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Breakout Session # 204 Jon Maxim, President, Maxelerate April 15, 2008 10:45 – 11:45 AM

Why Service Levels Don't Work. Breakout Session # 204 Jon Maxim, President, Maxelerate April 15, 2008 10:45 – 11:45 AM. Why Service Levels Are Needed. Get what you negotiated Get more than you negotiated Create long term success Avoid issues Resolve issues.

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Breakout Session # 204 Jon Maxim, President, Maxelerate April 15, 2008 10:45 – 11:45 AM

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  1. Why Service LevelsDon't Work Breakout Session # 204 Jon Maxim, President, Maxelerate April 15, 2008 10:45 – 11:45 AM

  2. Why Service Levels Are Needed • Get what you negotiated • Get more than you negotiated • Create long term success • Avoid issues • Resolve issues

  3. Why Service Levels Don't Work • Poor Structure • Poorly Thought Out • Weasel Words • Guns Without Bullets • Not managed • No SLAs

  4. Poor Structure • No objectives • No metrics • No measurement methods • Not measurable • Double jeopardy (double dipping) • Developed after contract signed • Vendor creates and performs measurement

  5. Poorly Thought Out • Confusing/ambiguous terminology • Missing elements • Conflicting elements • Obsolete and irrelevant • Difficult to calculate • Fallacy of averages • Too many • Not measured end-to-end

  6. Weasel Words • Best efforts… • Reasonable efforts… • Commercially reasonable… • Industry standard… • Common practice… • Appropriate level… • Approximately… • Satisfactory…

  7. Guns Without Bullets • No remedies • Ineffective remedies • Not collectible

  8. Not Managed • Not managed at all • Lack of time • Data not collected • Managed inconsistently • No responsibility and accountability to manage • Inexperienced or untrained resources • No confidence in results • Inadequate process • No follow up • Project management principles ignored

  9. No SLAs !!!!!!!

  10. Anatomy of a SLA • Description • Objective • Metric • Calculation method • Timing • Remedy

  11. Some Lessons Learned • SLAs are easiest to establish during the RFP stage • SLAs often fail due to lack of remedies • Have clear calculations to enable collection • Control the money to expedite collection • Suppliers will demand commitments from Clients too • Many failures not contemplated in RFP or contract • Don’t pay extra for what should already get • Don’t pay extra for performance you don’t need

  12. Critical Success Factors • Have SLAs! • Negotiate before selection • Have clear, easy measurements • Have remedies and collect them • Have regular reviews

  13. First Principles of Project Management • The Commitment Principle • An equitable commitment between the provider of resources and the project delivery team must exist before a viable project exists. • The Success Principle • The measures of project success, in terms of both process and product, must be defined at the beginning of the project as a basis for project management decision making and post-project evaluation. • The Tetrad Trade-off Principle • The core variables of the project management process, namely: product scope, quality grade, time-to-produce and total cost-at-completion must all be mutually consistent and attainable. • The Strategy Principle • A strategy encompassing first planning then doing, in a focused set of sequential and progressive phases, must be in place. • The Management Principle • Policies and procedures that are effective and efficient must be in place for the conduct and control of the project commitment. • The Single-Point Responsibility Principle • A single channel of communication must exist between the project sponsor and the project team leader for all decisions affecting the product scope. • The Cultural Environment Principle • Management must provide an informed and supportive cultural environment to ensure that the project delivery team are able to work to the limits of their capacity.

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