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 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. http://royston-consulting.com/generated-post-2/ They also allow for key performance indicators to be created that can help an organization identify areas where it is not on track with its strategic objectives.

The SLA must include all services covered by a contract and provide details about turnaround times, as well as any exclusions. The contract must also specify the metrics that will measure the performance of the service provider.

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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 to a reasonable baseline, so that they can be refined over time.

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 company determine if it is going off course, a problem common to small businesses.