Non-Financial SLA Violation Penalties? : LUSENET : Service Level Management : One Thread


Let us consider the situation where a company doesn't want to implement Financial SLA Violation Penalties. What other types of penalties are there?

Any links to webpages/white papers would be greatly welcomed.



-- Bob Duncan (, March 27, 2004



We also have taken the approach of non-money-sucking SLA's. Instead threat has been build into the contract, adding a non achievement breach close, leading to contract termination. On top provider has to bear transition cost to the new provider. With this in mind we have build a scorecard approach to show success to top management based on a bonus/malus situation. This means the provider, upfront gets an agreed amount of bonus points. Service failure on the other hand drives the malus points, all done on a per target basis. At the end of the month, we simply substract the malus points from the bonus points and calculate the % of achievement.

Building this model has proven to be an iconoclast approach towards a holistic SLA away from the standard alophatic remedies, hence me neither did find any whitepapers nor webpages.

If you feel this is the direction you would like to go, send me an email to further discuss.

Cheers and good luck


-- Manfred Wattinger (, March 31, 2004.

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