In the second generation of sourcing, measurement was seen as the panacea. Three simple nouns helped to provide more credibility to sourcing management, Service Level Agreements (SLAs).
SLA riddle
The SLA riddle is that invariably the providers meet and exceed all their contracted SLAs yet the customer remains dissatisfied. In other words there is a low correlation between SLA performance and customer satisfaction.
The rule here is to simply measure what matters and make the move from technology centric metrics (server availability) to business valued metrics (regulatory compliance, revenue/cost per customer, time to money)
This aphorism is linked to ‘E’.
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