Back to Insights Back to Insights

There is a growing interest in the concept of Experience Level Agreements (XLAs), so we would like to help you understand what it means and how it can be implemented in your company to ensure a satisfactory employee experience and increase productivity. 

What are XLAs? 

You have probably heard of Service Level Agreements (SLA) but are you familiar with Experience Level Agreements (XLAs)? 

There's a lot of 'talk' about Experience Level Agreements (XLAs), but very little in terms of practical guidance for IT service managers and company owners on how to successfully bring XLAs into your organization. 

XLAs are a reimagining of SLAs and focus on end-user experience and outcomes whereas SLAs are concerned with operations and outputs.

If you, as the owner of a small business is looking to sign an XLA or to put one in place for your customers, keep reading to find out the most important facts.

What's the difference between an SLA and XLA?

  • SLAs measure the process, while XLAs measure the outcome and value by setting KPIs around the end-user experience and increased productivity
  • In contrast to SLAs, XLAs measure deeper. The XLA is not only satisfied with whether the IT project was delivered on time and within budget, but also with the value-added to the organisation and how successfully, from a customer perspective, the customer’s needs have/are being met
  • SLAs operate primarily on sanctions for the poor performance, while XLAs instead build in rewards for positive user experience and added value of the managed service, and therefore a more successful business outcomes

Experience Level Agreement examples

Taking as reference a business that has implemented a new CRM, if the system is available on all required devices 99% of the time, a key KPI of the SLA will likely be satisfied. 

What if the performance of the CRM is poor 25% of the time? This will impact negatively the end-user experience and productivity. An XLA will pick up on this and alert the IT service provider to the problem so it can be swiftly addressed.

Get legal assistance from LawBite

XLAs provide a mechanism for an IT provider to ensure their services add value and increase their customer’s productivity. This in turn will strengthen the relationship between the provider and customer, allowing for opportunities to further enhance user experiences and value to be revealed in the customer experience.

LawBite has years of experience helping startups and small businesses achieve their commercial ambitions. To find out how we can support you in drafting or reviewing an XLA, book a free 15-minute consultation with one of our expert lawyers.

 

Book a free 15 minute consultation

 

Additional resources

In closing

Nothing in this article constitutes legal advice on which you should rely. The article is provided for general information purposes only. Professional legal advice should always be sought before taking any action relating to or relying on the content of this article. Our Platform Terms of Use apply to this article.