ITIL Service Level Management (SLM), encompassing Service Level Agreements (SLAs), Operating Level Agreements (OLAs), Service Catalogues, Underpinning Contracts (UPCs) is more important than these documents suggest. It is a key IT Service Management discipline, and may well be the first point of reference when considering ITIL implementation within an organisation.
SLM relies on the service provider(s) being able to commit to SLAs. This, in turn, implies that some basic service support disciplines (especially Incident and Change Management) are in place and robust enough to allow this. If this not the case SLM will need to manage Customer expectation carefully until the service provider(s) can commit to formal SLAs.
SLM defines and negotiates SLAs for the services being provided to Customers. It takes input from all the parties involved including Customers, end-users, IT support, operations and third parties. This allows SLAs to reflect Customer requirements as well as address technical, capacity, availability, operational, support and financial issues.
Operational Level Agreements are agreements that are between internal support groups. There aim is to ensure that support groups respond and resolve Incidents and Changes in a timely manner so that the overall is not breached. An example could be the new Starter process (Standard Change Management) where many groups are involved from procurement to Desktop support, each group will be aware of how much time to spend on their task before it passes to the next team. All these individual pieces of work will help form the SLA with the customer.
Quite often Underpinning Contracts will also have to be put in place. As their name suggests these are contracts with third parties and support elements of service provision as defined in SLAs (such as final line support for applications software).
The fundamental difference is that an SLA is an agreement, where as an Underpinning Contract will usually contain financial penalties.
SLAs inevitably require a degree of compromise and this is usually based around the priorities of service provision, its capacity and availability and cost. A formal and consistent approach enables SLAs to be created which are achievable at an acceptable cost. Once SLAs, OLAs and associated Underpinning Contracts are in place, service performance should be monitored against the targets set in these documents. Reports on this should be the subject matter of regular reviews with Customers and Suppliers. Also where performance does fall below acceptable levels this will trigger corrective action which SLM will monitor carefully.
Before introducing SLM it is important to understand the Customers' (including users) current perception of service so that the effectiveness of SLAs, when they are introduced, can be measured. This may also help to indicate the pace at which to proceed and to identify priority services.
If service monitoring is not yet in place a Customer satisfaction survey may provide the information needed. This should collect views at management and users levels as well as those of the service providers to create as holistic a picture as possible.
Once this initial stage has been done a SLM Implementation project can be developed. It is important that it is treated as a project rather than being allowed to grow organically. The project approach will ensure that priorities are handled correctly and that any issues/risks are highlighted and dealt with in a manner approved by the Project Board. Once elements of the project are delivered (SLM process, Service Catalogue, SLA structure) these will become operational and be measured as agreed. Reviews, at regular intervals, will ensure that all elements of SLM are effective and efficient.