A service level agreement (SLA), which is an important aspect of business consulting, is used often between a firm’s internal operations as well as its customers. It outlines what each party will need to achieve its goals, and provides a way for both parties to report on these goals and any issues that may arise.

SLAs are designed to protect both the service provider and the end user by establishing expectations, standards and consequences for either meeting or not exceeding them. They also allow for the creation of key performance indicators that can help a business identify areas that are not on track to meet its strategic objectives.

The SLA will define all services that are covered in a particular contract, along with any exclusions and details on turnaround times. The contract should include a list that specifies the metrics used to measure service provider performance.

Metrics selected should reflect only factors within the service provider’s reasonable control, and be easy for them http://royston-consulting.com/generated-post to collect. They should also be set up with a reasonable base, so they can be refined as time goes on.

KPIs are metrics that measure how well an organization is performing with respect to its primary goals. It can help a business determine if they are veering from their course, which is an issue that is common for small businesses.