Service-level agreements (SLAs) are an important component of business consulting. They are often used by a company to communicate with its customers. It provides the information that each party needs to achieve their goals.

SLAs are designed to protect both the service provider and the end user by establishing expectations, standards and consequences for either meeting or not exceeding them. SLAs also allow businesses to create key performance metrics that can be used to identify areas that do not meet their strategic goals.

The SLA should define all the services that are included in a contract, with details on turnaround times and any exclusions. The contract should also include a list of metrics to be used in measuring the service provider’s performance.

Metrics should only reflect factors under the control of a service provider and be easily collected. They should also be set up with a reasonable base, so they can be refined as time goes on.

A key performance indicator, or KPI, is a metric that measures how well a business is performing in terms of its primary goals. It can help a business determine if they are veering from their course, which is an issue that is common for small businesses.