Key Differences Between KPIs and SLAs

What are the differences between Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) and how are they linked?

A) Both measure customer satisfaction; KPIs are internal, and SLAs are external.

B) KPIs measure performance goals; SLAs define contractual service levels.

C) KPIs determine pricing; SLAs monitor employee performance.

D) KPIs are legal documents; SLAs track financial performance.

Final answer:

Option b

KPIs measure performance goals; SLAs define contractual service levels.

Explanation:

Key Performance Indicators (KPIs) are measures used to evaluate the success of an organization or an individual in achieving specific goals and objectives. They are used to track performance and identify areas for improvement.

Service Level Agreements (SLAs), on the other hand, are contractual agreements between a service provider and a customer that define the expected level of service to be provided. SLAs typically include metrics and targets related to response time, resolution time, uptime, and other service-related parameters.

While both KPIs and SLAs are related to performance measurement, KPIs are more focused on internal goals and objectives, while SLAs are externally focused and relate to the contractual obligations between a service provider and a customer.