Tips for creating SLA metrics and measuring service performance
Build performance measurement into your SLA, when you set it up – consider the following points:
- Identify the most important SLA outcomes first – and then determine clear metrics to track those outcomes.
- Create a range of (say 10) simple metrics, such as targets, kpi’s (key performance indicators), that are easily understandable.
- Ensure the metrics are relevant and match the key business needs of your SLA.
- Clearly, the metrics should also be measurable/quantifiable and unambiguous.
- Base your metrics on your specific SLA requirements and needs – rather than readily available data, existing reports, or generic SLA metrics applicable for such services.
- Design the metrics to measure different performance problems that your SLA / service provider may have.
- Metrics should be mutually exclusive and not duplicate each other. Each metric should focus on a different potential problem.
- The metrics should be comprehensive enough, such that if your service provider fails to meet the required performance, at least one of the metrics will be triggered.
- Review and test the metrics, to confirm they will pick up the undesirable problems.
- Agree the metrics between both parties – service provider and customer
- For each Service Level metric include:
- a reference name
- a description
- measurement parameters eg data sources
- calculation formula and frequency
- a baseline performance
- the required performance or target, from a service provider
- remedies and penalties for poor or non-performance eg monetary credits
- any specific exclusions/exceptions
- Set up an automatic monitoring of the metrics, wherever possible.
- Set up alerts for exception reporting.
- Monitor performance (metrics) on a regular basis. Make it one of your regular daily or weekly tasks.
- Raise any performance issues at your regular service review meetings.
- Review metrics and when required amend them, to ensure they continue to be relevant to your service needs.