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Service Level Agreement Overview

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This is a sample lesson from the IATA SGHA-SLA & Effective Negotiation Behaviors Workshop. …

This is a sample lesson from the IATA SGHA-SLA & Effective Negotiation Behaviors Workshop.

In this workshop, we cover the Standard Ground Handling Agreement section by section, giving you the foundations to write the Annex B and Service Level Agreement accurately and effectively. Through technical training and exercises replicating today's global marketplace, we'll also show you how to enhance cooperation, efficiency and savings in your negotiations.

For more information on the course, visit our website: http://www.iata.org/training-sgha-sla

Published in: Education, Business, Technology

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  • 1. SGHA-SLA & Effective Negotiation Behaviors Workshop Preview lesson: Service Level Agreements IATA Copyright © 2012IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors 1
  • 2. Service Level Drivers  What is required  Expectations  Cost  Compromise and negotiation  Reality versus perceptionIATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors
  • 3. Service Level Agreements Both parties have to agree on  What to measure, making clear why it should be measured (is it really important?)  How to measure it (units, periodicity, limits)  How to use the results of the measurementsIATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors
  • 4. SLA expectations in the past Doing business was more simple; there was little necessity to set up service level agreements  One airline per country  One handler per airport  Fewer aircraft types  Higher profit margins  Subsidized service  Similar service expectationsIATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors
  • 5. SLA expectations today Greater need to define service levels and monitor performance  Market liberalization means more airlines  Product differentiation (low-cost, charter, regional)  Alliances  More competition for ground handling providersIATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors
  • 6. Cost Goal is to keep the level of service offered within AirlineHigh expectations (on the red line) Level of service Below the line = failure, inconvenience, negative business image, higher risk, loss of revenueLow Above the line = higher cost, Airline expectations waste of resources (a nice result; however, customers are rarely Low High willing to pay higher price) IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors
  • 7. Setting SLA targets  Set high targets on safety-related items (it is possible to achieve 100%)  Aim for continuous improvement  Maintain realistic expectations during negotiations – no one is perfect!IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors
  • 8. Setting SLA targets Set SMART targets to avoid ambiguity  Specific  Measurable  Agreed  Realistic  Time-relatedIATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors
  • 9. Compromise and negotiation  Selling and buying: getting what you need for the best price  Negotiation: trading and swapping concessions to reach a mutually acceptable dealIATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors
  • 10. … and remember When negotiating the SGHA and SLA, don’t compromise safety. Don’t agree on targets that force staff to work under extreme time pressure.IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors
  • 11. Find out more about this course at: www.iata.org/training-sgha-sla For other Ground Operation courses, visit: www.iata.org/training-groundops IATA Copyright © 2012IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors 11