A recent trend in business reflects a change from using Service Level Agreements (SLAs)1 to preferring instead, Experience Level Agreements (XLAs)2 for measuring service delivery from vendor to customer (user). An SLA focuses on quantifiable performance metrics only. It does not include the user's subjective experience and satisfaction with the service. But when using an XLA, users can see how XLA metrics reflect their real satisfaction and engagement -- guaranteeing them significant improvement in their experiences. This article widens the scope of the XLA development and its impact on business and explains what organizations can do to ensure management’s success when navigating changes resulting from the XLA’s smarter-moving capabilities.
XLAs essentially measure the impact of services on users and drive business value, focusing into the qualitative aspects of how users experience services. SLAs focus on the quantitative performance metrics by strictly relying on numbers and metrics rather than conjecture. The difference can affect user satisfaction. So, the importance of measuring user experience becomes obvious here.
XLAs provide an efficient and organized way for an organization to define and regulate the quality of the service it provides. They are increasingly being recognized as crucial whenever user satisfaction is a priority -- such as customer support, and other service-oriented arenas. XLAs are particularly popular in the Information Technology (IT) industry and have been leveraged by companies across the world to improve user experiences. Not only do XLAs provide an organized framework for service delivery, but they also offer many benefits for users and providers.
- For users, XLAs guarantee a certain level of service quality and provide a framework for resolving any service issues that arise.
- For providers, XLA’s offer performance measurements which allow them to gauge their performance levels and provide actionable insight for process improvement.
Introducing XLAs provide a great opportunity for user feedback and allows a better understanding of the users’ needs and desired service levels.
Driving commitment to deliver excellence
To be clear -- To ensure the success of XLAs, organizations must commit to measuring both qualitative and quantitative outcomes that align with desired business outcomes -- assuming all parties are working together toward mutually beneficial outcomes. Additionally, organizations must adopt and operationalize XLAs that help create a value loop based on the principles of continuous improvement. Finally, a performance measure model for determining credit or incentive should be included during the delivery phase.
XLA equals true measurement of real experience
XLAs are based on analysis of user sentiment combined with hard data retrieved across critical applications, collaboration tools, and hardware devices. This analysis provides an actionable way to monitor the real experience of end users. XLAs offer operational and strategic benefits, such as reducing service desk costs, resolving proactive issues, and enabling easier and more cost-effective ways to manage end users based on more obvious user personas.
How XLAs operate - their advantages
XLA metrics are designed to capture and enhance the actual experience of users interacting with a service. Consider the following XLA advantages that enable users to experience improvements beyond only their technical or quantitative performance.
- User Satisfaction Surveys, when conducted regularly, are one of the most direct ways to measure experience. They evaluate ease of use, satisfaction with the service resolution, and overall user happiness with the service interaction.
- Net Promoter Score (NPS) assesses the likelihood of a user recommending the service to others. NPS can strongly indicate overall user satisfaction and loyalty, commonly used in XLAs to gauge the effectiveness of service improvements.
- Time to Productivity measures how quickly users can become productive with a new tool or service. It reflects not only the ease of learning and using the service but also how effectively the service enables users to achieve their goals.
- Digital Experience Monitoring (DEM) tools can measure the performance of applications and services from the user’s point of view. Metrics might include application response times, device performance, and user interaction patterns -- all aimed at identifying areas where user experiences can be enhanced.
- First Contact Resolution Rate Traditionally an SLA metric, in the context of an XLA, this can assess whether issues are resolved in a single interaction from the users’ perspectives -- affecting their overall satisfaction and perception of efficiency.
- User Engagement Levels, measuring how frequently and deeply users engage with a service, can provide insights into its value to users. Metrics might include session duration, frequency of logins, and interaction rates with key features.
- Error Rates and Impact, in going beyond just counting errors or downtime (common in SLAs), XLAs consider the impact of these errors on the user experience. This could involve measuring the disruption to users and their work -- not just measuring a technical fault.
- Adoption Rates can be crucial for new services or features to determine how quickly and extensively users adopt such services. High adoption rates can indicate a positive user experience and satisfaction with the changes.
Key outcomes of implementing XLAs
Implementing XLAs allows organizations to establish clear goals and set thresholds that effectively measure success and failures based on sentiment analysis with hard data. XLAs provide a clear understanding of the areas to focus on and shift the focus from service reviews and penalties to continuous quality service improvements. Some key outcomes might include:
- increased user engagement;
- enhanced service delivery;
- improved user experience; and/or
- greater competitive advantage.
When achieving these key outcomes, organizations benefit from enhanced end-user experiences, increased productivity, and a more proactive issue-resolution approach.
Accelerating from Quality of Service (QOS) to Quality of Experience (QOE)
The journey from QOS to QOE is significant. Organizations must provide meaningful insights into the end-user experience. XLAs help organizations understand their end users better, which is crucial in the current diverse and inclusive workplace environment. By understanding and respecting the different needs of end users, organizations can create real value for the business.
Within the evolving landscape of service management, the shift from SLAs to XLAs marks a paradigm shift in how organizations measure success in service delivery. SLAs have traditionally focused on quantifiable performance metrics which often overlook the user's subjective experience and satisfaction with the service. XLAs, on the other hand, prioritize the end-user experience, incorporating metrics that reflect real user satisfaction and engagement. XLAs are designed to guarantee that services not only adhere to technical benchmarks but also significantly improve the overall user experience. This encompasses factors such as ease of use, satisfaction with how problems are resolved, and the emotional reactions users have during service interactions.
While SLAs are not obsolete—providing critical benchmarks for technical service delivery—the integration of XLAs can provide a more comprehensive view of service quality and success. By balancing the objective measures of SLAs with the subjective insights from XLAs, organizations can achieve a holistic approach to service management that ultimately results in better business outcomes.
END NOTES
1. What is an SLA? Best practices for service-level agreements, CIO article July 5, 2017.
2. What is an Experience Level Agreement? (XLA), HPE aruba networking (AI-powered experience level agreements explained)
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ABOUT THE AUTHOR
A highly driven and seasoned global business executive with over 30 years of experience aligning international contract and subcontract management initiatives, contracts shared services operations and offshoring programs with corporate objectives. Her specialities include consulting, strategic analysis and implementation, negotiations, contract formation and drafting, international contract management, client relations, contracts due diligence and transition, staff development, mentoring, offshoring, and outsourcing. She is an effective problem solver with significant achievements and a passion for new challenges.
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