Service Design
Service Level Management
Introduction
The Service Level Management
process improves business aligned IT
service quality and instigate actions to eliminate
poor service.
Purpose and Objectives
Service Level Management
is responsible for
ensuring that goals and objectives
of the Service Strategy,
Service Design and Service Operation meet internal as
well as
external targets.
The purpose of the SLM process
is to ensure that all current and planned IT services
are delivered to agreed achievable targets. This is
accomplished through a constant cycle
of negotiating, agreeing,
monitoring, reporting
on
and reviewing IT
service targets and achievements,
and through instigation
of actions to correct or improve the level of service delivered.
The objectives of Service
Level Management
are to:
• Define, document,
agree, monitor,
measure, report and review the level of IT
services provided
• Provide and improve the relationship and communication with the business and customers
• Ensure that specific and measurable targets are developed for all IT services
• Monitor and improve customer satisfaction with the quality of service delivered
• Ensure that IT and the customers have a clear and unambiguous expectation of the level of service
to be delivered
• Ensure that proactive measures to improve the levels of service delivered are implemented wherever it is cost justifiable to do so
The significance of Service
Level Management lies
in its ability to manage Service
Level Agreements, internally or externally.
There are several
types
of agreements that play
important roles
in
the
Service lifecycle.
• Service
Level Requirements
(SLR): Targets and responsibilities
documented and agreed for proposed new or changed service.
• Service Level Agreement
(SLA): A written
agreement between the IT service provider and the customer regarding the service targets and responsibilities of both parties.
• Operational
Level Agreement (OLA): An agreement
between
an
IT
service provider
and another
division within
the same organization that
assists with delivering the services.
• Underpinning Contract
(UC): A contract between an IT service provider and an external supplier.
Scope
Service Level Management (SLM) should provide a
point of regular contact and communication
to the customers and business
managers
of an organization in relation to service levels. In this context, it should represent the IT service provider to the business, and the business to the IT service
provider.
The SLM process should
include:
• Cooperation with the business relationship management process:
this includes development of
relationships with the business as needed to
achieve the SLM process objectives
• Negotiation and agreement of future
service level requirements
and targets, and
the
documentation
and
management of
SLRs for all proposed
new
or changed services
• Negotiation and agreement of current service
level requirements
and targets, and
the documentation and management of SLAs for all operational services
• Development and management of appropriate OLAs to ensure that targets are aligned with SLA targets
• Review of all supplier
agreements
and
underpinning contracts
with supplier
management to ensure that targets are aligned with SLA targets
• Proactive prevention of service failures, reduction of
service risks and improvement in the quality of service, in conjunction with all other processes
• Reporting and management of all service
level achievements and review of all
SLA breaches
• Periodic review, renewal and/or
revision of SLAs, service
scope and OLAs as appropriate
• Identifying improvement opportunities for inclusion in the CSI register
• Reviewing
and prioritizing improvements in the CSI register
• Instigating and
coordinating SIPs for
the
management, planning and implementation of service
and process improvements.
Designing SLA Frameworks
Service Level
Management must design
the most appropriate SLA structure
to ensure that all services and customers are covered in a
manner best suited to the organization’s needs.
There are a number of potential agreement options, such as the following:
• Service-based SLA
ƒ SLA covers one service, for all the customers
of that service.
ƒ Difficulties may arise
if the
specific requirements of different
customers vary for the same service.
ƒ Difficulties may also arise in determining who should be the signatories to such an agreement.
ƒ Multiple classes of service may also be used to increase the effectiveness of service-based SLAs.
• Customer-based SLA
ƒ SLA is an agreement
with
an
individual
customer
group,
covering all services they use.
ƒ Customers often
prefer such an agreement,
as all of their requirements are covered in a single document.
ƒ Only one signatory is normally required, which simplifies the issue.
• Multi-based SLA
ƒ Multi-level SLAs usually constitutes three layers:
¾ Corporate
level:
Covers all the generic SLM issues appropriate to every customer
throughout the organization
¾ Customer level:
Covers all SLM issues relevant to the particular
customer group or business unit, regardless
of the service being
used
¾ Service level:
Covers all SLM issues relevant to the specific service, in
relation to a specific customer group
Producing SLRs
A draft of
the SLR is one of the earliest activities within the Service Design stage. It is advisable to involve customers from the outset.
To produce the draft, start with a
first outline draft of the performance targets and the management
and
operational
requirements. Consult other processes for
realistic targets. Use this draft for
in-depth discussion
with
business,
which
may require several iterations.
Provisional targets should also be included
within a pilot SLA. It
is also important to establish procedures for agreements of SLRs for new services being developed
or procured.
The SLR will gradually be
refined as the service progresses through the stages of its lifecycle. This pilot or
draft SLA should be
developed alongside
the service itself, and should be signed and formalized before the service
is introduced into live use.
Activities
Activities performed
within Service Level Management are:
• Determine,
negotiate, document and
agree on requirements for new or changed
services in SLRs.
• Monitor and measure
service performance achievements.
• Compile, measure and improve customer satisfaction.
• Produce service
reports.
• Conduct service reviews and
initiate
improvements within a
Service
Improvement Program/Plan (SIP).
• Review and revise SLAs, OLAs, contracts and underpinning agreements.
• Develop and document contracts and relationships within business market.
• Develop, maintain and operate
procedures relating
to
complaints and
compliments.
• Log and manage all complaints and compliments.
• Provide appropriate management information to
assist in performance management.
• Make available and maintain up-to-date SLM document template and standards.
Service Reviews
Periodic review meetings must be held with customers to review the service achievement, preferably on a monthly
or quarterly basis.
Actions must be placed upon the customer and provider as appropriate
to improve weak areas where targets are not being met.
Particular attention should be focused on each branch of service level to determine
exactly what
caused the
loss
of
service
and what can
be done to
prevent any
recurrence.
Depending on the cause of loss
of
service,
it
may
be necessary to review, renegotiate or review-agree different service targets
or agreements.
A Service Level Agreement
Monitoring Chart (SLAM) is used to help monitor and report achievements against Service Level Targets. A SLAM Chart is typically colour coded to show whether each agreed Service Level Target has been met, missed, or nearly missed during each of the previous 12 months.
Service Improvement Program (SIP)
Where an
underlying difficulty has
been
identified
that is adversely
impacting
on service
quality, SLM, along with Problem Management and
Availability Management, instigate an SIP to identify and implement whatever actions
are
necessary
to overcome the difficulties and restore service
quality.
SIP initiatives may also focus on such issues as user training
service and system testing and documentation.
The SIP
needs to
be owned and managed, with all improvement
actions being assessed for risk and impact on services, customers and the business.
Key Process Indicators
Key Performance Indicators
(KPIs) and metrics are used to judge the efficiency and effectiveness
of the SLA activities and
SIP (Service Improvement Plan) progress. These metrics cover both the subjective and objective measurements:
• Subjective measurements:
ƒ Improvements in customer satisfaction
• Objective measurements:
ƒ Number/percentage
of service targets being met
ƒ Number and severity of service breaches
ƒ Number of services with updated
SLAs
ƒ Number of services with timely reports and active service reviews
Challenges
There are cases where challenges will be encountered. These challenges need to
be proactively,
as well as reactively dealt with. Challenges that are not properly dealt with may adversely affect the strategy, designs, plans and desired outcomes of the process.
Some of the challenges in Service Level Management are:
• To identify the suitable customer representative within the IT organization
• To designate appropriate representatives within the IT organization
• To acquire commitment from the Service Desk
• To formalize and communicate the agreements
Roles
The main responsibilities of the Service Level Manger are:
• Achievement of goals for SLM process
• Awareness of changing business needs
• Considering Service Requirements of customers
• Negotiation and agreements
that support the SLAs with the customers of the service
• Ensuring that targets within Underpinning Contracts are aligned with SLA’s and
SLR’s.
• Measuring, recording, analysis and improvement of customer satisfaction
• Reviewing
service scope, SLAs, OLAs and other agreements
on a regular basis
• Ensuring that all changes are assessed for their impact on service levels
• Developing relationships
and communication with
stakeholders, customer
and key users
• Measurement, recording, analysis and improvement of customer satisfaction
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