Agreement Types

There are three default agreement types - SLA, OLA, and UC. New agreement types can be created within these types.

Service Level Agreements (SLA) are the Backbone of SLM

While standard OLAs, SLAs, and UCs provide a firm foundation for managing service levels within an ITIL framework, the complexity of today's IT ecosystems often necessitates a more nuanced approach. By considering the addition of specialized agreements and fostering a culture of continuous improvement, organizations can ensure their service management processes not only meet current needs but are also primed to adapt to future challenges and opportunities.

Adopting these practices enhances the efficiency and effectiveness of service delivery, leading to higher customer satisfaction, stronger partnerships, and a competitive edge in the fast-paced world of IT services.

Service Level Management (SLM) is a fundamental principle in the IT Infrastructure Library (ITIL) framework, aimed at enhancing the quality and consistency of IT services. At the heart of SLM lie Service Level Agreements (SLAs), critical tools for defining, managing, and measuring the performance of these services. Understanding SLAs, their types, and how they fit into ITIL is crucial for any organization looking to improve its IT service management capabilities.

What is a Service Level Agreement?

An SLA is a formal document that outlines the specific services to be delivered by a service provider to a client. It details the expectations, responsibilities, performance metrics, and penalties related to service standards. SLAs serve as a binding agreement between service providers and their customers or between two departments within an organization, ensuring clarity and accountability.

Types of Service Level Agreements

SLAs can vary greatly depending on the services being provided and the requirements of the parties involved. However, they generally fall into three main categories:

Customer-based SLA: This type focuses on the services provided to an individual customer or department. It is tailored to the specific needs of that customer and covers all services they utilize.
Service-based SLA: These are standardized SLAs that apply to all customers using a particular service. They offer a uniform approach, ensuring consistency in service delivery for all users of that service.
Multi-level SLA: This structure divides the SLA into different levels, each addressing a specific group of users, services, or locations. It allows for a more flexible and detailed approach, accommodating the needs of various stakeholders more efficiently.

SLAs in the ITIL Framework

Within ITIL, SLAs are integral to Service Level Management, one of the key processes in the Service Design stage of the ITIL Service Lifecycle. They enable organizations to:

Define clear service quality benchmarks and expectations.
Measure and monitor service performance effectively.
Enhance customer satisfaction by meeting or exceeding service expectations.
Drive continuous improvement in service provision.

Furthermore, SLAs support other ITIL processes by providing a clear framework for incident and problem management, capacity management, and continuous service improvement activities. They provide:

Clarity and Accountability: SLAs ensure all parties understand their roles and responsibilities in the service delivery process.
Performance Measurement: By setting clear performance metrics, SLAs allow service providers to monitor and improve their service offerings.
Customer Satisfaction: Meeting SLA commitments leads to improved customer satisfaction and loyalty, which are critical for business success.

SLAs play a crucial role in the effective management and delivery of IT services. By establishing clear expectations and commitments, SLAs under the ITIL framework help organizations achieve higher service quality, operational efficiency, and customer satisfaction.

Ensuring a successful implementation and ongoing management of SLM agreements requires a disciplined approach, not only during the setup but throughout the entire lifecycle of the service. Here are steps for effectively managing and enhancing service level agreements:

Ensuring a successful implementation and ongoing management of these agreements requires a disciplined approach, not only during the setup but throughout the entire lifecycle of the service. Here are steps for effectively managing and enhancing service level agreements:

Effective Management of Service Agreements

Implementing SLA is only the first step. Ongoing maintenance and re views ensure your agreements are always current.

Regular Reviews and Updates: Service needs and capabilities evolve, necessitating regular review sessions for all agreements to ensure they remain relevant and effective. This includes revising service levels, responsibilities, and performance metrics in line with current capabilities and expectations.
Performance Monitoring: Continuous monitoring of service performance against agreed standards is vital. Utilize service management tools to track performance metrics and identify any deviations from agreed levels promptly.
Stakeholder Engagement: Engage regularly with all stakeholders involved, including service teams, customers, and external vendors. This ensures that everyone is aligned with the service expectations and any emerging issues can be addressed collaboratively.
Adaptation to Change: Be ready to adapt agreements in response to significant changes, such as new regulatory requirements, technological advancements, or shifts in business strategy. Flexibility is key to maintaining service relevance and effectiveness.
Dispute Resolution Processes: Establish clear processes for resolving disputes related to service levels and agreements. This should include escalations, mediations, and, if necessary, mechanisms for re-negotiating terms.
Training and Awareness: Ensure all parties involved in the delivery and receipt of services are aware of the agreements in place, their roles and responsibilities, and the importance of meeting agreed standards. Regular training sessions can help maintain high levels of service quality.

Creating an Agreement Type

Before you start

You must have SLM Setup enabled within your General Access Security Role in order to configure any SLM administration settings.

Verify that you have already defined options for Workflow Management and the CMDB, especially priorities, types, service levels, service types and CMDB item types.

Select the Menu button, then Admin, and then select System Administration. The System Administration window is displayed, with a menu of options available.
In the Explorer pane, select Service Level Management.
Select Agreement Types to open the window.
Select the New icon. A row is added to the browse table on the Agreement Type window.
In the Name field, type a name for the agreement.
From the Type list, select the type of agreement: SLA, OLA, or UC. You can adjust the column widths if required.
Select to save the changes. Provide the Change Reasons if prompted to do so.

Once you select , the browse table displays the entries in alphabetical order.

Renaming an Agreement Type

Although you can rename the default SLA, OLA and UC types, it is recommended that you do not do so.

Select the Menu button , then Admin, and then select System Administration. The System Administration window is displayed, with a menu of options available.
In the Explorer pane, select Service Level Management.
Select Agreement Types to open the window.
Select the type you wish to rename, and type a new name over the existing one.
Select to save the changes. Provide the Change Reasons if prompted to do so.

Deleting an Agreement Type

You cannot delete agreement types that are system default. These are typically called SLA, OLA, and UC, but may have been renamed.

If you attempt to delete the system default, you will receive a warning message.

If you delete an agreement type you added, you cannot reverse this procedure and you will have to re-create it if needed. You should note that a new agreement type of the same name as the deleted one will not automatically recreate any links, etc held by the original.

Select the Menu button, then Admin, and then select System Administration. The System Administration window is displayed, with a menu of options available. In the Explorer pane, select Service Level Management.
Select Agreement Types to open the window.
Select the agreement type you wish to delete. Select the Delete icon.
Select to save the changes. Provide the Change Reasons if prompted to do so.

Last updated 8 months ago