Advantages and disadvantages of service level agreement

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The Customer’s Side – Advantages and Disadvantages of Service Level Agreement Cited

In any business, it is always thought that “The customer is always right.” That is, every expectation that the customer has are written in the service level agreement or SLA. The SLA in general describes the core services provided to customers and details their responsibilities in making sure that every concept is met in accordance to SLA. Customer feedback is one of the reasons why products and services are constantly innovating. Though SLA has some advantages and disadvantages to customers, it still all boils down to what has been agreed upon before the signing of the contract.

All the services that the customer needs are included in the SLA. This means that the customer knows what to expect in terms of quality of service and warrants the customer a credit or refund if, in case certain parameters promised,were not met. SLAs also separate the roles of the provider and customer, with such understanding that the customer knows who to call to for support if in case he/she needs help. Say for example, a DSL provider that uses the phone line to connect to the internet may not be the one responsible if the phone line is not working. Hence, the customer needs to call the phone provider instead to fix the phone line.

The disadvantage comes in when the business was put in jeopardy due to a lack of services or support from the provider. An example would be when the customer is talking to his/her clients online until all of a sudden he/she was disconnected due to system issues encountered by the provider. Though credit or refund may be issued, the customer’s integrity is also at stake as maintaining the loyalty of clients is more important.






Service Level Agreements FREE Toolkit

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Complete FREE Service Level Agreements Toolkit contains these 30 files.

Ready for you to use:

1.File: Availability Requirements.doc – Summary: Use this section to describe any and all information that needs to be supplied with regard to serviceability of the <IT SERVICE> Service and its components. 

2.File: Business Continuity Strategy.doc – Summary: This recovery options is used for services where immediate restoration of business processes is not needed and can function for up to a period of 24 to 72 hours as defined in a service agreement.

3.File: Risk Assessment Template.doc – Summary: Scope for the assessment may be determined by the business, therefore covering only a select few of the <IT SERVICE> Services provided by the IT department that are seen as critical to the support of the business processes. 

4.File: 03 Business and IT Service Mapping.doc – Summary: List the important activities and/or events that occur as part of the alternative path for this process, beginning with a note on where the alternative path breaks off from the standard path, and ending with a note on where the alternative path rejoins the standard path, if it does. 

5.File: 04 Service Management Process Definitions and Interfaces.doc – Summary: Risks associated with requests for change: to assess and manage the impact on service continuity and availability

6.File: 05 Business Justification Template.doc – Summary: The process of establishing and monitoring performance levels means that when IT and business people discuss IT related issues they are in fact talking about the same thing (and not – as often happens – talking at odds with each other. 

7.File: 07 Service Level Requirements Template.doc – Summary: The SLR document does not have to be in a lengthy written format and in fact it is more likely to be adopted if it is kept concise, with only salient details)

8.File: 10 Service Agreements.doc – Summary: Dealing with individual services has the greatest level for flexibility in managing service levels, but creating individual agreements for each service provision has the potential to create conflicting obligations with customers who have multiple services, or a service which is provided to multiple customers. 

9.File: 11 Service-Based SLA Template Example.doc – Summary: It is the process by which the service provider and customer will define and agree on the scope and outcomes of a service, as well as review the performance of the service against agreed targets.

10.File: 12 Customer-Based SLA Template Example.doc – Summary: This document serves as a GUIDE FOR THE CREATION OF AN AGREEMENT BETWEEN THE SERVICE LEVEL MANAGEMENT PROCESS OWNER AND THE CUSTOMER OF IT SERVICES (Covering all the IT Services they use). 

11.File: The Evolving Service Catalog.docx – Summary: While we have presented real world commercial examples of wholesaler catalogs, there’s no reason that the same model cannot be used at the enterprise level or incorporated as a hybrid solution, ensuring that business applications customized for the enterprise can be identified and launched from an “application warehouse” on any compatible device. 

12.File: 09 Tool Requirements Template and Planner.doc – Summary: To successfully implement tools that will provide a benefit within your organization, it is vitally important to have a clear understanding of the purpose of the tool and how you want it to work for you. 

13.File: 11 Service Report Description Template.doc – Summary: The purpose of this document is to provide the <<Organization name>> with a structure for gathering pertinent information regarding Service Reports. 

14.File: 12 Service Review Template.doc – Summary: For instance, a service which is subject to a higher rate of change, exposed to a high number of risks, is newly implemented or changed may be considered unstable, or has had an historical record of not meeting service targets and should be reviewed more often. 

15.File: 02 Service Desk Skills.doc – Summary: For instance, a Service Desk Analyst on a Skilled or Expert Service Desk (Level 3 Apply) may also be applying the skill sets on the same responsibility level for IT operations, problem management, configuration management, and service level management in varying degrees. 

16.File: 02 Availability Requirements.doc – Summary: Use this section to describe any and all information that needs to be supplied with regards to serviceability of the <IT SERVICE> Service and its components. 

17.File: 03 Availability Plan.doc – Summary: Accidental changes often occur when the machine is touched for legitimate reasons, like an update, but the machine is not kept in a workable state; usually because the change has not be fully planned, tested, or the procedures for the change have not been completed as documented.

18.File: 04 Business Continuity Strategy.doc – Summary: This recovery option is used for services where immediate restoration of business processes is not needed and can function for up to a period of 24 to 72 hours as defined in a service agreement.

19.File: 08 Capacity Plan.doc – Summary: User profiles can be created to identify the demands of different roles in the process and how many people in each role is expected: a management role will probably have more rights in a process then a technician, but more technicians will likely be using the process at any given time. 

20.File: 10 Incident Management Policy.doc – Summary: To empower you in the creation process, this document provides some background information regarding the subject area, including considerations to be addressed within the policy itself; however, this is your policy and should reflect the goals, objectives, and guiding principles of your organization.

21.File: 04 Business Impact Assessment.doc – Summary: For instance, a process and procedures document will provide background around a particular activity or deliverable, some considerations within the subject area, an example of its output, and room for the customer to create their own process, procedure, or deliverable. 

22.File: 12 Risk Assessment Template.doc – Summary: The document has been designed to support you in implementing or improving capabilities in Risk Management This section provides instructions for how to use this document properly and should be deleted before publication in your environment.  

23.File: 03 Security Audit Template.doc – Summary: Your use of this system constitutes your further agreement that you will not use the system in any way that would violate any law, or that would be inconsistent with any Company policy or standard including policies on Ethics, Harassment, Conflict of Interest, and standards for system security.

24.File: 09 Change Schedule template.doc – Summary: It is considered that in order to correctly facilitate the Change Management process, the Change Manager should be able to coordinate the production and distribution of a “Change Schedule.” and a “Projected Service Availability” (PSA).

25.File: 03 Metrics and  Reports.doc – Summary: The service provider shall use this process for all new services and changes to services with the potential to have a major impact on services or the customer.

26.File: 02 Service Desk-Process.doc – Summary: For instance, if the Service Desk is required to provide the customer or end user with status on their existing incident/request and the record has been escalated to n-line support, updates from the technician are required. 

27.File: 02 Business Justification Template.docx – Summary: The process of establishing and monitoring performance levels means that when IT and business people discuss IT related issues they are in fact talking about the same thing (and not—as often happens—talking at odds with each other. 

28.File: 03 Process Mapping.docx – Summary: Analysis can be done on individual incidents over a time period and provide more detail, but for understanding how Value Add charts can be used effectively, collapsing incidents into meaningful categories is helpful: this allows us to delineate between hardware-based incidents and other type of incidents. 

29.File: 09 General Improvement Plan.docx – Summary: A project may be halfway complete, a service may be available for half the desired customers, a process update may be in editing before it is published, an incident may be within 2 hours of its agreed resolution time—these are all examples of progress in meeting requirements. 

30.File: 13 Business Justification Template.doc – Summary: The purpose of this document is to provide the <<Organization name>> with a structure for gathering pertinent information regarding IT Service Monitoring and Control. 

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