Tuesday, May 17, 2011

Calculating SLA: Incident Management

Calculating the SLA adherence percentage for incidents seems to be a very simple task. But organizations struggle when they have to report on the same. One has to consider the open tickets, closed/resolved tickets and tickets that have breached the SLA.

Organizations have adopted different ways to calculate the SLA.

APPROACH I:
In Some organizations SLA is calculated based on the tickets they have resolved for the period. For example they have 10 tickets they have resolved of which 1 has breached the SLA, for them the SLA adherence would be 90%, i.e. they use the formula:
What they miss out here is that as a customer one would expect the breach to be reported in the report when the breach has actually happened and not when the breached ticket has been resolved. In this case SLA reporting gives all green whereas the reality is something different. This would also mean that in case one does not resolve the ticket that has breached the SLA, the SLA report will never reflect the same.


APPROACH II:
Another approach that organization takes is that they calculate SLA adherence based on the tickets resolved within the SLA and number of tickets created for that period. They use the formula:
In this approach although the SLA breaches are factored, yet the real picture is not presented as there would be tickets within the SLA that have not been resolved.


APPROACH III:
In yet another approach organization's calculate SLA adherence based on the tickets resolved within the SLA and number of tickets resolved for that period. They use the formula
In this approach although the SLA breaches are factored, yet again the real picture is not presented as there would be tickets that has breached the SLA and has yet not been resolved. Such tickets are not factored in the denominator.

Approach II and III will show a negative picture of the delivery as in both cases denominator tends to have a higher value.

There are other approaches similar to the ones discussed above used by organizations.

RECOMMENDED APPROACH:
When calculating SLA adherence, one has to factor the number of open tickets for a period, number of tickets that has breached the SLA and number of tickets carried forward from the previous reporting cycle. Considering these factors, I recommend the following formula:


In case one as to calculate SLA adherence for a particular period, start and end dates for the required period can be used instead of that for the week.

10 comments:

  1. Hi Sumit,

    Really your information is helpful to us. but we need few clarification on the recommended approach. We want to calculate monthly SLA for our Company.

    Please find the belw Data ( this is only example), how to procedd your formula,

    Total Incident logged for Month 200
    Total Closed for Month 150
    Total Carry Forward 50
    SLA Achieved Incidents( in Closed)100
    SLA Breached Incidents( in Closed) 50

    Please explain me...you can mail me at tulip.prathap@gmail.com

    ReplyDelete
  2. how do you calculate SLAs for service in remedy?

    Cheers,
    Anu

    ReplyDelete
  3. Hi,

    We are at times faced with the challenge of violation our SLA due to client unavailability. Our staff then request that we increase the SLA because they dont want to be held accountable for something that was out of their control. Is this proper practice to adjust the SLA? This SLA increase then becomes open for poeple to take chances to avoid violation. How does other organisation handle such a matter?

    vanessatl@webmail.co.za

    ReplyDelete
    Replies
    1. Sorry for the delay in responding to you. I have captured the response to your queries as a blog thinking that it might be useful to other users as well.

      http://process-consultant.blogspot.in/2013/05/3-contact-process-or-3-strike-rule_21.html

      Delete
  4. Great post with nice details. Thanks for sharing this great info. I really appreciate this.

    incident management

    ReplyDelete
  5. Hi Rashmi,

    Response and resolution SLA is applicable to the IT organization that has signed the SLA. Thus, it is applicable from the time when the ticket is logged till it is responded to or resolved (response or resolution SLA) irrespective of the ticket hops.

    Regards,
    Sumit

    ReplyDelete
  6. This comment has been removed by a blog administrator.

    ReplyDelete
  7. Sorry Kumar...your comment has been deleted by mistake while removing spams...Thus, could not respond back :-(

    ReplyDelete
  8. Hi Sumit,
    Request you to clarify if "No of SLA breached for week" Is with respect to Ticktet creation time / due date time / ticket completed time.

    regards,
    Lavakumar

    ReplyDelete
  9. how could we possibly resolve the multiple hop leading to SLA breach issue apart from proper probing of issue and educating team on ticket reaasignment

    ReplyDelete