Setting up a an SLA ? Looking for Lessons Learned? Here are some pointers..

Over the last couple of years I've attended a number of shared services exchanges on this topic (and I've implemented a few SLA's) ... Here are some of the key takeaways or findings you might find useful if you're looking to set up an Service Level Agreement or a set of 'Standards' in your newly formed shared service centre.

Service Level Agreements/Standards:

• Remember the (SLA) journey is more important than the final documentation/destination, although it's imperative you have a destination in mind!
• Ensure you pilot the SLA with 1 business unit or process first
• Make sure it's '2 way' - i.e. we need this from 'you' the 'customer' in order for 'us' the 'service centre' to meet expectations
• Don't measure things just because you can
• Each process agreement should fit on one page (avoid 'war and peace')
• Try pictorial representation of the process and the customer/business roles & responsibilities vs. the service centres responsibilities (it helps [those who are more visual] understand the model)
• Think about what's important to the customer... Is it accuracy? or timeliness? or just a particular process.
• Implement monthly customer meetings to review results and discuss improvements
• Once fully operational, isolate issues and demonstrate improvements
• Data needs to be made available to the team so they know how they are doing.
• Use technology to make this data available to the team wherever possible i.e. extracts from your ERP system, telephone system etc.
• Ensure the team understand the key performance indicators (KPI's)
• Timeliness of KPI reporting is paramount.. not too much 'after the fact'
• Process owners need to be identified on the customer and service centre side and both parties must agree before changes are made to the process or targets
• During development, sit down with the customers and discuss the '2 way' aspects of the SLA rather than just what the service centre is committed to delivering. It's crucial that the Service Centre extends their reach to working with the customers to improve their process and assist with meeting the SLA's
• Keep the KPI's 'lean and mean'. Examples for different processes include:
  • Error rates Admin - < 1.0%
  • Error rates payroll - < 0.5%
  • Calls closed at 1st contact - 85%
  • Recruiting Manager satisfaction - 80% > 4 (on a scale of 1 to 5, 5 = very high)
• The ultimate aim should be to shift from service provider to process partner!