Learn The Difference Between KPIs And SLAs In Less Than 2 Minutes
Have you ever struggled to differentiate between Key Performance Indicators and Service Level Agreements? We’ve got you covered.
KPIs measure how well a business, a team or a project or an individual delivers on their strategic goals.
KPIs help the management monitor the strategic goals or objectives.
An SLA on the other hand is a wider agreement that is set between a business and a supplier of a service.
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.
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.
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.
The business is left unsatisfied and the service provider loses a long-term customer because of it… Nobody wins in this situation.
This is why smarter businesses and service providers are signing Experience Level Agreements (XLAs) instead of SLAs.
‘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.