SERVICE LEVEL BENCHMARKING Friday 19th August, 2016

Challenge

  • The client was facing ever increasing demand from the business on service performance, whilst at the same time entering into non-competition contract renegotiations with their two global infrastructure providers
  • They required independent verification on the contractual service levels to ensure that they met the very latest in good industry practice, both in terms of the service level targets and also the measurement and reporting of the same
  • The recommendations from the review would feedback directly into the negotiations

Approach

The Coeus team conducted a full review of the current contractual service levels, comparing them against Coeus’ service level database and best practice guidelines

  • Review all current infrastructure contract to obtain holistic approach to performance management
  • Assessment of service level targets
  • Review of service level measurement methodology to ensure that they were measureable and achievable
  • Review of service credit regime and whether or not it drove the right incentives for both the client and supplier

Deliverables

  • Service level and measurement benchmark
  • Service credit benchmark
  • Negotiation strategy, based upon recommendations from benchmarks

Benefits

  • Independent insights into service performance management
  • Coeus’ experience of performance management in the real-world highlighted the challenges of implementing a number of the contractual measure in practice and recommended alternative approaches for incorporation in contract negotiations
  • Highlighting the deficiencies in the service measurement and service credit principles, which were causing the misalignment between business perception and what IT believed were top quartile service levels