Learn Here How to Distinguish KPIs from SLAs

People often overlap KPIs and SLAs. However, they are distinct in their operations. In his blog article, Bernard Marr explains how to distinguish between KPIs and SLAs.

Distinguishing KPIs from SLAs

SLAs and KPIs—these are two parameters that breathe life into the operability of companies. Below are the ways you find similarities and differences between the two:

What Is a KPI?

KPIs or key performance indicators inform how well you, your department, project, or enterprise is performing. They help business owners and leaders to identify how far they are from corporate goals. You can track and make necessary changes to existing rules and policies if you have deviated from the course.

What Do You Mean by SLAs?

SLAs are also tools for performance assessment. However, they are agreements between service providers and end-users that are utilizing the services. The documents comprehensively specify, and in clear terms, the services the customers are going to get from the service providers.

There are three types of SLAs—service-related, customer-specific, and multiple. All customers get similar services from service-related vendors, while customer-specific vendors customize their services. The multi-service SLAs can customize according to customer requirements, even if all are availing the same services.

You need to assess and update service level agreements regularly. The elements of these agreements differ as per industry and company. They include the service details, required quality and timeline, the level of performance management, risk mitigation processes, and penalty guidelines. These documents also include penalty guidelines and clauses that would allow both parties to nullify the agreement.

Similarities and Differences

Service level agreements use KPIs to measure service performances. Service providers rely on KPIs to control and analyze their performance standards and strategies. So, key performance indicators can be a part of the SLAs to benchmark performance.

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