Master Service Level Agreement Overview

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• Background
• Key definitions
• Objectives
• Scope
• Methodology
• Timelines
• Benefits of developing MSAs
§   As part of the implementation of a new entrepreneurial
    management service model at DAS, four service Enterprises have
    been created.
§   Each service enterprise is governed by a Customer Utility Board,
    which acts as a governing board for those services provided by
    each Service Enterprise that has been designated as utility
§   One of the key responsibilities assigned to CUBs is the approval of
    SLA (Service Level Agreement) documents. These are referred to
    in this presentation as MSA (Master Service Agreement)
    documents (see definitions), while the term SLA (see definitions) is
    used to designate a section of the MSA documents.
§   This document presents an approach to the development of MSA
    documents within DAS.

•   Service: A bundle of activities and resources (IT, people and processes) combined
    to provide a business outcome or output/ deliverable received by the customer.

•   MSA (Master Service Agreement): A document, specific per program, which includes
    a service catalog, agreed SLA’s (performance targets) and responsibilities of the
    service provider and customers, all of which helps improve service delivery, manage
    expectations, clarify responsibilities and facilitate communication between the parties.
•   Service Catalog: A description of the services and service offerings provided by a
    program. This can be a multi-level set of information with linked and discrete
    hierarchies of services, child services and specific ‘offerings’ (specific tasks)
    available for these services, and will typically include service terms, standards,
    packages, exclusions, etc.
•   SLA (Service Level Agreement): A written, measureable target for service or
    process performance agreed between service provider and customers.
•   Service Agreements: Individual documents signed between a service provider and
    each customer reflecting customer-specific information (choice of services from
    service catalog, contact information for escalation procedures, etc).
•   Service rate: A price that incorporates the costs of delivering the service at the
    service levels agreed to by both parties.

The objectives for the project are:

•   Develop & provide support for the implementation of Master Service

    Agreements with common structure and content across the 4 Service

    Enterprises of DAS.

     Ø   Develop/ obtain CUB agreement on MSA common structure.

     Ø   Coordinate / facilitate program specific MSA document development.

     Ø   Provide implementation support.

 Common activities for
areas that have existing

•   Develop / update
    service catalog
•   Develop additional
•   Adapt / convert
    document to DAS
    common MSA
    structure, developing
    additional MSA content
    as identified in common
    MSA index / structure
    approved by CUBs for
    all DAS programs

             FOCUS                           DEVELOP (specific activities per program/ MSA)
                                      STEP 1:
                                   Establish MSA
                                                           STEP 2:
                                                                                    STEP 3:
                                                                                                         STEP 4              IMPLEMENT
            for all MSA’s                                                                             Develop rest of
                                   Development             Service                perf. metrics
                                                                                                      MSA document
                in DAS)              Workgroup             Catalog                 and targets

                                      Project management and communication / reporting to CUBs

                 FOCUS                  STEP 1                STEP 2                 STEP 3                 STEP 4                IMPLEMENT
        • Set up FOCUS            • For CUBs with     • Identify list of       • Identify key         • Develop /          • Develop & execute MSA
          workgroup                 multiple            current services.        quality attributes     document &           communication plan.
          (common to all 4          programs,         • Describe &               per service/           complete all       • Execute/ sign agency
          Service Enterprises).     agree on MSA        document current         process.               additional MSA-      specific Service
        • Define / agree on         development /       services.              • Identify               specific content     Agreements documents.
          MSA objectives and        implementation    • Capture and              performance            that was not       • Measure & track and
          criteria for              strategy.           document                 metrics.               developed by the     report to CUB / all
          developing SLA’s.       • Identify MSA        additional             • Establish service      common FOCUS         customers on key
        • Define / agree on         development         operational              standards              group:               performance metrics.
          common MSA                workgroup           information              (performance            • Rates.          • Conduct regular MSA

          structure .               members.            (forms, templates,       targets).               • Contact data.     review meetings.
        • Define / agree on       • Align               etc.)                  • Measure current         • Definitions.    • Periodic evaluation &
          service catalog           understanding/    • Identify DAS &           performance             • Other.            review of MSA
          structure.                definitions.        customer                 levels.              • Report final         document.
        • Develop MSA             • Review MSA          operational            • Negotiate /            document to
          common template.          project             commitments.             agree on SLA´s         CUB and obtain
        • Define / agree on         timelines.        • Identify                 (targeted              approval.
          MSA common              • Review              opportunities to         performance
          content (across all       methods to          change (add/             level).
          programs/ Service         capture             eliminate) the         • Document SLAs.
          Enterprises).             customer input.     current portfolio of
        • Define common                                 utility services.
          approval and
                    FOCUS                        DEVELOP (specific activities per program/ MSA)
                                            STEP 1:
                                         Establish MSA
                                                               STEP 2:
                                                                                     STEP 3:
                                                                                                           STEP 4              IMPLEMENT
                   for all MSA’s                                                                        Develop rest of
                                         Development           Service             perf. metrics
                                                                                                        MSA document
                       in DAS)             Workgroup           Catalog              and targets

                                            Project management and communication / reporting to CUBs

                       FOCUS                 STEP 1               STEP 2               STEP 3                STEP 4                IMPLEMENT
               • Common MSA             • MSA             • Service catalog      •Documented           • Finished MSA       •Communication plan.
                 document structure/      development       section/ of MSA      metrics and SLAs        document .         • Periodic MSA

                 index.                   project plan      document.            (targeted             • Approval by CUB.   performance reports.
               • Service catalog          (specific per   • Customer & DAS       performance                                • Other reports.
                 structure/ elements.     MSA/ program)     operational          levels).
               • MSA Template.          • Meetings          commitments.
                                          scheduled.      • Recommended
                                                            list of new
                                                            services/ services
                                                            to discontinue.

                                                                                                   DAS support team
                          FOCUS                    SLA DEVELOPMENT TEAM
                                                                                                   Analysis and documentation of progress
                          Workgroup                Workgroup sessions


                                                                           SLA development team presentation
                       FOCUS team                                          to CUB after steps 2, 3, 4
                       to CUB

•   Set up FOCUS task group (common to all 4 Service Enterprises).

•   KEY TASK: Define / agree on structure of information.

     •   Key decisions:

         •   Define elements and structure of information in MSA document
             and in service catalog section of MSA.

         •   Agree on level of detail.

•   Define common templates for MSA and service catalog.

•   Define / agree on MSA common content (across all programs/ Service
    Enterprises) (e.g.: basic reporting, SLA amendment process, etc.).

•   Define common MSA approval and governance processes.

                Service rates              Service
  Service                              management
  specific                              processes
Service level                           (reporting, MSA
                                     amendment, remedies,
Agreements                                    etc)

  Process                                 Definitions
Service level
                (forms, templates)
Proposed draft high level structure for MSA documents:
• Service catalog (service terms, standards, packages, exclusions, etc.)
    a) Service terms, packages, standards, exclusions, schedules, etc.
    b) DAS & Customer (operational) commitments
• Service Level Agreements: metrics and targets for service performance and
   delivery agreed with customers
• Financial processes information (billing, payments, etc.)
• Service management processes:
     a) Reporting
     b) Periodic review
     c) SLA amendment procedure
     • Remedies (e.g, incompliance with agreed service levels, dispute resolution, etc.)
• Definitions
• Contact data
• Appendixes:
    • Hyperlinks to forms & templates to be used (if available) (e.g., to request a new service, etc.).
    • Hyperlinks to written operational procedures (if available )(e.g., ordering, change requests,
          incident management).
     •    Program-specific service rates.
§   Each service described in the catalog can have a number of elements/ service
§   A key decision is agreeing on what elements each service description must
    contain and their level of detail.
§   Different Service Enterprises in DAS may have different service elements, as
    elements relevant in an IT service catalog (e.g. availability or outage response
    commitments), may not be pertinent in service catalog for EHRS or Surplus).

        EXAMPLE :

§            What is the service?
§            What’s included?
§            What’s not included?
§            How is this service
§             What forms are used to
request this service?
§            What to ask for?
§             When can you expect to have
your service fulfilled?
§            What are the availability and
outage response commitments for this
§            Is there anything else you
need to know about this service?
•   Identify MSA development workgroup members.
     §   Identify workgroup members from DAS and customers.

     §   A team of 6-8 members is recommended for each MSA, with equal numbers of program delivery unit
         staff and customers represented.

     §   Aim is having a balanced mix of customers representing different agency sizes and services
         contracted in workgroup. Participation from CUB will be preferred, but participated from non CUB
         represented customers will be tapped as needed. At least one CUB member will be a member of the
         work \group.

     §   Support staff from DAS/DBS will also participate in order to assist and to facilitate the MSA
         development process / meetings.

•   Hold preliminary workshop/ meeting with following objectives:
     §   Discuss / align definitions.

     §   Review project timelines.

     §   Review available methods to capture program specific customer input.

     §   Review tasks and criteria to prioritize services- processes.
•    Workshop to identify structure/ list of current                           EXAMPLE :
     services.                                                               INFORMATION
    § Identify high level service structure/ framework (with service           FROM SDC
        groupings / functions).                                                 SERVICE
    §   Identify service components: individual service offerings within       CATALOG
        each function /grouping.
    §   Identify linked and/or discrete service hierarchies of services,     §             What is the
        child services and specific ‘offerings’ (specific tasks) available
        for these services.                                                  §             What’s
•    Describe current services / service offerings.                          §             What’s not
    § Describe service items, packages, bundled and unbundled
        offerings.                                                           §            How is this
                                                                             service requested?
    §   Describe service terms, standards, and exclusions.                   §            What forms are
                                                                             used to request this service?
    §   Describe service hours/ schedules, contact channels.
                                                                             §             What to ask
    §   Additional content:                                                  for?

           §   Forms? Templates? Operational procedures?                     §            When can you
                                                                             expect to have your service
           §   See SDC service catalog                                       fulfilled?
                                                                             §              What are the
                                                                             availability and outage
                                                                             response commitments for
                                                                             this service?                   15
•    Ideally, the output of the initial workshop between provide and customers would be:

      §   A simple high-level definition of the service structure or framework.

      §   Identification of service components – each service would be defined in terms of its position
          in the overall service structure/ framework – i.e. is it part of a larger service, or does it also
          have some ‘child’ services or ‘offerings’ which are simply low level service features….?
                                           EXAMPLE OF IT SERVICE STRUCTURE/ FRAMEWORK
2.   It is important to keep
     service catalog workshops
     / meetings to the point on
     service definitions, not
     SLAs or service issues
     (although these sometimes
     creep in).

 Service Level Agreements:
Written measureable targets for
   service performance agreed
       between provider and

•   Identify key quality attributes for each

    service (key customer input).

•   Define SLA’s (service specific / Process


•   Develop good SLA documentation.


              EXAMPLE OF
              KEY QUALITY
                 FOR A

 How Long Does It Take to Establish an MSA?
 It depends. Many factors can influence the duration of the effort, such as:
   ◦   The number and complexity of the services covered: The more services covered by a MSA, and the more complex
       these services, the longer it takes the two parties to discuss, negotiate and document the conditions of service delivery.

   ◦   The availability / commitment of the working team members: Joint service provider & customer work and face-to-
       face negotiations are crucial in establishing a MSA. Insufficient commitment or availability of key SLA development team
       members can add significantly to the elapsed time.

   ◦   The choice of performance metrics and the availability of past performance data. In the absence of past
       performance information, the team will need to baseline current performance levels before negotiating the final service
       level agreements.

   ◦   The approval/ governance model for the agreement. A complex multi-party approval process, either for the final
       document or for any of its key elements, can certainly add to the elapsed development time.

   ◦   The availability of a base model & template: The first MSA in an organization usually takes the longest. Once it is
       completed and in operation, however, both the document and the process can serve as a model for subsequent MSA’s.
       If the first MSA is successful, later ones usually proceed much more rapidly.

   ◦   Prior SLA experience: The most expeditious MSA efforts are ones led or facilitated by SLA developers who have had
       prior successful experience establishing MSA / SLA documents.

Given these factors, how long should it take to establish MSA/ SLAs in DAS?

       Too short
◦          A misconception about MSA’s is that they can be created quickly. Developing a MSA in a week or even a month is both
           difficult and inadvisable. It is difficult because of the workload involved in such tasks as negotiating service standards,
           establishing tracking mechanisms, preparing supporting procedures, gaining approvals and generating buy-in. And it is
           inadvisable because the process is designed to help the two parties build the foundation for a strong, successful, long-term

       Too long
◦          "Too long" refers not to a specific time period, but to an effort that has stalled and is making no progress. A major contributor
           to a stalled effort is that one or both parties fail to bring a serious commitment to the effort. When management allocation of
           staff to establish the MSA is insufficient, or the effort is given a low priority, making progress can be a cumbersome task.

       Just right
◦          Establishing a MSA is typically a many-month process of information-gathering, analyzing, documenting, educating,
           negotiating, and consensus-building.

◦          Given the complexity of services provided by DAS, a tentative period of 3-6 months can be a good rule of thumb. When
           circumstances are optimal, 3 months is realistic, and sometimes even less. At the other extreme, if the situation is a complex
           one, 6 months may not be enough. However, if significant progress has not been made within 6 months, it's time to stop the
           effort and examine why.                                                                                                         20
   Tentative proposed project plan for the development of EHRS MSA document
         Q4 2012                         Q1 2013                      Q2 2013                         Q3 2013

 OCT       NOV         DEC      JAN        FEB     MAR        APRIL      MAY      JUNE       JULY       AUG     SEPT

                                                         DEVELOP EHRS MSA                                IMPLEMENT
     ALL DAS MSA’s)

SET UP                          SET UP
FOCUS                           WORK
 TEAM                            TEAM

                                                   DEVELOP                                             COMMU-
          DEFINE                                                                                       NICATE
           MSA                                                                                          MSA
                                                                    SLA’ s
                                                             (PERF. METRICS AND                        BEGIN MEASURING
                      REST OF
                                                                  TARGETS)                               & REPORTING
                                                                                  REST OF


 •   MSA’s help to improve utility service delivery by
     §   Providing an objective basis for assessing service quality.
     §   Facilitating the setting of performance thresholds/ targets.
     §   Providing a context for service changes.
     §   Providing a basis for continuous improvement.
 •   MSA’s help to create a business orientation by
     §   Creating awareness of cost/ performance tradeoffs.
     §   Creating cost/ performance accountabilities.
     §   Providing a link between services and business objectives.
     §   Facilitating the identification and integration of new service offerings.
 •   MSA’s help to improve communication & strenghten relationships by
     §   Creating an improved understanding between provider and customer.
     §   Facilitating increased sharing of important information.
     §   Providing timely feedback about problems and needs between the parties.
     §   Reducing the number and intensity of complaints.
 •   MSA’s help to manage expectations & clarify responsibilities by
     §   Clarifying the scope of services and boundaries of responsibilities.
     §   Providing a context for reasonable expectations.
     §   Creating a shared language.
     §   Establishing priorities and service levels jointly between provider and customers.

The process of reaching the agreement is as important as the agreement itself!                22
•   MSA development needs to inform 2015-2017 rate development activities – therefore it
    needs to be finalized before kicking off the rate review process in July 2013.
     §   Developing the service catalog is only a part of the MSA development.
     §   The services identified in the service catalog need to be described with enough
         detail so as to enable the identification of performance metrics and targets.
     §   The proposed scope for the service catalog within the MSA development process is
         limited to services already established at the time MSA development begins.
     §   However, developing the service catalog section of the MSA document can offer an
         excellent opportunity for DAS & CUBs to discuss & challenge the existing offering of
         utility services and identify:
          Ø New potential utility service offerings for 2015-2017.
          Ø Additional utility service levels packages (e.g, gold packages)
          Ø Service offerings that could be discontinued for 2015-2017.

2.   The MSA development team (with DAS & CUB members) will define new services
     for 2013-2015 as part of the MSA development efforts
      §   If a need for a new service for 2013-2015 is identified as part of the
          development of the MSA document, a separate, dedicated service design &
          development team would have to be formed.
      §   This team would be led by representatives from the appropriate DAS Program
          or Service Enterprise and would have participation by CUB members (and
          possibly by other DAS customers).
      2. This team would work independently from the MSA development work-
         stream in order to conduct the necessary service design and
         development activities (market research, detailed identification of customer
         expectations, defining growth projections, cost analysis, technical scoping,
         development of business case, development & testing of pilot/ prototype,
         preliminary rate analysis and agency impact modeling, definition of billing
         processes, development of POPs, etc).
      3. The service development team would report its final recommendations/ output
         to the CUB in order to inform the 2015-2017 rate development process.


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