A service level agreement (SLA), which is an important aspect of business consulting, is used often between a firm’s internal operations as well as its customers. It defines what each party needs to reach its goals and provides a mechanism for reporting on those goals and any issues that arise.

SLAs provide protection for both the service user and provider by setting standards, targets, and consequences when these expectations are not met. They also allow for key performance indicators to be created that can help an organization identify areas where it is not on track with its strategic objectives.

The SLA should define all the services that are included in a contract, with details on turnaround times and any exclusions. The contract must also specify the metrics that will measure the performance of the service provider.

Metrics http://royston-consulting.com/outsourcing-consulting-services-by-board-room/ must be easy to collect and reflect only those factors that the service provider can reasonably control. They should be set at a reasonable baseline so that they can be improved over time.

KPIs are metrics that measure how well an organization is performing with respect to its primary goals. It can be used to determine if the business is off-course, which is a common problem for small businesses.