Overview of SLA and KPI
SLA is a service level agreement between a provider and a customer. It sets service requirements and timelines. SLA also creates metrics to measure performance against goals.
KPI measures how well a system functions against strategic targets. KRA focuses on employee responsibilities to achieve success.
WLA/OLA supports SLA by detailing duties and groups.
Key Differences between SLA and KPI
- Legality: SLA is legally binding, while KPI is not.
- Focus: SLAs highlight future outcomes, KPI evaluates past achievements.
- Metrics: SLA covers a variety of metrics, while specific KPIs are used for measurement.
Importance and Application of SLA and KPI
It is important to understand the difference between SLA and KPI. A SLA outlines the expectations and requirements of a service, whereas a KPI measures the performance of that service. By understanding the difference, you can ensure that your business derives maximum value from service providers.