Project Procurement and Contracts

Introduction

This course highlights the importance of Service Level Agreements to meet the needs of companies that are dependent on long-term partnership arrangements with external suppliers of services in achieving strategic goals. Those managing such corporate relationships need to know how such a partnership will function and be able to deal with any problems.

The SLA establishes the measurement methodology that should drive the quality of service performance created as a legal contract between supplier and customer, or as a formal agreement between one internal supplier departments that provides corporate services to its internal client. It is imperative that everyone engaged in the service provider understands the issues and processes involved in a service contract scenario

This course will feature:

• The benefits of using service level agreements
• How the different levels of SLAs operate
• What is involved in planning, writing and managing service level agreements
• Different SLA contracting structures and their applications
• SLA strengths and weaknesses, dealing with internal and external contractors

Objectives

• Plan & draft a range of service level agreements & construct & control contract negotiations & disputes.
• Articulate how quality SLAs should be included within the Procurement processes.
• Negotiate service level agreements with internal and external suppliers.
• Document appropriate quality outcomes from service contracts.
• Evaluate the likely results from alternative service performance frameworks.

Content

Day One

Principles and Functions of Service Level Agreements

• The need to measure the quality of performance
• Why, when and how can SLAs help to achieve quality
• Key objectives
• SLAs: Contracts or Contract substitutes?
• Introducing SLAs for services bought in from contractors
• Use of corporate SLAs between in-house departments

Day Two

Key Elements of a Service Level Agreements

• What services are being measured?
• Typical quality measures
• SLA Governance Frameworks: Managing, measuring and reporting service performance
• Duties of the customer
• Risk sharing and SLAs: Managing problems
• Termination of the agreement

Day Three

Drafting your Service Level Agreement

• Drafting principles
• A model structure for the SLA
• Essential elements of a quality SLA
• Using appropriate measurement language
• Carrots or sticks to encourage achievement
• SLA checklists

Day Four

Managing the in-life SLA      

• Review processes
• Using escalation to manage quality performance
• Keeping the SLA relevant: Managing changes
• Negotiation techniques to manage the variation
• Customer intervention options with an underperforming contractor
• Learning and applying lessons for the next SLA

Day Five

Using a Scorecard Approach to SLA Management

• Origins of the scorecard approach
• Aligning the SLA with the corporate strategy
• Balancing the needs of stakeholders
• Planning and Constructing an SLA scorecard
• Key Performance indicators to support the SLA
• Business process quality improvement