Les Druitt, founding principal of outsourcing consultancy Sourcing Advisory Services, says that in this situation, an OLA “becomes a record of shared assumptions and interdependencies at the level of processes shared and intersecting between each of the multiple parties engaged in the delivery of services.” In a multi-party outsourcing situation, this is where things get messy. ”.
According to Pillsbury partner Robert Zahler, partner in the global sourcing group, “It has become more and more important for the ultimate customer to know that the relationships and interactions among these multiple parties are well-known, documented in clear and precise language, and reflected in binding agreements that can be enforced-if necessary-by the customer.”
Who uses operational level agreements?
In order to ensure that the internal professionals of the third-party company uphold the commitments made in the service level agreement between the main company and its clients, businesses that outsource technical labor frequently use operational level agreements. These operational level agreements shield businesses from contractors who might not meet their work expectations because the practice of hiring contractors and/or third parties is a common business strategy.
What is an operational level agreement?
Service and operational level agreements
Although they are separate documents and agreements, service and operational level agreements are closely related to one another. OLAs and SLAs have different target audiences, but the rules that businesses specify in each document are dependent upon the rules in the other.
A list of requirements for the document in relation to the service level agreement, for instance, is a component of operational level agreements. Typically, this information is already included in the service level agreement, but it is also beneficial to the parties to the operational level agreement. These mandates can include:
Elements of an operational level agreement
Professionals document the terms and conditions of their operational level agreements to keep a record of them. These OLA documents contain the followng components:
General overview
An operational level agreement’s general overview section provides a summary of the agreement as well as information on its objectives. In order to reinforce the crucial components of the OLA for future reference, it is helpful to state the document’s objectives at the outset.
Stakeholders
Operational level agreements also include a list of all the professionals involved in the agreement, along with their contact information. Included are their names, job titles, and position within the business. This part assists in identifying the professionals who are subject to the OLA’s rules and regulations.
Services and pricing
An operational level agreement’s services and pricing section outlines the general service terms, customer requirements, and the statement of work (SOW). This knowledge aids professionals in comprehending the particular duties that internal staff will perform in order to adhere to the operational level agreement.
Provider responsibilities
The roles of the service providers involved with the agreement, both internal and external parties, are described in this section of the agreement.
They might also include the obligations of the cell phone company since businesses that sell customers cell phone service frequently do so through the devices that other tech businesses manufacture. The operational level agreement may state that the cell phone manufacturer is in charge of hardware repairs and that the service provider is only in charge of networking issues.
Operating hours
Operational level agreements outline which procedures internal staff members are in charge of and how to handle them, including response times and escalation procedures. The terms of service for internal parties are highlighted in this section of the document. Information on operating policies, procedures for service requests, work requests, hours of operation, incident management, maintenance, and information on services not covered by the OLA are all included in this.
To ensure that all parties are aware of the service terms of the agreement, this section of the document goes into great detail about each of these subjects.
Review schedule
The operational level agreement’s schedule for document reviews and audits is shared in this section. This frequently occurs on a regular basis to make sure that both parties adhere to the agreement. As there might be restrictions against violating the agreement during non-review periods, the review schedule can also give parties who want to terminate the service agreement a window of time to do so without paying a penalty.
Tips for writing an operational level agreement
Consider using these pointers to assist you when writing an OLA:
1. Be clear
Use language that is clear, concise, and appropriate for the formal tone of the document when composing an operational level agreement. To ensure that each professional has a thorough understanding of the document, it is crucial to use language appropriate for the service terms and to leave little room for speculation or outside interpretation. In some sections of the agreement, such as the summary, which should be no longer than one or two paragraphs, it is especially crucial to use concise language.
2. Prioritize internal agreements
Although businesses frequently negotiate operational level agreements with outside vendors and contractors, it can be advantageous to give internal agreements priority over labor outsourcing. This is because setting up and negotiating operating terms and conditions with internal employees may be simpler. Understanding the terms of the document as you write it will help you be held accountable for the service your business provides, whether you use internal or external labor.
3. Use a template
Consider using a template to create your operational level agreement. This can be especially useful if it’s your first time writing an OLA. Operational level agreements can be found by searching for templates and downloading one. You can also review example OLAs.
Employees may also have access to one through the company’s management or human resources departments. This enables all of the business’ active operational level agreements to adhere to a common structure and voice.
4. Determine the authority of each professional
Establish each professional’s position and authority before they sign the operational level agreement. It’s frequently best to type the professional’s job title below the line you want them to sign. As a result, the document is organized and each professional’s rank and authority are acknowledged. If a third party needs to read the document for mediation or negotiation purposes, this can also help clarify roles.
5. Attach additional documents as needed
Add additional documents as an appendix to the operational level agreement if they are pertinent. You may want to attach the relevant SLA, legal documentation, or additional company policy forms. This makes it easier for professionals to get all the information they need to comprehend the operational level agreement and get ready for the duties you specify in the document.
6. Make it accessible
Professionals can adhere to its terms and concentrate their work by making the operational level agreement accessible to each employee it involves. Make this document physically available by distributing the file to other professionals so they can view it whenever it’s convenient for them.
By making this document more accessible, providers will be able to see what is expected of them and use the operational level agreement as a resource to view policies and regulations, which will help reduce stress brought on by the job.
ITSM – Service Level Agreements vs Operational Level Agreements – ITIL OLAs Principles and Concepts
FAQ
What is the purpose of an operational level agreement?
Operational level agreements (OLAs) are legal agreements that describe how IT service providers and businesses intend to deliver a service and monitor performance indicators to an internal client. An OLA aims to outline the breadth and depth of responsibilities and obligations for each department of the business.
Which is an example of an operational level agreement?
An agreement between an IT service provider and a customer is known as a service level agreement (SLA). The Operational Level Agreement (OLA), which regulates the delivery of an infrastructure service, is a contract between an IT service provider and another division of the same organization.
What is SLA and OLA and UC?
An operational level agreement (OLA) governs the provision of services that assist an IT organization in providing its services. Additionally, an OLA may exist between two divisions of the same IT service provider. For example between the Service Desk and a Support Group.
