicator, or KPI, is a metric that measures how well a business is performing in terms of its primary goals. It can help the business determine whether it is veering off course, which is a problem that is common with small businesses.