Service Level Agreement (SLA) Development & Governance

We're defining SLAs with our BPO vendor for {{process}}] and need to ensure they drive the right behaviors. Create an SLA framework.

Include: (1) Key performance metrics – what matters most? Speed, accuracy, cost, availability? (2) Metric definitions – how do we measure each? (3) Target levels – what's realistic? Industry benchmark? (4) Penalties & incentives – what happens if vendor misses targets? Bonus if exceeds? (5) Reporting & governance – how frequently do we review? Escalation? (6) Continuous improvement – how do we hold vendor accountable?

Include sample SLA template and performance dashboard. Make metrics objective.

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Why this works

Good SLAs align incentives. Vague SLAs lead to disputes.

Risks & review

SLAs that are too rigid or too lenient create problems. Find balance.