1. Info-Tech Research Group1 1 Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2015 Info-Tech Research Group Inc. Improve IT-Business Alignment Through an Internal SLA Understand business requirements, clarify current capabilities, and enable strategies to close service level gaps. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997 - 2015 Info-Tech Research Group

2. Info-Tech Research Group2 2 Follow Info-Tech’s Internal SLA Planning and Execution Workflow to create effective SLAs Internal SLA Planning and Execution Workflow Phase 1: Identify and scope the appropriate SLA Project charter Phase 2: Determine current service levels Mapping operational dependencies Service level metrics tracking worksheet Phase 3: Create the Business Facing SLA Project roadmap Availability/reliability SLA Service Desk SLA Service Catalog SLA Call your account manager to schedule a Guided Implementation Build an Internal SLA – Process Flowcharts

3. Info-Tech Research Group3 3 This Research is Designed For:This Research Will Help You: This Research Will Assist:This Research Will Help You: This Research Is Designed For:This Research Will Help You: This Research Will Also Assist:This Research Will Help Them: Introduction IT managers who are responsible for meeting service level expectations. Organizations seeking to formalize, optimize, or validate an existing internal service level agreement (SLA). Organizations who are currently struggling with business user experience and satisfaction. Use the SLA process to help the business understand current capabilities, clarify actual business requirements, and drive continuous improvement to close service level gaps. Ensure your SLAs stay in sync with current requirements. Strengthen IT-business alignment and business satisfaction with IT. IT managers to gain a comprehensive understanding of the SLA process and establish a framework for negotiating external SLAs. Other business managers to transfer the SLA framework outside of IT and into other business areas. Understand the role of internal SLAs in improving the ability to establish and manage external vendor relationships. Establish a consistent methodology across the organization for determining appropriate service level goals.

4. Info-Tech Research Group4 4 Resolution Situation ! Complication ? Info-Tech Insight Executive Summary The business is rarely satisfied with current service levels. Even if there is a SLA in place, it often doesn’t address IT-business friction because the SLA process failed to clearly communicate current capabilities and identify appropriate targets. Limited IT budgets make it even more critical to ensure IT investments align with service level requirements. Dissatisfaction with IT is often based on perception. Without tracking current service level, IT is not able to effectively address perception issues. The gap between current and desired service levels is not quantified, making it difficult to plan IT investments appropriately. Business leaders have service level expectations regardless of whether there is a formal agreement. The SLA process enables IT to manage those expectations. Create an effective internal SLA by following a structured process to report current service levels and set realistic expectations with the business. This includes: ◦ Defining the current achievable service level by establishing a metrics tracking and monitoring process. ◦ Determining appropriate (not ideal) business needs. ◦ Create an SLA that clarifies expectations to reduce IT-business friction. 1.The key benefits come from the SLA process rather than the artifact – the clarity gained by both the business and IT regarding current capabilities, business needs, and steps that can be taken to close service level gaps. 2.Clarity and transparency is critical to a successful SLA. Identify the current lagging service levels, and establish a roadmap of how you plan on improving it. Often the business just needs to know the possible and the impossible.

5. Info-Tech Research Group5 5 What’s in this Section:Sections: Understand the value of an internal SLA Project Phases Summary Appendix: DIY Workshop Instructions Goals of an internal SLA SLA blockers SLA benefits Info-Tech’s SLA development methodology

6. Info-Tech Research Group6 6 Create a common understanding between the IT team and the business team through an effective internal SLA An internal SLA is an agreement between IT and the business. The SLA describes current service levels, documents the target service levels, and specifies the responsibilities of the provider and the customer. Note: Many organizations are hesitant to use the term SLA, due to the connotation of “an agreement,” and use other terms such as Service Level Expectations. Regardless of the terminology, the end goal is to clarify expectations and use the SLA as a vehicle to achieve a mutual understanding between IT and the business of current capabilities, desired service levels, and requirements to close the gap. Establish clarity between IT and the business Uncover process gaps and risks Establishes a standard for continuous improvement Goals of an internal SLA A comprehensive internal SLA establishes clarity by: Creating a definition of responsibility. Teams are held accountable for what they have agreed to, instead of being held to undocumented expectations. Garnering buy-in from different parties and redirecting teams toward common objectives. The business environment is constantly changing and that means the IT environment also needs to evolve and support new business challenges. Use the SLA as a means to set goals for continuous improvement to keep up with business requirements. A key process in SLA creation involves operational process mapping. Often this exercise will identify gaps and risks that were previously overlooked. This process will allow the IT team and the business team to develop deeper appreciation for each other’s procedures and challenges, and help align the goals of both teams.

7. Info-Tech Research Group7 7 Understand the reasons why many internal SLAs fail to achieve the desired objectives Internal SLAs are often developed in the same fashion as an external SLA, where the SLA is treated like a legal document. If one party fails to meet expectations then punitive actions will follow. Carrot and stick approach The business often demands an internal SLA from IT, yet the business does not involve itself during the SLA creation process. One-sided representation Traditionally creating an SLA has been a lengthy resource-intensive project. SLAs are scoped to be able to track all IT services and be written in oppressively fine detail. Complexity The overbearing nature of a legal contract motivates IT to commit to a lower standard of service to minimize the risk of failing to meet service levels and avoid negative consequences. Wrong incentives Since the business was not involved, the SLA is often written in “IT speak.” This creates a barrier in communication, and the SLA is no longer an effective tool for achieving IT-business alignment. Poor data presentation Due to poor project scoping, the SLA requires too much effort to complete properly. This leads to inaccuracies or shortcuts, or the project simply stalls and is not completed. Project inertia SLAs that are implemented poorly will incur substantial hours of effort while delivering little to no value. To mitigate against wasting resources, SLA projects need to focus on the process just as much as the final document.

8. Info-Tech Research Group8 8 Create a strong business case for an internal SLA by identifying all of the potential benefits If IT does not establish SLAs, then the business will set its own expectations. Since these expectations are not based on current capabilities, you are almost guaranteed to fail. In a survey conducted by ServiceXRG, it was identified that the very existence of SLAs helped facilitate a stronger client-provider relationship. Improved communication. While creating the SLA, IT and business teams will need to collaborate. This open dialog will help align IT and business strategy. Improved conflict resolution. The conflict between available resources and business needs will always be present (e.g. demands for after hours support). The SLA enables you to clarify responsibilities and get agreement on support levels. Improved external SLA negotiations. Internal SLAs will help you establish a process to evaluate business needs and therefore requirements for external SLAs. Other Intangible Benefits: Source: Sweeny, Tom. "The Benefits of Offering SLAs."

9. Info-Tech Research Group9 9 Best-Practice Toolkit 1.1 Review the pilot SLA methodology and select the relevant services to include in the pilot. 1.2 Define the relevant metrics to evaluate the SLA. 1.3 Identify roles and responsibilities for building the SLA project charter. 2.1 Document current IT operational procedures. 2.2 Establish and monitor current service level metrics. 3.1 Level set with the business regarding current as well as ideal service levels. 3.2 Create a project implementation roadmap to close the gaps between the current and target service levels. 3.3 Create and manage the pilot SLA using Info-Tech’s SLA templates. Guided Implementations SLA category overview and identification of the relevant SLA pilot project. Establish relevant metrics to evaluate the services included in the pilot. Create the project charter by establishing roles and responsibilities as well as project scope. Review and document the current operational dependencies and maintenance procedures for applications/systems or services. Monitor each SLA metric and establish a concrete understanding of your current service levels. Identify key points of discussion with the business and level set on the current and ideal service levels. Create a roadmap to improve current service levels. Create the business-facing SLA that actually reflects the needs of the business. Onsite Workshop Module 1: Determine the scope of SLA implementation Module 2: Determine the current achievable service levels Module 3: Create the business-facing SLA Phase 1 Outcome: Outline the SLA project scope and determine the relevant pilot project. Phase 2 Outcome: Metrics that indicate the current service level strengths & weaknesses. Phase 3 Outcome: An internal SLA that will effectively manage the IT-business relationship. 1. Identify the SLA you need to solve your service level challenges 2. Determine your current service levels 3. Create the business-facing SLA Follow Info-Tech’s methodology to develop your internal SLA

10. Info-Tech Research Group10Info-Tech Research Group10 Day 1Day 2Day 3Day 4Day 5 PreparationWorkshop Day Working Session Workshop Preparation Gather and evaluate current SLA documentation. Gather SLAs of current vendors and other third parties that the organization is dependent on. Review current infrastructure metrics tracking software. Morning Itinerary Introduction to the pilot SLA methodology and its benefits. Initiate the SLA project charter. Afternoon Itinerary Review current metrics tracking process. Establish a relevant set of metrics to evaluate the pilot SLA. Finalize the project charter. Morning Itinerary Document the IT operational procedures for all applications/ systems or services in the pilot SLA. Afternoon Itinerary Leverage the Metrics Reporting Templates and establish a comprehensive approach to metrics tracking and analysis to determine the current service levels. Morning Itinerary Invite relevant business managers and level set on both the current and target service levels. Determine a roadmap for projects to close the gap between target and current service levels. Afternoon Itinerary Using Info-Tech’s SLA templates, create the business-facing SLA and incorporate business needs from the morning discussion. Workshop Debrief Review the SLA with the business and gain feedback. Establish a process for SLA review and maintenance. Next Steps Complete the same pilot SLA approach for the other SLA categories. Make SLA maintenance a habit within the organization and maintain clarity between IT and the business. Workshop overview This workshop can be deployed as either a four or five day engagement depending on the level of preparation completed by the client prior to the facilitator arriving onsite. The light blue slides at the end of each section highlight the key activities and exercises that will be completed during the engagement with our analyst team. Contact your account representative or email Workshops@InfoTech.com for more information.Workshops@InfoTech.com

11. Info-Tech Research Group11Info-Tech Research Group11 Info-Tech Research Group Helps IT Professionals To: Sign up for free trial membership to get practical solutions for your IT challenges www.infotech.com Quickly get up to speed with new technologies Make the right technology purchasing decisions – fast Deliver critical IT projects, on time and within budget Manage business expectations Justify IT spending and prove the value of IT Train IT staff and effectively manage an IT department “Info-Tech helps me to be proactive instead of reactive – a cardinal rule in a stable and leading edge IT environment. - ARCS Commercial Mortgage Co., LP Toll Free: 1-888-670-8889