Whether your services are internal or external (contractual) you should have SLA's in place.  They set out the basis of the service 'contract' and demonstrate a full appreciation of the scope, quality, responsibilities of the service and the resources, costs and time required to execute them.  SLA's should not to be regarded as tablets of stone; it is very likely that they will be honed and refined as the service contract develops.  They will be referred to often, without them the process of refinement and negotiation has no focus.  Adviso, an outsourced service provider based in Norway, has SLAs for all their outsourcing contracts and regard them as an invaluable method of ensuring customer satisfaction.

What does a model SLA look like?
The key components of the SLA are:

• Objectives of the service
• Scope of work, the tasks and roles/responsibilities
• Key drivers and the typical input/output volumes, if necessary showing seasonal peaks
• Identifies Key Performance Measures. For example, volumes, turnaround times and quality measures
• Relationship of costs/ resources to drivers and illustration of charging mechanism (if appropriate)
• Client/ 'Service User' obligations (see RSLA below)

The level of detail used to cover the above will firstly depend upon whether the SLA is part of a wider contractual arrangement (as it is in Adviso's case) and secondly should reflect the scale of the service.  For example, it would not be appropriate to build a very detailed agreement to cover the services of less than ten staff.

The key ingredients in the SLA are Scope and Roles/Responsibilities
One way of clarifying roles/ responsibilities and the scope of the tasks is to 'Map' the process.  Good process mapping software is an essential tool for shared services and outsourced service providers.

 Process mapping software:

• Clarifies the process
• Illustrates the key tasks
• Attaches relevant documents to tasks
• Connects the data elements and applications to the tasks
• Is capable of running 'what if' scenarios
• Provides analysis tools that clarify systems needs, bottlenecks, duplication

Most process mapping packages will output the documentation in HTML form so that it can be read using a standard web browser, thus making the process map and related documentation available to Intranet/Internet users, with appropriate authorisation.

RSLA  - Reverse SLA
The RSLA is used to identify the roles and responsibilities of the 'service user' (client/customer).  It is important that the 'customer' understands his responsibilities and the linkages between his tasks and those of the service provider.  Again process mapping clearly identifies the tasks and linkages.  It may be appropriate for the customer to incur penalties for poor execution of his role that impacts the service provider's performance and this must be spelt out in the RSLA.

Process Mapping applications
Of course process mapping has many other valuable applications:
1. Process re-design
2. Quality systems documentation
3. Training
4. Systems implementation
5. Auditing
6. Control & Risk management

Score Research provides training and hands-on help in building process maps.

The following figures illustrate the use of process mapping in one of Score Research's recent assignments.  It would be good to have your comments about your organisation's use of process mapping.  There is always a compromise between speed and quality when including such illustrative material so if you want higher quality you can download an ADOBE version here.

Figure 1 - illustrates the purchase to pay process at a high level


Figure 2 drills down to the sub-process called 'PO Process' (Purchase Order Process)

Figure 3 Shows the main accounts payable process in a 'swim-lane' analysis view; the tasks in each 'lane' are the responsibility of a different individual or group of individuals, thus inter-dependencies are clear as are the roles and responsibilities

Ian founded Score Research in 1994 after holding several senior finance roles in FTSE 100 companies.  He is an experienced consultant specialising in business process improvement using benchmarking, process mapping and activity-based modelling techniques.  He is currently managing the FASSBEX programme (Finance & Accounting Shared Service Benchmarking EXchange).  Score Research has developed a number of performance improvement tools.  Its benchmarking database, best practices and best process templates are used extensively in shared service operations throughout Europe.

Assignments include:
Re-engineering the finance function – media group
Benchmarking group reporting – BP
Re-engineering the ‘Order to cash’ process – Major Housing Association
Balanced Scorecard design and implementation – food manufacturer
Benchmarking the finance function for several major international organisations

If you want to see an actual published process map (Travel & Expense Claims Process) visit: http://www.scoreresearch.com/services/process-maps.php

Download a 30-day free trial at this link also.