If your company provides services to corporate and government clients, you’ll know how challenging it can be to work within a complex performance management framework and maintain a consistently high level of client satisfaction. Meeting the demands of corporate entities and government agencies requires more than just technical expertise – it entails meticulous performance monitoring, compliance with stringent regulations, and an unwavering commitment to quality.
Service Level Agreements (SLAs) and Client Charters are two tools used by services providers to manage complex client relationships. Let’s examine what they are, how they differ, and when you might need one over the other – or both.
Service Level Agreement (SLA)
Purpose:
SLAs are primarily used to define specific, measurable, and quantifiable performance standards and expectations related to the delivery of services. They are commonly used in business relationships where there is a need for precise service metrics and where failure to meet those metrics can have financial or operational implications.
Content:
SLAs typically include details such as response times, resolution times, uptime percentages, and performance benchmarks. They outline the technical aspects of service delivery, including metrics, targets, and penalties for failing to meet agreed-upon levels of service.
Structure:
SLAs are often structured as formal, legally binding agreements. They are detailed, specific, and legally enforceable, making them suitable for service providers and clients in contractual relationships.
Focus:
SLAs are more focused on the technical aspects of service delivery and the metrics used to measure performance. They are particularly common in industries like IT services, project management, and outsourcing where uptime, response times, and service levels are critical.
Circumstances:
- When you can define and measure service quality in quantifiable terms – for example, that issues will be resolved within a certain timeframe
- When there are legal and financial implications for failing to meet agreed-upon service levels
- When there is the need to manage expectations and responsibilities among multiple parties which are involved in delivering a service
- If service interruptions or downtime can have significant financial or operational consequences.
Client Charter
Purpose:
Client Charters are used to communicate a broader set of values, principles, and commitments that guide the relationship between a service provider and its clients. They set the tone, emphasise the overall client experience and the provider’s commitment to delivering exceptional service.
Content:
Client Charters typically include statements of values, principles, client-centric commitments, and the overall philosophy of the service provider. They may touch on aspects like communication, responsiveness, transparency, and client satisfaction.
Structure:
Client Charters are often less formal and more client oriented. While they can be part of a contractual agreement, they are not typically as legally binding as SLAs. They are more about setting the tone for the relationship.
Focus:
Client Charters are focused on the client’s experience, satisfaction, and overall well-being. They promote a client-centric culture within the organisation and guide how employees interact with clients.
Circumstances:
- When you want to emphasise a client-centric approach and focus on the overall client experience
- When you want to communicate your organisation’s values, principles, and commitment to clients beyond specific performance metrics
- When you want to address soft factors like communication, ethics, and transparency, which may not be easily quantifiable but are crucial for building trust and long-term relationships
- When you are seeking to commit to acting on client feedback to improve services and the client experience over time.
Summary
In summary, the main difference between an SLA and a Client Charter is their focus and purpose.
Service Level Agreements (SLAs) are technical, quantifiable, and legally binding agreements that specify performance metrics and standards.
Client Charters, on the other hand, are client-centred documents that emphasise values, principles, and the overall client experience.
Organisations often use both to ensure that they meet both the technical and interpersonal aspects of client service and satisfaction.
