Metrics and SLA

Metrics
In IT everyone must aware of Data and Information. Metrics are comes in the category of information which process data and converts that data into Information for set of peoples.
Here I am trying to explain what Metrics is, when they are useful, how they are useful, how an industry can define a good metrics to enhance their Productivity, Utilization, Efficiency and etc. Metrics are also used in the Decision Making, Root Cause Analysis of Problem, Identify Risk and Mitigation.

Also I am trying to put some notes on how metrics can be useful in Service Level Agreement (SLA) and how both of these terms are interrelated?


metrics, in mathematics, the theory of measurement

In software development, a metric (noun) is the measurement of a particular characteristic of a program's performance or efficiency. Similarly in network routing, a metric is a measure used in calculating the next host to route a packet to. A metric is sometimes used directly and sometimes as an element in an algorithm. In programming, a benchmark includes metrics.
Metrics are Tools for:
􀂄 Analysis
􀂄 Decision making
􀂄 Problem solving
􀂄 Public relations
􀂄 Education (Knowledge Base)
􀂄To show how well you are doing (against standards, goals, competition)
􀂄To show progress over time
􀂄To identify problems, potential solutions
􀂄To measure the extent of a problem
􀂄To identify possible root causes
􀂄As a teaching tool

Metrics can be used for
􀂄Enhance A productivity
􀂄Performance Measurement
􀂄Utilization Tracking
􀂄Root Cause Analysis of Problem
􀂄Customer Satisfaction
􀂄Organizational Performance
􀂄Workforce Excellence

Example of Performance Metric (showing how it can be useful):-
If Performance metric is define correctly that can be used in

• Alignment with Organizational Mission
• Cost Reduction and/or Avoidance
• Meeting DOE Requirements
• Quality of Product
• Cycle Time Reduction
• Meeting Commitments
• Timely Delivery
• Customer Satisfaction

The most important part in the Metric is its Definition. If Metric is defined in the poor way they will not solve any purpose though they will lead to misguide, wrong decision.
Service Level Agreement

IT organizations turn to outsourcing for any number of reasons, and to fulfill a variety of needs. Whether the goal is to obtain expertise or to reduce costs, to offload application maintenance or help desk operations, outsourcing is here to stay. The typical outsourcing engagement will last for a number of years, and be governed by a contract setting the terms and conditions between the client and outsourcer for the duration of their relationship. To measure whether that relationship is working, and how well, Service Level Agreements are established.
A Service Level Agreement (SLA) is an essential part of any outsourcing project. It defines the boundaries of the project in terms of the functions and services that the service provider will give to its client, the volume of work that will be accepted and delivered, and acceptance criteria for responsiveness and the quality of deliverables. A well-defined and crafted SLA correctly sets expectations for both sides of the relationship and provides targets for accurately measuring performance to those objectives.

At the heart of an effective SLA is its performance metrics. In outsourcing engagement, these metrics will be used to measure the service provider's performance and determine whether the service provider is meeting its commitments.

SLA metrics measure the right performance characteristics to ensure that the client is receiving its required level of service and the service provider is achieving an acceptable level of profitability can be easily collected with an appropriate level of detail but without costly overhead, and tie all commitments to reasonable, attainable performance levels so that "good" service can be easily differentiated from "bad" service, and giving the service provider a fair opportunity to satisfy its client.

Its all about some information out Metric and SLA. I would appreciate if you can give me feedback on it so I can improve it more. I would happy to see your comments. Soon I will upload more information on Metric and SLA.

Thanks
Viren Balaut
Consultant