It is important to understand that key performance indicators (KPIs) and service level agreements (SLAs) are not the same, although there are some overlaps. In this article, I would like to explain the difference between KPIs and SLAs and examine the practical applications of different collaborators. The AP-SLA may require the BPO provider to achieve a 98% accuracy rate for invoice processing, which significantly reduces the amount of errors. Another client may prioritize processing speed to avoid residue build-up. Quick responses to supplier requests are another common priority of AP service level metrics, in order to maintain strong relationships. If this is done correctly, the SLAs in BPO ensure that both parties understand their responsibilities and focus on the right areas, while the metrics used to measure service are defined. They also create accountability and communication, create a dialogue on key issues in the process, and provide corrective action and detailed actions when agreed service levels are not met. When customers provide certain levels of access to internal systems, exceptional BPO providers can even create dashboards that allow customers to view metric power in real time. A credit dashboard could show, for example. B, how many invoices are being processed, where they are in this process and why some people are waiting to be processed. An ALS is an agreement between you and your client that defines how your relationship will work in the future.
Key performance indicators (KPIs) are metrics that have been selected to measure how well a team has performed against agreed standards. SLAs are different from KPIs. SLAs are documents that describe the broader service agreements between a service provider and its customers, while KPIs are generally used to measure business performance against their strategic objectives. However, KPIs can be part of an ALS to measure the provision of defined service standards. We often distinguish between three different categories of service level agreements. SLAs also facilitate communication through monthly service level reviews (SLRs) that allow denstakeholders to get to the bottom of problems so they can be easily corrected. For example, a significant increase in the duration of customer calls can help detect product problems before they damage the company`s reputation. Both service level metrics and KPIs provide useful information.
Service level metrics provide information on basic performance expectations. An agreement to meet these expectations is considered an ALS term. KPIs provide information on effectiveness and success in achieving organizational goals or expectations.