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You Don’t Know What You’re Missing: Motivating Performance Through Service Level Agreements


All businesses buy services, and each of them wants to get its money’s worth. Because these transactions often involve large expenditures, long term relationships, and critical functions, it is vital to understand how to align vendor agreements with business objectives; how to protect operations or investments during data breaches, supply chain interruptions or even geopolitical instability; and how to use contractual provisions to achieve a stable and well-functioning relationship with vendors.

Webinar attendees will learn the following:

  • Understanding the context: BPO, ITO, cloud, other services

  • The players: for the customer – business unit, legal, finance, procurement; for the vendor – sales, legal, technical, finance

  • What to measure: varies by type of service, distinguish  between KPIs (key performance indicators) and CSMs (critical service metrics); surveys; cost-savings; continuous improvement

  • Consequences of SLA failure: (1) root cause analysis; disaster recovery plan implementation; (2) service credits; warranty service; special remedies (e.g., data breach): damages; termination for cause

  • More on service level credits: (1) flat $, % based, escalating; weighted allocation among critical services; (2) vendor’s request for earn backs bonus; (3) distinction between penalty and liquidated damages

The live presentation of this program was approved for 1.0 hour general CLE credit in California and Illinois and 1.2 hours of general CLE credit in Missouri. The recording of this program is eligible for 1.0 hour of general CLE credit in Illinois. To receive credit after watching the recording, please complete and submit the verification form.

Matt Hafter

Originally Presented:
September 19, 2017