(ONLINE) ITIL Indonesia Community - Service Level Management

1. ITIL Indonesia – “Service Level Management”
ITIL Indonesia Jakarta, 23 Maret 2022

3. A Very Short and Incomplete Intro to
Service Level Management
ITIL Indonesia – March 2022

4. Understanding the Concept
Service Level Agreement (SLA) is a documented agreement between a
service provider and its customers that identifies service required and
the expected level of the services (delivered)
Service Level Management is the process to manage the agreement that
we have made (with customer) to achieve that expected level of services

5. Understanding the Concept
SLA must be clearly defined to ensure the level of service delivered is what business required
and Customer Satisfaction can be the success measurement
SLA should be aligned with people, process, and technology
SLAs promote common understanding, are measurable, and are reviewed and changed as
things change (more so with a tailored service than an out-of-the-box service), either
internally or on the customer side

6. You’ve got to start with the customer
experience and work backward to the
technology. You can’t start with the
technology and try to figure out where you’re
going to sell it –Steve Jobs-

7. 1. Understanding the area of Service Coverage
Things to Consider when creating SLA
Provided Services
What Customer
wants
SLA
2. Criteria of Successful Service Deliverables
Good Almost Failed Failed
Tailoring the Good, Almost Failed, and Failed criteria to the service that will be delivered
Example:
Customer Requirement: Point of Sales system is available 24x7
Technical Requirement:
✓ Application Availability 24x7 with percentage with KPI 99.7%
✓ System Availability (server, database, network) 24x7 with percentage KPI of 99.8% (with Minimum
tolerable percentage is 99.5% per week review)
✓ System RTO (switching to Backup) is within 10 minutes
✓ What service do we want to deliver?
What is the scope/coverage?
✓ What does customer want?
✓ Can we provide that?

8. Things to Consider when creating SLA
3. Measurement, Monitoring, and Reporting
When is the Periodic Review?
Daily?
Weekly?
Monthly?
Quarterly?
What to measure?
(tips: some customers might not know what to expect, so service provider should be able to propose something)
How do we want to measure the achievement?
Have we negotiated this with customers?
What is our customer’s point of view on this measurement, monitoring, and reporting method?
How do we want to monitor SLA?
✓ Manually by Excel?
✓ Monitoring by System?
✓ Or others…??

9. • Sample of Calculation – Why SLA measurement must be clearly defined?
• There is a service with SLA 24x7 availability with expected measurement is 99.7%
uptime within a month
• 24 hours x 30 days = 720 hours = 43200 minutes
• If you want Uptime of 99.7% means that service must be up for 43070,4 mins
• To achieve 99.7% Uptime within a month, allowed downtime is only for 129,6 mins = 2.16 hours or let
say 2 hours downtime each month
• There is a service with SLA 24x7 availability with expected measurement is 99.7%
uptime within a year
• 24 hours x 365 days = 8760 hours = 525600 minutes
• If you want Uptime of 99.7% means that service must be up for 524023,2 mins
• To achieve 99.7% in a year, allowed downtime is only 157,68 mins = 2.6 hours or let just say 3 hours
downtime within a year
• If downtime allowed is only 2-3 hours, then you make agreement on the
highest Incident Resolution time within 4 hours, then SLA will not be aligned to
each other and will be hard for technical teams to achieve
• If Downtime is required for planned maintenance, it must be discussed and
agreed with Business

10. Things to Consider when creating SLA
4. How to facilitate (sudden) service changes?
5. What happened if SLA is not achieved?
Improvement?
Long Term?
Short Term?
✓Penalty might seem to be important, but the most
important thing is the Service Improvement itself
✓Penalty without service improvement will only be
repeated non-sense
Penalty
✓ What will be changed?
✓ Adjusting and tailoring the new one with existing one?
✓ Changing the agreement?
✓ Transition period?
✓ etc

11. Things to Consider when creating SLA
6. End of Services/Termination
✓ Service dismissal
✓ Transition period to the new service
✓ Evaluation for improvement
✓ Others….??

12. Simple Examples (might not be the real cases)
No Service Name Service Description KPI How to Measure ? Responsibilities Exception and
Limitation
1 Incident &
Problem
Management
Managing major incidents,
operational incidents, and
recurring issues (problem)
Incident Response time
Sev 1: 15 minutes
Sev 2: 30 mins
Etc
Incident ticket resolved
percentage within timeline
Sev 1: 90%
Sev 2: 97%
Sev 3: 97%
Sev 4: 96%
Based on monthly incident and
problem report
Incident Management
team
1. Security Incident
2. DRP and BCM
Incident Resolution Time
Sev 1: 2 hours
Sev 2: 4 hours
Etc
Incident Management
team
1. Security Incident
2. DRP and BCM
Recurring Issues - no recurring
issues within 12 months
0 recurring issues within 12
months
Problem Management review
occurs monthly
Problem Management
team
1. Security Incident
2. DRP and BCM
3. Risk Management
2 Point of Sales
System
Providing POS support Service Availability 24x7 Service Uptime 99,7%
Incident that impacted to service
will be calculated following
incident management metrics
IT Application Support Lack of Application
Support personel
System Availability 24x7 System Uptime 99,9% IT Infrastructure Calculation by
manual using excel
Capacity Threshold
Green <=70%
Amber 70%-75%
Red >=75%
Monthly Capacity Chart review
based on highest capacity
threshold
IT Infrastructure Calculation by
manual using excel
3 etc

13. The Watermelon
Effect
Source: BMC Blogs – Service Level Management
It is important to focus more on the
customer experience than just
providing the ’successful metrics’

14. Simple practical approaches to manage
SLA
• Understanding customer needs, issues, concerns, etc
• Tailoring requirements to the service being delivered
• Review deliverables periodically and get customer feedback
• Plan and implement improvements
• Repeat……

15. END
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