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Service Delivery August 29, 2024 3 min read

How MSPs Achieve Great Service Level Agreements

SLAs are more than a contract checkbox. Here's how to build, measure, and deliver SLAs that actually mean something to your clients.

Service Level Agreements (SLAs) are critical metrics for mature Managed IT Service Providers. An SLA commits a business to acceptable service levels for clients, establishing clear expectations around response times and preventing support requests from disappearing without acknowledgment.

Why SLAs Matter to Customers

SLAs are typically contractual obligations that may include cost clawbacks. They define expected turnaround times:

  • 8 hours for most support issues
  • 4 hours for urgent issues
  • 1 hour for emergency issues

These timelines should be communicated to primary client contacts and users to prevent frustration when immediate responses aren’t provided.

The Psychology of Waiting

How long customers wait for service directly reflects perceived quality. People inherently dislike waiting, especially without feedback about their situation. Communication manages expectations effectively — simply dismissing concerns with “this was completed within the SLA” dismisses the customer’s feelings.

Direct contact works better than auto-responders. For example: “Hi Jane, I understand you’re having trouble opening an attachment. I’ve scheduled a tech to review your request and you should hear back from them in 2 hours.” This acknowledges the issue and sets clear expectations.

Strategy 1: Manage the Psychological Contract

Regular updates and direct communication maintain accountability. A dispatcher role can effectively juggle support requests, delegate work, and maintain client communication — essential for managing the psychological contract with users.

The dispatcher isn’t a luxury. It’s the single most impactful role you can add to a growing service desk.

Strategy 2: Repeatable Processes

Most support issues are recurring problems, not novel situations. Structured documentation and standard operating procedures (SOPs) reduce tech burden and improve consistency. This is especially important for:

  • System builds
  • Application installation
  • User creation and decommissioning

Clean documentation systems like IT Glue enable technicians to reference solutions quickly rather than reinventing them repeatedly. This reduces rework and escalations. If you haven’t built out your documentation practices, start there — it’s the foundation everything else depends on.

Strategy 3: Escalation Paths

Service managers should review tickets missing SLAs to identify opportunities for new or updated SOPs. The dispatcher supports team accountability to escalation times while ensuring client communication remains consistent.

Every missed SLA should trigger a root cause question: was it a people problem, a process problem, or a documentation gap? Most of the time, it’s the latter two.

Strategy 4: Cost-Effective High-Value Support

Tier 1 technicians (costing $35,000-$40,000 annually) close 15-20 tickets daily, while Tier 3 technicians (costing $75,000-$80,000 annually) close only 5-8 tickets. Two Tier 1 technicians can match a Tier 3’s annual cost while handling 40+ tickets daily.

Clean documentation enables Tier 1 success by providing clear visibility into client environments, assets, and dependencies. This approach accelerates onboarding, improves first-call resolution rates, exceeds SLAs, and creates positive feedback loops for team members.

Performance Benchmarks

  • World-class IT service companies: >90% SLA achievement
  • Average performance: ~75%
  • Underperforming companies: 50% or below

If you’re below 75%, don’t try to fix everything at once. Start with the dispatcher role, build your documentation, and establish escalation paths. The SLA numbers will follow.

TK

Todd Kane

Founder of Evolved Management. Helps MSP operations leaders build teams that run without them through group coaching, consulting, and operational frameworks.

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