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SLAs and OLAs:Who, What, Why, & How?

Stevie Peterson, PMP

5/18/07

Prepared for: MN Public Sector ITIL SIG

Sponsored by:

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kpeak.com 651.452.52442

Workshop Agenda:

Service Level Agreements (SLAs)

What is an SLA?

Why Implement SLAs?

Whats Included in an SLA?

SLA Negotiation Process

Caveats

Operational Level Agreements (OLAs)

What is an OLA?

Why Implement OLAs?

Whats Included in an OLA? OLA Governance

A Sample Service Desk (Service-based) SLA andOLA will be reviewed and discussed.

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What is an SLA?

Service Level Agreement A Mutually Beneficial Written

Agreement between the ServiceDesk and its Customers Defining:

Key Service Targets Responsibilities of Both Parties

Reporting Methodology

Compensation Due the Customer if

the Service Desk Misses the Mark(if Charging is in place)

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SLA Types:

Service-Specific Customer-Specific

Corporate Multi-Level

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Why Implement SLAs?

Keep These Principles in Mind Throughoutthe Presentation:

Above All, SLAs Formalize Relationships

Relationships Must be Cultivated and then

Managed on an Ongoing Basis SLAs Define Specific Areas of

Accountability Between Two Parties; EachParty Must Designate a Representative andConfer Appropriate Authority to Those

Representatives (e.g., Help Desk &Customer)

SLAs are Business-Enablers

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Why Implement SLAs?

The Biggest Reason:

Satisfied

Customers!

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SLA Contents:

Service Desk SLAs are Typically Service-Specific and

Written at the Corporate Level for Incident Resolution andService Request Fulfillment and Include:

Introduction

Roles & Responsibilities of Both Parties

Help Desk Support Hours

Out of Hours Procedures

Incident Resolution and Service Request Objectives(MTTR Targets and Due Dates)

Escalation Procedures

Exception Procedures

IT Service Continuity

Charging Formulas and Procedures (if applicable)

Performance Incentives/Penalties (if applicable)

Metrics

Service Reporting and Reviewing

Audits

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Process Improvement Projects:

Service DeskVISION /

STRATEGY

OrganizationalTransformation

PROCESS STEPS:

1. Identify and Define theBusiness Need

2. Document the AS IS3. Analyze the AS IS

4. Architect the TO BE5. Implement the TO BE6. Evaluate and Control7. Continuously Improve

PROJECT STEPS:

1. Scope ManagementPlan

2. Work BreakdownStructure / Activity List

3. Staffing Plan4. Risk Management Plan5. Communication Plan6. Quality Assurance Plan7. Procurement Plan

FOCUS:

Individual Team Organization

Process

Project

All Three Components are Critical to a

Successful Process Improvement

(SLA) Project!

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The SLA Negotiation Process:

Assess CurrentLevel of

Performance

ElicitCustomers

RequirementsPerform Gap

Analysis

Architect theFuture State

EnsurePerformance

Goals areSMART

DetermineReporting

Methodology

AlignOrganizational& Individuals

Goals

Train AllStakeholders

Write SLA;Obtain

Approvals

Write OLAsand Align UCs

Report &Evaluate

Monthly withCustomersContinuously

Improve

Execute as a

Project!

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SLA Negotiation Process (cont):

1. Assess Current Levelof Performance

What are our current

metrics / results? What do our Customers say

about our performance?

How efficient are we?

What about the currentprocess adds value andshould be preserved?

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2. Elicit CustomersRequirements

What do our Customers

require?

How can the Service Deskbetter enable businessobjectives?

NOTE: The Customer perspective prescribed in Steps 1

and 2 can best be assessed by Customer interviews or

focus groups performed by a 3rd party; try to avoid surveys.

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3. Perform Gap Analysis4. Architect the Future State

Define the gaps between the AS IS and TO BE.

Design the TO BE with Customers (and Vendors if

appropriate). What does success look like? Determine metrics and key performance indicators.

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5. EnsurePerformanceGoals are Smart!

S pecificM easurable

A chievable

R ealisticT ime-Bound

6. DetermineReportingMethodology

WHO?WHAT?

HOW?

WHEN?

WHY?HOW OFTEN?

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7. Write SLA; Obtain Approvals

8. Write Operational Level Agreements (OLAs);Align Underpinning Contracts (UCs)

SEE HANDOUTS for examples

Consider writing OLA as a Policy with signage from allfunctional leaders.

Write SLA and OLA with representative Stakeholders;provide a straw document as a springboard fordiscussion and starting point.

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9. Align Organizational and Individual Goals10. Train All Stakeholders

Just as OLAs and UCs support the SLA, individual(appraisal) goals must support organizational goals.

Educate stakeholders during the training process.

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11. Report & Evaluate Monthly12. Continuously Improve

Work to cost-effectively obtain the results Customersrequire.

Measure results: Leverage processes and proceduresthat serve the SLA; work to mitigate or avoid thatwhich is not serving the business.

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SLA - Caveats:

Service targets arent SMART.

A Service Level Manager is not appointed; Reportingand Continuous Improvement efforts are left up tooverworked Managers.

The right level of authority is not given to the Service

Level Manager. TOO much detail or not enough detail.

Not aligning or negotiating with the Business; rather,being IT or Help Desk-centric.

SLAs are not properly communicated; confusion and

unmet expectations reign. OLAs and UCs are not aligned to support the SLA.

Ongoing maintenance of the SLA wanes; initialmomentum is lost due to lack of focus and/or resourceconstraints.

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What is an OLA?

Operational Level Agreement A Written Agreement between the IT

Departments in the SLA Support Chain:

SLAs Define Cycle Time

OLAs Define Turnaround Time

UC

Vendors

Customers

OLAOLAIT

Dept

SLA

IT

DeptSLM

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Why Implement OLAs?

Enables Successful Fulfillment of the SLA

Establishes Roles & Responsibilities of AllParties

Increases Efficiency

Drives Resource-to-Load (re) Allocation

Creates a Streamlined Process ACCOUNTABILITY!

ACCOUNTABILITY = Cs the Day!!

CLEAR ASSIGNMENT

COMMITMENT

CONSEQUENCES

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OLA Contents:

Operational Level Agreements are Short and

Sweet, Focusing on Agreements to Turnaround

Times between IT Functions / Organizations.

Consider Writing as a Policy: One Document inSupport of an SLA with all Agreements Between ITOrganizations Documented and Signed by the SeniorManagement of those Organizations.

Introduction

Roles & Responsibilities of All Parties

Specific Turnaround Times

Measurement Methodology Escalation Procedures

Reporting & Review Methodology

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OLA Governance:

Consider Convening a Governance BoardComprised of the Senior Managers Who Signedthe OLA. Meet Once a Month to Review Resultsand Institute Continuous Improvement Action

Plans.

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A Word About Organizational Change:

SLAs and OLAs:

Change the Way Organizations ConductBusiness and Regard Customers

Change the OrganizationsPhilosophical Framework

Measure Specific Performance Drive Accountability at All Levels

WHERE THERE IS CHANGE,

THERE WILL BE RESISTANCE!

COUNT ON IT!PLAN FOR IT!

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In Summary:

Service DeskVISION /

STRATEGY

OrganizationalTransformation

PROCESS STEPS:

1. Identify and Define theBusiness Need

2. Document the AS IS3. Analyze the AS IS4. Architect the TO BE5. Implement the TO BE6. Evaluate and Control7. Continuously Improve

PROJECT STEPS:

1. Scope ManagementPlan

2. Work BreakdownStructure / Activity List

3. Staffing Plan4. Risk Management Plan5. Communication Plan6. Quality Assurance Plan7. Procurement Plan

FOCUS:

Individual Team Organization

Process

Project

All Three Components are Critical to a

Successful Process Improvement

(SLA) Project!

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Stevie Peterson Contact Information:

Office: 651-452-5244

Email: [email protected]

Knowledge Peak Contact Information:

Office: 651-452-5244

Email: [email protected]

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