Specifying review periods, penalties, and rewards for an agreement

Review periods indicate how often compliance should be calculated for a specific agreement. It is the period of time over which your agreement must reach the compliance target specified in the Related Service Targets tab. 

For example, if your compliance target is 98 percent, and you select Daily for your review period, your agreement must be compliant 98 percent of the time on a daily basis; if you select Weekly, your agreement must be compliant 98 percent of the time for the week.

The Review Periods and Penalties Rewards tab enables you to set review periods and to specify the penalties and rewards for missing or achieving objectives. Typically, no penalties are involved for operational level agreements.

You can define penalties for noncompliance of an agreement, and rewards for meeting and exceeding the specified goals. These penalties and rewards are determined for each review period at the end of the period. You set the percentage range for a compliance target in the Service Level Management Console, along with the monetary amount and the review period. This data is also shown in reports. 

Examples

Example 1: An SLA must be 99 percent compliant; you can set a penalty of $1,000 that is incurred for the review period if the compliance falls between 95.00 and 98.99 percent. If the compliance falls between 92.00 and 94.99 percent, the penalty is $3,000 for the review period. 

Example 2: If your compliance target is 98 percent on a daily basis, you might want to set a penalty for a compliance range of 96 percent to 97.99 percent of $300.00 on a daily basis. For a compliance range of 92 percent to 95.99 percent, you might want to set a more severe penalty of $600.00 per day. You might also want to add a reward of $300.00 if the compliance reaches 99 percent to 100 percent for a day.

The Penalties and Rewards table lists only those penalties or rewards that have the review period selected in the Review Periods table.

Before you begin

Make sure the service level administrators have configured the agreements and attached service targets to them. For more information, see the following topics:

Configuring-agreements

Relating-service-targets-to-an-agreement

To set review periods

1. Log on to the Service Level Management Console.
2. On the Agreements tab, select an agreement.
3. Click View.
4. Select Review Periods and Penalties Rewards.
5. Click the Add Review Period arrow located above the Review Periods table.
6. Select a review period from the list.
   When you select a review period, details of the title, frequency, and the time for the review to take place appear in the table.
   For information on configuring review periods, see Configuring review periods for agreements.
   Your administrator might have configured additional review periods. The following are the defaults:
   • Daily
   • Weekly
   • Monthly
   • Quarterly
7. Add as many review periods as required.

To remove review periods

1. Log on to the Service Level Management Console.
2. On the Agreements tab select an agreement.
3. Click View.
4. Select Review Periods\Penalties Rewards.
5. Select a review period in the Review Periods table and click Remove.

To add a penalty or reward to an agreement

1. Log on to the Service Level Management Console.
2. On the Agreements tab, select an agreement.
3. Click View.
4. Select Review Periods and Penalties Rewards and click Add.
5. In the Compliance Range fields, enter the upper and lower limits, in percentages, within which the penalty or reward applies.
   The lower limit must be entered in the left field and the high limit in the right field.
6. Select a Type from the list as Penalty or Reward.
7. Enter a monetary amount in the Amount field.
8. Click the arrow to select a currency from the list.
   This amount is the reward or the penalty applied when the compliance for the agreement reaches a certain range.
9. In the Frequency field, enter the review period in which the compliance is calculated when assessing whether the agreement is in compliance or breached.
10. Save your penalty or reward.
11. Repeat this procedure to enter as many penalties or rewards as necessary.

To display penalties and rewards

1. Log on to the Service Level Management Console.
2. On the Agreements tab, select an agreement.
3. Click View.
4. Select Review Periods and Penalties Rewards.
5. Click the Show by Frequency arrow located above the Penalties and Rewards table.
6. Select the frequency of the penalty and reward that you want to display.
   The penalty or reward details appear in the table:
   • Compliance From and Compliance To—Lower and upper limits of the percentage range within which the penalty or reward is incurred.
   • Amount—Monetary value of the penalty or reward.
   • Type—Penalty or a reward.
   • Frequency—How often the assessment is made.

To modify a penalty or reward

1. Log on to the Service Level Management Console.
2. On the Agreements tab, select an agreement and click View.
3. Select Review Periods\Penalties Rewards.
4. Select a penalty or a reward from the Penalties and Rewards table.
5. Click View to display the Penalty and Rewards dialog box.
6. Make your changes to the Penalty or the Reward and click Save.