| A crisis, as defined by dictionary.com, may be a | | | | |
| condition of instability or danger leading to a decisive | | | | 1. Align Performance Metrics with Operational |
| change, and a dramatic emotional or circumstantial | | | | Requirements - For example, define measurement |
| upheaval in a person's life. Any service delivery | | | | windows for the performance metric that are the |
| provider that has announced their perfect | | | | same as the client's operational hours for critical |
| performance scores to a dissatisfied client knows just | | | | business functions. If a provider's scorecard shows |
| how that crisis feels. The client may even be | | | | application availability has surpassed metric targets, but |
| provoked to pursue contract termination if this dubious | | | | last month's general ledger closing schedule was 24 |
| high performance reporting continues. | | | | hours late due to an application outage, then the |
| The phenomenon has been labeled "Seeing Green and | | | | metrics are not aligned with the operational need. |
| Feeling Red." All too often this happens when reporting | | | | 2. Avoid Diluting the Performance Measurement |
| mechanisms do not align with service realities-or when | | | | Calculation - Similar to the point above, if a server |
| the provider's scorecard shows all to be green, yet the | | | | availability measurement calculation includes all wall |
| client is clearly unimpressed with false claims of | | | | clock hours in a month and dilutes the negative effect |
| perfection. | | | | of five minutes of downtime on a client's shipping dock, |
| Some clients are simply unhappy most of the | | | | then the client's promised delivery targets are not met |
| time-usually because their overall business is not | | | | and they are likely seeing "red." |
| meeting expectations. Many clients demonstrate the | | | | 3. Allow for Cascading Problems to be Measured - |
| classical Maslow "hierarchy of needs" sensibility-that is, | | | | While many service disruptions have one root cause, |
| they only notice a service provider's contributions | | | | several subsequent business disruptions may cascade |
| when they are not working, such as with | | | | through the client's organization. Many service level |
| commodity-based assets. When this happens, creating | | | | agreements will hold the service provider accountable |
| a delightful experience from perfect service is nearly | | | | for the root cause and not measure those ripple |
| impossible to achieve. | | | | effect disruptions. |
| Regardless, service level agreements (SLAs) and | | | | 4. Design the Service Level Agreement for Client |
| service metrics need to reflect what is important to | | | | Control - Allow the service level agreement to be |
| the client. Some SLAs are complex and require | | | | controlled by the client. Within certain thresholds, the |
| thoughtful design beyond the usual setting of metric | | | | client needs to add, delete and change service metrics |
| targets. Sound SLAs include the construction of metric | | | | over time. Include customer satisfaction surveys that |
| definitions, targets and thresholds, measurement | | | | are meaningful, and place all performance reporting |
| systems, business rules for service credits and | | | | under a sound governance/relationship management |
| incentives linked to service improvement calculations. | | | | process. |
| Clients and service providers must take the time | | | | The "Seeing Green and Feeling Red" phenomenon is |
| needed to design SLAs to meet operating and | | | | too prevalent in the sourcing industry. Clients and |
| business objectives. | | | | service providers should avoid crises by developing |
| Four Methods for Achieving Perfect Scores AND | | | | well-aligned and flexible service level agreements in the |
| Client Delight | | | | context of strong relationship management processes. |