Stay on Track: Service Level Agreements
Service level agreements (SLAs) precisely define the responsibilities of a service provider to their customers. They can range from formal binding contracts to informal agreements. Depending on the service or industry involved, SLAs can cover service quality, availability/uptime, helpdesk hours, emergency responses, delivery times and more. Comparing service levels over time to the agreement is a good way to track performance.
Service level agreements are an efficient mechanism to keep misunderstandings, inconsistencies and disappointments at a minimum.
Service Level Agreements and Kanban
Service level agreements have typically been geared towards sectors like network services, cloud computing and outsourcing. How can SLAs be tailored to work for Kanban processes?
The core of the Kanban Method is to increase flow efficiency. Several of the flow metrics are related to this core concept, but one in particular drives customer satisfaction – cycle time. One of the fundamental practices in Kanban is that the team should pull new tasks in only when there is capacity for them. However, it is important to clarify to stakeholders how quickly tasks are likely to move through the process.
Any Kanban SLA should come with two things – a cycle time and the confidence level of achieving that same cycle time. If historically 85% of all items were completed within 24 days, the probability that any single item will be completed in 24 days or less is 85%.
Metrics reduce the guesswork involved in this process. Historical performance data is analysed to make accurate future predictions.
Estimations with Cycle Time Scatterplot
Luckily, we have a powerful tool at our disposal for estimating cycle time: the Cycle Tme Scatterplot. Every dot on the graph represents a work item from your Kanban board. The height of the dot represents its cycle time – the higher the dot, the longer it took for that task to be completed.
The dotted horizontal lines are called percentile lines. We can see that there is a 50% chance that any type of task will be completed within 6 days, and a 95% chance that it will be completed within 30 days. This means there is a 95% chance that any task, regardless of size or type, will be completed in this 30 day timeframe.
You can use Cycle Time Scatterplot percentile lines to decide service level agreements. Involve your customers and stakeholders and ask them what kind of confidence level they would be most comfortable with. We recommend starting out using the 85th percentile to define your service level agreements.
Service level agreements in Kanban are not limited to overall average cycle time. We encourage you to define SLAs with your customers and stakeholders for different types of work items or Classes of Service. For example, committing to resolving emergency tasks faster than maintenance requests. Filtering your Cycle Time Scatterplot by work item type or CoS will let you make these estimations confidently.
Estimation, Accuracy and Little’s Law
Estimation is most accurate in stable, predictable systems. The accuracy of Cycle Time Scatterplot estimations is strongly correlated to how well the process follows the Little’s Law assumptions:
- The average Arrival Rate is equal to the average Departure Rate
- All tasks entering the system will eventually exit the system once completed
- There should not be large variances in WIP between the beginning and the end of the time period examined
- The WIP average age should remain the same, neither increasing nor decreasing
- Consistent units must be used to measure Cycle Time, WIP, and Throughput
As these assumptions become less valid, the process behaviour becomes increasingly unpredictable. To keep estimations used in service level agreements as accurate as possible, the Little’s Law assumptions should be adhered to as much as possible for all different work item types (user stories, defects, maintenance requests).
WE UNCOVER THE EFFICIENCY OF YOUR WORKFLOW
Optimize your performance with Kanban analyticsSee a dashboard with your data
Warning Signs and Taking Action
Once a service level agreement has been defined, you can use it to decide when to intervene on a lagging task. By comparing an item’s age to the agreed cycle time, we can see how the chances of missing the SLA target increase with time.
The longer an item has been in the workflow, the greater the chance that it will exceed its SLA limit. To make sure tasks are completed on schedule, you could set Kanban rules to expedite or swarm an item when it comes close to its SLA limit.
Service level agreements give you a way to assess your Kanban workflow. SLA align customer expectations and make the internal targets for your team solid but transparent. By tracking average cycle time in general and for each type of task, you can identify areas of weakness and take action to improve. When you and your stakeholders are on the same page, trust remains high and customer satisfaction is maximised.
Have you applied service level agreements to your Kanban process? Has this helped align expectations between your team, customers and stakeholders? Tell us about your experience in the comments!
Meet the Author
Sonya Siderova is a passionate product manager and a driving force behind Nave, a Kanban analytics suite that helps teams improve their delivery speed through data-driven decision making. When she's not catering to her two little ones, you might find Sonya absorbed in a good heavyweight boxing match or behind a screen crafting a new blog post.
Take your training and consultancy sessions to a whole new level. With Kanban analytics on their existing tools, yo… https://t.co/4G3X9FehF5Follow
Learn how to make accurate, data-driven predictions to stay on track, meet deadlines and keep a high level of custo… https://t.co/zPBlWxv5X7Follow
The Flow Efficiency Chart shows your average flow efficiency, as well as how trends have been moving over time. Ide… https://t.co/Eff9ITFFnrFollow
Learn more about the difference between thin-tailed and fat-tailed distributions and the approaches to evaluate you… https://t.co/oHCaDCa4WXFollow
Last chance to get 60% off! We list our Sustainable Predictability digital course at the lowest price ever! The off… https://t.co/Af5U0kiBIEFollow
Get straight to the essence of your Azure board data and analyze your processes with our immersive data-visualizati… https://t.co/MpB4kgNiCeFollow
Kanban can help you run your business better, make your processes more efficient and empower your team to accomplis… https://t.co/RwXHnb4UcEFollow
A Cycle Time Histogram with a big hump on the left and a very long tail to the right indicates that your cycle time… https://t.co/mFKXLpx4HhFollow
Service level agreements define the responsibilities of a service provider to their customers. Defining SLAs are im… https://t.co/s7HeXDvfkWFollow
Today, we’ll explore the consequences of moving cards backward has on your performance, as well as the most effecti… https://t.co/IZmafKMe9YFollow
Value stream mapping is a visual technique that depicts the lifecycle of your product and finds and eliminates wast… https://t.co/fyJZvdPVCxFollow
Our digital course Sustainable Predictability is listed for $397 until Nov 30th. Take advantage of the 60% discount… https://t.co/8bBbiaWPa3Follow
Start making reliable decisions and eliminating the bottlenecks caused by unclear priorities with a dynamic priorit… https://t.co/hVpa8sCtR9Follow
Take your team to a whole new level with Nave's Kanban analytics for Trello. Picture what's going on behind your da… https://t.co/BhnrABnsPBFollow
In our latest article, we’ll take you through the key steps to reducing the impact that blockers have on your deliv… https://t.co/10L6MoruB4Follow
30% discount on all annual plans until the 30th November! Subscribe now with a coupon code NAVEBLACK20… https://t.co/dnSM2KzS5cFollow
The dotted horizontal lines on the Cycle Time Scatterplot are called percentiles. We use percentiles to define the… https://t.co/nlUcIGRDm3Follow
High pressure over long time periods leads to your team suffering from burnout and its symptoms. Learn more about w… https://t.co/hcYg29OE3YFollow
Successful project managers are effective leaders whose decisions will drive a business forward. Here are the top 5… https://t.co/gDVZffzmDbFollow