5 Steps To Developing A Service Level Agreement

An important characteristic of completing a business engagement is the service level agreement entered into by the customer and the service provider. SLAs set forth the service levels expected by the customers and deliverable by the service provider. They are especially of importance in businesses in which mission-critical services are supported by applications/softwares and a single malfunction in the IT operations can damage the bottom line of the business in a major way. A service level agreement determines the terms and conditions of the services and creates a roadmap for achieving the goals of the project. SLAs can provide the network administrator with complete details on application availability and is a great tool to application monitoring and performance testing.

However, the process of determining a service level agreement is lengthy and complicated. Industry experts recommend a step by step process for developing a SLA which is explained below.

1. Basic Information
   

Gathering of basic information on part of both the customer and the service provider is the first step in developing a service level agreement. Before any commitments are made in the SLA, the customer needs to spell out his requirements clearly and the service provider needs to verify whether meeting those service requirements is realistically possible. Without this basic understanding, a service level agreement cannot be successful.



2. Establish the Process of Working Together
   

This is a critical step in establishing a service level agreement. When there are two parties involved, there are bound to be differences in communication style, expectations, working method etc. When these differences are identified upfront, the process of working in tandem with each other is easier to chalk out. Once this process is worked out, the exact steps to be taken will be known and the service level agreement will have greater chances of success.



3. Consensus
   

Many times, customers and service providers have two very different viewpoints regarding what a service level agreement can achieve. Negotiations for SLAs are known to have broken down due to differences in viewpoints. It would help this purpose if both the concerned parties hold an open discussion to ensure that their viewpoints match. Any differences in expectations can then be ironed out at this stage and the service level agreement can be developed further.



4. Develop and Approve the Final Draft
   

This step involves developing the structure and content of the service level agreement. This is a time-consuming process, with customer as well as the service provider discussing, negotiating, and after a time arriving to the conclusion regarding the terms and conditions to be included in the service level agreement. Even after the draft is created, members of both the parties who are responsible for the success of the SLA should be allowed to review it and offer suggestions. After such discussions and revisions, the service level agreement can be finalized.



5. Applying and Managing the Service Level Agreement
   

Even after application of the service level agreement, its management remains an important aspect. There should be a member from both parties who has to be a point of contact in case of problems related to the SLA. In addition to this, constant reviews with regards to services provided, modifications in the existing service level agreement, enhancements to the services provided etc. need to be taken care of through the management of SLAs. Finally the teams at both ends need to be taken into confidence so that they help achieve the goals of the service level agreement.

Developing and entering into a service level agreement is a complex process and requires a lot of attention. Through the above-mentioned steps, a successful service level agreement can be developed and entered into.