Operational level agreement

Definition

An Operational Level Agreement (OLA) is an agreement between various internal departments of a company that regulates the services provided, responsibilities and cooperation with each other. It is an internal contract that ensures that all parties comply with service requirements and performance standards.

Background

Operational level agreements are an evolution of service level agreements (SLAs), which are often concluded between a company and its external customers. While SLAs focus on the relationship between the company and the customer, OLAs focus on internal service delivery and coordination. The origin of OLAs lies in the need to clearly define internal processes and responsibilities to increase the efficiency and quality of services provided.

Areas of application

OLAs are used in many areas of a company, including IT services, facility management, customer service, and production processes. They are particularly important in large organizations where different departments must work closely together to ensure smooth operations. For example, an OLA between the IT department and customer service can determine how quickly technical issues should be resolved.

Benefits

The main benefits of Operational Level Agreements lie in clearly defining responsibilities and improving internal communication. They help to avoid misunderstandings and ensure that all departments work towards common goals. This results in increased efficiency, better service quality and ultimately higher customer satisfaction.

Challenges

One of the biggest challenges when implementing OLAs is ensuring that all departments involved understand and comply with the agreements. It can be difficult to coordinate all internal processes and responsibilities to meet agreed standards. One possible solution is to hold regular training and meetings to ensure that all employees are on the same page and understand the importance of OLAs.

Examples

A specific example of how to use an OLA can be found in a B2B merchant portal, where the IT department and the sales team must work together to ensure that the portal is always available and functional. An OLA could determine here how quickly technical problems must be resolved and what measures should be taken to minimize downtime.

Summary

Operational level agreements are internal contracts that serve to regulate cooperation and service delivery between different departments of a company. They offer clear advantages in terms of allocation of responsibility and increased efficiency, but also pose implementation challenges. Through clear communication and regular review, these challenges can be successfully overcome.