Service Level Agreement Structure


Creating and enforcing a service level agreement (SLA) can be a daunting task. But that doesn’t have to be the case. In this article, we will outline the key elements of an SLA, provide an example of how to create one, and discuss some best practices for ensuring that your SLA is effective.

Service Level Agreement (SLA)

SLA is a contract between two organizations specifying the level of service each party will provide to the other. A service level agreement is used to define, track and manage expectations for customer service, performance levels, and required responses. SLAs can be unilateral or mutual and may be in written form or verbal.

When establishing an SLA, it is important to identify the services that will be provided and the expected level of quality for those services. It is also important to define the response time for customer service issues and specify what constitutes a satisfactory response. Finally, it is crucial to agree on who will be responsible for meeting these service level agreements and tracking progress.

SLAs can have a significant impact on business operations and should be structured carefully to avoid any potential conflicts or misunderstandings. By following these guidelines, businesses can ensure that their customers receive the best possible service while minimizing any disruptions to their operations.

What is a Service Level Agreement?

A Service Level Agreement (SLA) is a contract between two or more entities that defines the level of service that each party agrees to provide to the other. The agreement may specify what must be done in order to meet the service level, how often the service should be provided, and what consequences will occur if the service is not provided.

SLAs are important because they allow customers and providers to have a clear understanding of their respective responsibilities. When agreements are made regarding SLAs, both sides can benefit. Customers can be sure that they will receive the services they expect and that consequences will follow if those services are not delivered. Providers can know what levels of service they need to maintain in order to attract and keep customers.

SLAs can be complex documents, but they can also be easy to create. They should be customized for each situation, but there are some general tips that can help:

  • Start by defining what you want from the relationship: What services do you need from your provider? What services does your provider need from you?
  • Define what you are going to offer and what you are going to require: This includes describing what level of performance is expected from your side

Types of Service Levels

There are a few different types of service levels that can be included in an SLA.

Fixed Service Level: A fixed service level is a commitment to provide a certain level of service for a predetermined period of time. For example, the company might commit to providing 24/7 customer support.

Performance Service Level: A performance service level defines the level of service that must be maintained in order for the company to meet its commitments. This could include strict response times, minimum throughputs, or other measures of performance.

Continuous Service Level: A continuous service level is a commitment to provide uninterrupted service for a predetermined period of time. This type of service level is often offered in conjunction with performance service levels.

Service Level Agreement (SLA) structures can vary significantly, but most have some form of defined service levels. Understanding the different types of service levels and how they work can help you create an effective SLA structure.

Defining the Minimum Requirements for a Service Level

A Service Level Agreement (SLA) is a contractual agreement between an organization and a service provider that defines the level of service to be provided by the provider. SLAs are typically used when services are provided over a network or from a remote location.

In order for an organization to properly define and enforce its SLAs, it is important to first understand what constitutes a minimum acceptable level of service. This can be difficult to determine, as it depends on the specific needs of the organization and the type of service being provided. However, there are some common parameters that should be included in any SLA:

  • The time frame in which the service must be provided (e.g., within 24 hours).
  • The degree of reliability required (e.g., 99.9% uptime).
  • The amount of resources required to provide the service (e.g., number of servers, bandwidth, etc.).
  • The timeframe in which problems must be resolved (e.g., within 24 hours).
  • Any additional charges that may apply for exceeding the minimum level of service.

Once these parameters have been established, it is then important to create specific terms and conditions that will govern how the provider will meet these requirements. These

Establishing Parameters for Measuring Performance Against the Minimum Requirements

Service Level Agreement (SLA) structures can be determined in a number of ways, but setting measurable criteria for performance is key to ensuring that the agreement is effective. In this article, we will outline four methods for establishing measurable SLA parameters.

Method 1: Use Actual Results

One method is to use actual results as your measurement criteria. This means that you track and compare actual performance against the agreed-upon minimum requirements. This can be difficult if there are multiple parties involved in the agreement and/or if there are different types of services being delivered.

Method 2: Use Estimated Results

Another method is to estimate results using past data or previous agreements as a guide. This can be more accurate if the same type of service is being delivered on a regular basis, but it may be less reliable if there are changes in the workload or if new services are introduced.

Method 3: Use Baseline Results

The third method is to use baseline results as your measurement criteria. This means that you establish a set of minimum requirements and measure how far away each party is from meeting those requirements. This can be more accurate than using estimated results because it takes into account changes that may have occurred since the baseline

Adjusting the Minimum Requirements as Necessary

The Service Level Agreement (SLA) is a contractual agreement between an organization and its service provider. The goal of the SLA is to establish required levels of service quality for specific products and services.

An important part of the SLA is the minimum requirements. These are the bare minimum standards that must be met in order for the organization to receive a level of service that meets its needs. As the needs of the organization change, so too must the minimum requirements.

If an organization does not meet its minimum requirements, it can incur penalties from its service provider. This can include reduced availability or increased costs. It is important to make sure that the minimum requirements are adjusted as necessary in order to meet the changing needs of the organization.

This article provides an overview of how to adjust the minimum requirements in a SLA. It also provides tips on how to manage expectations and avoid penalties from your service provider.

Reviewing and Modifying the SLA

When designing an SLA for your business, it is important to take into account the different needs of your customers. There are a few key things to keep in mind when creating an SLA:

1. Scope of Service. Make sure to define what services will be covered by the agreement, and make sure that you cover all the bases. This includes specifying what should be done if a service is not performed as expected (e.g., a missed deadline).

2. Timeframe of Service. Be specific about the time frame for completing each service milestone. This allows customers to plan accordingly and avoids any surprises down the road.

3. Renewal Policy. Be clear about how long the agreement will last, and whether or not it will be automatically renewed based on performance milestones reached. This will help customers feel confident in signing up for your services, and helps you manage expectations accordingly.

4. Dispute Resolution Policy. Include a dispute resolution policy in order to help resolve any problems that may arise between customers and employees during service delivery. This can avoid potential conflicts and allow both parties to move forward smoothly.


It can be difficult to know where to start when drafting service level agreements, as there are a lot of different options available. In this article, we will discuss the three most common SLA structures and how they can be used in your business. We hope that this information will help you to choose the right SLA structure for your company and ensure that you are meeting all of your customers’ expectations.