Service performance measures

Each group of users should be required to detail their service reporting needs. Ideally these users should start by documenting how this service has traditionally been achieved followed by the changes they now wish to see and the reasons for them. If advisers are involved they should be requested to independently document any changes or improvements they would recommend. Although this will involve a small amount of additional time and effort when compared to the combined project approach, it does allow senior management the opportunity to double check that errors are not made due to ’too many cooks’ being involved. Although the service provider will eventually have a strong input to these measures, it makes good sense for the client to initially set out its own requirements so that there is a clearly documented statement of ideal service performance. Theoretically, it must be against the client’s interest if the service provider is allowed too great an input into these measures early in the proceedings. Nevertheless, it sometimes happens that the provider will independently suggest measures that favour the client more strongly than those originally suggested by the client.

The individual activities in the SLA are normally all given their own targets. With risk/reward sharing arrangements these targets are often set, initially at least, on the basis of a modest improvement on what the client’s own staff have been achieving. Many such arrangements allow a reasonable period of time for the provider to make improvements after which penalties will apply if the target is not met and a sharing of savings takes place if they are significantly bettered. Clearly, these targets cannot finally be set without the agreement of the service provider. Despite this, it makes sense for the client to seriously consider targets, penalties and rewards before beginning the final planning stages with the provider. This is another area where it is advisable to seek help from the provider’s current clients.

Quality assessments are necessary on a regular basis comparing the SLA and actual performance. Independent quality assessments might also form part of the agreement. In this scenario third-party consultants are employed at agreed intervals to do benchmarking studies. These studies are then used when necessary to adjust baseline service levels. Quality assessment exercises are useful in identifying those areas where the risk of failure is most acute, but they will often also illustrate areas where continuous improvement projects might be justified. Usually, quality assessment work does not begin until the provider gets involved.

It goes without saying that all quality assessment and performance targets must be capable of being measured. These measurables can be ’scored’ in terms of quality, quantity, time elapsed, satisfaction or any other measure jointly agreed as important by both parties. Achieving clearly understood measurables is not always a simple task. In fact, it is sometimes very difficult to measure factors like quality and accuracy. Nevertheless, the metrics built into the SLA must be as devoid of alternative interpretation as possible. To achieve this aim it is essential that these metrics are put together by both parties. If there is still any chance of misunderstanding, appropriate ’notes’ or ’schedules’ should be made to the SLA. These changes will be legally binding under the contract and will have to be agreed by both parties, but they can occur at any stage in the life of the contract.

Ultimately, both parties will need to agree on a timetable to take the service from the pre-transition stage to the baseline service stage – usually the first day after completing the transition. If the client has done little or no work in defining and scoping the service until the transition starts, then it will have to work considerably harder over the following months than it might otherwise have done. More importantly, it is very likely that all this work will need to be under the direction of the provider in order that a reasonable timeframe can be achieved.