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PLAYBOOK TEMPLATES

Service Level Agreement (SLA)

An SLA establishes measurable service performance standards between provider and customer. This playbook explains methods to draft enforceable metrics, remedies for non-performance, and escalation procedures.

Service Levels & Performance

Why This Matters: Misaligned performance standards can lead to service interruptions and financial losses. Clear SLAs ensure accountability and protect business continuity.

Negotiation strategy

If you're the Company:

Ensure that the SLAs are aligned with your business needs. Negotiate for realistic uptime and response times, and ensure that penalty structures incentivize performance.

If you're the Contractor:

Propose achievable service levels that reflect your operational capabilities. Be transparent about maintenance schedules and ensure that reporting obligations are clear.

Essential elements

1

Service Level Objectives

Defines uptime and availability.
2

Response Time

Specifies incident response times.
3

Performance Reporting

Outlines reporting obligations.

Action framework

ACCEPT

Propose edits if service levels are misaligned with business needs.

EDIT

Reject clauses that impose unrealistic penalties or unattainable metrics.

ADD

Add clauses for additional penalties in high-risk scenarios.

PRO TIP

Always ensure that SLAs are realistic and reflect both parties' capabilities and expectations.

Example clauses

FAVORABLE

Preferred Service Level Objectives

"The Service Provider shall ensure that the Services are available 99.9% of the time, measured on a monthly basis, excluding scheduled maintenance. The Service Provider shall provide at least 48 hours' notice prior to any scheduled maintenance."
NEUTRAL

Standard Response Time

"The Service Provider shall respond to any service request or incident within 2 hours of receipt. Resolution of critical issues shall be completed within 24 hours, and non-critical issues within 72 hours."
UNFAVORABLE

Inadequate Remedies for Non-Compliance

"The Client shall not be entitled to any service credits for failures to meet the agreed Service Levels."

Fallbacks

High-Risk Services

If the service involves critical infrastructure or high-risk operations, review the service levels with heightened scrutiny. Consider additional penalties or stricter performance metrics.

Seasonal Demand Fluctuations

During peak seasons, ensure that service levels account for increased demand and potential strain on resources.

New Technology Integration

When integrating new technology, allow for flexible service levels to accommodate potential learning curves and adjustments.
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