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The Ideal SLA From AService Provider

Perspective

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T LN TIntroduction

Details The Components Of An Ideal SLA That

Enables Zero Downtime In The Nigerian Environment

Incorporates Lessons Learned From Telnets Position

On Both Sides Of The Table

As Service Provider (SP)

As Service Consumer

Attempts To Meet Both Parties Requirements

SPs Desire For Prompt Payment SCs Desire For Service With Zero Downtime

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T LN TTelnets Aims

Manage Expectations Of Both Parties

Service Provider & Institution

Avoids the major cause of disputes, the gapbetween expectations & deliverables

Provides framework for high availability services

High Availability Is Possible!

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T LN TKey Definitions

Service Level AgreementLegally binding agreement

A Contract Between the SP & Bank

Services: Offered Under The AgreementKey Performance Areas (KPA)

Key Performance Indicators (KPI)

Consequences: Over/Under PerformanceBonuses

Penalties

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T LN TCritical Factors From An Institutional Perspective

AvailabilityPerformance

Delivery

Problem Resolution (MTTR)Performance Monitoring

History: Statistics

Costs

Penalties

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T LN TFrom SPs Perspective

Clear Understanding Of The Institutions

Requirements

Resources: Equipment/Infrastructure/People

Penalties/rewards

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T LN TComponents Of An SLA

SLA

Parties

Term

Scope

Variat ions

Intellect ual Pro perty (IP)

Conf ident ial i ty

Force Majeure

Breach

Dispute Resolut ion

Costs

Penalt ies & Bonus es

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T LN TRequired Service Levels

Availability

Reliability

Serviceability (Mean Time To Repair)

Performance

Latency

Error Rate

Throughput

Loss

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T LN TSLA Implementation Details

Delivering Services To Agreed Performance

Standards.

Method

Governance Arrangements

Service Level Agreements

Performance Standards.

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Governance Arrangements

Build And Maintain Effective Relationships With the SP.

Clear Lines Of Authority, Responsibility & Decision

MakingBetween You & The SP

Where & How Policies, Strategies, Functions & Actions

Are Addressed;

Meet The Needs Of Both PartiesGovernance Council

Key Bank & SP Executive Management

SLA Details

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Governance at 3 levels

Strategic Governance:Overall ownership of the service, performance & the SLAs;approves changes, improvements & charges;

CIO & Head IT, Bank ED, SPs Executive Management

Tactical Interactions:Negotiates & manages SLAs & KPIs; change & improvementimplementations; ad-hoc reviews of services; and

IT Manager, SP Account Team

Operational Interactions:Service & performance reviews; service desk and day-to-dayservice provision.

IT Operations Team, SP Support Organization

SLA Details

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T LN TSLA Details

SLA Governance Council

Consists of C-level Executives From Both Organizations

Directly Responsible For Service Provision (the Service

Provider) & Consumption

Resolves Issues And Ensures That Problems HaveExecutive Level Visibility

Downtime Becomes Career Limiting

You Can Roll Out Transformational Services That Treat The

Network As An Always Available Utility

Provides Decision & Accountability Framework Needed To

Encourage Appropriate Behaviors

Provide Required Context For Successful Zero Downtime

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T LN TService Performance

Performance Standards

Performance of the key activities that must be achieved if

we are to meet our business objectives in our bank

Method

KPIs are essential to ensure you meet your business

objectives

KPIs will be continually monitored

Performance targets for both SP & The Bank

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KPI

Activity Performance Objective KPI metricPrompt payment of

SPs Invoices Invoices are paid per agreed paymentterms with SP (NO DELAYS). [100%] of invoices paid withinagreed terms.Acceptable Service

Availability Service is available for Banks Use.

[%] time performance of

service meets defined service

levelsAcceptable Service

Performance Service provides acceptableperformanceLatency, error rate &

throughput as defined by

Bank/SPPrompt Resolution

of Service Faults Bank Is returned to service as quicklyas possible MTTR Of x hours (4 preferred)

Note that there are current service challenges with existing

SLAs

SLA Details

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T LN TSLA Details

Bonuses & Penalties

Pay The SP A Bonus For Exceeding Targets

The SP Will Provide The Bank With A Performance

Bond Covering SPs Services

Performance Bond Will Be Invoked Or CalledAutomatically When Performance Is Below

Minimums

Provides real Financial Penalty..

Service Credits Are Notional And Do Not Provide Any

Benefit To The Bank Or Sanction For SP

Have Not Worked In The Nigerian Environment

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Performance BondSP Provides Bond That Covers The Penalties For

Non PerformanceSP Purchases Bond From Bank Or Insurance Company

Bond Protects The Bank From SP Service Failures

Easily Accommodated By Existing OrderProcesses

Part Of The SP Internal Contract DeliverableProcessRadios

Personnel

Cables

Performance Bond

SLA Details

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Bonus Structure

Bonus Structure Designed To Reward Performance

Provides SP Incentive To Invest In Reliability

Availability BonusGreater than 99.9% 300%

9999.9% 150%

9898.99% 50%

SLA Details

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Penalty Structure

Again Rewards SP For Exceptional Performance

Transforms The Economics Of Service Provision..

Penalizes Sloppy Engineering

Availability Penalty

Less than 95% 300%

9595.9% 150%

9697.99% 50%

SLA Details

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Outcome

Services Delivered to agreed performance

standards

Service Performance

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High Availability Services Are Possible.

Fix Your Existing SLAs

SLA Details