2. Background
Suppliers in a multisourcing context must be equipped with
Operational Level Agreements (OLAs) as part of any strategic , and
operational maturity .
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3. OLAs as a performance measure
Master Service Agreement (MSA)
Service Level Agreements (SLAs)/ Key
Performance Indicators (KPIs)
Operational Level Agreements ( OLAs)
OLAs need
to be
embedded
in contracts
and part of
any
governance
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4. SLAs/KPIs versus OLAs
SLAs and KPIs are service level agreements between the client and
the supplier .
OLAs are the operational level expectations between suppliers
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5. Advantages of OLAs
Improved line of sight into performance
Improved end user experience
Reduced resolution time
Ownership of resolution stays with one group
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6. Timing of Negotiations
At the time of entering into a new MSA
At the time of renewal of an existing MSA
Once the OLAs are in place they should be mentioned in all RFX
process
Standard MSA – All performance criteria in an Annexure – Language that mentions that
MSA takes precedence over SOW
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7. Negotiations
Data – at least 6 months to a year
Focus on process
Put outliers in a parking place for an RCA
Anchor one area first .. incidents
Escalation process needs to be defined
Tasks can be used as a tool to implement
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8. Negotiations
Unpack the SLAs and embed the OLAs
Time to create a task
Time to resolve a task
Adopt a consultative approach with the suppliers. Preferably get
the supplier leadership from the various suppliers together to discuss
the framework and its implementation.
Allow an observance period of 3 months
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9. Negotiations
Attach penalties to both OLAs and SLAs
Performance adjustments ( excuse clauses)must be minimized –
maximum of 5
End to end implementation – across applications and infrastructure
Stress test in a conference room simulation with all suppliers
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10. Managing
Manage tasks using the Action Request or Service Management
software
Insist on the use of templates
Communicate
Leadership
Service tower leaders
Suppliers
Onsite
Offshore – the offshore team needs to hear directly from the IT SRM
Set up weekly operations meeting with all involved suppliers to
address any issues
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11. Managing
Non compliance should be addressed quickly and EVERY non
compliance should be escalated
All governance activity including performance reporting should
include performance on OLAs
Initially data must be gathered every month later can be every
quarter
Suppliers must be encouraged to collaborate, network and resolve
issues
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12. Managing
Suppliers should not manage the OLA process , the organization
should
OLAs can be used in every interaction among suppliers – wherever
they need help from another group to complete their work
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13. Managing
“ Manage to outcome – avoid the weeds”
Ensure tight exception management
Continuous internal influencing / alignment between the business, IT,
and the suppliers
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