31 January 2013

SLAs: A help or a hindrance?

A report from the debate at the 32nd FM Forum in Stansted

There was a sharp intake of breath from across the room as Liz Kentish posed her opening question in the debate about the usefulness of SLAs.  The assembled delegates looked around the room to find only two half-raised hands in response to the request about who would consider getting rid of their SLAs altogether.  One of those hands was mine, although I had only half-raised it – I’ll get to that bit later.



To be honest, our expectations going into the debate were quite modest. Being on as the last show of the day (and after the bar has opened) is not traditionally the best slot, but I’ll admit we were pleasantly surprised by the turnout and even more pleasantly surprised by the extent of audience participation. It would appear that SLAs are a contentious topic. In fact, this very report is a product of the ongoing interest we received after the debate.

I think it was a strong and diverse panel – that’s something that always helps a debate go well.  With myself (Jason Gurd) providing the client-side view, Robert Cunliffe the service-provider perspective, Adeyemi Adeboye providing expertise of operating PFI contracts. The debate was chaired by the BIFM Deputy Chair, Liz Kentish.

The panel put forward their cases and invited input from the audience.  There was some initial discussion about whether SLAs served any real purpose, with myself suggesting that most of us just settle for supplier’s out-of-the-box SLAs anyway. I’d already made the point that, getting to me in 4-hours wasn’t really all that impressive when you considered how far I could get from Stansted in 4-hours.

It was debated whether SLAs offer more protection to the client or the supplier, with cases being made for both sides. There were suggestions that SLAs were more often stick, than carrot, a get out-clause, if you like and the practicality of actually using that stick was also discussed. 

 Adeyemi and Robert both made strong cases for SLAs being a way to manage expectations and although there was a general consensus that they couldn’t replace a good client/supplier relationship, Adeyemi was able to use his knowledge of PFI to demonstrate that there are times when the client is significantly removed from the delivery.  This led to the almost inevitable question about whether FM is too procurement driven, followed by an equally inevitable round of “procurement-bashing”.  It was light-hearted, but I did step in to support our procurement colleagues by pointing out that it was down to FM’s to demonstrate leadership and influence in specifying services, but that we also need to make use of procurement functions to help us buy more effectively.

There was a lot of discussion about whether drawing a “line-in-the-sand” was a good thing when it came to service standards or not. I argued that, whilst there is a case for KPIs, continuous improvement demands that we seek to improve. Adeyemi countered by talking about the mechanisms which can allow SLAs to develop. 

There was also a great deal of discussion about whether SLAs could really enhance the client/supplier relationship, with Robert providing one of the most interesting examples of the night about how SLAs could be used to support organisational objectives, such as offering Local Authorities SLAs relating to creating local employment.

It was a pretty heated debate and I think most people were genuinely disappointed when it came to a close. I don’t think we managed to resolve the question, but I do think we managed to make a room full of FMs decide to think a lot harder about what SLAs they will ask from their suppliers in the future. 

To wrap this report off, I’d like to leave you with the closing thoughts of each of our panellists & chair;





Robert Cunliffe       
@robertcunliffe 
http://fmfuture.blogspot.co.uk/


“SLAs should be intertwined with KPIs and penalties or credits to ensure that the service provider has a framework to understand the quality expectations of the customer.  SLAs  & KPIs should not get in the way of building a good relationship between supplier and customer to further improve or enhance services so the customer is genuinely happy, however they provide a safety net should the relationship deteriorate.  To provide a true partnership SLAs and KPIs should focus on outcomes or the customer’s business priorities, as only then will the supplier really understand what the customer really, really wants.”






Adeyemi Adeboye 
@Yemmycornelius


“Forums like these, which bring the provider and the client together to discuss how the equilibrium of demand and supply of service agreements could be improved upon, is not only a necessity but a requirement for an enhanced and positive experience.  SLAs in this modern business age are here to stay: Whether you achieve your strategic goals and objectives will be down to how you structure your service level objectives in relation to your organisational goals."





Jason Gurd 

“Even I’m not enough of a maverick to completely dispense with SLAs all together, but I do think FMs should give serious thought to what SLAs they ask for and whether they really need to be accepting all of those out-of-the-box ones.  I would suggest you might get a better service if you dispensed with the majority of your SLAs and focussed on the ones that are really important to you.”

 




Liz Kentish (Chair)  
@FMCoach   


“I love it when FMs get together and talk about what works!  Our debate at the FM Forum demonstrated that there is of course a place for SLAs, but they must be regularly reviewed and amended when services change.  Key to service delivery and managing expectations is the relationship between the service provider and the client, whether in-house or not.  One of the courses we run is influencing skills and managing relationships, and the feedback is always that this is what really makes a difference - get it right, as an FM, and your life will be an awful lot easier!”

3 comments:

  1. We really do get ourselves far to entrenched at times with ongoing contractual constraints of the likes of SLA's and KPI's be that as a supplier or the customer. For me it all boils down to customer relationship and management so we can park the contract in the draw and openly discuss how we will tackle the uniform challenges we face no matter what side of the fence we sit!

    Whilst of course we don't live and work in contract utopia it becomes then a case of finding the common ground on how to operate within the SLA/KPI framework as after all the management of the contract on the ground can be far removed from the procurement team who initially developed and implemented the scope that was then signed off and won by the most "cost" advantages company!

    In essence you get the customer relationship right who then mentions the SLA and your audits and resulting KPI scores achieve as necessary, you get the customer relationship wrong and everybody is then checking the contract...

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  2. i think as a 'buyer' sla's cannot be disposed of, for this very simple reason, suppliers of services cannot be trusted to have the best thoughts for their client in their mind all the time, there will be a time when 'something' won't meet the clients expectations, so until that time, contracts/ kpi's/ sla's/ t&c's will be required.

    On the other hand if that mythical scenario of a trusting relationship were to exist, then that algorithm (contracts/ kpi's/ sla's/ t&c's) could be disposed of.
    But that, to coin a phrase is 'pie in the sky' it will never happen because in my experience, service suppliers are not 100% true or transparent, because profitability is involved, so they will always look after their bottom line.

    Mind you, I do have experience of one particular supplier, who did bend over backwards to correct a poor service provision (over many years) that had resulted in poor m&e plant operation, maintenance and reliabity, that was for me a unique experience. So goes to show there is hope, and was an SLA involved? having read the contract, nothing really existed to measure levels of service. regards, Louise

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  3. i also wrote this last june when Jason started the SLA debate...
    http://justdofacilitiesmanagement.blogspot.co.uk/2012/06/service-level-agreements.html

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