The Key to Service Success: Operating Level Agreements

This done, each internal business partner has been placed in a position of responsibility to know what is required from them, how to achieve it, how to remediate if something goes wrong, and why the business requires it. Such an understanding across all the business providers drives value through the e2e process and effectively transforms the business relationship into a best practice model of service delivery.

Closing the gap in service quality may require organizations to look internally to address their own processes. Delivering value for the end use requires all internal and external parties to be aligned within the overall value chain. OLAs are the key to transforming an internally powerless organization (i.e., unable to meet its own obligations and to provide timely handoffs to the service provider) into a delivery focused and value centric organization. Properly implemented, OLAs can address service quality before it becomes an issue, and can empower the organization to achieve the full value from the its outsourcing arrangements to deliver sustained value to the end user.

Hsiu Mei Wong is a managing consultant in PA Consulting Group’s IT Consulting practice, specializing in strategic sourcing, business process improvement, risk management and organizational change management. She has extensive experience working with companies across the financial services and pharmaceutical industry.

Michael Latchford is a principal consultant in PA Consulting Group’s IT Consulting practice, specializing in delivering complex outsourcing solutions, and designing, negotiating and implementing sourcing strategies for onshore, near-shore and offshore agreements. Further, he has implemented change management projects transforming organizations enabling effective service management and service delivery.

Ashley Forrester is a consultant in PA Consulting Group’s IT Consulting practice, specializing in Service Management and implementing sourcing strategies from both the shared services and 3rd party perspectives. His delivery capabilities include technology integration, designing financial processes and controls, and developing Service Level Agreements (SLAs).

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