Shared Services Service Level Agreement

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Service Level Agreements (SLAs) are a common tool used for the implementation of shared services to set service and performance expectations with business units. Over time, the development and structure of ALS may change or, in some cases, the use of SLAs may be stopped. Many factors influence the best type of ALS that can […]

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Service Level Agreements (SLAs) are a common tool used for the implementation of shared services to set service and performance expectations with business units. Over time, the development and structure of ALS may change or, in some cases, the use of SLAs may be stopped. Many factors influence the best type of ALS that can be used in a shared services process, including corporate culture, process domain maturity, and the type of relationship that exists with internal customers and stakeholders. Governance is the ability to enable, promote and enforce good decision-making. It is a formal mechanism that fosters partnership between shared services, their clients and key stakeholders. Governance generally operates at the strategic level and, as such, ensures that SSC operations are consistent with the stated vision and strategies. It provides visibility to stakeholders and provides a decision-making forum (for example. B in terms of the deployment model, sites, operating infrastructure investments, synergies, etc.). Tactically, governance « operationalizes » the strategy, raises expectations for service delivery, verifies services and facilitates problem-solving. At the operational level, it solves operational problems and promotes continuous improvements. Another question invited member companies to comment on whether the company was making customer service requirements in their SLAs, with 88% of member companies saying they do. The challenge in integrating these measures into the agreement itself is that ALS must remain up-to-date with the related measures and performance objectives.

This is especially true for the management of several activities that present different complexities in their operations. This can often lead ALS to have to adapt to the specific requirements of each industry. Service Level Agreements (SLAs) can be an excellent tool to help build relationships and set expectations between shared services and customers. SLAs can also become unnecessarily bureaucratic, cumbersome and have unintended negative consequences. The appropriate attention and development of ALS can be of great benefit to shared service leaders as their services and results mature. The discussion continued with a number of views and perspectives shared by participants, including representative comments below: Another peercastTM discussion focused on efforts to use ALS to guide continuous improvement efforts using reporting tools that supported drilldowns by industry, with monthly meetings to discuss ALS results with service providers and business units. need. Because much of the shared service work has been outsourced to multiple vendors, ALS is a critical control mechanism.

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