
Pol Sweeney
CIO
AP Solve
psweeney@apsolve.com
|
Search Our Catalog of Articles
20-20 Vision and SLAs
Adhering to Service Level Agreements (SLAs) is key to the success of any
company, however some organisations appear to breach their customer
commitments all too often. A mismanaged SLA can cost a company
significantly more than just a financial penalty - it can cost a company its
reputation too.
Clearly, a company that develops a name for breached SLAs is going to have
trouble staying in business. And quite apart from the business arguments,
it's downright unethical to enter into SLAs without the means of keeping
them.
Only when organisations have visibility of all the facts and start taking
into consideration the bigger picture will SLA's become meaningful things
that customers can realistically rely on. More than that, organisations that
can deliver on their commitments will be able to use this as a powerful
selling tool, and a revenue-earner in its own right.
LACK OF INFORMATION
Many companies know the dire effects of breaching
service levels only too
well, yet some are seemingly unable to do anything other than panic at the
first sign of incurring a penalty.
The root of the problem is a combination of a lack of information, and the
inability to make the information they do have of real benefit to their
business. Most service organisations usually have very poor visibility of
their mobile workforce. They know who they've sent where, but not how far
they've got with the job, or, when they're likely to be finished. And,
although they will have a complete list of upcoming deadlines, processing
the information into a bigger customer picture is too complex a task for the
human brain, or for most current scheduling systems.
As a result, when a task reaches jeopardy and there's a prospect of
incurring a penalty, companies panic. They lose sight of this bigger
picture, throw all available resource at the single problem, at the expense
of other customer commitments and their business's bottom
line.
This all-too-popular knee-jerk approach to SLA "management" costs money and,
ultimately, business. And, ironically, there's no reason to do it in the
first place, even from a purely mercenary point of view: most penalties are
one-offs, or escalate stepwise, so once the penalty has been incurred,
there's no means of recouping it.
Yet with the right tools and information, at the point at which an SLA
becomes a concern, organisations have the ability to make a considered
business decision. The technology is there today, which will enable managers
to weigh up the cost of breaching this SLA - the actual cost of the penalty,
the value of the customer to the business and the potential damage to their
own reputation - against the cost of committing resource to fulfilling the
service agreement.
MEETING COMMITMENTS
With a comprehensive picture of workforce, workload, and the ability to
translate this into information of real value to
the business, organisations
can minimise the likelihood of letting their customers down, so that the
question of penalties should rarely arise.
This latest technology, Fieldforce Process Automation (FPA), provides
organisations with not only the data on their workforce and workload, as
well as offering organisations the ability to translate this into
information on which they can make considered business decisions. More
critically, by automating the right processes, FPA has the ability to raise the
priority of any tasks relating to a specific service agreement, the closer
the organisation gets to its deadlines.
This means that jobs can be scheduled so that they very rarely get anywhere
near the danger area. By continually comparing commitments with available
resource levels, organisations can see when there's going to be a problem
meeting SLAs. And, with advance warning, they can tune their rosters to
avoid the problem, instead of having to consider expensive
last-minute
measures like asking people to work overtime, so meeting commitments
actually costs less.
If the worst happens and the organisation becomes at risk of incurring a
penalty, the situation can be managed rationally; seeing well ahead of time
when a job is approaching the danger area and taking appropriate action, for
example by reallocating staff from lower-priority jobs. And if ever an SLA
is unavoidably breached, the situation can be dealt with in the most
effective way, according to the affected customers' needs and preferences.
MAKING MONEY OUT OF SLAS
With full service information, an organisation can turn SLAs into a strong
sales differentiator, and make money out of them in other ways. For example,
by offering differential levels of service attuned to the needs of different
customers, and by pricing these appropriately. Individual customers can even
be offered different service levels on different types of equipment.
With
20-20 vision of the workforce, workload and the relationship between
the two, SLAs become an asset rather than a liability. Information can help
an organisation manage its service rationally; it allows them to keep costs
right down; and, best of all, it makes sure the correct SLAs are written in
the first place.
Acquiring 20-20 vision may cost something in terms of overhauling
information. But it will bring new sources of revenue, and secure two things
that are beyond price: a company's reputation, and a good night's sleep.
|