Learn The Difference Between KPIs And SLAs In Less Than 2 Minutes

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Have you ever struggled to differentiate between Key Performance Indicators and Service Level Agreements? We’ve got you covered.

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KPIs measure how well a business, a team or a project or an individual delivers on their strategic goals.

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KPIs help the management monitor the strategic goals or objectives.

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An SLA on the other hand is a wider agreement that is set between a business and a supplier of a service.

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Sometimes, KPIs are used to define what an SLA would mean and the standard of service that a business can expect from the service provider.

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For instance, as a business, you might wish a service provider to manage your IT support. You then have a service level agreement while deciding the OUTPUT of the agreement.

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However, there are chances that such SLAs may not satisfy the needs of the business, even if the service provider delivers on the outputs determined by the SLAs.

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The business is left unsatisfied and the service provider loses a long-term customer because of it… Nobody wins in this situation.

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This is why smarter businesses and service providers are signing Experience Level Agreements (XLAs) instead of SLAs.

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‘XLAs’ are not only more kick-ass to say, but they also serve the purpose of both the parties who are signing the agreement by focusing on the OUTCOME of the deal instead of the OUTPUT.

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