Description of Operational Level Agreement

A Description of Operational Level Agreement

In the dynamic business environment, operational level agreement (OLA) has become a crucial tool to ensure that the services delivered by different departments of an organization align with each other. In this article, we will provide a brief description of operational level agreement, what it is, why it is important, and the key elements of an OLA.

What is Operational Level Agreement?

An Operational Level Agreement (OLA) is a contract between different departments or teams within an organization that sets out the level of service required from each one. It outlines the responsibilities and expectations of each department, ensuring that the services they deliver align with each other and meet the needs of the internal customers of the organization.

Why is Operational Level Agreement Important?

An OLA is important because it helps to ensure that the services provided by different departments are seamless in their delivery and work cooperatively to achieve common goals. It helps to avoid conflicts between departments, which can be a significant source of operational disruption and can impact customer satisfaction.

Key Elements of an Operational Level Agreement

1. Scope: The OLA should clearly define the scope of the agreement, including the departments or teams it covers, the services it applies to, and any exclusions.

2. Responsibilities: Each department or team must have defined roles and responsibilities, including their deliverables, performance metrics, response time, and escalation procedures.

3. Service level targets: The OLA should describe the service level targets, including response time, resolution time, availability, and reliability.

4. Metrics and Reporting: The OLA should include metrics and reporting procedures, which enable the measurement of service-level performance and identify areas of improvement.

5. Review and Continuous Improvement: The OLA should have a review procedure to monitor the OLA`s effectiveness and identify areas that require improvement continually. This review process should be regularly reviewed to ensure that the OLA is up to date and relevant.

Conclusion

In conclusion, an OLA helps to improve the overall service quality of an organization while ensuring the smooth functioning of various departments. It provides a framework for departments to work together cohesively, identify and resolve issues quickly, and constantly improve service delivery. It is, therefore, essential that every organization has an OLA in place to manage inter-departmental service delivery effectively.