What are the benefits and challenges of using SLAs as escalation criteria?

Some organizations can be too focused on whether the team is generating enough "output" rather than focusing on the quality of the services provided, and whether this is truly up to customer expectations. Without comprehensive measurements of a team, both experiential and SLA-based, there will be a skewed perception of services actually being met.

Despite their benefits, SLAs can present several challenges. Rigid SLAs may not accommodate unexpected complexities or nuances in customer issues, leading to unrealistic pressure on teams and potential burnout. They can also create a narrow focus on meeting SLA targets rather than addressing the root cause of problems, which might result in repetitive issues. Inflexible SLAs can also impact customer satisfaction negatively if customers feel that their unique concerns are not being appropriately addressed. Additionally, managing and updating SLAs to reflect changing business environments and customer needs can be resource-intensive and complex.

Thew Escalation criteria should not be based solely on metrics, but on Customer perspectives as well. You have to take into consideration the Customers perspective and the issues that they are encountering. Properly defining and documenting the difference between Priority and Severity has proven successful. A Priority (P1-P4) can be considered as Customer "temperature". An upset Customer does not always constitute an escalation. A product or issue Severity (S1-S4) is more likely to be considered an escalation issue, because it deals directly with a product issue or a customer downtime issue.

Yes, SMART goals are always helpful - but relevant SLAs should always be regularly evaluated, especially if SLA are being met but customers are still dissatisfied. Experiential metrics like CSAT and CES are often overlooked for NPS, which can be a very subjective measurement, especially if the customer feels like they are not heard and not being supported. Escalation Rate should always be tracked, but be balanced with other KPIs. Similarly, performance metrics that only indicate First Touches or other purely performance-based measurements will only show one lens, but looking at all performance insights and SLAs can give a comprehensive insight to the overall customer team performance and customer sentiment and satisfaction.

To effectively use SLAs as escalation criteria, ensure they are realistic, achievable, and regularly reviewed. Engage with both customers and internal teams when setting SLA parameters to balance expectations and capabilities. Incorporate flexibility within SLAs to handle complex or exceptional cases without compromising service quality. Utilize automated tools to monitor SLA compliance and provide real-time alerts for potential breaches, allowing for proactive management. Communicate SLA terms clearly to all stakeholders and provide training to ensure everyone understands their role in meeting these standards. Regularly review and adjust SLAs based on feedback and changing conditions to maintain their relevance and effectiveness.