A service-level arrangement (SLA), an important part in business consulting, is often used as a link between a company’s operations and customers. It outlines how each party can achieve its goals. It also provides a reporting mechanism to track progress and resolve any issues.

SLAs protect the end-user and the service provider, by establishing helpful hints standards and targets. They also establish consequences for not meeting these expectations. They also allow the creation key performance indicators which can help a company identify areas of its business that are not on course to meet their strategic objectives.

The SLA should include all services included in the contract, including details on turnaround time and any exclusions. The contract should also specify a list metrics that will be used by the service provider to measure their performance.

Metrics should be selected to reflect only factors that are within the service provider’s reasonable control and be easy to collect. They should also have a reasonable starting point so that they may be refined over the course of time.

A key performance indicator, or KPI, is a metric that measures how well a business is performing in terms of its primary goals. It can help determine whether the business is veering away from its course, a common problem with small businesses.