Why Is Operational Level Agreement Important

The Service Level Management (SlM) process is responsible for finding a realistic trade-off between the needs, expectations, and costs of associated services so that they are acceptable to both customers and the IT organization. It also aims to ensure that an agreed level of IT service is provided for all current IT services and that future services are provided to the agreed achievable objectives. Service Level Management is also responsible for ensuring that all appropriate operational-level agreements and underlying contracts are in place to monitor suppliers and other groups. “In this context, an OLA becomes a record of common assumptions and interdependencies at the level of shared and overlapping processes between the different parties involved in the provision of services,” explains Les Druitt, founding director of outsourcing consultancy Sourcing Advisory Services. “This is where rubber hits the streets in multi-stakeholder outsourcing.” Whatever the silo or problem, without a firm understanding and agreement on performance, responsiveness, authority and responsibility, there will always be problems with finger pointing and communication. This is simply because each silo has its own primary responsibility. For example, the main responsibility of software development is to develop software. The main responsibility for networking is the maintenance of transmission systems. What may seem like a big problem for a silo that requires an immediate response may not be as important for another silo. Companies often have several internal groups, all of which provide support in one way or another.

These groups work under a basic service level agreement (SLA) that describes the overall goals and objectives of the support. This agreement is usually associated with the impact on the company`s customers. It may also be beneficial to develop an agreement at the operational level (OLA). These agreements explain the services provided by each support group to enable the company to achieve its SLA goals. This is one of the main advantages of an OLA: the ability to pursue internal service commitments, goals and objectives. Regardless of what you provide to a customer or customer, multiple internal teams are involved in maintaining and achieving what`s in the SLA – from customer support or the success team to the IT team. An OLA clearly and in detail writes what is expected of each team. It can then be tracked so you can see if your teams are meeting these commitments and goals, or if they`re not up to the task. Noja Consulting Limited has created this handy template for operations-level agreements for Microsoft Word. This means you can do more than just look at and collect what exactly is in an OLA and how the information is displayed – you can also modify the template to suit your own needs! Divide the Terms of Use into specific roles and responsibilities and assign tasks to each party in the agreement. Write how much each party charges for services provided under the OLA and use your list of terms and conditions as a reference.

Indicate the penalties and procedures if the parties to the OLA do not meet the conditions of the OLA. Key interactions include work planning; Provision of operational data, information and reports; Integration of activities with the service centre; coordination of changes; Management of cross-functional services; and governance and dispute resolution. It is also important that the OLA explicitly state that, although the client is not a party to the OLA, this is what lawyers call a “third party beneficiary” of the agreement. “This allows the client, but not, to apply the OLA on their own behalf if they wish,” Zahler explains. .

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