Monday, October 5, 2015

SLA vs KPI

Service Level Agreement (SLA) is an agreement between two parties regarding a particular service. Apparently SLA must contain quantitative measurements that:


  1. Represent a desired and mutually agreed state of a service
  2. Provide additional boundaries of a service scope (in addition to the agreement itself)
  3. Describe agreed and guaranteed minimal service performance


Key Performance Indicators (KPIs) are metrics that target service providers organization objectives – both tactical and strategic. Usually these metrics are used to measure:


  1. Efficiency and effectiveness of a service
  2. Service operation status.


If you have many customers for a service then SLAs may vary from customer to customer; however KPIs usually are common for a service.


  • SLA examples (for a particular customer): reaction time, resolution time, compliance to agreed deadlines
  • KPI examples (organization or service oriented): average reaction time for all customers, service desk employee load, incoming ticket volume trend, required capacity to fulfil SLA promises to customers