Improve IT-Business Alignment Through an
Internal SLA
Understand business requirements, clarify current capabilities, and enable strategies to
close service level gaps.
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Info-Tech Research Group
1
Follow Info-Tech’s Internal SLA Planning and Execution
Workflow to create effective SLAs
1. Scope the
pilot project
Perform
discovery and
brainstorm
project goals
2. Determine
current service
levels
Map your
current SOPs
3. Set target
service levels
and create the
SLA
Develop target
metrics with the
business and
determine
projects to
meet any gaps
Internal SLA Planning and
Execution Workflow
Phase 1: Scope the pilot project
• Maturity scorecard
• Project charter
Phase 2: Determine current service levels
• Mapping operational processes
Analyze the
ease of
implementation
and impact of
potential
projects
Define your
metrics and
develop a
tracking
process
• Service-level metrics tracking wireframe
Create the draft
internal SLA
Phase 3: Create the business-facing SLA
• Project Roadmap
• Availability/Reliability SLA
• Service Desk SLA
Complete the
project charter
and get sign-off
Determine
current service
levels (based
on estimates or
historical
metrics)
• Service Catalog SLA
Establish a
standard for
continuous
improvement
Call your account
manager to schedule a
Guided Implementation
Info-Tech Research Group
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Introduction
This Research is
Is Designed For:
This Research Will Help You:
 IT managers who are responsible for meeting
 Use the SLA process to help the business
service-level expectations.
 Organizations seeking to formalize, optimize,
or validate an existing internal service-level
agreement (SLA).
 Organizations who are currently struggling
with business user experience and
satisfaction.
understand current capabilities, clarify actual
business requirements, and drive continuous
improvement to close service-level gaps.
 Ensure your SLAs stay in sync with current
requirements.
 Strengthen IT-business alignment and
business satisfaction with IT.
This Research Will Also
Assist:
Assist:
This Research Will Help You:
Them:
 IT managers in gaining a comprehensive
 Understand the role of internal SLAs in
understanding of the SLA process and
establishing a framework for negotiating
external SLAs.
 Other business managers in transferring the
SLA framework outside of IT and into other
business areas.
improving the ability to establish and manage
external vendor relationships.
 Establish a consistent methodology across the
organization for determining appropriate
service-level goals.
Info-Tech Research Group
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Executive summary
Situation
!
• The business is rarely satisfied with current service levels.
• Even if there is a SLA in place, it often doesn’t address IT-business
•
• Dissatisfaction with IT is often based on perception. Without tracking
•
1. The key benefits come from the SLA
process rather than the artifact – the
clarity gained by both the business and
IT regarding current capabilities,
business needs, and steps that can be
taken to close service-level gaps.
friction because the SLA process failed to clearly communicate current
capabilities and identify appropriate targets.
Limited IT budgets make it even more critical to ensure IT investments
align with service-level requirements.
Complication
current service levels, IT cannot effectively address perception issues.
The gap between current and desired service levels is not quantified,
making it difficult to plan IT investments appropriately.
Info-Tech Insight
?
2. Clarity and transparency is critical to a
successful SLA. Identify the current
lagging service levels, and establish a
roadmap of how you plan on improving
them. Often the business just needs to
know the possible and the impossible.

Resolution
• Business leaders have service-level expectations regardless of whether or not there is a formal agreement. The SLA
•
process enables IT to manage those expectations.
Create an effective internal SLA by following a structured process to report current service levels and set realistic
expectations with the business. This includes:
◦ Defining the current achievable service level by establishing a metrics tracking and monitoring process.
◦ Determining appropriate (not ideal) business needs.
◦ Create an SLA that clarifies expectations to reduce IT-business friction.
Info-Tech Research Group
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Create a strong business case for an internal SLA
An internal SLA is an agreement between IT and the business. The SLA outlines current service levels,
sets target service levels, and assigns responsibilities to the service provider and the customer.
Promising service-level targets without incorporating input from all parties will almost always lead to sub-optimal
outcomes. Use the SLA process to align IT customer expectations and IT capacity.
This ServiceXRG survey highlights the connection
between SLAs and customer satisfaction
100%
• Improved business alignment. Use the SLA process to gather
information that can align IT spend with business needs.
4.0%
90%
80%
Multiple benefits and goals:
22.6%
24.8%
• Set standards for continuous improvement. Outline targets and
timelines to improve service provision that have business sign-off.
• Uncover process gaps and risks. Use process mapping to assess
current capabilities and highlight potential adjustments.
70%
23.7%
60%
• Predictable service provision. Data outlining current and target
service levels is published for both clients and providers.
• Improved external SLA outcomes. The improved understanding
50%
of business needs can be used to set external SLAs.
40%
• Improved communication. Building the SLA requires close
71.2%
30%
53.7%
collaboration between IT and clients, enabling the flow of ideas.
• Improved conflict resolution. Use the consultation process to
20%
bridge silos and generate mutual understanding.
10%
• Continue the conversation. Make the SLA a living document and
0%
SLA
Satisfied
No SLA
Neutral
Detractor
a channel for information transfer between the business and IT.
Sources: ServiceXRG; Sweeny, Tom. "The Benefits of Offering SLAs."
Info-Tech Research Group
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Understand the reasons why many internal SLAs fail to
achieve the desired objectives
Carrot and stick approach
Complexity
Internal SLAs are often developed
in the same fashion as an external
SLA, where the SLA is treated like
a legal document. If one party fails
to meet expectations then punitive
actions will follow.
Traditionally creating an SLA has
been a lengthy resource-intensive
project. SLAs are scoped to be
able to track all IT services and be
written in oppressively fine detail.
Wrong incentives
Project inertia
The overbearing nature of a legal
contract motivates IT to commit to
a lower standard of service to
minimize the risk of failing to meet
service levels and avoid negative
consequences.
Due to poor project scoping, the
SLA requires too much effort to
complete properly. This leads to
inaccuracies or shortcuts, or the
project simply stalls and is not
completed.
One-sided representation
The business often demands an
internal SLA from IT, yet the
business does not involve itself
during the SLA creation process.
Poor data presentation
Since the business was not
involved, the SLA is often written
in “IT speak.” This creates a
barrier in communication, and the
SLA is no longer an effective tool
for achieving IT-business
alignment.
SLAs that are poorly implemented will drain away hours of effort and deliver little to no value. Minimize
wasted resources by carefully crafting and managing your SLA process with Info-Tech’s methodology.
Info-Tech Research Group
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Case Study: Benefits of a SLA will only be realized through a
commitment to collaboration between the business and IT
Situation
•
A large telecommunication provider is provisioning network operations and management services.
As part of the service, a SLA is created.
Action
•
•
This provider documented a comprehensive list of both network and service performance metrics,
which was agreed to by both parties.
The SLA values for the network and service performance were all defined based on current
capabilities and supported through data driven from past performance and ticketing system.
Excerpt:
Adapted From: Hartley, Karen L. "Defining Effective Service Level Agreements for Network Operation and Maintenance."
Info-Tech Research Group
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Case Study: Benefits of a SLA will only be realized through a
commitment to collaboration between the business and IT
Result
•
•
•
By establishing clear SLA definitions and metrics, along with using current state data,
communication between the customer and service provider were dramatically improved. The
improved communications facilitated the focus on long-term service improvements instead of
reactive problem solving.
Since the metrics and methods of measurement were established by both parties, it ensured that
it was the most cost-effective approach and buy-in was quickly established.
The SLA was broad enough in scope to capture a wide variety of services, yet detailed enough
so that root-cause analysis can be conducted to evaluate the service performance and motivate
the appropriate behavior.
Adapted from: Hartley, Karen L. "Defining Effective Service Level Agreements for Network Operation and Maintenance."
Info-Tech Insight
The process of creating the SLA is just as important as the final
document. Effectively manage the process to create a pilot project that
aligns IT with the business and acts as a showpiece to generate buy-in
for extending the SLA process to other areas.
Info-Tech Research Group
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Use Info-Tech’s research to get to the starting line
Creating an internal SLA is a key step in several crucial business-facing IT projects.
Use the following Info-Tech research prior to or in tandem with this blueprint.
1
Create a Right-Sized Disaster Recovery Plan: Creating an effective right-sized DRP starts with discovering
current capabilities, defining business requirements, and closing the gap in service continuity capability.
2
Standardize the Service Desk: Increase service desk
effectiveness, improve services, and move from a
reactive to a proactive culture by improving your
service desk processes.
3
Design & Build a User-Facing Service
Catalog: Create a made-to-order menu
of IT services for your users to easily
understand what IT offers.
4
Establish a Service Metrics Program That Meets
Business Needs: Produce insightful service
metrics that lead to meaningful action defining
objectives, creating a plan, and optimizing
collection and reporting processes.
Info-Tech Research Group
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Info-Tech offers various levels of support to best suit your
needs
DIY Toolkit
“Our team has already
made this critical
project a priority, and
we have the time and
capability, but some
guidance along the
way would be helpful.”
Guided
Implementation
Workshop
Consulting
“Our team knows that
we need to fix a
process, but we need
assistance to
determine where to
focus. Some check-ins
along the way would
help keep us on track.”
“We need to hit the
ground running and
get this project kicked
off immediately. Our
team has the ability to
take this over once we
get a framework and
strategy in place.”
“Our team does not
have the time or the
knowledge to take this
project on. We need
assistance through the
entirety of this project.”
A consistent methodology used throughout all four options
Info-Tech Research Group
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Follow Info-Tech’s methodology to develop your internal SLA
1. Scope the pilot project
1.1 Identify the benefits of an SLA,
perform discovery, and brainstorm project
goals.
2. Determine current service
levels
2.1 Document current IT operational
procedures.
2.2 Identify the metrics to track.
3. Set target service levels and
create the SLA
3.1 Validate your current state with IT
staff and identify the target state with the
business.
1.2 Analyze the ease of implementation
and impact of potential projects.
3.2 Develop a project roadmap to bridge
service-level gaps.
1.3 Complete the project charter and
obtain sign-off.
3.3 Create the SLA document and
establish a review process.
Best-Practice
Toolkit
Identify the goals of an SLA for your
organization.
SLA category overview and
identification of the relevant SLA pilot
project(s).
Guided
Implementations
Create the project charter by
establishing roles and responsibilities
as well as project scope.
Review and document the current
operational dependencies and
maintenance procedures for
applications/systems or services.
Document each SLA metric and
establish the parameters of a costeffective system for metrics tracking
and reporting.
Analyze findings from IT and
business discussions.
Create a roadmap to improve current
service levels.
Create a business-facing SLA that
reflects the needs of the business.
Module 1:
Determine the scope of your pilot SLA
implementation.
Module 2:
Determine the currently achievable
service levels.
Module 3:
Identify target service levels and create
the SLA.
Phase 1 Outcome:
• Outline the SLA project scope and
determine the relevant pilot project.
Phase 2 Outcome:
• Metrics that indicate the current
service-level strengths and
weaknesses.
Phase 3 Outcome:
• An internal SLA that will effectively
manage the IT-business relationship.
Onsite
Workshop
Info-Tech Research Group
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